Hemp business owners and advocates for hemp legalization gathered in Raleigh on Monday for what could be their last chance to persuade North Carolina lawmakers to reject a proposal to ban certain hemp products.
The industry faces uncertainty on two fronts. Federal restrictions expected to take effect later this year could eliminate many intoxicating hemp-derived THC products. Hoping to avoid that outcome, North Carolina businesses have pushed lawmakers to adopt regulations — including age restrictions, product testing and licensing requirements — without broadly banning products already on the market.
Instead, the version of House Bill 328 — which was approved by the Senate last month and could be considered by the House as soon as Tuesday — largely mirrors the proposed federal restrictions. It would prohibit hemp products containing more than 0.3% THC by dry weight or more than 0.4 milligrams of THC per serving and limit sales to people 21 and older.
The Senate and House say North Carolina’s current laws leave children vulnerable and limit the ability to punish retailers who might sell products to kids. Democratic Gov. Josh Stein has also called on lawmakers to more strictly regulate the industry, backing age limits as the bill proposes. Stein has also called for broader legalization of cannabis products, including marijuana.
Opponents of the bill say those thresholds would wipe out the vast majority of hemp-derived products sold in North Carolina, including many CBD and THC products, affecting hemp-focused retailers and businesses such as breweries, restaurants and convenience stores that sell hemp products.
Organizers with the Regulate, Don’t Ruin campaign — a group of hemp business representatives and advocates — are trying to stop the bill from advancing. They say they support regulation of the products, such as age restrictions, licensing, laboratory testing and labeling requirements, but they oppose what they describe as a sweeping ban on legal hemp products.
Adrian Larrea, co-founder of Haze Beverages, a company that sells THC infused drinks, said she supports a statewide age restriction.
“The entire industry is 100% on the same page about age restrictions,” Larrea said. “We want to protect children, too.”
Reilly Dunn, owner of Groove Wagon and an organizer of Monday’s rally, said the legislation would destroy the business he operates with his wife and eight employees.
“HB 328 just ends my business come November,” Dunn said. “If this bill passes, we’re ended basically overnight.”
The Senate approved the bill last month after House and Senate Republicans reached a compromise on the key points of the legislation. But House Speaker Destin Hall, R-Caldwell, chose not to bring the measure up for a vote before lawmakers in his chamber adjourned for their monthlong summer break. The chamber returns to Raleigh on Tuesday and could take up the bill this week.
Because the proposal is contained in what’s called a conference report, House members cannot amend it on the floor. They must vote to either accept or reject the measure as written.
Some supporters of the measure emerged last week including law enforcement organizations and prosecutors across North Carolina, arguing the current marketplace has allowed intoxicating hemp products to proliferate with few statewide safeguards. They say the legislation would establish consistent standards for testing, licensing, packaging and youth access while restricting products they believe pose public safety concerns.
Hemp was federally legalized in 2018 and several North Carolina law enforcement officials argue state law has failed to keep pace with increasingly potent hemp-derived products.
Business owners say the legislation reaches far beyond intoxicating products and would disrupt a growing industry that has become an important revenue source for small businesses across the state.
Several breweries have introduced hemp-derived THC beverages as beer sales have declined, while restaurants and retailers increasingly market hemp beverages as an alternative to alcohol.
If approved by the House as-is, House Bill 328 would be sent to Gov. Josh Stein, who could sign it into law, veto it or allow it to become law without his signature.
Rep. Reece Pyrtle, R-Rockingham, and North Carolina law enforcement leaders were scheduled to hold a Tuesday news conference in support of stronger hemp regulations.