Nebraska Lawmakers Approve 100% Tax Rate For CBD And Hemp Products To Help Offset Property Taxes

A Nebraska legislative committee has given preliminary approval to a bill that would tax hemp and CBD products in the state at a whopping 100 percent rate.

The cannabis product tax hike is part of legislation designed to bring in more money to state coffers to offset property tax bills, according to an outline of the plan from Sen. Lou Ann Linehan (R), the legislation’s sponsor, that was posted by a Nebraska Public Media reporter.

The legislature’s Revenue Committee advanced the underlying measure, LB 388, on a 7–0 vote on Thursday, according to a report in the Nebraska Examiner. The state’s full unicameral legislature could take up the bill as soon as Tuesday.

“We are going to tax hemp and CBD at 100%,” Linehan’s document says, adding that, along with other reforms—including removing sales tax exemptions on soda, candy, pet services, advertising revenue over $1 billion and lottery tickets—the change is estimated to bring in $182 million in new revenue for the state.

The changes are not currently reflected in the bill’s language as available online, nor has any relevant amendment been posted to the bill page. Linehan, who also chairs the panel that approved the measure this week, did not immediately respond to emailed questions from Marijuana Moment.

Adam Morfeld, a former Nebraska state senator who co-chairs the advocacy group Nebraskans for Medical Marijuana, reacted to the proposal with shock.

“The Legislature is going to tax hemp and CBD at 100 percent!??” he posted on social media.

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Legalizing Marijuana For Adults Does Not Drive Increases In Youth Use, New Federally Funded Study Finds

New federally funded research into the impacts of marijuana legalization on youth use found no association between legal adult-use cannabis sales and the prevalence of consumption among middle-school students.

To test whether legal sales led to an uptick in youth use, authors compared middle-school use rates in Nevada and New Mexico, looking at 2017 and 2019 data from two state-run surveys. At the time, adult-use marijuana sales were legal in Nevada, while New Mexico allowed only medical marijuana.

In both states, researchers found increases in the proportions of students that had ever consumed cannabis as well as those who had consumed within the past 30 days.

In Nevada, the share of middle-school students who said they’d ever consumed cannabis rose during the study period, from 9.7 percent in 2017 to 13.3 percent in 2019. Past 30 day (P30D) use also rose, from 6.3 percent to 8.9 percent.

New Mexico, where recreational marijuana remained illegal, saw lifetime use rise from 14.1 percent to 17.4 percent over the same period. Past 30 day use rose from 8.9 percent to 10.5 percent.

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Colorado Bill Would Force Social Media Platforms To Ban Users Who ‘Promote’ Marijuana, Psychedelics And Hemp Products

A center-right think tank is raising alarm about a Colorado bill that it says would make it illegal to talk positively about marijuana online. The prohibition would also apply to many hemp products as well as some federally legal pharmaceuticals.

Among other provisions, SB24-158—a broad proposal around internet age verification and content policies—would require social media platforms to immediately remove any user “who promotes, sells, or advertises an illicit substance.”

The bill’s definition of illicit substance includes not only illegal drugs but also many that are legal and regulated in Colorado. It pertains to any controlled substance under state law, including schedules I through V under state law.  That means the bill would affect state-legal marijuana, certain psychedelics—which voters legalized through a 2022 ballot measure—and even some over-the-counter cough syrups that contain small amounts of codeine.

Beyond scheduled drugs, the bill specifies that its restrictions also apply to certain hemp products with more than 1.25 milligrams THC or a CBD-to-THC ratio of less than 20 to 1 and most other hemp-containing products intended for human consumption.

If enacted onto law, companies would also need to publish “a statement that the use of the social media platform for the promotion, sale, or advertisement of any illicit substance…is prohibited.”

The R Street Institute says the restriction would impact not only cannabis companies but also any individual who posts positively about marijuana.

“Basically, the Colorado Legislature is trying to force social media companies to ban the promotion of marijuana,” the group’s social media director, Shoshanna Weissman, wrote in a new article. “And because what constitutes ‘promotion’ remains undefined, the bill would likely force platforms to remove all pro-marijuana free speech in a state where recreational use is legal.”

Not only is the ambiguity of “promotion” an issue, but the bill’s broad definition of illicit substances could also cause confusion, R Street says.

The think tank points out that the bill’s definition of illicit substances “would make it unlawful for businesses to promote them for sale or even for regular people to talk about their benefits online.”

“This clearly violates the First Amendment, as the bill is unconstitutionally narrow in scope,” Weissman wrote. “Basically, if speaking highly of or advertising these substances were truly dangerous, the state would have banned advertising in all its forms (e.g., print, television, digital).”

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Federal Marijuana Prohibition Has ‘No Rational Basis,’ Companies Say In New Court Filing

In a new federal court filing, lawyers for a group of marijuana companies argue that ongoing broad cannabis prohibition has “no rational basis,” pointing to the government’s largely hands-off approach to the recent groundswell of state-level legalization.

The lawsuit alleges that while Congress’s original intent in banning marijuana through the Controlled Substances Act (CSA) was to eradicate illicit interstate commerce, lawmakers and the executive branch have since abandoned that mission as more states have moved to regulate the drug.

“Dozens of states have implemented programs to legalize and regulate medical or adult use marijuana,” the new filing from the plaintiffs in the case says. And by providing consumers with “safe, regulated, and local access to marijuana,” those states “have reduced illicit interstate commerce, as customers switch to purchasing state-regulated marijuana over illicit interstate marijuana.”

The new 32-page document comes in response to the government’s effort in January to dismiss the cannabis companies’ underlying suit. At the center of the case is a 2005 Supreme Court decision, Gonzales v. Raich, in which justices held that federal prohibition preempts state-level legalization because of Congress’s interest in preventing illegal marijuana from entering interstate commerce.

Plaintiffs argue that given the changes since then—not only at the state level, but also in terms of the government’s own tolerance of commercial cannabis activity in legal jurisdictions—”the federal government no longer has any basis for insisting that state-regulated, intrastate marijuana must be banned to serve Congress’s interstate goals.”

“The ground-shaking shifts in marijuana regulation since Raich, together with the nation’s long history of marijuana cultivation and use prior to the CSA,” lawyers wrote in the new filing, “demonstrate the widely-held understanding that Plaintiffs’ marijuana activities implicate a liberty interest that requires protection.”

In the overarching lawsuit, filed in October, the businesses behind the case claim that perpetuating marijuana prohibition in state markets is unconstitutional, creating undue public safety risks while precluding licensed cannabis operators from accessing critical financial services and tax deductions that are available to other industries.

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Morocco celebrates huge cannabis harvest – legally for the first time

Morocco’s first legal cannabis harvest was 294 metric tons in 2023, after the country approved its cultivation and export for medicine and industrial uses, the cannabis regulator has said said.

The harvest was made by 32 cooperatives that brought together 430 farmers covering 277 hectares in the northern Rif mountain areas of Al Houceima, Taounat and Chefchaouen, ANRAC claimed.

The United Nations drugs agency says about 47,000 hectares of the Rif are devoted to cannabis output, roughly a third of the amount in 2003 after government crackdowns.

This year, the regulator is examining applications by 1,500 farmers who organised themselves into 130 cooperatives, ANRAC said.

Cultivation of the local drought-enduring landrace, known as Beldia, began this month, it said.

Although Morocco is a major cannabis producer, officially cannabis use for recreational purposes is illegal. In practice, it is tolerated.

Nearly a million people live in areas of northern Morocco where cannabis is the main economic activity. It has been publicly grown and smoked there for generations, mixed with tobacco in traditional long-stemmed pipes with clay bowls.

The legalisation was intended to improve farmers’ incomes and protect them from drug traffickers who dominate the cannabis trade and export it illegally.

So far, two legal cannabis transformation units have been operating and two others are waiting for equipment, while 15 cannabis products are in the process of being authorised for medicinal use, ANRAC said.

Morocco is also seeking to tap into a growing global market for legal cannabis, and awarded 54 export permits last year.

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As White House Hosts Marijuana Pardon Recipients, It’s Time For Bolder Action From Biden

As President Biden listed off his first-term accomplishments during his State of the Union address, Richeda Ashmeade sat studying for midterms in her last year of law school. Listening to the president tout his executive actions on cannabis, she was acutely aware of those whom his reforms have left behind. Despite all the rhetoric and applause breaks, her father, Ricardo Ashmeade, is still serving a 22-year sentence and is one of the thousands of people still in federal prison for cannabis.

The specific actions Biden highlighted during his address were related to his October 2022 proclamation, in which he pardoned all prior federal offenses of simple marijuana possession, a move that was expanded on late last year to bring relief to an estimated 13,000 Americans. His executive action also initiated a review process that could result in cannabis being reclassified under the Controlled Substances Act at the federal level and moved out of Schedule I, the most dangerous drug classification. Yet neither of these actions would affect those who have suffered the most devastating consequences of prohibition, families like the Ashmeades.

Biden’s actions are being hailed as historic, but in reality, they represent peripheral changes that signal the reevaluation of cannabis but not the release of cannabis prisoners or relief for those who continue to be burdened by the lasting consequences of the carceral system. In short, these announcements represent progress but not justice. But that hasn’t stopped the administration from leveraging these actions with voters.

On Friday, Vice President Harris gathered several of the cannabis pardon recipients, along with rapper Fat Joe, for a public discussion about criminal justice reform at the White House. Clearly, the administration sees the political power of undoing the harms caused by the criminalization of cannabis—a sentiment that is backed up by polling data that shows the vast majority of Americans feel cannabis should no longer be criminalized.

Of course, the timing and context here matter, with these moves coming as the highly contentious presidential race ramps up. When he made his remarks, Biden became the first president in over 35 years to mention marijuana during a State of the Union address. The last president to mention cannabis during the address was Reagan, who listed marijuana among the prime enemies of the people and as a reason for the necessity of the war on drugs.

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Teen Use Of Delta-8 THC Is Higher In States Without Legal Marijuana, New Study Published By American Medical Association Finds

Teen use of delta-8 THC is higher in states where marijuana is illegal, according to a new study published on Tuesday in the Journal of the American Medical Association (JAMA). When it comes to adolescent consumption of cannabis itself, “there were no differences in marijuana use by state-level cannabis policies,” the researchers concluded, contrary to legalization opponents’ oft-repeated claim that the reform will lead to increased teen use.

Overall, just over eleven percent of high-school seniors self-reported using cannabis products containing delta-8 THC in the past year, the study found. Use of the largely unregulated psychoactive cannabinoid “is appreciable among US adolescents,” authors wrote, “and is higher in states without marijuana legalization or existing Δ8-THC regulations.”

In states where marijuana remains prohibited, 14 percent of high-school seniors said they had used a delta-8 product in the past year, the federally funded research found. Where marijuana was legal, that figure was 7 percent.

Local decisions to regulate delta-8 THC were linked to even lower use rates among adolescents. In states with no delta-8 rules, 14.4 percent of participants had used the cannabinoid within the past year compared to just 5.7 percent in states with delta-8 regulations.

“Given the federal policy context and divergent regional and policy correlates of Δ8-THC and marijuana use found in this study,” the report says, “Δ8-THC may be marketed to and/or used by adolescents as a psychoactive cannabis substitute in places in which adult-use marijuana is illegal.”

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Virginia Lawmaker Slams Governor For Vetoing Bill To Protect Marijuana Consumers’ Parental Rights

The House sponsor of legislation in Virginia that aimed to protect the parental rights of lawful cannabis consumers is criticizing Gov. Glenn Youngkin’s decision last week to veto the bill.

If enacted, HB 833 would have prevented the state from using marijuana alone as evidence of child abuse or neglect and, further, established that drug testing in child custody and visitation matters “shall exclude testing for any substance permitted for lawful use by an adult” under the state’s alcohol, cannabis and drug laws.

Youngkin vetoed the bill on Friday, writing in a message that “the proposed legislation, aiming to address a non-existent problem, has potential consequences that may expose children to harm.”

Del. Rae Cousins (D), the bill’s sponsor, said in a statement on Monday that the governor “is turning his back on the needs of our children and neglecting their well-being by encouraging the courts to move forward with unnecessary family separations.”

“We have seen how this is playing out in our courts; with Black and Brown families receiving harsher mandates from our judges for legal and responsible substance use,” the lawmaker said. “Family separation has devastating effects both on our communities and on the well-being of children, and by vetoing this legislation, Governor Youngkin is telling our courts that they can continue to unnecessarily tear children away from their parents.”

On its path to the governor’s desk, the legislation won unanimous or near-unanimous approval in votes on the Senate floor. The House was more divided, with Democrats generally in favor, though the proposal garnered some Republican votes, as well.

“I am deeply disappointed in Governor Youngkin’s decision to veto this bipartisan, commonsense bill that simply helps families stay together,” Cousins said.

The bill now returns to the legislature, where two thirds of both houses will have to approve it in order to override Youngkin’s veto. A companion Senate version of the measure, SB 115, also passed the legislature this session but has not yet been transmitted to the governor’s desk.

The proposal says a person’s “lawful possession or consumption” of state-legal substances would “not serve as a basis to restrict custody or visitation unless other facts establish that such possession or consumption is not in the best interest of the child.” An enactment clause would have directed the state Board of Social Services to amend its regulations, guidance documents and other materials to comply with the provisions of the bill.

Cousins, in the statement from her office, noted that courts “would still have full ability to assess what is in the best interests of the child, including the risk of physical or mental harm.”

Advocates have said they’re disappointed with Youngkin’s veto decision but pledged to continue pushing for the policy change.

“Disappointed doesn’t describe how it feels for the veto to come down after two years of pushing this proposal,” Chelsea Higgs Wise, executive director of the group Marijuana Justice, told Marijuana Moment last week, adding that organizers “will be back next year and every year until we get it right.”

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Minnesota Regulators Launch Effort To Catch Retailers Selling Illegal Marijuana As ‘Hemp’ Flower

It has been an open question—until now—whether registered hemp retailers in Minnesota are selling raw cannabis flower that crosses the line between legal hemp and illegal marijuana.

Marijuana use is legal in Minnesota, but legal sales haven’t started yet outside of tribal reservations. That means a raw cannabis flower purchased in the Twin Cities that recently tested above the legal limit isn’t supposed to be sold in the state.

Because of a gap in the state’s new recreational cannabis law, no state regulators had either the legal authority or the inspectors to sample the flower being sold to check whether it exceeded the federal and state definitions for hemp. That is, is the flower being sold in some stores legal or illegal? Does it contain more than 0.3 percent delta-9 THC, the intoxicating compound in marijuana?

Turns out, it does. The sample purchased from a registered hemp store by a private person tested at levels that are illegal under the law, according to the results from a California-based cannabis testing lab. MinnPost agreed not to name either the raw flower purchaser or the lab but has verified the identities of both.

The lab reported the flower showed a potency of 1.1 percent delta-9 THC, three times the limit under state law. The same sample showed that the bud had total THC content of 29.99 percent. Total THC is a measure of all different types of THC in the flower and 29.99 percent is similar to the types of flower sold in legal recreational marijuana states.

The retail sample tested is actually more potent than a cannabis sample purchased on the illicit market in Minnesota and tested by the same lab. That sample showed 1.38 percent delta-9 THC and 25.36 percent total THC.

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GOP Senators Push For Federal And State Response To Indian Tribe’s 4/20 Marijuana Sales Plan In North Carolina

Two Republican senators are asking federal, state and local officials what steps they are taking to enforce marijuana prohibition as an Indian tribe prepares to launch recreational cannabis sales on its lands within North Carolina on April 20.

On Friday, Sens. Thom Tillis (R-NC) and Ted Budd (R-NC) sent a letter with 19 questions about their concerns regarding the Eastern Band of Cherokee Indians (ECBI) marijuana plan to the U.S. attorney general, Drug Enforcement Administration (DEA), Department of Interior (DOI), Financial Crimes Enforcement Network (FinCEN), National Indian Gaming Commission and various North Carolina state and local law enforcement agencies.

“As our nation is facing an unprecedented drug crisis that is harming our communities, it is vital to learn what measures your departments and agencies are taking to uphold current federal and state laws,” they wrote, adding that the “matter raises multiple questions on how North Carolina communities will be kept safe.”

ECBI members approved a referendum last September to legalize adult-use cannabis, becoming the first jurisdiction within the borders of North Carolina to enact the reform. More recently, last week the tribe announced that it had set a target date to open retail sales: April 20, 2024, also known as 4/20.

This follows ECBI’s 2021 move to legalize medical cannabis and register Qualla Boundary LLC to dispense marijuana to patients. Registration for the program opened to all North Carolina residents this past June, and in October, the tribe issued its first round of medical marijuana cards.

“With unclear guidance, it makes it difficult for state and local officials to uphold  the rule of law in our communities,” the senators wrote in their letter. “In particular, we have the responsibility to ensure our youth are shielded from untested marijuana products being produced and sold by Qualla Enterprise LLC.”

Tillis and Budd then listed 19 questions that they’re asking officials to respond to, depending on their jurisdiction.

That includes queries about whether tribes are considered exempt from the Controlled Substances Act (CSA), whether agencies have concerns about the potential cannabis shop will attract transnational criminal enterprises, whether tribes can take land into trust for the purposes of selling cannabis and whether financial institutions can provide loans and credit to tribes seeking to open a marijuana business.

The senators are also pressing for answers on whether federal officials allow gaming profits derived from casinos to be used in support of marijuana ventures.

Ahead of last year’s legalization vote, Qualla Enterprises published an op-ed in the tribal newspaper, Cherokee One Feather, championing the benefits of adult-use sales. It compared the opportunity to when, “thirty years ago, the Cherokee People decided to build a casino.”

“This was highly controversial at the time, in part because nowhere in the surrounding region allowed gaming,” the company said at the time. “But we were not afraid to be different. Harrah’s Cherokee Casino has benefited this Tribe and its members in more ways than we ever imagined.”

The bulk of new jobs created by the policy change, according to the company, would be filled by enrolled ECBI members. In the medical system as of last year, 84 percent of cultivation employees were tribal members, its op-ed said, “which represents the highest of any business owned by the tribe.”

The op-ed also pointed to a statewide poll that found 73 percent of North Carolina residents support legal medical marijuana. And it cited estimates suggesting the state’s illicit cannabis activity amounted to nearly $3.2 billion in 2022.

A more recent survey of North Carolinians, conducted by the Meredith Poll and published last month, found 78 percent support for lawmakers to pass a medical marijuana bill this year.

The tribe’s moves to legalize despite North Carolina’s ongoing prohibition of marijuana drew criticism from other politicians, including Rep. Chuck Edwards (R-NC). Ahead of the election, Edwards, who is not Native, authored an op-ed in Cherokee One Feather warning that legalization on the tribal land “would be irresponsible, and I intend to stop it.”

The congressman also filed a bill in the U.S. House that would slash a portion of federal funding from tribes and states that legalize marijuana.

Then-Principal Chief Richard G. Sneed called the move “a big misstep” at the time. He told Marijuana Moment that he believed pushback from Edwards and others may have emboldened tribal members to support the measure.

“The worst thing that a non-Indian elected official can do is tell a sovereign, federally-recognized Indian tribe how they ought to handle their business,” Sneed said in an interview.

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