Proposal would ban hemp-derived cannabinoids

The Judiciary Committee heard testimony on a measure Jan. 29 that would prohibit the sale of hemp-derived cannabinoids, commonly known as delta-8. 

LB316, introduced by Omaha Sen. Kathleen Kauth, would prohibit the sale in Nebraska of hemp products containing more than 0.3% of any strain of THC. 

Hemp-derived cannabinoid products often are cultivated using chemicals that mimic marijuana and its intoxicating effects, Kauth said. Use of these products, she said, is known to cause adverse health effects like vomiting, hallucinations, low blood pressure, difficulty breathing, psychosis and other mental health conditions.

“We constantly talk in this state about the serious mental health crisis we are experiencing in society as a whole,” Kauth said. “These unregulated and unsafe chemical concoctions will only exacerbate these issues.”

Nebraska Attorney General Mike Hilgers testified in support of the bill. 

Hilgers said the 2019 Legislature passed a law legalizing hemp products with no greater than 0.3% delta-9 THC, the psychoactive compound found in marijuana. The law did not, however, impose restrictions on other cannabinoids like delta-8 or delta-10, he said, which unintentionally created a legal loophole allowing retailers to sell “illegal” products.

“At no time [in 2019] did anyone suggest that this would create a synthetic-recreational marijuana regime in the state of Nebraska,” Hilgers said. “Because if they had, and if it did, that bill wouldn’t have gotten 10 votes.”

Lorelle Mueting, prevention director at Heartland Family Service, also supported the measure. There is no minimum age requirement to purchase hemp derivatives, she said, resulting in dangerous products ending up in the hands of children and teenagers.

“Students are using these products,” Meuting said. “There’s no age limit — anyone can walk into these stores and purchase these products.”

Sarah Linden, owner of the stores Generation V and Grateful Green opposed the bill. She said her 24 storefronts across the state generate $910,000 in sales tax and $154,000 in property tax revenue annually. Banning hemp-derived products, 99% of which are federally legal, would negatively impact small business owners and employees, Linden said.

“I would be forced to close at least eight of my retail stores and lay off at least 32 employees immediately upon the passage of [the] bill,” she said. “Most of the small business owners in the hemp industry in Nebraska will lose everything.”

Also testifying in opposition to the bill was Joseph Fraas, owner of G&G Smoke Shops in Lincoln and Omaha.

Most hemp-derived products are safe and tested for potency, adulterants and contaminants, Frass said. Banning these products could result in Nebraska consumers turning to less safe alternatives, he said. 

“The U.S. experiment with prohibition has been abysmal,” Fraas said. “Bans do not stop the sale of these products — they are simply driven into a black market.”

The committee took no immediate action on LB316.