Part I.

Amends GS 90-95(d)(4) making possession of a controlled substance classified in Schedule VI (marijuana and tetrahydrocannabinols) an infraction, rather than a Class 3 or Class 1 misdemeanor based on quantity. Maintains that if the quantity possessed exceeds one and one-half ounces of marijuana or three-twentieths of an ounce of hashish, or any quantity of synthetic tetrahydrocannabinols or tetrahydrocannabinols isolated from the resin of marijuana, the offense is punishable as a Class I felony. 

Enacts GS 15A-145.8B to establish automatic expunction for misdemeanor possession of marijuana or hashish convictions by December 1, 2023. Directs the clerk of superior court to determine which cases meet the criteria for expunction, order expungement for each case finalized in his or her court, and forward the petition to the Administrative Office of the Courts (AOC). Provides for the effect of the expungement regarding liability for failure to acknowledge any expunged entries concerning apprehension, charge, or trial. Additionally requires the court to order the conviction order expunged to be expunged from the records of the court and direct law enforcement agencies bearing record of the same. Requires the clerk to notify State and local agencies of the court's order pursuant to state law, excluding DNA records and samples stored as specified. Provides for expungement of related records from any other State or local government agency, and reversal of any administrative action taken against a person whose record is expunged as a result of the charges or convictions expunged.

Effective December 1, 2021.

Part II.

Directs UNC-Chapel Hill School of Government (SOG) to study (1) which Class 3 misdemeanor offenses have a low impact on public safety, (2) whether the offenses should be reclassified as infractions, and (3) whether low-level traffic offenses should be moved to the Administrative Code and enforced as civil violations by the Division of Motor Vehicles or the Department of Public Safety. Requires consultation with the NC Sentencing and Policy Advisory Commission. Requires SOG to report to the specified NCGA committee by March 7, 2022. 

Part III.

Appropriate $4.2 million in recurring funds from the General Fund for each fiscal year of 2021-23 to AOC to be used to support the NC Drug Treatment Court Program in creating and sustaining local drug treatment court programs.

Appropriates $4.2 million in recurring funds from the General Fund for each fiscal year of 2021-23 to AOC to be used to facilitate the creation and funding of new and existing mental health court programs to recommend mental health treatment plans for individuals served by the programs and monitor the progress of the individuals receiving treatment while remining in the program.

Effective July 1, 2021.