Episode Transcript
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Speaker 1 (00:01):
No, no, this is not the kind of thing that
is going to have people see in pink elephants. This
is not the kind of thing that is going to
stink up the streets. This is not the kind of
thing that is going to denigrate your neighborhood. This is
the Kelly Golden Show podcast powered by Disaster Plus. On
a big failed frame.
Speaker 2 (00:17):
They slipped something into the bill that reopened the government
when no one was looking. From gummies to vap pins,
popular hint products, faced nationwide band on his way out,
and these are my words describing Senator Mitch Freezing, mumbling, fumbling,
McConnell flips his own script and slips in the end
of a twenty eight billion dollar industry. Yet back in
(00:40):
twenty eighteen he supported.
Speaker 1 (00:42):
Products more potent and marijuana can be boocked off the
shelf of a of a gash bank.
Speaker 2 (00:51):
This affects American workers, farmers, business owners, their customers, many
of whom I know, some military veterans, people who are
in pain, who don't trust big pharma. They don't trust
the side effects that come from doctor prescribed drugs.
Speaker 3 (01:05):
One hemp farmer who called into c SPAN says the
change could shut down her business. I make a jar
of joint muscle sat It is three thousand milligrams of CBB.
That product doesn't get anybody high.
Speaker 1 (01:19):
It's a topical product. This was a false narrative. This
is the problem with our government. I mean, this is ridiculous.
Speaker 2 (01:27):
Welcoming Cody Callerman, Welcome in, Zach Saron's there with Carolina Dream.
This is a veteran on low country business. You guys
are being directly affected by this near all out band
slipped into law in the quiet of night. Guys, I'm
curious your reaction first and how this affects your business.
Speaker 3 (01:46):
Well, I can tell you right now it will completely
shut us down. The way that it's written, it would
be very very a very very slim chance of being
able to have any products just due to the limitations
in the language of the bill. Well, luckily, although this
bill passed there we have three hundred and sixty five days,
so a year from now to until this goes into effect.
(02:08):
So we have a year to fight this back, change
the language, maybe get the amendment taken out. This is
a huge industry, like you said, in my opinion, it's
almost too big to fail. People prefer these products over alcohol.
It's going to be a fight, and we're going to
need everyone to do their part, and that is every
citizen and enjoyer these products. You need to call your
state legislators, you need to call your federal legislators, because
(02:30):
there is this is what Zachary, we can get in
this in more detail. But there is a chance that
if this federal bill goes into effect in a year,
there is still a chance that we can affect South
Carolina law where we can override it and still have
temp products.
Speaker 2 (02:44):
So, Zach have many describing this as a power grab
when it comes to the federal government.
Speaker 1 (02:49):
Yeah, it is. I think that the story of hemp
since the passage of the twenty eighteen Farm Bill is
one of the great examples of free market ingenuity in America.
This was an industry that has been forced to operate,
you know, in prohibition like conditions now for the better
part of the last century, and in twenty eighteen, when
(03:10):
Mitch McConnell in Congress past the twenty eighteen Farm Bill,
this industry was able to come to life and now
to rip out the rug and pull it out from
under us and ruin this entire enterprise. It just seems
like more DC political smanigans.
Speaker 2 (03:30):
You mentioned the twenty eighteen Farm Bill. Some say, well,
this was a broad definition. It created a loophole in
federal rules with regards to THHC. So THC seems to be,
you know, the demonization of it. I know that when
we bring up anything with regards to THC, the division
comes in amongst callers, people listening. Oh, it's a legalization
(03:54):
of weed. People will be burning spliffs on the sidewalk
next to kids, you know, waiting for the bus at
the bus stop, versus hemp hearts sprinkled over my salad
or CBD gummies that I you know, I mentioned provide
natural pain relief to someone who doesn't want to take
big pharma pills. So what is this right?
Speaker 1 (04:10):
And that's that's really the problem with this legislation is
that it's not targeting THHC Specifically. THHC is the chemical
that we need to regulate in cannabis. I think most
people in the industry are in agreement that that needs regulation.
But the way this bill is written, it's going to
kill the entire industry. It's going to basically make it
impossible for hemp farmers to grow a product that is
(04:33):
considered him.
Speaker 3 (04:34):
So, yeah, you're talking hemp fiber, you're talking to your
hemp seeds, you're talking everything, because there's just no way. Yeah,
there's just no way that you're gonna be able to
as a farmer. There's just no way you're gonna be
able to grow a plant harvested at the right time
and when you have to get tested from the state,
you're going to meet under that threshold of pull THHD.
It's just no way.
Speaker 2 (04:54):
So I find it interesting if anyone didn't catch that.
You know, here we are talking to Cody and Zach
with a veteran known Low Country business directly affected by
this Carolina dream the products that you talked about, this
affecting hemp fibers, seeds, lotions, and you're an industry that
you've been begging for regulation. So yeah, yeah, So why
(05:15):
did this come you know, under the dark without any
kind of debate we could surmise why this is affecting
not only big pharma, but also I mean, did you
realize what it effect this is having on big pharma
in the alcohol industry?
Speaker 1 (05:30):
Yeah, we anticipated that something in the form of regulation
would eventually come down, right, and we embraced that. You know,
we've been working on a regulatory framework here in South
Carolina at the state level for a few years. But
to echo your point, yeah, I mean there's a lot
of moneyed interests that are trying to figure out the
best way to make their piece off of this. And
(05:53):
it's big pharma, it's big alcohol, it's big CpG legacy
players that you wouldn't expect would have any of it,
onion on cannabis are coming out now against it because
they see it as a threat to their business model.
And that's really unfortunate, especially because we're seeing you know,
distributors of wine, spirits, beer that are embracing this category.
(06:18):
They are seeing massive booms to their sales. Some distributors
are seeing have beverages make up up to thirty percent
of their revenue.
Speaker 2 (06:25):
Now, well, you mentioned on a state wide level, what
is our current statewide laws with regards to what's now
just been passed with the opening of the government.
Speaker 1 (06:33):
That's a great question. So we currently do not have
any regulation around the hemp space in South Carolina. The
Carolina Dream as well as a lot of local businesses
and interest groups have been working for a few years
now to try to get a regulatory bill passed.
Speaker 3 (06:47):
We have a bill.
Speaker 1 (06:47):
It's a House Bill three nine two four. It's in
the House right now. It's latest revision is just the
twenty one in upage game, meaning that only people twenty
one and up would they be able to buy products
containing it. Seems like a no bringer now given the
federal situation, we are going to work with the state
House to make a more comprehensive bill. We understand and
(07:11):
we believe that twenty one and up is not enough.
We need more protections, We need mandatory testing, we need
labeling requirements permitting. Another thing that I'm trying to impress
upon the fine legislators in the State House of South
Carolina is that this in the state of South Carolina
alone is a five hundred million dollars a year business.
(07:32):
This industry is generating that much revenue that could be taxed,
but right now only sales tax is applied to that.
Speaker 3 (07:39):
So I'll jump in there, and you know something I've
been echoing is just because they're on one side saying, oh, well,
kids are getting ahold of these products that we need
to make them illegal. I'm like, well, kids are getting
a hold of these products because you can be eight
years old going to a gas station and buy it whatever,
and it's completely legal. There's no law against it. So
instead of wiping out millions of dollars of sales tax revenue,
(08:03):
here we are coming to your doorstep at the state
house begging for regulation and offering, you know, put us
three to four percent sales tax on top of the
sales tax. That's you know, tens of millions of dollars
and then you know, in my world, you know, Kelly,
as you know, I've been arguing for medical cannabis in
South Carolina for years. The issue with that program is
it takes a lot of money around these programs. It's
(08:25):
the medical use substance. So there's no sales tax. You
can't charge a tax, So how do we fund this program?
South Carolina can be the first state in the country
to have comprehensive cannabis regulation where you regulate the hemp
side of products, you use at sales tax revenue to
fund that program, and you're also using portion of those
that sales tax you're generating off the hemp products to
(08:45):
run the medical program. We can have full encompassing regulation
and South Carolina can be the first to do it.
Speaker 2 (08:51):
Where are we with regards to state level support on
the House bill that you mentioned versus the national bipartisan support.
And I know it's new. You know, this is only
of what forty eight hours ago at this point that
this is happening.
Speaker 1 (09:05):
So at the state level, we are one of the
few states in the country that doesn't have any regulatory
framework as it regards HEMP or quote unquote Maryland. So
we are working to get just anything passed. This House
bill that we're working on seems to be the best
vehicle for that. We anticipate that the state will cover
its bases and in doing so, we'll offer forward two
(09:27):
bills this coming session. One is going to be a
complete ban That bill, we are under the impression does
not have a very good chance of passing, but they
are going to offer it up. Simultaneously, they are going
to offer up this regulatory bill, And this is what
we're really interested in working on because this is where
the industry and consumers can make their voices heard and
make sure that we protect the industry in South Carolina.
(09:50):
Now that is going to be crucial for the federal
fight as we get into the twenty twenty six Congressional calendar.
Congress is going to work on passing a fe federal
bill regulating hemp products nationwide, but part of that is
going to be based on state regulatory framework. So it's
very important in South Carolina that we get a regulatory
(10:11):
framework in place as soon as possible, so that the
federal government has something to go off of as it
regards South Carolina and that our federal reps can get
behind that federal regulation. In point to South Carolina is
already existing hemp regulation as a foundation for that.
Speaker 2 (10:26):
As we move forward here with the government reopening by
the stroke of a pen and the hemp industry pretty
much getting banned. Cody and Zach of Carolina Dream digging
into it with us here on Big Fail Friday edition
of the show. Frankly, but this is a big fail, seriously,
and I'm assuming this will be affected. I put hemp
protein in my shakes every morning because it has the
highest amount of fiber and the highest amount of all
(10:48):
the things that I want for my health. It doesn't
make me high, but I have a feeling that this
is going to be affected. You mentioned some CBD salvs.
This is very concerning, but I'm curious, since this has happened,
what does it mean for your products right now? People
who consume your products, people like yourselves who make them
for a living.
Speaker 1 (11:06):
It's a great question. What it means right now is
that we need to activate. So to be clear, the
ban at the federal level that was snuck into the
bill to reopen the government has a three hundred and
sixty five day enforcement window, so that means that they
won't be enforcing the ban until November thirteenth, twenty twenty six.
So from a consumer standpoint and from a business standpoint,
(11:30):
it's business as usual until then. In the meantime, we
need to do everything we can to ensure that that
ban is never actually enforced, and that means getting our
federal legislators to work on a regulatory bill, and getting
a regulatory bill passed at the state level.
Speaker 3 (11:47):
And I would say in terms of grassroots compared to
medical cannabis, I've never seen such an uproar about how
this is going to make all these products will illegal
and we need to use this energy to not just
post them stills media. It's great awareness and talking about it,
but we need to physically call our state and federal legislators,
(12:07):
email them, call them, tell them how you use these products,
tell them how to improve improves your quality of life.
If you're a business owner, I mean you're talking about,
you know, for me, for years of you know, blood
sweat and sacrifice of building these companies up, of helping
people you know, can just have to close their doors
in a year. So we need to activate our voices.
(12:28):
Get a hold of our government and our officials and
tell them how important this industry is to everyone.
Speaker 1 (12:33):
Echoing that, you'd be shocked how little knowledge and information
there is, both in the state and federal legislature around this.
People really don't know that the space exists, and they're
not aware of how it came into being, and they're
not aware of where it's at today. And it's important
that they hear from their constituents and not just industry stakeholders. Right,
(12:54):
it's great for businesses like us to speak up, but
it's very important that folks who don't have an interest
in this other than they enjoy these products let their
legislators know do not take these away.
Speaker 3 (13:07):
Yeah, it's one thing for you know, Zach and I
to go up to the state House and preach this
to representatives about how we won't want to make this safer,
but this is a perfect time for consumers to call
and say, hey, you know, these businesses have put years
into this and they want regulation. I don't know what
is more capitalists than that of here I am. We
(13:27):
want regulation. We want to make it stafer for the consumer,
and frankly, I want to make it safer for myself
because going back to the I don't like using the
loophole word because they got that point three percent delta
I THHC from the DEA, so there's no loophole. The
government made at a law and we're being capitalists and
making products. This is the time to make everyone safer.
(13:52):
For instance, we are kind of working in a gray area,
and as a business owner I would feel a heck
of a lot safer making these products with regulation and
making sure law enforcement is just going to come kicking
my door one day because they can.
Speaker 2 (14:06):
So maybe too soon for you to see this as
a possible blessing forcing regulation that you so desperately need
within this industry as business owners, what do you think?
Speaker 1 (14:17):
Never too soon? We're always looking for silver linings, and
I think that you are one thousand percent right in
the Cannabis reform is the most bipart is an issue
in the United States by far. Over ninety percent of
Americans support a change to our current framework. Over seventy
percent of Americans support full legalization. The issue is that
it's not a tier one issue, and you can understand
(14:39):
that it's not as important as other things in people's lives.
It is a tier two or a tier three issue
at best for most people, despite the fact that everyone
agrees on it. So yes, it's absolutely a boon to
us to be able to educate people and activate people
and get people aware of what's happening of this situation
(15:00):
of the impending band. I think, to your point, this
is really how we're going to get the government to
responsibly regulate this, and this is how we're going to
achieve mainstream, mainstream acceptance.
Speaker 3 (15:12):
Exactly like I would say, it's a blessing in this
guise because I've never seen so many people talk about it,
and this is what we need. So if this unfortunately,
if this niaky amendment to a bill got put in there,
it's got everyone in an uproar, and I've seen this
is the most active voices I've heard in this space
speaking out to the government about how we need to
keep this legal and also regulate. So in a way,
(15:33):
I think it's a blessing in disguise. You know, it's
just too soon to tell where the cards are going
to fall and how this is going to play out
over the next three hundred and sixty days.
Speaker 2 (15:40):
Reaction from Carolina Dream, which is a veteran owned low
country business. How many, by the way, people would this
affect that you directly or indirectly employ.
Speaker 1 (15:51):
We have twelve employees, so this was but twelve hardworking
South Carolinians.
Speaker 2 (15:55):
Out of a job, and you're just one example. How
about the amount of customers you have that it would effects.
Speaker 1 (16:00):
Oh yeah, I mean Mars bab here. At a national level,
I can tell you there are over three hundred thousand
people in the United States working in the hemp industry.
Speaker 2 (16:10):
We talk about the threading of this and the layers,
whether it's the farmers, the distributors, and then also the
products that it affects. I don't think people realize. I mean,
I mentioned hip hearts sprinkled on your salad. My mother
has him parts in our cabinet. In fact, I didn't
even know hip parts existed until I went home for
the holidays. So this is a generational thing that you know,
(16:31):
whether we like it or not. Guys, when you talk
about legalizing marijuana, it is a divisive issue. So how
do you separate or can you when it comes to
you know, lighting up a doube on the sidewalk versus
taking a gummy that takes away your pain.
Speaker 1 (16:45):
It is important that we educate people on sort of
the difference between low dose and high dose products. Right, So,
Carolina Dream, all of our products are low dose. The
Gramma Proof, the strongest product we make, has fifteen milligrams
of preserving. Now keep in mind your average one gram joint.
You know, your average Adobe has usually about two hundred
(17:08):
to three hundred milligrams of THHC in that joint. So
it's not really a comparative thing. It's the difference between
you know, drinking one hundred and eighty proof ever Clear
and having a light beer. So we are working toward
getting mainstream acceptance for these low dose products because I
(17:29):
think that is how you get people to sort of
see the light with this. That's how you avoid people
complaining about the smell of doobies on the street is
by this this low dose format, these gummies, these beverages.
Speaker 3 (17:41):
It's also regulation like you can't smoke cigarette in most
public places. Then you know, you just make it into
the state law with regulation of like, hey, you can't
smoke doobies on the sidewalk. You can't be under the
influence of these products while driving, just like you can't
drink while driving. These are all things that we're asking for,
and you know, we can all have a happy median
(18:04):
of where product meets safety and also the you know,
the well being of everyone involved.
Speaker 1 (18:11):
What we're going to see too is sort of a
bifurcation in terms of the way these products are available
right where. I think what we're going for is a
world where you can walk into a grocery store and
just like you could buy a case of beer, you
can buy a case of low dose hemp beverages or
a bag of low dose hemp gummies. The world where
you're going to get extremely high potency concentrates or vavee
(18:35):
pens or smokable products. Ultimately, that probably is going to
be a dispensary specific channel, and if we want to
have those products available in South Carolina, we will have
to embrace some sort of medical or recreational cannabis program.
But for these low dose products, which is really the
target of this band, we want people to know, No,
this is not the kind of thing that is going
to have people see in pink elephants. This is not
(18:56):
the kind of thing that is going to stink up
the streets. This is not the kind of thing that
is going to denigrate your neighborhood. This is a very
responsible way to consume this product at a low dose.
Speaker 2 (19:08):
Good luck, guys, winning the battle of hearts and minds.
We set the clock, no pressure. Cody Kallerman and Zach
Aaron's a Carolina dream. I mean, this is I do
believe a blessing in the skies. Honestly, guys, no better
way to look at it.
Speaker 3 (19:22):
I think, Yeah, I'm a big proponent of not just
the government allowing the government to regulate this stuff. But
you have to remember that the government operates on the
taxpayer's dime. And would you much rather have a world
where your taxpayer dollars are supporting agent government agencies that
support regulation, testing making sure products are safe, and enforcing
(19:48):
sales tax revenue, or would you much rather use your
tax dollars to arrest people, put them in jail, keep
them in jail, and it's just a lose lose when
it comes to your your tax time not helping make
more tax dollars.
Speaker 2 (20:01):
It's a good point. So anything else before I cut
you loose.
Speaker 1 (20:04):
No. We appreciate your time, We appreciate your attention to
this matter, and you know we're all in this fight together.
We are going to make sure that patients and consumers
continue to have access to this This Big Fail Friday
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