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SB 937

Marijuana and Vapor Products Reform.

2025-2026 Session Introduced by Jim Burgin

Decriminalize possession of five grams or less of marijuana while expanding age verification, taxes, and enforcement across vapor, marijuana, and related products.

Passed 1st Reading
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WeVote Research Nonpartisan
Bill Summary · SB 937

Summary of SB 937 (Session 2025) – Marijuana and Vapor Products Reform (North Carolina)

Note: This summary presents the bill’s main purpose, key provisions, who would be affected, and notable timelines. It reflects the text as filed in April 2026 and any stated effective dates within the bill.

1) Purpose and Intent

SB 937 seeks a broad package of reforms related to marijuana, hemp, vapor/alternative nicotine products, and related regulatory and enforcement structures. The core elements include:
- Decriminalizing possession of five grams or less of marijuana.
- Aligning North Carolina’s hemp definition with the federal standard and restricting certain THC/cannabinoid products.
- Increasing penalties for manufacturing and selling marijuana in certain contexts.
- Raising the age for purchasing tobacco, vapor, and consumable products.
- Increasing excise taxes on vapor products and marijuana-related taxes.
- Expanding Alcohol Law Enforcement’s (ALE) subject-matter jurisdiction and funding related to evidence storage and staffing.
- Administrative updates to the vapor products directory and related regulatory framework.
- Potential impacts on youth access controls and compliance checks.

2) Key Provisions and Changes

A. THC/Marijuana Provisions (Part I)

  • Decriminalization: Possession of 5 grams or less of marijuana would be decriminalized. The bill creates a specific threshold below which possession would not be treated as a crime under certain offenses.
  • Hemp Definition Conformity: The state definition of hemp would be aligned with the federal definition, including a 0.3% total delta-9-THC limit on a dry weight basis. The bill preserves several exclusions (e.g., seeds, certain intermediate products, and certain cannabinoids/totals in final products) and defines “intermediate hemp-derived cannabinoid product.”
  • Schedule VI Revisions: Marijuana remains a listed substance under Schedule VI, with nuanced references to delta-9-THC concentration thresholds, and transitional language for certain products.
  • Penalties: The bill enhances penalties for violations involving marijuana (e.g., trafficking-related provisions and penalties for certain marijuana-related offenses). It also retains the 5-gram, no-remuneration transfer as not constituting delivery in certain sections, but overall tightens criminal liability for larger-scale or certain prohibited activities.

Effective Date for Part I: December 1, 2026 (applies to offenses committed on or after that date).

B. Strict Liability for Vapor Products and Marijuana (Part II)

  • The bill imposes strict liability exposure for manufacturers/sellers of vapor products, consumable products, and marijuana in product liability actions (G.S. 99B-1.1 and related sections).
  • Warranty and inspection framework: Adds privity/inspection provisions limiting certain product liability suits unless certain conditions apply, with specific carve-outs.
  • Effective Date: Part II applies to causes of action arising on or after October 1, 2026.

C. Youth Access to Tobacco/Vapor/Consumable Products (Part III)

  • Definitions: Clarifies terms for consumable products, vapor products (including “smart” vapor products), and related devices.
  • Age Prohibitions: Expands age-based prohibitions to include vapor products and consumable products, requiring age verification and imposing criminal penalties for violations (Class G felony for unlawful purchases by under-21s; Class 2 misdemeanor for certain sales to under-21s).
  • Postings and Compliance: Requires prominent posting of age-restriction notices at points of sale, training for retailers, and various defenses related to age-verification systems.
  • Vending and Internet Sales: Prohibits noncompliant vending machines and requires age-verification for internet sales.
  • Deferred Prosecution/Discharge: Allows for deferred prosecution or conditional discharge for misdemeanors under this section in certain circumstances.
  • Effective Date: December 1, 2026 for offenses arising on or after that date.

D. Tax Law Changes (Part IV)

  • Vapor Product Tax: Repeats/defines vapor product tax components, including a rate of 10 cents per milliliter (the text shows “5¢ (10¢) per milliliter” which may indicate a proposed range or adjustment; exact rate language should be clarified in the enrolled bill).
  • Allocation of Vapor Tax Proceeds: Net proceeds directed 50% to foster care programs via DHHS and 50% to public health education on health risks of vapor products.
  • Unauthorized Substances Tax: Establishes taxes on controlled substances, including marijuana-derived material and synthetic cannabinoids, with specified per-gram rates.
  • Effective Date: Taxes for certain provisions begin for tax years beginning on/after January 1, 2027.

E. Alcohol Law Enforcement Jurisdiction and Appropriations (Part V)

  • ALE Authority: expands subject-matter jurisdiction for ALE agents to include enforcement of regulations tied to alcohol permits, cannabis, tobacco-related statutes, and related offenses.
  • Funding for ALE: Specific appropriations for 2026-2027:
    • $750,000 recurring for evidence storage and disposal.
    • $2,500,000 recurring for hiring up to 37 full-time employees.
  • Effective Date: Subsections (b) and (c) become effective July 1, 2026; remainder of Part V becomes law when enacted.

F. Administrative Changes to the Vapor Products Directory (Part VI)

  • Contingent on SB 595 (2026): If SB 595 becomes law, this Part would implement definitions and compliance provisions for the vapor products directory, aligning terminology across agencies.
  • Compliance Checks: Grants ALE the authority to conduct unannounced compliance checks, publish results annually, maintain records, and seize noncompliant products.

G. General/Effective Date (Part VII)

  • Most provisions become effective when the act becomes law, with specific parts containing staggered effective dates as noted.

3) Who Is Affected

  • Individuals: Those possessing or purchasing marijuana (especially under the 5-gram threshold) and those under 21 seeking to purchase tobacco/vapor/consumable products.
  • Retailers and Manufacturers: Vapor product and consumable product manufacturers/sellers; marijuana distributors and retailers; retailers of tobacco products, vapor products, and consumable products subject to age-verification, compliance checks, and licensing requirements.
  • State Agencies: Department of Health and Human Services (DHHS), Department of Revenue, ALE, and other law-enforcement bodies; the vapor products directory and related regulatory infrastructure.
  • Public: Indirect effects on foster care funding, public health education, and disposal/storage of evidence.

4) Procedural and Timeline Aspects

  • Effective Dates:
    • Part I offenses: December 1, 2026.
    • Part II causes of action: October 1, 2026.
    • Part III offenses: December 1, 2026.
    • Tax-related changes: Tax years beginning on/after January 1, 2027 (for certain sections).
    • Portions of ALE provisions: July 1, 2026 (for certain subsections).
  • Appropriations: Specific recurring funding levels for ALE in 2026-2027 are set forth, with explicit allocations for evidence storage/disposal and staffing.
  • Administrative Alignment: Contingent on SB 595 for certain vapor-directory-related changes; otherwise, regulatory updates would follow standard rulemaking processes.

5) Observations

  • The bill combines criminal-justice, public-health, taxation, and regulatory modernization efforts in a single Act.
  • It introduces a dual approach: decriminalization for small marijuana possession while tightening controls and penalties for larger-scale or regulated marijuana activities.
  • Youth-protection provisions are strengthened through age-verification requirements and enhanced penalties for supplying underage individuals.
  • The bill expands ALE’s role and resources, signaling a more centralized enforcement framework across alcohol, tobacco, vaping, and marijuana-related activities.
  • Pricing and revenue implications include higher taxes on vapor products and marijuana-related tax components, with earmarked public-health and child-welfare uses.

If you’d like, I can provide a side-by-side comparison with current North Carolina law or extract specific sections for quick reference.

Compiled from official sources — confirm details with the bill’s official record.

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