Bill
LB 16
Establishes Nebraska Consumable Hemp Control Act: licenses retailers, creates Hemp Control Commission under Liquor Control, imposes excise tax, local input and safety rules.
Status and timeline
- Introduced: January 9, 2025
- Referred: Judiciary Committee
- Hearing: January 29, 2025 (Notice of hearing published January 22, 2025)
- Primary sponsor: Senator John Cavanaugh; Co-sponsor: Senator Conrad
Purpose and intent
- LB 16 would establish a regulatory framework for the sale and marketing of consumable hemp in Nebraska.
- The bill aims to promote orderly, safe, and economically efficient provision of consumable hemp products, generate state revenue via an excise tax, and protect public health and welfare through state regulation.
Key provisions and changes
- Nebraska Consumable Hemp Control Act
- The act would be codified as the Nebraska Consumable Hemp Control Act (Sections 1–55, as introduced).
- It would repeal or harmonize existing provisions relevant to consumable hemp under current Nebraska law (subject to final legislative text).
- Licensing and licensing regime
- Any person or entity that markets or sells consumable hemp must obtain a state license and pay a license fee.
- Local governments (cities/villages and counties) or citizens may participate in the process regarding license issuance and renewal (input on approvals and renewals).
- Licensed retailers must comply with laws and regulations governing sale, including age restrictions, labeling, and packaging requirements, among other regulatory standards.
- Regulatory authority
- The Nebraska Hemp Control Commission would be created, functioning under the umbrella of the Nebraska Liquor Control Commission.
- The executive director of the Nebraska Liquor Control Commission would also serve as executive director of the Nebraska Hemp Control Commission.
- The Commission would oversee regulatory enforcement, rulemaking, licensing, and compliance related to consumable hemp.
- Definitions (key terms)
- Consumable hemp product: a product containing hemp intended for human or animal consumption by inhalation or ingestion.
- Hemp: as defined in the act (consistent with existing statutory definitions, e.g., 2-503 in Nebraska law).
- Minor: individuals under 21 years of age.
- Licensee: a person licensed as a retailer under the act.
- Retailer: a person who sells consumable hemp products for use or consumption and not for resale.
- Local governing body: city council/village board or county board housing the licensed premises.
- Other terms: identification documents, manager, ordinance, sale, sell, revoke, suspend, etc., defined for regulatory clarity.
- Taxation and local options
- A state excise tax on consumable hemp products would be imposed, to be paid by licensed retailers.
- There is an option for a local occupation tax approved by a municipality.
- Administrative and operational provisions
- The Commission would be authorized to appoint necessary staff, set budgeting and expense rules, and conduct regular and special meetings.
- The act outlines governance, recordkeeping, and legal processes (e.g., seal, notices, minutes, and attorney general involvement).
Who/what would be affected
- Retailers and marketers of consumable hemp products in Nebraska would need licenses and would be subject to state regulatory oversight.
- Local governments would have a role in licensing decisions and renewals (input on approvals).
- Consumers of consumable hemp products would be subject to age restrictions and labeling/packaging requirements.
- The Nebraska Hemp Control Commission and the Nebraska Liquor Control Commission would gain authority to regulate and enforce these provisions.
Procedural and timeline notes
- The bill is in the Judiciary Committee with a scheduled hearing on January 29, 2025.
- It would establish a new regulatory framework and licensing regime, with implementation contingent on passage and subsequent regulatory rulemaking.
Sponsor context
- Primary: Senator John Cavanaugh
- Co-sponsor: Senator Conrad
Impact overview
- Establishes a centralized, licensure-based approach to consumable hemp with state-level taxation and local input rights.
- Creates a dedicated regulatory body (Hemp Control Commission) under the existing Liquor Control framework.
- Sets policy goals to balance economic activity, public health and safety, and revenue generation through an excise tax and possible local taxes.
Compiled from official sources — confirm details with the bill’s official record.
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