What's At Stake
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Our collective livelihoods face a significant threat. House Bill 563, the legislation currently under consideration, poses potential regulations that could severely impact our industry. While we understand the importance of consumer protection and product safety, it is crucial that we unite as a coalition to protect our businesses and the customers we serve.
Here are some examples of the negative impact on small business owners in the hemp sphere.
- Licensing fee to manufacture hemp-derived consumable products: $5,000.00. Plus, a yearly renewal fee of $1,000.00
- Licensing fee to distribute hemp derived consumable products: $2,500.00. Plus a yearly renewal fee of $750.00
- Licensing fee to sell hemp-derived consumable products at a retail location: $100.00 for each location
- Licensing fee to sell hemp-derived consumable products online to be delivered to a person within this State: $100.00 for each internet website offering delivery in this State
Most likely, these funds will be used to fund the following:
Two million dollars ($2,000,000.00) to hire 20 full-time positions in the Alcohol Law Enforcement (ALE) Division of the Department of Public Safety to serve as Special Agents and assist in implementing the provisions of this act.
Five hundred thousand dollars ($500,000) to be used for any other costs incurred by the Department of Revenue and the ALE.
In addition, Section (d) Rules, says, The Department shall have authority to adopt, amend, and repeal rules to carry out the provisions of this Chapter. Which means that the rules can be changed at their whim.
The HB563 is centered on making those who are growing, distributing, or retailing hemp-derived products, jump through hoops and pay fees to ensure quality control. Although we could all agree that quality control and keeping products with trace amounts of THC should be kept out of the hands of those 18 years of age and under, our legislators should turn their focus on manufacturers of hemp derived products.
If manufacturers of hemp derived products are required to be ISO/GMP certified facilities and ensure that consumables are in child proof packaging and appropriate ingredients and warning labels are affixed to the products, then only minimal oversight would be necessary for those who grow, distribute, and retail hemp-derived products.
An example of the unfairness of going after farmers, distributors, and retailers would be a supermarket, let's say Harris Teeter, who sells over the counter medicinal products or supplements. They are not responsible for the child-proof packaging, ingredients label, warning label, or minimum age requirement for purchasing such products/pharmaceuticals. It is up to the manufacturer to provide that information and adhere to those requirements. In fact, many of the manufacturers that we deal with have seen the writing on the wall have started the process of complying with the above mentioned.
In light of these threats, we have taken the initiative to form the Carolina Hemp Coalition (www.carolinahempcoalition.com).
Our aim is to unite CBD businesses across the state, inform one another, and collaborate in pushing back against any measures that jeopardize our livelihoods. We believe that together, we can create a stronger voice to protect our industry and advocate for sensible regulations.