North Carolina lawmakers rush to rewrite hemp legislation

North Carolina lawmakers rush to rewrite hemp legislation

Republican lawmakers in North Carolina are negotiating whether intoxicating hemp products — including gummies, vapes, seltzers and flower — should remain legal after new federal restrictions take effect in November.

Why it matters: Without a state carveout, many hemp-derived THC products could disappear from North Carolina shelves this fall, threatening businesses across the state.

The latest: A small group of senators and representatives are currently negotiating House Bill 328 behind closed doors.

  • The year-old bill was taken up again late last week after budget negotiators failed to reach a broader agreement on hemp policy.

    • What they're saying: "I know some members are working on it now, and so I hope that we take some action before we're done," House Speaker Destin Hall told reporters Wednesday.

  • "We're having those conversations; not quite at agreement," Senate leader Phil Berger said separately, adding that he too was hopeful.

    • State of play: Federal spending legislation set a 0.3% THC limit for hemp products in an attempt to weed out the products that make people feel high. It would doom most non-CBD products sold today at gas stations, dispensaries, bars and restaurants.

  • The ban takes effect this November, leaving cannabis companies in limbo even as many support tighter regulations.

    • Zoom in: As currently written, the state bill limits hemp sales to people 21 and older, and applies the same 0.3% THC restrictions as the feds.

  • Chris Karazin, CEO of Carolindica, a hemp company with around 35 employees, says that "no hemp company can survive this bill" as currently written.

    • Case in point: Les Stewart, co-owner of Trophy Brewing, tells Axios the company will likely stop making THC seltzers this month.

  • "We knew when they passed the federal funding legislation that put the deadline in place for November that something had to give. But that hasn't happened," Stewart says.
  • Selling THC seltzers helped Trophy navigate a slumping craft beer industry, but Stewart says he feels "bad for other investors that are going to lose their whole business."

    • What's next: The House and Senate both meet Thursday.