Politics & Government

Hemp, CBD likely will be illegal in NC by Friday, barring last-minute legislative action

Rep. Jimmy Dixon speaks during debate on the Farm Act, Senate Bill 762, on Tuesday, June 28, 2022 in Raleigh, N.C. Dixon told lawmakers that hemp legislation was taken out of SB 762, and was included in Senate Bill 455, which passed the House and was sent to the Senate earlier this month.
Rep. Jimmy Dixon speaks during debate on the Farm Act, Senate Bill 762, on Tuesday, June 28, 2022 in Raleigh, N.C. Dixon told lawmakers that hemp legislation was taken out of SB 762, and was included in Senate Bill 455, which passed the House and was sent to the Senate earlier this month. rwillett@newsobserver.com

State lawmakers rebuffed two opportunities Tuesday to potentially uphold the legality of hemp production and sales in North Carolina.

Without last-minute intervention, the hemp industry — which includes production of several popular CBD products — will be illegal by Friday.

Hemp, a cousin of marijuana, has long sparked controversy. But while marijuana can contain high percentages of THC, hemp must by definition contain 0.3% or less. The plant’s production and distribution were legalized several years ago, but only under a probationary pilot program. That temporary authorization is scheduled to expire at the end of June.

Despite broad bipartisan support for maintaining hemp’s legality, potential solutions have stalled in the legislature.

Senate Bill 762, known as the 2022 Farm Act, was originally written with language removing hemp from the state’s list of illegal drugs, starting June 30. But the bill only made progress in the House of Representatives after the Agriculture Committee voted to remove sections on hemp last week.

In a unanimous vote Tuesday, the powerful House Rules committee supported the bill and elected not to reintroduce any hemp legislation. On the House floor shortly thereafter, Rep. John Ager, a Buncombe County Democrat, proposed an amendment to restore hemp protections. It failed.

Rep. John Ager introduces an amendment to restore hemp legislation to the Farm Bill during debate at the North Carolina General Assembly on Tuesday, June 28, 2022 in Raleigh, N.C. Ager’s amendment did not pass.
Rep. John Ager introduces an amendment to restore hemp legislation to the Farm Bill during debate at the North Carolina General Assembly on Tuesday, June 28, 2022 in Raleigh, N.C. Ager’s amendment did not pass. Robert Willett rwillett@newsobserver.com

If the hemp industry becomes illegal, hundreds of businesses and farms could lose their primary product. The state estimated recently that there were more than 1,500 hemp farms in North Carolina. They likely employ thousands of workers in rural areas.

Is there hope for hemp?

One bill still remains that could enact hemp protections before the industry becomes illegal.

Senate Bill 455 has already passed the House. Republican Rep. Jimmy Dixon, a Duplin County farmer who chairs the Agriculture Committee, has advocated for SB 455, saying it “completely fixes it, word-for-word what it would have been in the Farm Act.”

Still, legislators in the Senate and House seem to have reached an impasse.

“Our farmers are desperately worried,” Ager told lawmakers Monday as Brent Jackson — the Republican senator who authored the original Farm Act — looked on from the back of the chamber.

If hemp protections make it into law, they would not apply to marijuana. A separate medical marijuana bill is navigating this year’s legislature, but seems unlikely to progress. It passed the Senate with almost a unanimous vote, but has stalled in the House due to conservative opposition.

For more North Carolina government and politics news, listen to the Under the Dome politics podcast from The News & Observer and the NC Insider. You can find it at https://campsite.bio/underthedome or wherever you get your podcasts.

This story was originally published June 29, 2022 at 8:00 AM with the headline "Hemp, CBD likely will be illegal in NC by Friday, barring last-minute legislative action."

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Lars Dolder
The News & Observer
Lars Dolder is editor of The News & Observer’s Insider, a state government news service. He oversees the product’s exclusive content and works with The N&O’s politics desk on investigative projects. He previously worked on The N&O’s business desk covering retail, technology and innovation.
Will Doran
The News & Observer
Will Doran reports on North Carolina politics, particularly the state legislature. In 2016 he started PolitiFact NC, and before that he reported on local issues in several cities and towns. Contact him at wdoran@newsobserver.com or (919) 836-2858.
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