North Carolina bill limits THC in hemp-based products 

ELSA OLOFSSON | UNSPLASH

House Bill 328 would limit THC levels to 0.4 milligrams in hemp-derived drinks and edibles in North Carolina in addition to setting the age for buying such products to 21. The bill passed the Senate but has yet to be voted on by the House of Representatives.

North Carolina lawmakers are pushing to limit hemp-derived THC products.

The House Bill 328, titled “Regulate Hemp-Derived Consumables,” would limit THC levels to 0.4 milligrams in drinks and edibles while raising the age to buy such products to 21. If it becomes law, it will make North Carolina an outlier even if federal law were to change in the future.

The Senate passed the bill with a bipartisan 37-6 vote earlier this month. The House has yet to vote.

“The personal loss that has occurred across the state of North Carolina as a result of these products is such that we just could not and should not delay any further,” Senate Leader Phil Berger told reporters. “We have gotten to such a point where doing nothing was not an option.”

Jack Sherrie, CEO of Delta Beverages, which manufactures and sells hemp-based THC drinks ranging from 5-20 milligrams, opposes the bill but plans to pivot in case it becomes law. 

“We have over 50 employees that currently work at Delta,” he said. “Then we have more than 80 different distributors across the country. We have aggressively been coming up with a new plan to comply with these guidelines. It is tough because we built our business around THC and hemp THC has a lot of therapeutic benefits that people look for. But we have to look forward.”

THC is shorthand for tetrahydrocannabinol, the primary psychoactive compound found in cannabis responsible for the intoxicating “high” feeling. It interacts with the body’s endocannabinoid system to alter mood and perception while also offering medical benefits for pain and nausea relief. 

“We know the plant inside and out,” Sherrie said. “There are other components to the plant that do offer therapeutic effects that are not cannabinoids, and we are in the process of developing a new product that we believe will be successful. We have to support our team. We’ve got to support all the employees and everybody that believes in Delta. So, we don’t have a choice. Luckily, we are extremely resilient. We know this industry inside and out. I’d say we are the adults in the room when it comes to THC beverages.” 

HB 328, sponsored by Reps. Carla Cunningham (U-Mecklenburg) and Republicans Donny Lambeth (Forsyth), Donnie Loftis (Gaston), and Larry Potts (Davidson), was originally intended to ban hemp products on school grounds. The bill was amended in the Senate to regulate content and raise the buying age.

HB 328 would reshape the legal landscape for retailers and manufacturers as well as re-introduce significant civil and criminal penalties for violations. Businesses that fail to adapt would risk fines, criminal liability and sustainability. 

“This would ultimately shut us all down,” Sherrie said. “We wouldn’t be able to sell products anymore. Thousands of jobs are at stake. Tax revenue for Charlotte and the state would be cut off. We’ve calculated it as an industry, and it is in the hundreds of millions of dollars [lost in tax revenue]. I don’t think a lot of senators really understand the implications of cutting off THC.”

Sherrie said the bill is disguised as regulating THC products, when in reality what it will do will eliminate them.

“It is really just banning everything in the industry for people,” he said. “A lot of senators, it’s not their fault – they are just not educated on the category. And this is really complicated; it isn’t easy to grasp. When I sought out to get into hemp-based THC beverages … my thought process going into it was this is already a complicated thing. There’s already a three-tiered system for alcohol in place. We just need to live inside it.”

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