Part I.

Modifies the definition of Schedule IV controlled substance tetrahydrocannabinols under the NC Controlled Substances Act (Act) in GS 90-94 so that it now excludes tetrahydrocannabinols found in a product with a total tetrahydrocannabinols (including tetrahydrocannabinolic acid) concentration of not more than 0.3% on a dry weight basis. (Currently, excludes tetrahydrocannabinols found in a product with a delta-9 tetrahydrocannabinol concentration of not more than 0.3% on a dry weight basis.)

Adds container, intermediate hemp-derived cannabinoid product, and Secretary of Health and Human Services to the Act’s definitions in GS 90-87. Modifies hemp so it excludes (1) any viable seeds from a Cannabis sativa L. plant that exceeds a total  tetrahydrocannabinols (including tetrahydrocannabinolic acid) 0.3% on a dry weight basis and (2) the described hemp-derived cannabinoid products.

Makes violations of the Act with respect Schedule V controlled substances a Class I felony and the sale of those controlled substances a Class H felony under GS 90-95. Directs that a Schedule VI controlled substance will be punished as a Class G felony and subject to a fine of not less than $10,000 and revocation of a person’s business license if the violation occurred in further of a business organized in the State. Makes technical and organizational changes. Decriminalizes possession of 5 grams or less of marijuana. Makes possession of more than 5 grams of marijuana (currently, limit is more than one-half of an ounce (avoirdupois))  or the specified amount of hashish a Class 1 misdemeanor (currently, Class 3 misdemeanor). Increases the felony classes and fines for trafficking in: (1) marijuana amounts in excess of 10 pounds but less than 50 pounds and (2) dosage units in excess of 50 dosage units but less than 250 dosage units, both to a Class G (currently, Class H) felony with a fine of not less than $15,000 (currently, $5,000).

Applies to offenses committed on or after December 1, 2026.

Part II.

Imposes strict liability for manufacturers and sellers of vapor products, consumable products, and marijuana in GS 99B-1.1. Makes conforming changes. Makes conforming changes to GS 99B-2. Applies to causes of action arising on or after October 1, 2026.

Part III.

Raises the legal age for purchase, sale, or distribution of tobacco, vapor products, and consumable products from 18 to 21 under GS 14-313 (concerning youth access to such productors). Makes it a Class G felony for violations of the statute’s bar on the sale, purchase, or distribution of vapor products to those under 21 years of age. Exempts the distribution of vapor products or consumable products to an employee when required in the performance of their duties from the above prohibition.  Defines smart vapor product. Modifies defined terms tobacco and vapor product. Extends the existing signage requirements to retail distributors of vapor products and consumable products. Extends the remainder of the statutory provisions to vapor products and consumable products. Makes organizational, technical, and conforming changes. Applies to offenses committed on or after December 1, 2026.

Part IV.

Makes conforming change to GS 105-113.4F to account for changes to GS 14-313, above. Modifies vapor product in GS 105-113.4 (definitions pertaining to the Tobacco Products Act) to include smart vapor products (defined). Increases the excise tax imposed on vapor products under GS 105-113.36A from five cents per fluid milliliter of consumable product to ten cents per milliliter of consumable product. Requires the Secretary to credit the net proceeds of that tax as follows: (1) 50% to the Division of Social Services (DSS) of the Department of Health and Human Services (DHHS) to be used in foster care programs and (2) 50% to DHHS’s Public Health Division (DPH) for public health on the health risks associated with vapor products. Increases the excise tax under GS 105-113.107 (excise tax on unauthorized substances) from: (1) 40 cents to $1.50 for each gram, or fraction thereof, of harvested marijuana stems and stalks that have been separated from and are not mixed with any other parts of the marijuana plant and (2) from $3.50 to $13.13 for each gram, or fraction thereof, of marijuana, other than separated stems and stalks taxed above, or  synthetic cannabinoids. Effective for taxable years beginning on or after January 1, 2027.

Part V.

Expands the subject matter jurisdiction of alcohol law-enforcement agents under GS 18B-500 to include authority to take actions for criminal offenses encountered or otherwise discovered while investigating or enforcing the provisions of Article 5 of GS Chapter 90 and Part 3 of Article 4 of GS Chapter 143B.

Appropriates $750,000 in recurring funds from the General Fund to the Alcohol Law Enforcement Division (ALE) of the Department of Public Safety (DPS) for 2026-27 for evidence storage and disposal. Appropriates $2.5 million in recurring funds from the General Fund to ALE for 2026-27 to hire up to 37 full-time employees. Effective July 1, 2026.

Part VI.

If Senate Bill 595 of the 2026 Regular Session of the 2025 General Assembly becomes law (Senate Bill 595), then makes the following changes to GS 143B-245.10, as amended by Part IX of Senate Bill 595. Adds term ALE Division and modifies timely filed premarket tobacco product application. If Senate Bill 595 becomes law, then makes the following changes to GS 143B-245.15, as amended by Part IX of Senate Bill 595. Replaces references to “compliance checks” with “inspection.” Removes limitations that unannounced inspections have to be conducted within 30 days after any specified violation. Removes requirement that ALE has to perform an unannounced inspection upon report of a violation. Instead authorizes ALE to investigate the alleged violation and conduct an unannounced inspection if necessary. Makes conforming changes.

Part VII.

Effective when it becomes law, except as otherwise provided.