Nebraska
Amended Nebraska Bill Reduces Proposed Hemp And CBD Tax Rate From 100% Down To 25%
An amendment to a Nebraska tax bill on Wednesday reduced a proposed tax on hemp and CBD that was initially set at 100 percent. The new rate, 25 percent, is significantly lower but still far greater than sales tax rates that most states impose on the federally legal products.
The change to LB 388’s hemp tax rate was approved by the legislature as part of a broader amendment offered by the same lawmaker who first included the 100 percent provision, Sen. Lou Ann Linehan (R). It was adopted on a 28–6 vote.
The underlying tax bill as amended did not receive a vote this week, with a final reading and vote expected next Thursday.
Sen. Anna Wishart (D), who’s backed past efforts to end marijuana prohibition in the state, told Marijuana Moment in an email that the rate change was the result of negotiations between lawmakers and representatives of Nebraska’s CBD industry.
“The 100% tax was unworkable for CBD companies in our state. They were concerned it would drive them out of business,” Wishart said. “In talking with representatives from a group of CBD companies in the state, I worked with them and other senators to negotiate the tax down to 25%.”
Linehan’s office did not immediately respond on Thursday to Marijuana Moment’s request for comment about the change, although last month she had similarly told local media that the 100 percent hemp tax proposal was just a starting point for negotiations.
“Are we going to keep it 100 percent? No, we’re not,” the senator said at the time. “I’ve already had one of our members tell me that, you know, elderly people like lotions and creams, and it helps with pain. So like I said, we just have to look with it.”
Some lawmakers had said in n earlier debate on the proposal that the tax was out of step with rates set on CBD and hemp products in other states and that, if the goal of the bill was to raise revenue, Nebraska should consider legalizing and regulating marijuana.
“I looked around. I saw some statistics on other states—neighboring states—and it’s a lot lower. Definitely not 100 percent,” Sen. Terrell McKinney (D) said. “So we’re not going to be comparable to our neighboring states if we tax it at 100 percent.”
“Honestly speaking, what we really need to have a conversation about in our state, in the state of Nebraska, is our refusal to open ourselves up to other revenue streams,” he continued. “One revenue stream that we should open ourselves up to is the legalization of marijuana.”
Neither medical nor adult-use cannabis are legal in Nebraska, though activists are working to change that this year.
“We have a brain-drain issue,” said Sen. Jen Day (D), “and we refused to recognize that and address it from the other policy perspectives that caused the issues with brain drain—one of those being the fact that we have chosen year after year after year not to legalize even medical cannabis in the state.”
“Through the end of 2022, states have reported a combined total of more than $15 billion in tax revenue from legal adult-use cannabis sales,” she noted.
Adam Morfeld, a former Nebraska state senator who now co-chairs the advocacy group Nebraskans for Medical Marijuana, posted to social media ahead of this week’s amendment that the situation showed that the state’s “policies dealing with hemp, CBD and marijuana are so backwards.”
Shocker. Our policies dealing with hemp, CBD and marijuana are so backwards. https://t.co/VDQUIpNIUC
— Adam Morfeld (@Adam_Morfeld) April 10, 2024
The underlying sales tax bill is part of a broader debate on how lawmakers wanted to balance sources of state revenue. Residents, many lawmakers have argued, have complained that property taxes are too high, and proponents of the bill have said raising sales taxes would prevent further state reliance on property taxes to fund schools. Opponents, however, criticized the bill’s overall increase in taxes, with some Democrats noting that sales taxes in particular would hit poorer Nebraskans hardest.
Some lawmakers have lamented that the complex measure’s many provisions seemed to come out of nowhere, although sponsor Linehan and others said on the floor last month that the details were taken from other bills that lawmakers had introduced and debated. The hemp and CBD tax, for instance, ostensibly came out of LB 1341, introduced in January by Sen. Justin Wayne (D) and apparently never acted on by lawmakers.
That bill as introduced indeed would have increased taxes on consumable hemp, but only to 7.5 percent.
The proposal comes as the state, like many others across the country, witnesses an explosion of hemp-derived products, including intoxicating cannabinoids such as delta-8 THC. Late last year, the state’s attorney general, Mike Hilgers (R), filed suit against retailers in the state over their sale of delta-8 products.
Meanwhile, activists are hoping to qualify two medical cannabis initiatives for November’s ballot.
A recent poll by the campaign found 70 percent support in the state for legalizing medical marijuana.
Organizers at Nebraskans for Medical Marijuana (NMM) have been petitioning for the change since July, about two months after turning in a pair of complementary ballot proposals to the secretary of state’s office.
The governor has already voiced opposition to the reform effort, saying in September that legalization “poses demonstrated harms to our children,” and that medical cannabis should only be accessible if its approved by FDA.
Late last year, NMM told Marijuana Moment that the governor’s argument was a “cop out,” and she says the campaign will let voters decide for themselves.
One of NMM’s earlier campaigns gathered enough signatures for ballot placement in 2020, but the measure was invalidated by the state Supreme Court following a single-subject challenge. Supporters then came up short on signatures for revised petitions in 2022 due in large part to the loss of funding after one of their key donors died in a plane crash.
Nebraska lawmakers, including campaign co-chair Sen. Anna Wishart (D), have also attempted to enact the reform legislatively, but cannabis bills have consistently stalled out in the conservative legislature.
Wishart’s medical cannabis bill received a hearing in the unicameral Judiciary Committee in February, but it did not advance. She attributed the inaction to changes in committee membership. An earlier version of the measure ultimately stalled out in the GOP-controlled legislature amid a filibuster that supporters could not overcome.
FDA Head Says There’s ‘No Reason For DEA To Delay’ Rescheduling Marijuana
Photo courtesy of Kimzy Nanney.
Nebraska
In a first for Nebraska, federal judge awards attorney’s fees to immigrant who was detained without bond hearing
For the first time, a federal judge in Nebraska has awarded court costs and attorney’s fees to an immigrant who prevailed in a lawsuit challenging his detention without bond.
Senior U.S. District Court Judge John Gerrard, an appointee of former President Barack Obama, issued the ruling on Tuesday and awarded $1,535.23 to Edgar Eduardo Cadillo Salazar. Gerrard had previously ruled that Salazar’s detention at the Cass County Jail without bond was unconstitutional and ordered the government to provide him with a bond hearing or release him from custody.
Under the federal Equal Access to Justice Act, individuals and businesses that prevail in civil lawsuits against the federal government can file a motion to hold the government liable for attorney’s fees and court costs. Judges can order the government to cover those costs unless they find that the government’s position was “substantially justified,” or if “special circumstances make an award unjust.”
Before last summer, when the Department of Homeland Security revised its longstanding interpretation of statute, only immigrants who were encountered at the border or other ports of entry were subject to mandatory detention. Immigrants encountered after residing in the U.S. were typically subject to discretionary detention and eligible for a bond hearing.
The new interpretation has led to detention without bond for tens of thousands of immigrants who would have previously been eligible to bond out – and it’s led to an endless stream of wrongful detention lawsuits in Nebraska and around the country. A Reuters investigation found that federal courts have ruled against the mandatory detention policy more than 4,400 times.
In Gerrard’s order granting Salazar’s request for attorney’s fees, he said the government’s position that all undocumented immigrants are ineligible for bond hearings was not substantially justified.
“This ‘new understanding’ of a decades-old statute has resulted in the government detaining hundreds of thousands of nonviolent individuals, often without due process or other constitutional protections,” Gerrard wrote. “It has also sparked thousands of lawsuits where courts have ordered release of those wrongfully detained, for which neither immigration courts nor the Department of Justice have seemed prepared.”
He continued: “The government has not provided any justification, let alone a substantial one, for its radical departure from the historical treatment of noncitizens who entered the United States without inspection. Its arguments rely purely on statutory interpretation; the government apparently expects it can transform an entire area of administrative law because it unilaterally decided that, for thirty years, everyone was wrong about what a statute meant.”
Salazar was later denied bond by an immigration judge and remains in custody, according to his attorney, Alexander Smith.
Two similar motions were denied last month by U.S. District Court Judge Susan Bazis, an appointee of former President Joe Biden. In both cases, Bazis had ruled in favor of the detained immigrants, and they were later released on bond per her orders. But in her opinions denying attorney’s fees under the EAJA, she found that the government’s position on mandatory detention was “substantially justified.”
“The Court cannot say that the Federal Respondents’ pre-litigation decision to treat [the respondent] as being subject to mandatory detention, while not ultimately correct in this Court’s view, lacked a reasonable basis in law or fact,” Bazis wrote in a footnote of her opinions.
The issue of mandatory detention is currently under consideration by the 8th Circuit Court of Appeals, which covers Nebraska and other Midwest states. In oral arguments last month, the appellate court’s conservative judges appeared friendly to the mandatory detention policy.
Nebraska
‘Best we’ve played all year.’ Trent Perry scores 20 points as UCLA routs No. 9 Nebraska
The UCLA men’s basketball team made Senior Night one to savor Tuesday, dominating No. 9 Nebraska 72-52 at Pauley Pavilion for its 20th victory of the season and third over a top-10 ranked opponent.
The Bruins improved to 20-10 overall and 12-7 in the Big Ten with one regular season game remaining, Saturday at crosstown rival USC.
Trent Perry scored 20 points, Eric Dailey Jr. had 14 and three players — Tyler Bilodeau, Skyy Clark and Xavier Booker — each added eight points.
“Nebraska’s got a great team,” UCLA coach Mick Cronin said. “This is the best we’ve played all year — they brought out the best in us. We went from our worst defensive effort to our best. They outhustle everyone they play, but not us. Tonight we were great, but I love the way they play. If we had their attitude we’d have their record.”
Eric Freeny had four points, five rebounds and three steals in 18 minutes for UCLA, which got 26 points in the paint and 17 second-chance points.
“Effort is what it takes to win in March,” Freeny said. “It was our last home game. Coach keeps on pushing me to be better everyday.”
Sam Hoiberg had 12 points to lead Nebraska, but Pryce Sandfort, who began the game leading the conference in three-pointers made per game, was held to nine points.
“Sandford has been unbelievable so to hold him to nine points is amazing,” Cronin said. “Brandon Williams was the unsung hero.”
Williams had six points and three rebounds in 12 minutes off the bench.
The Bruins were in control from the opening tip-off and never trailed the Cornhuskers (25-5, 14-5). UCLA improved to 10-3 in all-time against Nebraska and the win greatly strengthened its resume for the NCAA tournament as the Bruins also beat then-No. 4 Purdue 69-67 on Jan. 20 and then-No. 10 Illinois 95-94 in overtime on Feb. 21 on Donovan Dent’s layup with one second left.
“We have to take attitude we came with tonight, bottle it up and take it on the road,” Dailey Jr. said. “We’ve got so much left. The season’s not over… we’re only as good as our last game. It’s all about how you respond. I love the fight that we played with tonight.”
This is the fifth time in Cronin’s seven seasons that the Bruins have won 20 or more games. They are 17-1 at home (their only loss in overtime to Indiana on Jan. 31).
“Since I’ve been here we don’t lose much at home.” Cronin said.
UCLA went ahead by 15 points, 37-22, on Perry’s three-pointer with 2:41 left and led 37-24 at intermission. The Bruins shot 50% from the field in the first half (15 for 30) while Nebraska was only 31% (nine for 29).
The Bruins increased their advantage to 18 points on Dailey’s dunk less than five minutes into the second half and the visitors got no closer than nine the rest of the way.
Prior to pregame introductions the Bruins honored seniors Bilodeau, Dent and Clark; fifth-year player Jamar Brown; redshirt seniors Steven Jamerson II, Jack Seidler and Anthony Peoples Jr; and redshirt junior Evan Manjikian. In a media timeout, midway through the first half, former coach Jim Harrick (who led UCLA to its 11th national championship in 1995) was honored and got a loud ovation.
“I’m happy for our seniors, I didn’t want them to lose their last game at Pauley,” said Perry, who reversed a subpar performance at Minnesota, where he was 0-for-7 from the field with one rebound and one assist in 26 minutes. “I had to come out here tonight and bounce back for my team. I play for something bigger than myself and I’m fortunate to have the type of guys I do around me.”
UCLA guard Skyy Clark looks to pass while under pressure from Nebraska guard Sam Hoiberg and forward Berke Buyuktuncel in the second half.
(William Liang / Associated Press)
Over the last four games, Dent has 46 assists and just two turnovers.
Bilodeau has scored in double figures in 26 of 28 games played, totaling 20 points or more nine times.
Dailey moved to within five points of reaching the 1,000-career point milestone.
UCLA has now made at least one three-pointer in 887 of 888 games dating to February 2000.
“We had one practice this week, that’s it,” Cronin said. “We watched film, had a heart-to-heart talk and a shoot around today but that’s it.”
Nebraska
4.1-magnitude earthquake hits south-central Nebraska
People across Nebraska and Kansas reported feeling an earthquake Sunday afternoon.
According to the U.S. Geological Survey, a quake measuring 4.1 on the Richter Scale struck around 1 p.m. about 3 miles east of the Webster County village of Cowles, which is in south-central Nebraska near the Kansas border.
A quake of that magnitude is considered “light” and not likely to cause damage.
But the USGS received dozens of reports from people who said they felt the quake, some as far away as Omaha and Manhattan, Kansas. Numerous people took to social media to report feeling the quake.
Two aftershocks of 2.6 magnitude later occurred near the original quake site, one about 90 minutes after the initial quake and one later Sunday night.
Earthquakes are relatively rare in Nebraska, but the state does usually record one or two minor ones per year. The last time Nebraska recorded a quake of a magnitude 4 or above was in December 2023, also in Webster County.
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