Recent developments in Nebraska have sparked a debate concerning the regulation of hemp and THC products in the state. This arises from a clash over jurisdiction between the Department of Agriculture and the newly established Medical Cannabis Commission. The tension centers around who holds the authority to regulate these products, especially in the wake of federal and state legislative changes.
In 2018, the Agriculture Improvement Act, also known as the Farm Bill, was signed into law by Congress and President Donald Trump. This legislation removed hemp and its derivatives with less than 0.3% delta-9 THC from the list of federally controlled substances. Nebraska aligned with this federal stance in 2019. Furthermore, the state’s medical marijuana program, introduced in 2024, empowered the Medical Cannabis Commission with the regulatory oversight of such products.
Senator Cavanaugh has voiced concerns regarding the Department of Agriculture’s role in regulating hemp and THC-derived products, arguing that this responsibility should rest solely with the Medical Cannabis Commission. He emphasized that businesses involved in selling these products, such as seltzers and gummies, are operating legally under current laws. These enterprises contribute significantly to the state’s economy, generating $10 million annually in sales taxes and providing employment for approximately 2,000 residents.
“When we are in this budget crunch that we are talking about, shutting down all these legitimate businesses that are operating under Nebraska law will have a detrimental effect on sales tax and other taxes that the state derives from these businesses,” Cavanaugh stated.
As the Nebraska legislature contends with a structural budget deficit, the implications of regulating hemp products have become a pressing issue. The debate continues as lawmakers deliberate on the most favorable path forward for the state’s economic and regulatory landscape.
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