HB328 Would Devastate North Carolina’s Small Businesses

Introduction: A Ticking Time Bomb for Local Businesses

In every corner of North Carolina, from small towns to big cities, hemp has become a powerful economic engine. In just a few short years, this industry has helped create over 100,000 jobs, drive billions in revenue, and open doors for thousands of small businesses — many owned by veterans, single parents, minorities, and working-class entrepreneurs.

But now, with the introduction of HB328 by Senator Bill Rabon, that entire ecosystem is on the verge of collapse.

This bill isn’t just “regulation.” It’s a targeted attack that would cripple small business, limit access for consumers, and hand over the future of North Carolina’s hemp economy to corporate marijuana interests and executive-level decision-makers.

Small Business: The Heart of NC’s Hemp Industry

Walk into any hemp shop in North Carolina and you’ll meet real people behind the counter:

A veteran who opened a CBD store after struggling with PTSD.
A mom whose child with epilepsy found relief in hemp-derived tinctures.
A couple who used their life savings to start a wellness brand focused on plant-based alternatives.

These aren’t “big cannabis” companies. They’re neighbors, friends, and taxpayers — the backbone of North Carolina’s local economy.

The hemp industry has created opportunity in places where it was desperately needed — especially in rural areas hit hard by the decline of tobacco and manufacturing. HB328 would reverse that progress in a single vote.

What HB328 Does to Small Businesses

HB328 doesn’t just “tighten” regulations — it makes doing business nearly impossible for thousands of compliant operators.

Here’s what it includes:

🚫 A 10mg potency cap
Most popular hemp-derived products exceed this limit — especially those used for chronic pain, anxiety, and sleep. This arbitrary cap would effectively ban the majority of products currently on the market.

🚫 Prohibition of key formats
Gummies, tinctures, vapes, and other products that account for the majority of hemp sales would be restricted or banned altogether.

🚫 Centralized control in the Governor’s office
The bill removes oversight from the legislative branch and places nearly all authority in the hands of the executive — a move that opens the door for sweeping changes without public input.

🚫 Copy-paste language from corporate cannabis lobbyists
The provisions most harmful to small business are taken straight from the playbook of Big Marijuana, which has a vested interest in eliminating low-cost, widely available alternatives.

This isn't about safety. It's about wiping out competition.

Economic Impact: The Numbers Tell the Story

The hemp industry in North Carolina has become a multi-billion-dollar sector. Its economic footprint includes:

100,000+ jobs across farming, manufacturing, retail, delivery, and wellness
Thousands of licensed businesses, many of which are owned by historically marginalized groups
Billions in state and local revenue from sales, licenses, and supporting industries

HB328 could wipe out 80–90% of those jobs and businesses overnight.

Think about it: How many industries can you name that North Carolina leads in right now? How many opportunities are left for small-town entrepreneurs to build something of their own?

Why destroy one of the few?

SB265: A Smarter, Safer Alternative

Let’s be clear: small businesses aren’t opposed to regulation. In fact, many have been calling for clear, fair rules for years. That’s why so many of us support SB265 — a bipartisan bill that provides real structure without destroying livelihoods.

SB265 includes:

✅ Product safety testing
✅ Clear labeling requirements
✅ Reasonable restrictions on access for minors
✅ Ongoing oversight with legislative transparency
✅ Protection for compliant businesses already operating

SB265 was crafted with input from the industry. It recognizes that hemp is here to stay — and that North Carolina can lead the nation in safe, sustainable cannabinoid commerce.

Stories from the Frontlines

We’ve spoken to dozens of small business owners who are terrified of what HB328 would mean for them:

Ashley, a single mom in Raleigh:

“I started my CBD business after I lost my job in 2020. I’ve been able to support my son, pay off debt, and grow something meaningful. If HB328 passes, I’ll have nothing left.”

James, a Marine Corps veteran in Asheville:

“I opened my shop to help other vets find natural relief. This bill would shut me down and leave my customers with nowhere to go.”

Darlene, a farmer in Alamance County:

“I stopped growing tobacco to switch to hemp. It’s been our only source of stable income. We followed every rule, and now they want to erase us.”

These aren’t exceptions. They’re the rule. And they’re the people HB328 would hurt the most.

What’s Really Going On?

HB328 isn’t just about “safety” — and it’s not being pushed by concerned parents or medical experts. It’s being pushed by:

Corporate cannabis giants who don’t want competition
Political players who want to consolidate power
Lobbyists with deep pockets and national agendas

If HB328 passes, they win. And North Carolina loses.

This Is About More Than Hemp

If a state can crush an entire legal, tax-paying industry overnight — what industry is next? What message does that send to entrepreneurs trying to innovate, or young people looking to build something of their own?

We can’t let fear, misinformation, and corporate greed destroy one of the best economic success stories North Carolina has seen in decades.

How You Can Help

📞 Call Senate President Pro Tempore Phil Berger
Tell him to vote NO on HB328 and to bring SB265 forward instead. Let him know that North Carolina supports safe access and small business — not bans.

💬 Share this blog post
Use your platform, whether it’s Instagram, Facebook, LinkedIn, or your community group. Let others know what’s really at stake.

💰 Donate to keep fighting
Advocacy costs money. Your donation helps us fund legal analysis, grassroots organizing, public education, and media outreach.

Final Thoughts

HB328 is being rushed through the process in the hopes that no one will notice. But we see what’s happening — and we’re not staying quiet.

Small businesses built this industry.
Patients rely on this industry.
North Carolina’s future depends on this industry.

Don’t let HB328 take it all away.

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