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‘Disguised as regulation’: Hemp businesses say bill to reopen government would destroy industry

CHARLOTTE — The spending debate to reopen the federal government could wipe out a multi-billion dollar industry by setting strict regulations on THC in hemp products.

Channel 9’s Ken Lemon spoke with a business owner who says if the U.S. House approves a spending bill that was passed by the Senate, he would have to close all of his stores.

Mike Sims says he has 100 people under his direct employment, and even more contracted workers. His warehouse in Charlotte supplies 19 stores with hemp products.

The almost-certain vote to reopen the government feels like a slow march to a business crash for Sims, the owner of Crowntown Cannabis.

“This will wipe out our entire livelihood,” Sims said.

The local business owner says he wants SNAP benefits to return, air travel to get back to normal, and for government employees to get paid. But he says most people don’t know about the cannabis regulation added to the budget bill.

“This is disguised as regulation, but it’s ultimately prohibition,” Sims said.

Sims says the new spending bill contains a section that requires THC levels in plants so low that it will make everything on his shelves illegal in one year.

THC, or tetrahydrocannabinol, is one of the psychoactive substances in cannabis; certain THC products were made legal under the 2018 farm bill. However, lawmakers in North Carolina have spoken out about the lack of local regulations for those products.

Sims says the new spending deal hurts every business selling any cannabis products, whether or not they have THC.

“If we can’t get compliant plants to make compliant products, it’s a deal killer,” Sims said. “It’s absolutely devastating. In North Carolina alone, we’re talking about a billion-dollar industry.”

The new spending bill would close the loophole that allowed those THC products. It was reportedly added to keep cannabis products out of the hands of children.

Kevin Oliver, the executive director of Phoenix Counseling in Gastonia, agrees with more regulation.

“The younger a person starts using a substance, something, that’s where we can find the bigger problems,” Oliver said.

Phoenix Counseling helps people facing addiction. Oliver says access at an early age has serious consequences.

“That 14-to-16 age range is critical for someone dealing with long-term problems,” Oliver said.

Sims said producers will gladly work with lawmakers on setting age limits, but says the proposal in Congress will cost thousands of jobs.

“Please contact your representative, beg them to remove this language from the continuing resolution. It is an industry killer,” Sims said.

He said he’s already reaching out to North Carolina legislators to see if they will take up the issue.


(VIDEO: $50,000 worth of hemp stolen from Gastonia grower, police say)

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