A North Carolina advisory council appointed by Gov. Josh Stein is weighing whether to recommend that lawmakers legalize marijuana sales through state-run stores supplied by a state "central cannabis warehouse," while leaving cultivation and manufacturing to private businesses. The council's Market and Regulatory Subcommittee met on Friday to discuss options for structuring production, distribution and retail tiers, according to a document accompanying the meeting agenda, and has not made a formal recommendation to the legislature.
North Carolina panel weighs state-run marijuana stores fed by a central state warehouse
A North Carolina advisory council appointed by Gov. Josh Stein is weighing whether to recommend that lawmakers legalize marijuana sales through state-run stores supplied by a state "central cannabis warehouse," while leaving cultivation and manufacturing to private businesses. The council's Market and Regulatory Subcommittee met on Friday to discuss options for structuring production, distribution and retail tiers, according to a document accompanying the meeting agenda, and has not made a formal recommendation to the legislature.
The document says the panel is considering a model in which the "state exclusively controls the retail channel while private businesses remain responsible for cultivation, manufacturing/processing, and wholesale distribution." It describes the approach as a hybrid combining North Carolina's current "regulatory architecture and experience with state-controlled liquor retail" with Quebec, Canada's "exclusive cannabis retail channel" and its "explicit objective of moving consumers into the regulated market."
Under the options described, cultivation and manufacturing would carry multiple license types, including one for small-scale craft farms and a standard license for larger commercial operations, plus a license for manufacturers and processors who buy cannabis from cultivators. At wholesale, the panel is weighing three approaches: licensing private entities that compete for producers' business to supply a state retail system; the state operating a "central cannabis warehouse" analogous to one run by the North Carolina Alcoholic Beverage Control Commission; or a hybrid of regulated private wholesale, a state central warehouse and state-controlled retail. For retail, it is considering creating a new North Carolina Cannabis Control Commission or assigning retail control functions to an existing state entity with a separate state cannabis retail corporation or system.
The document states the objective is "bringing consumers into and keeping them in the legal market without encouraging cannabis consumption," and specifies that "state-controlled does not have to mean state-set pricing." It lists two options for state-controlled stores: centralized state retail with a state-run corporation and stores, or decentralized control similar to the state's handling of alcohol, with a state commission, local boards and stores. The meeting included a presentation from the NC ABC's Renee Metz.
The document also lists "important elements" for consideration, including protecting the three-tier system from vertical integration, requiring state product approval, craft farms, control of the retail footprint, a role for local governments and a closed-loop financial model. It poses questions for discussion, among them whether North Carolina should use a three-tier structure modeled on its alcohol system, whether cultivation and manufacturing, wholesale distribution and retail ownership should be separated, whether retail cannabis should be sold exclusively through state-controlled stores, whether the state should use a centralized warehouse, private licensed wholesalers or a hybrid, how a craft farm license should be structured, what forms of vertical integration and common ownership should be prohibited, how the state should set retail prices and adjust them in response to the illicit market, and what role local governments should have in determining where state cannabis stores operate.
The subcommittee's discussion comes as a new poll shows North Carolinians strongly support legalizing medical marijuana and a majority support legalizing cannabis for recreational use, according to the source. The governor has continued to press the GOP-controlled legislature for marijuana reform; last month he called on lawmakers to legalize and regulate cannabis in a way that "protects kids," and lawmakers this week are considering a bill to restrict hemp THC products. In a social media post, he said lawmakers are considering legislation that "aims to eliminate the Wild West that is North Carolina's THC market." The governor has repeatedly called for broad legalization and regulation of cannabis, while GOP legislative leaders have been more interested in the narrower hemp issue.
A bill to restrict hemp and kratom products recently approved by the Senate awaits potential action in the House. Lawmakers have considered legislation to legalize medical cannabis over the last several sessions, with the Senate approving several proposals and the House refusing to follow suit, according to the source. North Carolina's Senate president pro tempore recently said lawmakers will take a more serious look at legalizing medical marijuana following the Trump administration's move to reschedule cannabis at the federal level.
The Advisory Council on Cannabis issued a report in April initially recommending that the state move away from a criminalization-based approach toward a system of "robust" regulations providing adults legal access to THC products. It said the current "absence of regulation for North Carolina's intoxicating cannabis market raises numerous concerns," noting that hemp products are readily available yet largely unregulated and that marijuana remains prohibited in the state even for medical use. "Compared to regulated marijuana frameworks in other states, this environment presents identifiable risks," the interim report says. "While some operators voluntarily implement consumer protection protocols, these safeguards are not required under state law." Members are tasked with developing and submitting initial recommendations on a "comprehensive cannabis policy, including any proposed legislation," with a final report due by December 31.
During his time as the state's attorney general, Stein led a separate task force under then-Gov. Roy Cooper (D) that examined racial injustice issues and ultimately recommended decriminalizing marijuana and studying broader legalization in response to racially disparate enforcement trends. The Eastern Band of Cherokee Indians launched the state's first marijuana dispensary in 2024 despite the protests of certain Republican congressional lawmakers. Democratic lawmakers recently filed legislation to allow voters to decide whether to legalize marijuana for personal or medical use at the ballot box this November, and bipartisan North Carolina lawmakers have been stepping up the push for psychedelics reform legislation.
- The source does not identify the poll, its pollster, the dates it was conducted, its margin of error, or the levels of support it found for medical and recreational legalization.
- The source does not state the outcome of the subcommittee's discussion, whether any member opposed the state-run retail model, or when the council will vote on a formal recommendation.
- The source does not give the calendar date of the subcommittee meeting, describing it only as Friday, or the year of the December 31 deadline for the council's final report.
- The source does not name the Senate president pro tempore in the passage reporting his remarks on medical marijuana legalization, and does not state when he made them.
- The source does not state the House leadership's position on legalizing cannabis, why the House declined to take up the Senate's medical cannabis proposals, or when those Senate votes occurred.
- The source does not state the basis on which certain Republican congressional lawmakers protested the Eastern Band of Cherokee Indians' dispensary.
- The source does not describe the contents of the Senate-approved hemp and kratom restriction bill or say when the House might act on it.
Read the original at Marijuana Moment