(The Center Square) – Legislation to legalize medical marijuana in North Carolina is moving to the Committee on Rules and Operations of the Senate after approval from two committees this week.
Lawmakers on the Senate Finance Committee on Wednesday approved Senate Bill 3, known as the North Carolina Compassionate Care Act. The measure got approval from the Senate Judiciary Committee on Tuesday.
The bipartisan measure is sponsored by Republican Reps. Bill Rabon of Brunswick County and Michael Lee of New Hanover County, as well as Democrat Paul Lowe Jr. of Forsyth County.
“The intent of this bill is to make only changes to existing state law that are necessary to protect patients and their doctors from criminal and civil penalties, and would not change criminal or civil law for the use of nonmedical marijuana,” Rabon said. “It’s a complex thing to do.”
SB3 would allow patients with specific qualifying conditions including cancer, epilepsy, post-traumatic stress disorder and others to possess and purchase marijuana from licensed dispensaries. Lawmakers in the Senate Judiciary Committee amended the bill Tuesday to clarify information required to be shared with police, mandate medical cannabis to be transported in closed containers, and to add a representative of the North Carolina Medical Board to the Compassionate Use Advisory Board tasked with overseeing medical marijuana.
The legislation would allow for smoking or vaping marijuana with a doctor’s prescription that designates the specific delivery method and dosages for patients, and would require doctors to reevaluate patients’ eligibility each year.
SB3 would provide for up to 10 medical marijuana suppliers to cultivate and sell cannabis, with each supplier allowed up to eight dispensaries. The dispensary cap in SB3 is double the figure included in similar legislation that passed the Senate but did not clear the House last session.
The bill would not allow for home cultivation, unlike many states that have legalized medical marijuana.
Wednesday’s Senate Finance Committee hearing on SB3 centered on the financial aspects of the bill.
Rabon told committee members supplier applicants would be required to pay a $50,000 nonrefundable fee, plus a $5,000 fee for each production or dispensary facility. Suppliers would also pay a monthly fee of 10% of gross revenue from sales at all medical cannabis centers operated by the supplier. Patient applications “shall not exceed $50 per application or renewal application,” the bill reads.
Cannabis lobbyist Chris Suttle, with CIC Consultants, raised concerns about vague language in SB3 that would require supplier applicants to prove they have sufficient assets to operate for two years, which he said will dissuade smaller businesses from applying.
Critics of the bill last session also repeatedly highlighted barriers to entry they claim would benefit corporate cannabis at the expense of local growers. Suttle claims state lawmakers have estimated required assets at $15 million to $50 million, while his research showed the average operating costs in states with medical marijuana at $10 million to $15 million over two years, depending on several factors.
“We don’t have a number,” he said. “There are so many qualifications in this bill worded that way.”
Representatives from the North Carolina Family Policy Council, God and Country Christian Alliance, and the Christian Action League all testified in opposition to SB3 in the finance committee. They cited research on associated health risks, from lung disease to intoxicated driving, as well as increased Social Security disability costs in states that have approved medical marijuana.
Legalization proponents expect SB3 to clear the Senate, then to face stiffer opposition in the House, as was the dynamic last year. However, House Speaker Tim Moore, R-Cleveland, recently told the media he believes new members in the lower chamber could improve the legislation’s chances for passage this year.
Senate Leader Phil Berger, R-Rockingham, has also praised last year’s legislation, while Democratic Gov. Roy Cooper has signaled support for medical marijuana legalization, as well.
