A proposal aimed at combating unlicensed cannabis sales in New Jersey would establish new cannabis-related crimes for participating — whether as the purchaser or the seller — in the illicit industry, the New Jersey Monitor reports.

The proposal, sponsored by Senate President Nick Scutari (D), who was one of the primary driving forces for the state’s original adult-use law, would classify the operation of an unlicensed cannabis retailer as a third-degree crime and establish a new disorderly persons offense for knowingly purchasing from such an establishment.

According to the text of S4154, “This bill establishes the crime of selling or purchasing marijuana from an unlicensed business. Further, the bill establishes the crime of leader of an illegal marijuana business network.”

“We have a problem where people are opening up brick-and-mortar stores, small stores, unlicensed to sell these products, and quite frankly, they’re just selling them and this state is doing nothing about it. We need to do something more about those brick-and-mortar stores, but we also need to continue to fight back against drug dealers because those are alive and well.” — Scutari, in a statement to the Senate Judiciary Committee, via the New Jersey Monitor

The proposal, however, has been criticized by cannabis advocates for going backwards on the issue in a state where strict regulations and taxes have led to highly inflated cannabis prices.

“We don’t need to reinvent the wheel here,” attorney Bill Caruso told the committee members last week, “and I don’t think we need to go backwards in recriminalizing particularly consumers.”

Some lawmakers also blamed Attorney General Matt Platkin for failing to properly enforce the state’s cannabis laws and allowing the unlicensed industry to flourish.

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“Why do we have to act as if we’re the moral compass for the state? We’re senators. We’re not people’s parents.”

By Zach Wendling, Nebraska Examiner

A legislative effort backed by Nebraska Attorney General Mike Hilgers (R) to ban most consumable hemp and other THC products in the state stalled Friday and will now wait until at least 2026.

State Sen. Kathleen Kauth of the Millard area, sponsor of Legislative Bill 316, asked that her bill be “passed over” on Friday. She waited to do so until just 10 minutes before a two-hour debate would have ended, a time when Kauth would have needed 33 votes to survive a filibuster. After that, she would have needed 25 votes to pass LB 316 and send it to Gov. Jim Pillen (R).

Kauth had the backing of most of the officially nonpartisan Legislature’s 33 Republicans. But Republican State Sen. Ben Hansen of Blair held to his promise to oppose LB 316 if it wasn’t amended to explicitly protect medical cannabis products.

Medical cannabis

Kauth tried to address Hansen’s concerns and would have, said Hansen. But lawmakers ran out of time, because State Sen. John Cavanaugh of Omaha and other opponents successfully blocked LB 316 from being amended.

Hilgers has argued that THC products with delta-8 are already illegal, to which Cavanaugh said Friday that if that’s true, a bill isn’t needed.

Hansen said the current “environment” with Hilgers, who has opposed medical cannabis and has launched a statewide campaign against delta-8, could be “hostile.” Hansen said there was language in LB 316 that could “greatly impact” medical cannabis.

“That’s something I cannot have,” Hansen said. “I think the people passed [medical cannabis] for a specific reason, and I think they are then due to have what they voted for.”

Hilgers helped lead opposition to Hansen’s proposal for clearer medical cannabis regulations and guardrails with 53 sheriffs. His LB 677 fell short 10 votes of advancing on May 20.

Part of Friday’s last-ditch effort featured pressure on State Sen. Jane Raybould of Lincoln, who said she was concerned about “bad actors” in the THC arena but didn’t want to take away the health products some Nebraskans rely on.

Raybould echoed Hansen that lawmakers should allow a new medical cannabis regulatory commission to proceed with directives for those products.

Kauth said multiple times during the debate that her bill had nothing to do with medical cannabis and that more than a dozen amendments from Cavanaugh made it “impossible” to seek the changes needed to keep her bill moving forward.

“No one is going into anyone’s homes and searching their medicine cabinets,” Kauth said. “That is more hyperbole and hysteria from the left.”

Health and safety

State Sen. Jared Storm of David City, who prioritized Kauth’s LB 316 for this year’s session, encouraged Nebraskans not to buy the “garbage” products. He repeated that he would never jeopardize “the health or safety of our citizens of this state, especially children and young adults, for revenue.”

LB 316 would prohibit raw hemp above 0.3 percent tetrahydrocannabinol (THC) of any concentration and with processed hemp prohibit the lesser of 0.3 percent THC on a total weight basis or 10 milligrams per package, effective January 1. The mature stalks of Cannabis sativa and its fiber, oil, cake and any other naturally derived products would not be considered hemp, leaving a narrow legal path for some hemp-based products such as fibers and textiles.

If the bill passed, it would have included a “consumer safe harbor period” through the end of 2025 to give consumers time to discard any “illegal hemp” as newly defined under LB 316. Legal products would have faced an additional 10 percent wholesale tax at the time of purchase.

The new excise tax revenue raised would have been directed toward property tax relief.

Besides protecting the voter-approved medical cannabis laws, Kauth also worked with State Sen. Tom Brandt of Plymouth to offer an “affirmative defense” in court if someone could prove they previously legally purchased what would have become “illegal hemp” under LB 316. That could include a receipt.

‘Good’ and ‘bad’ actors

State Sen. Dan McKeon of Amherst, a Republican who represents a Pleasanton-based hemp company that has offered tours to state senators of its facilities, said there are good actors that lawmakers should be working with.

State Sen. Dan Lonowski of Hastings, a close ally of McKeon, said there are no “good actors.”

Kauth read a letter from Hilgers that had said if LB 316 passed, his office would have announced a pause on new civil enforcement actions against “businesses operating in good faith” for at least 120 days, exactly through the end of 2025. Kauth declined to provide a copy of the letter because LB 316 did not pass.

Kauth and Storm said they now hope Hilgers ramps up his legal efforts against THC stores.

Many hemp-focused businesses said the broad language in LB 316 would shut down their industry, even as supporters said the bill wouldn’t touch them. Kauth said Friday that some businesses that were fighting the changes are essentially “admitting that they are selling dangerous, untested, unregulated, synthetic pot products.”

“They are pushing the health and well-being of their pocketbook above the health and well-being of Nebraskans,” Kauth said. “I’m extraordinarily disappointed that that is where we have come.”

‘We’re not people’s parents’

Cavanaugh, who again led opposition to the bill, said regulations and not a ban were still the best path forward. He said LB 316 would go in the “opposite direction” of economic development for budding businesses who are “good actors.”

His LB 16, to implement regulations on THC products, did not advance from the Judiciary Committee this year, and lawmakers repeatedly rebuffed his efforts.

Cavanaugh repeated Friday that he is “ready, willing and able to work on a regulatory scheme that will actually do this the right way and answer all the concerns that people have.”

State Sen. Terrell McKinney of North Omaha, who also pushed for regulations, said Kauth’s bill could cause more harm than good and that the state should let people be adults.

“Why do we have to act as if we’re the moral compass for the state? We’re senators. We’re not people’s parents,” said McKinney.

State Sen. Margo Juarez of Omaha said she had purchased CBD with hemp in it for her nearly 101-year-old mother, but she didn’t have a receipt for the product.

Cavanaugh said the proposed defense provision only dealt with individuals, so businesses would have needed to destroy or sell all products by September, when the bill, if passed, would have taken effect. If not, business owners would risk “countless felonies,” Cavanaugh argued.

What would be banned?

The debate on LB 316 has seen senators forcefully disagree with what would be banned, with supporters arguing it would only ban “synthetic” chemically modified hemp or THC, while opponents said the bill would stretch to CBD, creams, ointments and most other products.

Part of that is because LB 316 would count the THC level based on all concentrations—delta-8, delta-9, delta-10, etc.—and not just 0.3 percent delta-9 THCc. Cavanaugh and State Sen. Wendy DeBoer of Omaha have said that it could criminalize possessing a gummy as a felony.

Supporters of LB 316, however, say that only chemically modified “synthetic” products would be banned.

Nebraska lawmakers in 2011 already banned “synthetic” marijuana, such as K-2 or spice. Most hemp or other hemp-derived products require chemical modifications, such as heat.

‘We could have stopped it’

State Sen. Tanya Storer of Whitman said that while, as a conservative, she doesn’t think government should be in the way of business or entrepreneurship, government does have a role to protect people “from things that they couldn’t otherwise do for themselves independently.”

“Individuals do not have the capacity to know the processes that go into developing a product. That’s what we have things like the FDA for,” Storer said, referring to the U.S. Food and Drug Administration.

Cavanaugh, McKinney, Raybould and State Sen. George Dungan of Lincoln repeatedly said that was part of the reason why regulations, not a ban, would be better, treating the products similarly to alcohol, tobacco or other drugs.

Kauth said that with lawmakers’ failure to move forward, senators must own that the next time someone dies because of the products, they will know: “We could have stopped it.”

LB 316 will return next year one vote away from passing, with eight minutes to go in the third round of debate, though it’s unclear what amendments might come. Rescheduling would be up to Speaker John Arch of La Vista.

This story was first published by Nebraska Examiner.

Trump Administration Still Hasn’t Decided On Challenging Marijuana And Gun Rights Case, Getting More Time From Supreme Court

MN gov signs bong water decrim; CO gov touts psychedelics launch; TX medical marijuana expansion to gov; PA rep’s op-ed; Video games & cannabis

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/ TOP THINGS TO KNOW

The Trump administration still hasn’t decided whether to challenge an appeals court ruling about the federal prohibition on gun ownership by marijuana consumers, with Solicitor General D. John Sauer asking for and receiving another extension from the U.S. Supreme Court.

Minnesota Gov. Tim Walz (D) signed a bill to decriminalize bong water by amending a former law that said the weight of the water could be charged as that amount of the pure, uncut version of whatever drug the bong was used to smoke.

Colorado Gov. Jared Polis (D) announced that the state’s psychedelics program is “fully launched” now that a testing lab for psilocybin has been licensed—saying that officials are “implementing the will of the voters in good faith.”

Texas lawmakers sent Gov. Greg Abbott (R) a bill to significantly expand the limited medical cannabis program by adding new qualifying conditions like chronic pain and traumatic brain injury and approving more product forms like vapes and lotions, as well as authorizing additional dispensary locations.

Pennsylvania Rep. Rick Krajewski (D) argues in a new Marijuana Moment op-ed that Senate Republicans who killed his House-passed cannabis legalization bill are “stuck in their prohibitionist views of the past” and are “out of touch with the will of our Commonwealth.”

San Marcos, Texas’s voter-approved marijuana decriminalization law saved nearly a half million taxpayer dollars as police largely stopped making arrests for simple possession, according to a new analysis from Ground Game Texas.

A new scientific review concludes that while a “majority of studies did find a positive relationship between

and cannabis use”—as would be expected under popular stereotypes—”several studies also found no significant relationship, and a few even found a negative relationship.”

A federal judge upheld Alaska rules restricting intoxicating hemp products, rejecting a lawsuit filed by an industry group.

The Nebraska legislature confirmed Gov. Jim Pillen’s (R) appointees to the Medical Cannabis Commission despite concerns from advocates who pointed out that they consistently opposed legalization.

The New Jersey Senate Judiciary Committee held a hearing on the Senate president’s bill to recriminalize the purchase of marijuana from unlicensed sources.

Texas farmers are warning lawmakers that a proposed ban on consumable hemp products with any amount of THC will devastate a key part of the state’s agriculture industry.

University of Winnepeg’s Kevin Walby and Carleton University’s Jamie Brownlee argue in a new op-ed that medical-focused psychedelic capitalism will allow “elites to dominate the market” while helping to “entrench and sustain the drug war and the criminalization of most drug use.”

/ FEDERAL

Former Department of Government Efficiency head Elon Musk reportedly regularly used drugs such as psilocybin, MDMA and ketamine as he became one of President Donald Trump’s closest allies over the past year. Musk cut off a reporter’s question about the report during an Oval Office event with President Donald Trump.

Former Rep. Matt Gaetz (R-FL) tweeted, “Whatever drugs @elonmusk was taking should be given to every member of Congress.”

The House bill to respect state marijuana laws got one new cosponsor for a total of three.

/ STATES

Colorado Gov. Jared Polis (D) signed a kratom regulation bill.

Texas’s lieutenant governor posted a video touting legislation to ban consumable hemp products with any amount of THC.

The Pennsylvania House majority leader said it’s up to the Senate to take action on marijuana legalization now that his chamber has passed its own bill.

The Illinois House Executive Committee approved a bill to amend various cannabis rules.

A Minnesota legislature working group agreed to cut funding for a grant program aimed at aiding organizations that work with communities where residents are eligible to be cannabis social equity applicants. Separately, regulators agreed to settle a lawsuit brought by marijuana social equity business applicants who challenged the cancellation of a licensing lottery.

Georgia lawmakers will conduct study committees on medical cannabis and intoxicating hemp over the summer.

California regulators announced a recall of marijuana products due to incomplete and incorrect regulatory compliance testing, as well as labeling that is attractive to children.

An anonymous letter purporting to be from New York Office of Cannabis Management staff claims that leadership has fostered “an environment of fear and retaliation.”

Oregon regulators will no longer require marijuana businesses to have labor peace agreements after a federal judge struck down a voter-approved law on the issue.

The Massachusetts Department of Conservation and Recreation said people are not permitted to use medical cannabis at state parks and trails.

The Rhode Island Cannabis Advisory Board announced a list of study projects.

Pennsylvania regulators published an updated list of physicians approved to issue medical cannabis recommendations.

—
Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.
—

/ LOCAL

The Kennesaw, Georgia City Council is considering a marijuana decriminalization proposal.

/ INTERNATIONAL

The UK Home Office rejected a petition to legalize marijuana homegrow.

Belize’s minister of new growth industries applauded efforts to put a marijuana legalization referendum on the ballot in Caye Caulker.

/ SCIENCE & HEALTH

A study suggested “epigenetic regulation by CBD in the restoration of an epithelial phenotype of breast cancer cells, providing new targets for anticancer therapy.”

A study identified evidence of “use of psychoactive plants in institutionalized ritual in the first millennium BCE, demonstrating that even in their early stages, sociopolitically complex societies incorporated psychoactive plants into ritual activity.”

/ ADVOCACY, OPINION & ANALYSIS

The University of Michigan and several reform groups are conducting a psychedelics survey.

A RAND Corporation report on preventing veteran suicide recommends more research on “novel strategies” such as psychedelics “to prevent suicide to increase the suite of available effective, evidence-based approaches.”

/ BUSINESS

Canopy Growth Corporation reported quarterly net revenue of C$65 million and a net loss from continuing operations of C$221.5 million.

Cresco Labs Inc. reported quarterly net revenue of $165.8 million and a net loss of $15.2 million.

AYR Wellness Inc. said it will be unable to meet a deadline to file an interim financial report and expects to be issued a failure-to-file cease-trade order by Canadian officials.

Haribo is recalling candies after some were found to contain traces of cannabis.

The Cannabist Company Holdings Inc. completed a plan of arrangement.

SHF Holdings, Inc., d/b/a Safe Harbor Financial announced a strategic partnership with Bennett Thrasher to provide financial compliance and advisory services to cannabis businesses.

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