Dozens of bars, breweries, and other businesses that sell hemp and THC beverages are asking state lawmakers to change a pending bill that could ban most hemp products in North Carolina.
The state House could vote as soon as next week on legislation that would ban the sale of products that contain more than 0.4 milligrams of THC — a move that would match a federal change set to take effect in November.
The newly formed group, called NC Hemp Businesses for Responsible Regulation, is asking the legislature to take a different approach to addressing the largely unregulated hemp and THC market. The business owners plan to visit the legislature Tuesday to make their case.
"It would be like if you said, 'We're not banning beer, you can still have 0.1% ABV.' That's a ban," said Reilly Dunn, who owns the Raleigh-based hemp beverage producer and distributor Groovewagon. He says senators likely didn't understand that portion of the bill when they voted on it shortly after the language was introduced.
The hemp business group says the current bill – which passed the state Senate earlier this month – jeopardizes businesses that offer hemp products, estimating the industry's economic impact in North Carolina at $3.2 billion annually and 16,000 jobs.
"0.4mg THC per container wipes out 95% of ALL consumable hemp products, including most non-intoxicating ones," the group said in a letter to House legislators. "We urge the House to reject HB 328 and further urge our state legislature to enact COMMON-SENSE hemp laws and regulations. Because prohibition only moves demand underground and worsens public health and safety."
The group is calling for regulations that ban sales to people under age 21, which is also included in the bill and other proposals that have moved in the legislature this year. Most of the businesses already don't sell to customers under 21, Dunn said.
The letter from businesses comes days after multiple law-enforcement groups and district attorneys wrote to House members urging the passage of the bill next week. They say quick action is needed to keep the products away from young people.
While the current version of House Bill 328 is a conference report signed by several leading House Republicans, House Speaker Destin Hall says the Republican caucus still needs to discuss if it wants to pass this version of the bill.
Businesses signing the letter include Tryon Distributing and NoDa Brewing in Charlotte, Natty Greene's Brewing Company in Greensboro, Trophy Brewing and Hibernian Hospitality in Raleigh, Southern Pines Growler, Foothills Brewing in Winston-Salem, and Oasis Botanical Lounge in Carrboro.
Craft breweries have seen sales decrease in recent years as some consumers turn away from alcohol, and many have begun selling THC and hemp drinks as their popularity grows. THC drinks have also joined the beverage menu at many restaurants in the state.
"Our industry consists largely of small businesses, including 6,000 retail stores, though more recently we've welcomed major entrants like homegrown grocery chains Lowes Foods and The Fresh Market, our state's largest adult beverage distributors and now 40% of our craft breweries, along with others actively planning and preparing to enter the hemp market," the letter says. "There are also thousands of hospitality businesses in North Carolina currently serving hemp products to adults."
Supporters of the legislation argue that the 0.4-milligram THC limit simply matches federal regulations set to take effect in November. But Dunn says momentum is growing in the Trump Administration to make major changes before then.
If the North Carolina ban becomes law, "we're going to permanently lock ourselves into a more regressive standard that is opposed to what the White House wants to see," he said. "How can you possibly call yourself a limited government conservative?"
Dunn says hemp businesses and supporters plan to fill the Legislative Building on Tuesday, in a scene that could be similar to the push from the shrimp industry to kill a Senate-backed ban on inshore shrimp trawling last year.
"We're going to try to have as many meetings as we can, and be in the building and just put some stories and faces to this thing in front of electeds — directly, without working through lobbyist intermediaries, because we don't have those," Dunn said.
