Federal Law Threatens Future of Pittsburgh-Area Hemp-Based THC Shops
Recent changes in federal legislation pose significant challenges for hemp-based businesses in the Pittsburgh area. As Congress voted to end a government shutdown, a ban was introduced on intoxicating hemp products containing THC, which could reshape the market.
Impact of New Federal Law on Hemp-Based THC Shops
Carter Utz, owner of Lawrenceville Hemp Co., showcased her inventory, reflecting on her entrepreneurial journey. She opened her shop on Butler Street in April 2024, aiming to provide legal THC options that alleviate chronic pain, anxiety, inflammation, and depression.
“These products have been lifesavers for me,” said Utz, who lives with Type 1 diabetes and rheumatoid arthritis. She fears that within a year, the ban could eliminate her access to hemp products with THC content over 0.4 milligrams, threatening her business and livelihood.
Closure of Loopholes and Regulatory Changes
The new law aims to close loopholes from the 2018 Farm Bill, which inadvertently allowed potent hemp products to enter the market. Patrick Nightingale, a criminal defense attorney and president of the Pittsburgh chapter of the National Organization for the Reform of Marijuana Laws, emphasized that this creates an unregulated market for potentially dangerous products.
The recent legislative shift means that only products regulated by state law will be permitted for sale. Nightingale warned that the new federal law effectively curtails the availability of hemp-derived products in convenience stores, gas stations, and online platforms.
Advocacy for Regulation
For these products to remain accessible in Pennsylvania, state lawmakers must introduce a regulatory bill that supports adult use licensing, similar to the existing framework for medical marijuana.
Utz expressed her concerns about the potential consequences: “This is my livelihood that they’re playing with.” She joins thousands of others who stand to be adversely affected by these changes.
Economic Consequences
A report by Whitney Economics, a cannabis and hemp research consulting firm, highlights the substantial economic impact of the new law. It predicts that up to 95 percent of hemp businesses may close, resulting in a staggering loss of $1.5 billion in tax revenue.
- 95% of hemp businesses could close.
- $1.5 billion in potential tax revenue loss.
- New regulations required for hemp-derived THC products.
The implications of this legislation extend far beyond individual business owners. If state and federal laws do not adapt, the future of hemp-based THC shops in the Pittsburgh region could be at risk. El-Balad will continue to monitor this situation as it develops.
