‘We want responsible regulations, not prohibition’: Milwaukee business owners concerned after federal hemp-THC ban passes

MILWAUKEE (CBS 58) -- While the government spending bill ended the longest shut down in history, part of the legislation also federally bans the majority of hemp-derived THC products, starting next year.

In Wisconsin, that means most CBD, and Delta 8 or Delta 9 THC products sold in the state would be illegal, and that is leaving business owners concerned about their future. 

"People are looking for an alternative to alcohol, people are having a hard time sleeping, people want an alternative to narcotics for pain, and they just want to feel good, and that's not a crime," said Erin Kelly, the owner of Kelly's Greens in Wauwatosa.

Since 2020, Kelly's Greens has produced and sold hemp plant-derived CBD and THC products, like edibles, tinctures, and beverages. 

The sale of those products was legalized federally in the 2018 Farm bill. Since then, it became a thriving industry.

Just in Wisconsin, the hemp industry has been supported by thousands of stores and 300 thousand jobs. 

 "There are farmers who invested in fields, there are manufacturers who invested in facilities, there are stores that have opened up," said John Kashou, owner of Kind Oasis on Milwaukee's east side.

The new federal ban puts those businesses in jeopardy.

"A lot of people are going to lose their jobs. A lot of businesses are going to shut down. A lot of farmers are going to be devastated," Kashou said. 

Business owners fear the consequences of the ban will also extend to consumers. 

"Are they going to turn to the black market? Are going to try to seek products similar to this elsewhere that may not have the same safety assurances that we display on our product?" Kashou said. 

The federal ban puts THC legislation in the hands of individual states. 

Kashou and Kelly are calling on Wisconsin lawmakers to save the hemp industry before the ban takes effect next year.

"We want these products to be sold right here in Wisconsin. We want responsible regulations, not prohibition,” Kelly said. 

Kelly said some of those regulations could include age restrictions and reasonable taxation. Ideally, she said regulations would be set with input from those in the cannabis industry. 

Right now, Wisconsin has very few regulations on the books regarding  hemp sales, so individual companies set their own. Many established businesses, including Kelly’s Greens and Kind Oasis, choose not to sell to individuals under 21 years of age. 

Kelly said having state regulations would essentially exempt Wisconsin from the federal ban.