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LB 316

Prohibit conduct relating to hemp other than cannabidiol products and change provisions of the Nebraska Hemp Farming Act and the Uniform Controlled Substances Act

109th Legislature (2025-2026) Introduced by Kathleen Kauth

LB 316 tightens Nebraska hemp rules, requires licenses for most hemp activity, defines CBD products, and taxes CBD at 10% from Jan 1, 2026, with consumer safe harbor through 2025.

Title printed. Carryover bill
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WeVote Research Nonpartisan
Bill Summary · LB 316

Summary — LB 316 (2025)

Prohibiting certain conduct relating to hemp other than cannabidiol products; changes to the Nebraska Hemp Farming Act and the Uniform Controlled Substances Act.

Main purpose / intent

LB 316 revises how Nebraska defines and regulates hemp and hemp-derived products, creates specific definitions and limits for cannabidiol (CBD) consumer products, restricts most hemp-related activity to licensed producers, establishes an excise tax on CBD products, and harmonizes these changes with the state Controlled Substances Act.

Key provisions

  • Definitions

    • “Cannabidiol product”: a finished hemp consumer product with cannabidiol (CBD) as a primary ingredient that (1) complies with the bill’s THC limits and (2) does not contain cannabinoids created by chemical conversion/modification/synthesis (e.g., hexahydrocannabinol).
    • “Raw hemp”: harvested and dried hemp that is otherwise unprocessed.
    • THC measurement: includes post‑decarboxylation or similar measures to account for chemical precursors (e.g., THCA).

  • THC limits (distinct for raw vs. processed hemp)

    • Raw hemp: delta‑9 THC concentration ≤ 0.3% on a dry weight basis.
    • Processed hemp (including CBD products): total THC limited to the lesser of (a) 0.3% on a total weight basis, or (b) 10 mg total THC per package.

  • Restrictions on hemp conduct (excluding cannabidiol products)

    • Hemp other than cannabidiol products may only be cultivated, possessed, handled, transported, processed, used, sold or consumed in Nebraska by USDA‑licensed producers or state‑program‑licensed producers under an approved tribal/state program; transport subject to section 2‑515.

  • Regulation of cannabidiol products

    • CBD consumer products must be handled, sold, and consumed in accordance with the Nebraska Pure Food Act and the Federal Food, Drug, and Cosmetic Act (as of Jan 1, 2025).

  • Transportation rules (section 2‑515)

    • Producers transporting hemp generally must carry the applicable USDA or state program license and test results for each lot; limited exceptions (e.g., shipping between registered sites, samples for testing, live plants to registered sites). Non‑producer interstate transport must include bill of lading, license, and test results and may not unload in‑state except as authorized.

  • Consumer safe harbor

    • Individual consumers will not be subject to prosecution for possession of “illegal hemp” (products not meeting the THC limits or otherwise unlawful under the Act) during a consumer safe‑harbor period beginning on the bill’s effective date and ending December 31, 2025. Law enforcement may coordinate consumer drop‑off locations for destruction during the period. The safe harbor does not protect cultivation/possession/etc. of materials/products with delta‑9 THC > 0.3% (dry weight).

  • Excise tax on CBD products

    • Effective January 1, 2026: a 10% excise tax on the retail sale price of cannabidiol products to consumers.
    • Tax is in addition to other state/local occupation or privilege taxes.
    • Retail sellers must maintain records, file monthly returns (by the 20th day of the following month), and remit tax (Department of Revenue may require electronic filing/eft). Revenues are remitted monthly to the State Treasurer for credit to the Property Tax Credit Cash Fund.

  • Uniform Controlled Substances Act changes

    • Redefines “marijuana” to include hemp except when possession complies with the Nebraska Hemp Farming Act.
    • Adds the cannabidiol product definition into the Controlled Substances Act definitions.

Who is affected

  • Hemp producers: tighter licensing/transportation and cultivation restrictions; non‑licensed production/commerce curtailed.
  • CBD retailers and consumers: new regulation under food‑safety laws and a 10% excise tax beginning 1/1/2026; recordkeeping and monthly remittance obligations for retailers.
  • Law enforcement and regulatory agencies (Dept. of Revenue, Nebraska DOJ): enforcement, coordination for safe‑harbor drop‑offs, and tax administration.
  • General hemp product market: potential reduction or shift in availability of non‑CBD hemp products and changes in business costs due to tax and compliance.

Procedural / timeline notes

  • Introduced: January 16, 2025 (Sen. Kauth).
  • Judiciary Committee hearing: January 29, 2025 — bill advanced with amendments (AM944 and follow‑on floor activity).
  • Consumer safe harbor: effective date through December 31, 2025 (per adopted amendment).
  • Excise tax on CBD products effective January 1, 2026.
  • As of late May 2025 the bill had been placed on Final Reading and experienced multiple floor amendments and motions; status entries show motions pending (e.g., MO246) and “passed over” action on 2025‑05‑30.

Fiscal impact

Multiple fiscal notes were submitted (dates: Jan 28, Feb 12, May 8, May 9, 2025). The bill creates a new revenue stream (10% excise tax) directed to the Property Tax Credit Cash Fund; specific revenue estimates are in the fiscal notes.

For details on exact statutory text and the most recent amendment version, consult the engrossed/final bill text and fiscal notes on the Nebraska Legislature website.

Compiled from official sources — confirm details with the bill’s official record.

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