The push to reopen the federal government could bring major changes to North Carolina’s hemp industry.
A part of the U.S. Senate’s spending bill, which passed Monday, bans the sale of some hemp-derived THC products.
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Eric Stahl, the owner of the Raleigh-based CBD and hemp store Modern Apotheca, said the move would stop him from selling many of the products on his store’s shelves.
“That law effectively would make 99% of the products in my store and 99% of the products in stores across the country illegal,” Stahl said.
Right now, the 2018 federal Farm Bill and North Carolina law allow the sale of hemp containing 0.3% Delta-9 THC by dry weight.
THC is a psychoactive compound found in hemp at low levels, according to the National Institutes of Health.
The bill lowers the amount of THC to 0.4 milligrams.
“If the House passes it, federal law will say hemp is the same as marijuana,” said hemp policy lawyer Patrick Oglesby. “It’s going to be life changing for the industry. You’ve got manufacturers in North Carolina who produce and sell nationwide. They’re not going to be able to sell nationwide and comply with the law.”
In October, North Carolina Attorney General Jeff Jackson was among 38 other attorneys general who signed a letter to Congress asking lawmakers to clarify current hemp laws, saying bad actors have exploited it because of a perceived loophole.
“Many of these products—created by manufacturers by manipulating hemp to produce synthetic THC—are more intoxicating and psychoactive than marijuana a Schedule I controlled substance and are often marketed to minors,” the letter said.
In June, Gov. Josh Stein announced a state advisory council to look into the cannabis market.
“Our state’s unregulated cannabis market is the wild west and is crying for order,” said Stein in a press release.
There are more than 1,500 licensed hemp producers in North Carolina, according to the state Department of Agriculture.
State Rep. John Bell IV, Wayne-Republican, is the president of hemp company Asterra Labs.
“Lots of concern, people are losing their business, craft brewers making drinks are going to [lose] large revenue amount, real-estate leases will be closed,” said Bell in a statement to WRAL News when asked for comment about the possible ban.
U.S. Sen. Ted Budd, R-North Carolina, supported the provision saying it prevents the sale of dangerous intoxicants while protecting non-intoxicating CBD and hemp derivative use.
Stahl believes more regulations are needed instead of sweeping changes.
“There’s very little you can do to ask those bad actors to play by rules that I as a small business want to play by,” Stahl said. “Every single hemp farm would have to burn their crop, burn their seed and start completely from scratch.”
On Monday, the U.S. Senate approved a funding measure to reopen the federal government. The U.S. House could vote on the plan as soon as Wednesday.
