North Carolina medical marijuana bill passes through three committee hurdles

(The Center Square) – Legislation to legalize medical marijuana in North Carolina could soon clear the Senate, following approvals from three committees this week.

Senate Bill 3, known as the North Carolina Compassionate Care Act, could soon receive a floor vote in the upper chamber after clearing the Committee on Rules and Operations of the Senate on Thursday. The bill was approved by the Senate Judiciary Committee on Tuesday and the Senate Finance Committee on Wednesday.

If approved by the Senate, the bipartisan bill would head to the House, where lawmakers declined to take up a similar measure last session. 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.

Gov. Roy Cooper has also signaled his support.

SB3, sponsored by Sen. Bill Rabon, R-Brunswick, would allow patients with specific qualifying conditions including cancer, epilepsy, post-traumatic stress disorder and others to possess and purchase marijuana from licensed dispensaries. The bill was amended in committee 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 last session.

The bill would not allow for home cultivation, unlike many states that have legalized medical marijuana.

The legislation faced criticism from cannabis advocates in committee, who pointed to the high cost for a limited number of supplier licenses. Applicants would pay a $50,000 nonrefundable fee, plus a $5,000 fee for each production or dispensary facility. Suppliers would also pay a monthly 10% fee on gross revenue from sales. Patient applications would cost no more than $50.

In addition, SB3 would require supplier applicants to prove they have sufficient assets to operate for two years, a provision some have argued is overly vague and would benefit corporate cannabis at the expense of local growers.

The North Carolina Family Policy Council, God and Country Christian Alliance, and the Christian Action League oppose the bill, citing research on associated health risks, as well as increased Social Security disability costs in states that have approved medical marijuana.

A partial fiscal analysis of the SB3 shows a five year estimate for revenues from patient card application fees and the 10% gross revenue fee to generate $44.4 million, while projected expenses would be $51.7 million.

The medical marijuana program would require a total of 284 new positions at the Department of Health and Human Services, State Bureau of Investigation and North Carolina Collaboratory, according to the analysis.

“Due to uncertainty about the behavior of suppliers and patients, Fiscal Research is unable to estimate the number of authorized entities that would engage in North Carolina’s medical cannabis market,” the report read. “Thus, Fiscal Research’s estimates of the project’s impact to the General Fund are uncertain.”

The analysis points out “it is anticipated that over time, patient and caregiver registry card application fee and gross receipt fees will generate most of the revenue associated with administering this program.”