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Nebraska Lawmakers move forward with plan to outlaw most consumable hemp and THC products

The Nebraskans are feeling gaslit because this Legislature is.

By Zach Wendling, Nebraska Examiner

Nebraskans voted Tuesday to advance a bill that bans most THC and hemp-based products, as well as other THC-containing products. This proposal was not amended by opponents.

During a four hour debate, led by state senator Kathleen Kauth (R), of Millard, Nebraska, only a few senators took the floor. This is due to the opposition of state senator John Cavanaugh, (D), of Omaha. He filed over 30 amendments and motions during the life of this bill, mostly in order to get the Senates’ attention.

LB 316 advanced 32–15 with 32 of the 33 Republicans voting for it and all 15 Democrats voting against. There was only one progressive non-partisan member in the Legislature.

Dan McKeon, a state senator from Amherst who “was present, but did not vote” to advance the bill said that he waited for future possible changes. The state senator said that he had recently visited a shop selling consumable hemp in his district, and feared the legislation could put a freeze on its operations.

LB 316 prohibits raw hemp that contains more than 0.3 percent tetrahydrocannabinol, regardless of the concentration. It also bans processed hemp that has less than 0.3 percent THC based on total weight and 10 milligrams of THC per package. The mature stalks can be used to make hemp oil. Cannabis sativa Its fiber, oil and cake, as well as any other products derived from hemp would not qualify, leaving only a limited legal pathway for products like fibers and fabrics.

The bill would provide a consumer safe harbor until the end 2025, giving consumers the time they need to dispose of any illegal hemp as defined by LB 316. Wholesale tax of 10 percent would be added to legal products at time of purchase.

Regulators reject regulations again

Cavanaugh included in his tactics a regulation-focused amendment he described as a “compromise.” The amendment would still have banned all “synthetic cannabinoids” with any THC content, but it would protect “hemp-derived cannabinoids” such as CBD creams.

Cavanaugh would have mandated ID checks prior to purchases, testing in state, child-resistant and tamperproof packaging as well as licensing similar the Liquor Control Act.

Cavanaugh said most hemp products are manufactured using chemical processes such as heat. Cavanaugh claimed that “synthetic marijuana” – including K-2, spice and other “great evils” – which opponents hate as being a “great sin”, was banned from Nebraska in 2011

Cavanaugh explained: “This is an agreement that permits people to sell products and collect tax revenue in Nebraska.

Cavanaugh’s regulatory amendment failed 16–27. Stan Clouse of Kearney (R-State Senator) was the only person to support LB 316.

‘Russian roulette’

Kauth, a Blair state senator (R), is asking Ben Hansen to change LB 316 so that it explicitly states her bill will not be in conflict with the medical marijuana legalization laws and regulations approved by voters.

One major amendment would let consumers prove in court, via an “affirmative defence,” that they had purchased “illegal hemp”, under LB 316. This would be for personal purposes before the September 2025 date of law’s implementation. This change was made in order to please Plymouth state senator Tom Brandt.

Brandt, a Republican, and Hansen are both Republicans who have supported LB 316 so far, but only on the condition it is amended. There are still five days of legislative time left for lawmakers to finish their task. They will adjourn on June 9.

Kauth does not believe that the majority of products will be prohibited and instead envisions three steps for product under her bill.

  • Does the product contain cannabis?
  • Are there any artificial or modified marijuanas in the product?
  • Do you know if the product is within the THC legal limit of 0.3 percent Delta-9 THC?

Kauth stated that the products will remain legal if so. She stated that the government’s role is to set up safety barriers and that LB 316 aims to “keep our population healthy.”

Kauth stated, “We allow consumers to play Russian Roulette every time they enter a shop and buy products off the shelf.” They assume that this is legal. “They’re assuming we’ve done our job.”

Kauth, the sole supporter of the bill in an interview with Hansen during which he stated that promised changes will help to protect access to medical cannabis, was the only one who spoke out for the measure. Kauth, the Attorney General’s Office and Hansen have all said the bill was not intended to be in conflict with medical cannabis laws, but they worked together anyway.

Hansen has confirmed that, should the bill not be amended at the next debate stage, he will vote against it.

‘Scalpel’ vs. a ‘hammer’

Dungan claimed that rather than a scalpel, THC supporters had a hammer.

Dungan stated that Cavanaugh’s desire to introduce regulations is part of the problem. He said some senators see the word “chemicals” and “get all freaked out and they think to themselves, ‘Oh my goodness, this is all scary stuff.'”

But Dungan claimed that chemical reactions were normal and as easy as toasting in a toaster.

“I know a lot of people in here have this perception of CBD or delta-8 or THC where it’s a classic sort of ‘Reefer Madness’ idea, that it’s a bunch of hippies sitting out on the hill smoking joints,” Dungan said. But really, we are talking about little old women putting cream onto their joints.

Concerns about fiscal matters

Dungan who is also a member of the Revenue Committee along with Kauth has expressed concerns about revenue losses if LB 316 becomes law. According to a fiscal estimate, the revenue loss is expected to be at least $2.9million and administrative costs will amount approximately $530,000 over the two next fiscal years. Over time, revenue losses will increase and administrative costs of about $85,000 per year in future years.

This is more money than the state has left in its piggybank after filling a projected major budget deficit. About $2.6 million is left over for the state to spend, of which $1.5 million will be spent on raising judges’ salaries.

LB 316 requires another bill be passed to generate revenue and/or cut expenditures.

Property tax relief would benefit from the new revenue generated by this bill.

Jared Storm, a state senator from David City who has made LB 316 his priority for 2025, said that “effective regulation is impossible”. He also stated the products were “garbage”, attached with a small amount of CBD to smoke, vape or eat.

Storm declared during his first round debate that he wouldn’t compromise the “health or safety of all citizens, but especially young people and children, of this State, just to make money.”

Possession felony charges

Wendy DeBoer of Omaha (D), vice chairperson of the Judiciary Committee and state senator Wendy DeBoer said that the bill will enrich “a felony factory” for the 2025 legislative session.

DeBoer stated that more Nebraskans may be charged with felonies if their products are below the current limit of 0.3 percent THC delta-9, as the new bill will count the 0.3 based on THC levels in general, and not only delta-9.

Carolyn Bosn, a state senator from Lincoln and former prosecutor, chair of the Judiciary Committee said that defining hemp under LB 316 as “marijuana”, is not about new penalties, but rather a clarification. Instead, she said it would place hemp products above the legal THC limits on the same criminal scale as marijuana possession—an infraction for less than 1 ounce, a misdemeanor between 1 ounce and 1 pound and a felony for more than 1 pound.

Bosn had previously stated that the new penalties are a “clarification.” She once said that trying regulate the drug was “like playing Whac-aMole.”

DeBoer explained that “affirmative defence” could indicate felony charges, as the defense will need to be raised in court. Cavanaugh explained that it is not an “out of jail card” like in the example of “a little old lady who did not save receipts.”

Cavanaugh & Dungan as well as Danielle Conrad of Lincoln said LB 316 could put Nebraskans in business. They also said supporters weren’t listening when Nebraskans said it would hurt them. This included small business owners & farmers.

Conrad stated that Nebraskans “feel like they’re gaslit by the current Legislature and they are.” Conrad said, “This is political at its worst.”

Nebraska Examiner published this article first.

Top Marijuana advocate, who was leading the campaign for State Legalization Measures on Ballots is departing to concentrate on Preserving Citizen initiative Process

Kimzy Nanney provided the photo.

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