Cannabis Business in North Carolina

The Status of the Cannabis Industry in North Carolina

North Carolina’s approach to medical cannabis remains highly restricted. While medical marijuana was legalized in 2015 through the North Carolina Epilepsy Alternative Treatment Act (House Bill 766), it only permits the use of low-THC cannabis, specifically for patients with intractable epilepsy. Cannabis products under this program must contain less than 0.9% THC, and the state’s medical marijuana program is managed by the North Carolina Department of Health and Human Services (NCDHHS).

However, North Carolina residents have broader access to medical marijuana through the Eastern Band of Cherokee Indians (EBCI), who run a more comprehensive program on their tribal land. This program, available to North Carolina residents aged 21 and older, allows for the issuance of medical marijuana cards. Purchases made through this program can only be consumed on EBCI tribal land, where all cannabis cultivation and manufacturing are controlled by the tribe.

EBCI-Controlled Cannabis Operations in North Carolina

Due to North Carolina’s restrictive cannabis laws, cannabis cultivation, manufacturing, and dispensing are limited. Only members of the Eastern Band of Cherokee Indians (EBCI) are legally permitted to engage in these plant-touching activities. The tribe's Cherokee-owned company, Qualla Enterprises LLC, oversees all cultivation and processing of cannabis products for their medical program.

Qualla Enterprises also operates Great Smoky Cannabis Co., which serves as the sole dispensary on EBCI tribal land, providing medical cannabis products to qualified patients. All cultivation, processing, and sales are conducted exclusively within EBCI territory, making it the only area in North Carolina where such plant-touching businesses can legally operate.

Ancillary Cannabis Businesses in North Carolina

Even with cannabis activity limited to tribal land, key ancillary services are critical for supporting businesses involved in cannabis operations.

• Insurance: Cannabis businesses on tribal land require insurance for property, liability, and worker protection. Cannabis-specific insurers help these businesses meet state and tribal standards.
• Banking: Traditional banking remains a challenge, but specialized institutions offer essential services like checking accounts and payment processing, tailored for the cannabis industry.
• Accounting: Cannabis businesses face complex tax regulations. Native American-owned businesses are exempt from federal taxes, but accounting services ensure compliance with other tax laws and proper financial management.
• Marketing: Cannabis businesses rely on marketing agencies that understand the industry's unique restrictions to develop compliant advertising strategies.

Other ancillary cannabis businesses include:

• Legal services
• Security providers
• Packaging and labeling companies
• Software and technology providers