April 16, 2026
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An interim report released by the North Carolina Department of Health and Human Services’ Advisory Council on Cannabis, a bipartisan panel created by Gov. Josh Stein, warns that the current “hybrid market,” where both illegal marijuana and legal hemp-derived intoxicants are sold side by side, presents multiple risks.
The risks include a lack of consistent product testing and safety standards, difficulty for law enforcement in distinguishing legal hemp from illegal marijuana, and an increased risk of contaminants, mislabeled potency, and high-THC exposure.
“North Carolina’s intoxicating cannabis market currently exists in a dangerous policy gap that is neither true prohibition nor meaningful regulation,” the report states. “As a result, intoxicating cannabinoid products in North Carolina are unsafe, unregulated, and widely available.”
To address these concerns, the report recommends that North Carolina adopt legislation establishing a legal, regulated recreational cannabis market. Stein praised the group’s work and said the report offers a path forward for lawmakers.
“This report provides the General Assembly with guidance and makes clear that a well-regulated market, including both oversight and enforcement authority, is a safer market for our state,” Stein said. “Our state’s unregulated cannabis market today is the Wild West and is crying for order. Let’s get this right. Let’s protect our kids and create a safe, legal, and well-regulated market for adults.”
Despite these recommendations, some policymakers remain cautious about moving too quickly toward legalization.
At a Joint Legislative Oversight Committee on Health & Human Services on April 7, NC Sen. Jim Burgin, R-Harnett, stated, “I am very concerned about this commission on marijuana. Rural North Carolina, and I’ll use Harnett County as an area, we fight it all the time. We have people in involuntary commitment who are dealing with it… Here we are talking about spending money on rural health care and trying to make people healthier. And at the same time, we have a commission that’s recommending legalization of marijuana.”
State Rep. Reeder, R-Pitt, echoed those concerns, saying, “We talk about the first episode of psychosis and mobile opioid treatment. It’s remarkable that we’re going to put money into psychosis treatment and opioid treatment, and at the same time, we have a report out that is trying to legalize marijuana, when we know that there’s a four-times-higher likelihood of psychosis when young adults use marijuana. So, we’re funding money for a program that we’re getting ready to exacerbate.”
State health officials say the scope of North Carolina’s illegal cannabis market is far larger than many residents may realize.
The interim report estimates that in 2022, North Carolina’s illegal marijuana market had an approximate value of $3 billion, making it the second largest among US states that prohibit marijuana.
However, some observers remain skeptical of the accuracy and implications of such a large estimate, questioning how reliable the underground market numbers really are and what they mean for future policy.
Donald Bryson, CEO of the John Locke Foundation, voiced this skepticism, saying, “I think adults can make adult decisions. But when we’re talking about the legalization of marijuana, we’re not talking about just legalization. We’re talking about normalization. We’re talking about commercialization. I’m cautious about figuring out how we can generate tax revenue out of an industry that is technically underground. Like, how do you economically model off of that?”
While many states have adopted regulated medical or adult-use systems, North Carolina’s market has grown without a regulatory framework. North Carolina lawmakers have previously debated whether to legalize marijuana, but those efforts have repeatedly fallen short.
Previous legislative efforts in North Carolina have primarily targeted medical marijuana. However, the advisory council’s report questions whether limiting legalization to medical use would sufficiently resolve the state’s ongoing challenges.
The report states, “a medical-only cannabis market can create meaningful access barriers for some patients, particularly those in rural areas, individuals with limited transportation, lower-income patients, older adults, and those undergoing intensive treatment, for whom additional appointments, certifications, and travel requirements may make access to products more difficult.”
In 2024 and 2025, legislators also introduced multiple bills aimed at restricting youth access to hemp-derived THC, including proposals to set a minimum purchase age of 21, require retailer permits and mandate packaging and labeling standards. Despite bipartisan interest, none of those measures became law.
The state debate is unfolding as federal policymakers move to significantly tighten hemp regulations, potentially reshaping the market that currently dominates North Carolina.
Congress has approved changes to federal law that would redefine hemp to include “total THC,” rather than just delta-9 THC. If implemented, the changes could eliminate most hemp-derived THC products, impose strict THC limits on finished products, and force major adjustments for retailers and manufacturers.
The new rules are expected to take effect in August of this year.
The Advisory Council on Cannabis’s final recommendations are expected by December 2026.
State officials cite FEMA delays, funding gaps, and red tape as major hurdles in Hurricane Helene recovery across western North Carolina.
Gov. Josh Stein calls on the General Assembly to pass what he calls a “$1.4 billion critical needs budget” to cover key areas left unfunded without a biennial budget.
North Carolina’s primary election is off to a smooth start, with strong turnout reported statewide, according to State Board of Elections Executive Director Sam Hayes. During a Tuesday morning press conference, Hayes said tens of thousands of voters had already cast ballots during the early voting period, signaling solid participation ahead of Election Day.
Recent law enforcement activity in Union, Johnston, and Stokes counties is drawing attention to illegal activity inside some smoke and vape shops.
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