“Lawmakers have an opportunity to build a regulatory framework that protects consumers while preserving access to products that millions of Americans already use.”
By Chris Karazin, Carolindica
Running a hemp business in North Carolina has become an exercise in navigating uncertainty. During the past year, it feels like I have spent almost as much time following legislation as I have serving customers, managing employees and planning for the future. Every new version of a bill brought new questions about what products we could legally sell and whether businesses like mine would still be operating the same way a year later.
The government legalized hemp through the 2018 Farm Bill, allowing businesses to manufacture and sell products that met the federal definition of hemp. Since then, the industry has grown rapidly, but regulation has not kept pace, and states have responded in different ways. Some created regulatory systems for testing, labeling and sales. Others pursued broad restrictions, arguing stronger limits were needed to address consumer safety concerns.
Congress is now considering the bipartisan Lawful Hemp Protection Act, legislation that would create a federal regulatory framework for many hemp-derived products. Instead of broadly prohibiting products, the proposal would establish national standards for testing, labeling, manufacturing and sales while allowing many hemp products to remain legal.
Lawmakers are still working through the details and several provisions deserve additional clarification. Even so, the proposal represents a meaningful change in how Washington is approaching hemp policy. Rather than focusing primarily on eliminating products from the marketplace, lawmakers are debating how the industry should be regulated.
A Lesson From North Carolina
Many people outside our state have never heard of House Bill 328. The legislation originally had a narrow purpose of keeping hemp products off school property, and responsible businesses across the state supported that goal from the beginning.
As the bill moved through the legislative process, lawmakers expanded it far beyond its original purpose. The latest version would prohibit most hemp-derived consumable products currently sold across North Carolina by adopting a much stricter federal THC standard. As written, the proposal would effectively remove many products that licensed hemp businesses legally sell today.
Confusion followed every major revision, and businesses struggled to understand what products would remain legal. Even the bill’s original sponsor was left out of the conference committee that negotiated the final version. Customers asked whether products they had purchased for years would disappear, while companies delayed investment decisions because they were waiting to see what lawmakers would do next.
North Carolina’s hemp industry contributes an estimated $4.4 billion to the state’s economy and supports nearly 20,000 jobs across more than 2,500 businesses. Behind those numbers are family-owned retailers, manufacturers, farmers, warehouse employees and countless small businesses that have operated legally while following the rules that existed at the time.
Responsible hemp businesses have never argued against regulation. Age restrictions, product testing, accurate labeling, manufacturing standards and enforcement all help create a safer marketplace for consumers and a stronger infrastructure for businesses to build upon. Companies that ignore those standards should face consequences.
However, uncertainty serves no one, and just pushes businesses to postpone hiring, while farmers have to question what crops they should even plant next season, which ultimately makes consumers lose confidence because they no longer know what products will remain available.
Congress Has An Opportunity To Build On Those Lessons
Congress now has an opportunity to learn from what states like North Carolina have experienced.
The Lawful Hemp Protection Act is still a work in progress and lawmakers should carefully examine every provision before moving forward. Product definitions, implementation timelines and several regulatory provisions deserve thoughtful discussion that accounts for the differences between products. For example, cannabinoids such as THCO, THCP and THCV are vastly different, but the average consumer or legislator likely will not know the distinction.
Clear regulations give businesses a standard they can meet while giving consumers confidence in the products they purchase. Consumers benefit from accurate labeling, testing requirements and consistent manufacturing practices. Regulators gain stronger oversight of the marketplace. Responsible businesses know what is expected of them and can invest with confidence.
Lawmakers have an opportunity to build a regulatory framework that protects consumers while preserving access to products that millions of Americans already use. Congress should also recognize that businesses need time and certainty to adapt to new requirements. Frequent policy changes make long-term planning difficult for everyone involved, including regulators, which is why stabilizing the regulatory framework early is so important. You can’t scale chaos.
Building Certainty For The Future
North Carolina’s debate demonstrated how quickly uncertainty and misinformation can spread when legislation changes dramatically over the course of a single session. Congress has an opportunity to avoid repeating that experience by creating clear, consistent rules that protect consumers while allowing legitimate businesses to continue operating.
Every industry benefits from predictable regulations. Hemp should be no different. Consumers deserve safe products. Businesses deserve certainty. Policymakers have an opportunity to deliver both.
Chris Karazin is the founder, owner & operator of Carolindica, a North Carolina-based hemp company. Since starting the business in 2019, Chris has overseen its development from a homegrown startup to a recognized cannabis brand with multiple retail locations, in-house manufacturing and a nationwide wholesale presence.
