Investigators with the Lincoln Police Department last weekÌýseized THC products for testing from five local dispensaries that previously failed compliance tests, police officials said, in a crackdown replicated in other parts of the state on anÌýambiguous market that operates, in part, within a legal loophole.
The dispensariesÌý—ÌýThe Cannabis Factory, Kind Life Dispensary and three 50 Shades of Green locations — offer various THC products,Ìýincluding Delta-8,Ìýa federally legal hemp-derived cannabinoid that has been sold in the city for more than two years.
Though marijuana remains illegal in Nebraska even for medical use, aÌýprovision in the 2018 Farm Bill federally legalized the regulated production of hemp. The law requires that the plant contain no more than 0.3% of Delta-9 THC, but no limits were placed on the hundreds of other cannabinoids present in hemp, including Delta 8, essentially creating a loophole for businesses to sell it.
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Lincoln police investigators performed "spot checks" on 10 local dispensaries in January, February and March in response to resident concerns over advertisements that suggested the stores were selling illegal-grade THC products, said Erika Thomas, a spokeswoman for LPD.
Five of the 10 dispensaries were found to be selling THC products that weren't compliant with the state statute, Thomas said.
Lincoln-Lancaster County Narcotics investigators in June performed follow-up spot checks, which yielded the same results, prompting the unit to serve search warrants on the five stores Aug. 7, Thomas said.
Investigators seized plant materials, edibles, drug paraphernalia and financial records as part of the department's probe into the stores, Thomas said. The warrants themselves haven't yet been made public, according to District Court records.
Though Thomas insisted that the Police Department's raid of the local dispensaries came in response to concerns raised by Lincoln residents, their seizure of THC products is part of a statewide crackdown of such shops that spilled into public light Monday.
In Sarpy County, investigators in recent months purchased THC products from Cannabis Factory stores in Gretna and Bellevue and a 50 Shades of Green store in Papillion, SheriffÌýJeffrey Davis said in a news release Monday.
"Most products tested were above 5% THC and some items tested 15% THC," said Davis, who noted that the legal limit is less than .5%.
Davis said his office worked with six other law enforcement agencies across Southeast Nebraska during their investigation into the stores, including the Nebraska Attorney General's Office, the State Patrol, the Douglas County Sheriff's Office and police departments in Lincoln, Omaha, Papillion,ÌýBellevue.
"The number one issue that all of us agree on is consumer protection," Davis said, noting that the Attorney General's Office would ultimately determine if any criminal charges will be filed in the Sarpy County cases.
The Cannabis Factory and 50 Shades of Green are both based in Omaha, where police officials deferred questions on the cross-jurisdictional investigation to the Attorney General's Office.
A spokeswoman for Attorney General Mike Hilgers said Monday the officeÌýdoes "not confirm or deny the existence of investigations," declining further comment.
In Lincoln, all five stores that were subjected to the warrants remain open. The locations raided by police were: The Cannabis FactoryÌýat 122 S. Antelope Valley Parkway,ÌýKind Life Delta-8 THC Dispensary at 2525 Pine Lake Road and three 50 Shades of Green storefronts at 330 N. 48th St., 1903 O St. and 1010 South St.
Police haven't cited or arrested any of the stores' operators, Thomas said. It's unclear what legal ramifications they might face.
Asked if customers of the shops who might have unknowingly purchased illegal THC could be prosecuted, Thomas said "anyone in possession of a controlled substance could be subject to prosecution," deferring further questions to prosecutors.
Thomas said there are at least 75 smoke and vape shops operating in Lincoln and police plan to perform similar spot checks on additional stores in the coming weeks.
In a joint statement, Lyle Wheeler and Tiffany Thompson, counsel for Omaha-based 50 Shades of Green, said the business is cooperating with law enforcement and "has not been made aware of any particular product that is illegal or in violation" of state law.
And, the attorneys said, 50 Shades of Green voluntarily submitted a sample of each of its products for testing to an independent lab.
"To date, there have been no indications of any violations under the re-testing," the attorneys said. "Again, 50 Shades is making every effort to maintain the trust of its customers and the safety of the community. Our client welcomes discussion on further regulation and legislation."
The Cannabis Factory, an Omaha-based LLC that operates nine dispensaries across Nebraska, sellsÌýDelta 8 THC, Delta 10 THC andÌýTHCP, "a cannabinoid with more than 30 times the potency of conventional Delta 9 THC from marijuana."
An administrative assistant atÌýThe Cannabis Factory, who declined to provide her name, said Friday police hadn't zeroed in on any particular product the chain offers, instead seizing various products for testing.
The employee said The Cannabis Factory receives their products from federally licensed hemp dealers who provide a certificate of authenticity with each order, ostensibly ensuring the products sold in Nebraska are compliant with federal law.
While The Cannabis Factory's location near downtown Lincoln remains open, the assistant said additional stock of the seized products was being kept off the shelves as the Police Department's investigation continues.
Tom Whitmore, an Omaha-based lawyer who is listed as The Cannabis Factory's registered agent in state business records, did not return a phone call seeking comment. And Kind Life Dispensary did not return an email seeking comment.
An influx of dispensaries in Lincoln drew attention in 2021,Ìýwhen the sale of Delta 8 first caught fireÌýlocally as 50 Shades of Green opened up its first Lincoln location on the southeast corner of O Street and Antelope Valley Parkway.
Delta 8 had already been on the market prior to the chain's arrival, quietly sold in CBD shops around the city.
But when 50 Shades of Green set up shop here in May 2021 and sent out ads to city residents,ÌýLincoln police were flooded with inquiries from residents confused and concerned about the newly marketed commodity, police officials said then.
At the time,Ìýpolice insisted they weren't concernedÌýby the shops.
"To my knowledge, they're not doing anything illegal," Capt. Ryan Dale, the head of the Lincoln-Lancaster County Narcotics Task Force, told reporters in June 2021.
Dale said then that the narcotics unit had made contact with the business, as it does with every CBD shop in Lincoln, to develop a line of communication with the store if operators ever have questions about the legality of products.
Asked Monday if operators knew they were selling THC products that were noncompliant with state law, Thomas declined to say.
"I can't speak for the owners of these stores," she said.