Nebraska's hemp industry contributes an estimated $10 million in annual sales tax revenue and supports roughly 2,000 jobs, but state regulators are moving to restrict hemp-derived cannabinoid products, drawing opposition from industry groups and a state lawmaker.
In January, Gov. Jim Pillen (R) issued an executive order titled "Protecting Nebraskans from Intoxicating Synthetic Cannabinoid Products." The Nebraska Department of Agriculture subsequently posted proposed regulations that would classify hemp-derived products as "adulterated" under the Nebraska Pure Food Act, effectively prohibiting their retail sale.
State Sen. John Cavanaugh (D) argues the executive branch lacks the statutory authority for such action and that the 2018 federal Farm Bill protects hemp-derived products at least through November. "The governor, the attorney general, and now, apparently, the Department of Agriculture are going around the law to try to ban this product that is legal in Nebraska," Cavanaugh said. "The agencies are granted authority by statute. And the point of my letter is that they do not have authority to regulate this." He is asking the Agriculture Department to halt its rulemaking and refer the matter to an interim legislative study committee instead.
Joseph Fraas of the Nebraska Healthy Alternatives Association called the proposal an industry-ending measure. "It would make anyone that sells it liable, civilly liable, and would basically destroy your business if you were caught selling it. It's another version of them going around the legislature, going around the will of the people," Fraas said.
Pillen has not backed down, invoking his broader opposition to cannabis. He and Nebraska's Republican establishment fought unsuccessfully against a 2024 ballot initiative that legalized medical marijuana. "The ballot initiative was medical cannabis. It wasn't for THC everywhere, and it wasn't for over-the-counter. And it wasn't for recreational marijuana. I'm fighting that," Pillen said.
A hearing on the proposed regulations was scheduled at the Department of Agriculture's Lincoln office on April 21.
This story was first published by The American Hemp Monitor.