CHESSER: NC should be the national leader in cannabis regulation

If you’ve traveled much in North Carolina or even just around the corner, you’ve probably seen roadside signs and storefronts advertising “legal weed.” How is this possible when cannabis is a controlled substance in this state? This is due to the growth of the intoxicating cannabis industry, a new subsection of cannabis that emerged from loopholes in the 2018 Farm Bill.

The act defined hemp based on the amount of delta-9 THC. Currently, federal legislation allows hemp products with a delta-9 THC concentration of no more than three-tenths of one percent (0.3%) on a dry weight basis. This definition has resulted in the rapid evolution of cannabis products now sold in convenience stores. These products are untested, unregulated and untaxed, yet provide an intoxicating effect to all purchasers aged 18 or over.

Products shipped to this state without proper testing and regulation risk creating a public health crisis that will leave North Carolina consumers unaware of what else may be in the products they consume.

To address this issue, some of my fellow legislators sponsored HB 563 to regulate hemp-derived products

o preventing the sale of untested and potentially harmful substances, especially to children. The bill would prohibit the use of cannabis products in schools and the sale or use of these products by anyone under 21 years of age. The bill would also ban advertising of cartoons or falsely labeled products, such as cereals and candy, that appeal to children.

In addition to cannabis products, this bill adds kratom, xylazine and tianeptine, commonly sold over-the-counter narcotic substances, to the list of controlled substances, which prohibits their sale without a prescription and medical supervision.

Since being sworn in, my motto on legislation has been “good policy doesn’t hurt innocent people.” Currently, the lack of regulation of these products could harm many North Carolinians. In addition to addressing the need to regulate these products, the bill also establishes a regulatory framework for medical marijuana, including licensing requirements and safety measures to ensure the products are safe for consumers.

Since the topic of medical marijuana was first introduced this year, two upcoming federal changes make the need for action from the North Carolina Legislature even more urgent.

First, the federal government intends to reschedule marijuana from a Schedule I to a Schedule III substance, which could impact how states regulate and prosecute current marijuana laws. Under current state law, any federal changes to the cannabis sales schedule would automatically go into effect in North Carolina as well, unless a board appointed by Governor Cooper chooses to intervene.

Second, the 2024 Farm Bill would change the definition of hemp so that products containing any amount of THC would be classified as marijuana products. This could cause the federal government to view North Carolina as an unregulated market, leading to federal regulators led by U.S. Attorney General Merrick Garland taking action to resolve the issue for North Carolinians.

While some criticize HB 563 for its legalization, regulation and taxation of medical marijuana, overall the bill provides significantly greater oversight and protection for North American consumers than the current regulatory environment. The fact is that intoxicating cannabis products are currently sold across the state, but without a robust regulatory framework and consumer protections.

Not to mention the dangers of allowing the federal government to dictate medical marijuana policy. North Carolina’s duly elected representatives should decide this matter.

Moreover, the bill carries significant fiscal benefits that North Carolina currently loses out on due to an unregulated market. Some economists believe the domestic cannabis market will reach $2.8 billion in 2023.

In North Carolina, the hemp component of HB 563 requires a 10.5% retail sales tax. Additionally, the medical marijuana portion of the legislation requires a 10% tax for all licensed and regulated cannabis retailers based on gross revenue.

Arkansas is already doing this, with sales of $283 million in 2023, resulting in medical marijuana sales tax revenues estimated at $31 million. Inevitably, the number of medical patients in North Carolina will exceed these numbers, as the current population is estimated at twelve million.

Legislative leaders in North Carolina should act now to pass HB 563. By establishing a tightly regulated medical marijuana program in North Carolina, the bill will increase consumer safety in our state by prohibiting the sale of cannabis to anyone under 21 years of age and ensuring that all products hemp that is sold is safely produced and distributed so that NC consumers have confidence in the products they consume.

Suppose our legislative leaders do not take action to create a controlled market. If so, North Carolinians may be at the mercy of Cooper and Biden administration regulators regarding what products can be sold in our state. NC lawmakers must establish their own framework to ensure that the people’s elected representatives have the final say on what is legal in our state.

Rep. Allen Chesser (R-Nash) is a member of the North Carolina House of Representatives and serves on the House Health Committee.