Pot, Politics & Loopholes

How dispensaries are thriving in a no-weed state.

When taking a stroll around your typical Raleigh shopping center or strip mall nowadays, you’re likely to stumble upon the signature seven leaves of a pot plant waving proudly on a storefront’s flag or a neon sign glowing with a bold THC.

Rest assured; your eyes aren’t deceiving you. These shops have been sprouting up across the Triangle, growing like weeds in an open field.

And, yet, despite their presence, marijuana remains completely illegal in North Carolina—even for medical use. So, what exactly are these dispensaries selling? And how is it legal?

This state of cannabis confusion has lingered since 2018, but major changes could be coming soon at the hands of the state legislature.

One thing is certain: This isn’t your grandmother’s pot. Attitudes are shifting, demand is growing and the Old North State is trying to keep up. 

The Legal Loophole

In 2018, Congress passed the Farm Bill—a major bipartisan effort that legalized hemp and its derivatives at a federal level—sparking a green rush in states where marijuana was illegal.

Though hemp and marijuana both come from the cannabis sativa plant, hemp contains smaller amounts of THC, while marijuana contains more.

The Farm Bill allowed for the sale of any products containing less than 0.3% delta-9 THC (aka the ingredient responsible for the “high” in marijuana).

That small legal distinction opened the door for hemp-derived THC products like delta-8 and delta-9 gummies, prerolled joints, drinks, and vapes. Despite producing effects similar to marijuana, these products are legal because they come from hemp.

John Boccella, co-owner of The Hemp Company NC, has sold hemp products in the Triangle since 2018. “The reason there’s been such a proliferation of CBD and THC products in North Carolina is because they are derived from federally compliant hemp,” he says. “Most people don’t understand that cannabis is being defined in two distinct ways. If the plant at harvest has above 0.3% delta-9 THC, it’s marijuana. If it has less than 0.3%, it’s considered hemp.”

Boccella, a longtime Raleigh chiropractor who recently retired, began his foray into the hemp business with the opening of his North Raleigh store in 2019, followed by a Wake Forest location in 2022. Recently, he’s seen customer demand blossoming.

There’s definitely been an uptick because people of all creeds, all religions, all races and all ages have aches and pains, sleep issues, anxieties, skin issues, and stress,” he says. “People are benefiting from these products, and they are getting relief naturally without the side effects of things like pharmaceuticals and alcohol.”

Shades of Gray

Though the federal Farm Bill made hemp-derived THC legal across all states by default in 2018, NC didn’t officially join the bandwagon until 2022. For four years, the state operated in a legal gray area, with businesses allowed to sell hemp-derived THC products despite a lack of explicit state-level regulations.

In 2022, the NC General Assembly officially passed legislation that adopted the federal definition of hemp into state law, mirroring the same rules and regulations as the Farm Bill and ensuring hemp-derived products remained legal.

The legislation did not, however, include widespread regulation for the local hemp industry. Though selling hemp-derived THC products is legal, there is little to no specific regulation in place for the safety of the products or the businesses selling them.

Local hemp businesses have spent years fighting for that regulation, Boccella says. “Right now, there are no regulations,” he explains. “But we’re working on getting common-sense regulations passed that protect the consumer and the product too. We want a free market, but at the same time we don’t want products that are unsafe being sold or consumed.”

Another local hemp industry businessman, Reilly Dunn—co-owner of Groovewagon, a beverage company that makes and sells THC-infused drinks—is working with lobbyists and representatives to get more regulations passed.

Everybody is just deferring to the federal guidelines from the previous Farm Bill, which mandated that 0.3% or less by weight THC was allowable,” he maintains. “Because of that, the market has a ton of hemp-derived products available, but there’s no clarity at the state level. We desperately want to see regulation and some clarity around all of this.”

More state-level regulations would not only ensure businesses are operating within the same guidelines—they are also needed to protect the health and safety of consumers.

Yet another gray area calling for regulation exists with an emerging product—THCA flower. Tetrahydrocannabinolic acid is a nonpsychoactive compound that, when in “flower” form, converts to THC when heated.

Current legislation measures THC in dry weight only, which allows THCA to skirt around THC percentage requirements. Some stores in NC are now selling THCA flower, despite the lack of state regulations for the product.

What remains in stark black and white, however, is that recreational marijuana use and medical marijuana use are still wholly illegal in North Carolina.

Regulation on the Horizon

The Tar Heel State’s best chance at real hemp regulation is now in action. A bill recently filed in the state Senate aims to establish firm rules on the sale and distribution of hemp-derived THC products.

If passed as it currently stands, the legislation would require licenses for manufacturers, distributors and sellers. It would also introduce age restrictions (21+) for purchasing products; prohibit hemp products on school grounds; and mandate product testing for heavy metals, pesticides and toxic substances.

Supporters of the bill are expecting it to pass in the coming months, as a similar measure has already cleared the House in a previous session. If enacted, it would bring an end to NC’s unregulated hemp market, where businesses have been operating without oversight since 2022.

Boccella, who has been actively working on cannabis regulation efforts, supports responsible legislation that ensures product safety without stifling business. He’s spent years advocating for a bill like this one to be passed.

Though the state has been slower to pass legislation, the regulations being discussed are more robust than what other states have in place.

North Carolina has the opportunity to really lead by example here,” emphasizes Boccella. “Most states have no regulation at all, while others just ban things without understanding the market.”

The Business of Cannabis in NC

Despite the legal uncertainty, hemp businesses are alive and thriving across the state. According to the U.S. Department of Agriculture’s database, NC is home to over 750 active hemp-growing licenses.

Given its strong agricultural expertise and long history with tobacco farming, the state could become a major player in the hemp production industry. And if NC legalizes medical or recreational marijuana use, the demand for growers and related businesses will only increase.

New jobs in farming, production, distribution and retail would emerge, as well as a new stream of tax revenue to be spent on education, infrastructure and public services.

But part of that success is in the hands of state legislators, notes Boccella. He believes common-sense legislation should benefit state farmers and local businesses, rather than out-of-state corporations that might be looking for a chance to swoop in and dominate the market.

“If we legalize, we should make sure the industry stays in the hands of North Carolinians,” he contends. “We don’t want big multistate operators coming in and taking all the profits out of state. North Carolinians should be the ones growing, manufacturing, wholesaling and retailing it.”

To wit, the state is already building a local hemp business community. According to the Secretary of State’s site, there are over 100 active licensed companies in North Carolina with “hemp” in their name. These businesses, like The Hemp Company and Groovewagon, are establishing a strong foundation for a future legal cannabis industry.

As lawmakers continue debating cannabis reform, one thing is clear: The economic potential is not to be ignored. Whether through hemp expansion, medical cannabis or full legalization, NC is at a crossroads. The decisions made now will shape the state’s role in the cannabis industry for decades to come.

NC vs. All Y’all

Despite being a hot spot of a state, North Carolina has—and is—lagging when it comes to cannabis use. With both medical and recreational marijuana use illegal, NC is one of the most restrictive states in the country when it comes to cannabis.

Nationally, 24 states have legalized recreational cannabis, and 39 states have some form of a medical cannabis program—and that includes several of NC’s fellow Southern states, showing that the programs can be bipartisan and destigmatized.

So far, Georgia, Mississippi, Louisiana, Florida, Alabama, Virginia and Arkansas have all surpassed North Carolina in enacting medical marijuana programs. So though NC is First in Flight, the state is falling behind in this race toward reform.

Public Perception

As cannabis laws change across the country, public sentiment throughout the state is shifting as well.

A Meredith College poll released in February surveying statewide registered voters found 71% supported the legalization of medical marijuana. The report also noted a majority of every demographic group in the state supported medical marijuana, including those who self-identified as the most conservative residents.

North Carolina is one of a handful of states without some form of legal medical marijuana,” the poll’s director, David McLennan, said in the report. “With the public strongly behind such a law and most within the medical community supporting this legislation, it seems like this might be a good time to pass such a bill.” 

Longtime Raleigh resident and cannabis enthusiast Jim Baldwin has witnessed the change firsthand. Baldwin remembers when cannabis was considered wholly taboo, and users were often judged harshly.

“There were people who thought nothing of going out and getting obliterated drunk, but then would look down at you if you had a hit of a joint,” he says. “I’ve always had issues with people justifying alcohol but ragging on THC.”

But the tide has begun turning in recent years, and he’s noticed a shift in attitudes. “I’ve had a lot of friends who used to think cannabis was some dangerous thing while they were out drinking half a bottle of whiskey every weekend,” shares Baldwin. “But, now, more and more people are trying THC drinks or gummies, and they’re realizing it’s actually a better alternative to alcohol.”

Essentially, THC beverages and edibles have introduced a new, more accessible way to consume cannabis, drawing in people who may have never considered smoking it. As these products become more widely available, perceptions of cannabis as a legitimate alternative to alcohol and pharmaceuticals continue to evolve.

“I’ve been living with this double standard forever and I think it is changing,” says Baldwin. “And when double standards like this do change, there’s always gonna be some hesitancy on one side. But it’s pure joy on my side.”

Alcohol vs. Cannabis

The conversation around cannabis isn’t just about legalization anymore, it’s also about how it compares to alcohol and other drugs. Alcoholic drinks have been widely considered acceptable for adults in the U.S. (post-Prohibition, that is), while cannabis products are often thought of as criminal or controversial.

But a recent warning from the Surgeon General could change that narrative. The issued statement cautions that alcohol consumption is harmful, even in small amounts.

For some consumers, this has led to growing interest in THC beverages, which promise a psychoactive experience without the hangover, calories or long-term health risks associated with excessive drinking.

Some, including in the Raleigh area, are now opting for THC drinks for relaxation or social event lubrication, says Dunn.

His goal for Groovewagon is to create alcohol alternatives that offer a more balanced, enjoyable experience without the negative effects of drinking. He believes THC beverages could lead to a significant drop in alcohol consumption, benefiting both public health and consumer choice.

“The biggest public health benefits come because people start substituting alcohol for THC,” he claims. “The harm reduction from switching alcohol for THC is unbelievable, and it’s well-documented going back for quite some time now.”

Groovewagon sells cans on its retail website, as well as in select stores, restaurants and bars locally. That includes Irregardless, Johnson Street Yacht Club, Bowstring, Tap Yard, Standard Beer + Food, East End Bistrot and State of Beer. Hibernian Hospitality Group also began slinging Groovewagon’s drinks at such establishments as Raleigh Beer Garden, Watts & Ward, and Hibernian.

For some, this moment has been a long time coming—including Baldwin, who has been eagerly anticipating legal THC for decades.

“I would argue that THC in social settings is far safer and better for society in general,” he asserts. “Somebody that’s had too much cannabis typically just mellows into the background, whereas somebody that’s had too much alcohol can do just about anything.”

A New Era

The decades-long debate about marijuana is still ongoing, but the tide is turning (or, some may say, getting higher)—leaving NC as one of the few still holding on to outdated stigmas.

Public support for legalization is growing; businesses are calling for regulation; and lawmakers are slowly coming around. With hemp-derived THC already available, it’s only a matter of time before NC joins the growing number of states embracing cannabis reform. And if the now-filed hemp regulation bill does pass, the industry could be heading for a major transformation with more robust oversight.

Until then, North Carolina’s cannabis laws are still half-baked. Whether the state loosens its strict stance or rolls with the changing times, the path forward remains hazy. We’ll be watching to see which way the smoke blows.