03-12-2025
Changes may soon be coming to North Carolina's booming hemp industry, which has thrived in recent years thanks to the state's lack of restrictions, oversight and safety standards for intoxicating weed-like products.
Why it matters: North Carolina remains one of just a handful of states where marijuana — medical or not — remains illegal. At the same time, it's among the most lenient for its regulation of products extracted from hemp, some of which can provide a weed-like high.
That lack of regulation has given way to a situation in which anything goes: Dispensaries, bars, bottle shops, restaurants and even pizzerias across the state can sell an array of intoxicating products without age restrictions.
The big picture: If a hemp bill filed Tuesday becomes law, it will transform the state's hemp industry, which has largely remained unchecked since 2022.
That year, the General Assembly passed legislation bringing the state in line with federal regulations on hemp, declassifying it as a controlled substance so long as the dry-weight product contains less than 0.3% of the psychoactive component of marijuana, delta-9 THC.
Driving the news: State Sens. Todd Johnson, Danny Britt and Michael Lazzara filed a 16-page bill Tuesday that would crack down on the manufacturing, sale and distribution of hemp.
The legislation would make it illegal for stores to sell consumable hemp-derived products to anyone under 21 or for anyone under 21 to possess the products. Additionally, the products would be prohibited on school grounds.
The bill would also require licenses for hemp manufacturers, distributors and sellers, and it would mandate that manufacturers test the products for heavy metals, pesticides and other toxic substances.
What they're saying: Among the states that are considering hemp legislation, North Carolina's bill "is one of the best — if not the very best — hemp bills in the country," cannabis advocate and business law attorney Rod Kight told Axios by email.
"It supports the state's existing hemp industry while also creating appropriate guardrails to prevent minors from accessing hemp products, mandating safety standards, and requiring specific labeling and marketing information so that adults can make informed decisions about the hemp products that they choose to purchase and use."
The intrigue: House Rules Chairman Rep. John Bell, who is the president of CBD and hemp manufacturer Asterra Labs, has been involved in discussions about the legislation.
Bell attributes his involvement to the fact that he is the only person in the industry in the state legislature, however he wasn't familiar with the details of the final version of the bill, he told Axios.
Asterra has a "pharmaceutical-grade clean facility where you can eat off the floor," Bell told WUNC last year, but it's "competing in the same market space as a guy who's making it in their backyard."
The Senate's proposal this year could put those backyard manufacturer types out of business, as it would ban home-based manufacturing.
Bell argues that, though there aren't many companies in the state doing what Asterra does, the legislation won't necessarily be a slam dunk for his company: New licensing fees would cost Asterra money and require changes to how it packages its products, for example.
Still, Bell said he'll seek an advisory opinion from the State Ethics Commission, which gives advice to legislators and other public servants on issues including conflicts of interest.
Zoom in: As of now, the state has no limits on cannabinoids with psychoactive effects much like those of THC, such as delta-8 — which is often seen in products on shelves across the Triangle — THC-O, HHC, THC-A, delta-7 and delta-10.
The cannabis plant has more than 100 cannabinoids. Some of them are psychoactive, while others, like CBD, are not.
The Senate's proposal would set dosage limits for a handful of cannabinoids — delta-7, delta-8, delta-9 and delta-10 — but would not set limits on other psychoactive cannabinoids.
For edible products, like gummies, a serving could not contain more than 75mg of delta-7, delta-8, delta-9 or delta-10. Liquid products, like drinks, could not have more than 25mg per serving.
Zoom out: "North Carolina is widely perceived to be the best hemp state in the country due to its long history with hemp and also its support for the hemp industry," Kight told Axios.
"Over the years, the state's hemp-friendly laws and overall pro-hemp environment have resulted in NC being the home base for many of the world's top companies," he wrote in a blog post Tuesday after senators filed the bill.
State of play: In 2023, UNC School of Government professor Phil Dixon told WFAE the hemp market in the state was the "wild west."
Since then, the industry has only grown: Hemp-derived edibles, drinks and joints with psychoactive effects are in some of Raleigh's favorite restaurants, bottle shops and stores.
"If anything, we are more in the Wild West than we were in '23," Dixon told Axios.
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