Bill to ban hemp-derived cannabinoids passed over

A bill that would bar the sale of hemp-derived cannabinoids in Nebraska was passed over on the final round of debate May 30 at the request of the introducer.

LB316, introduced by Omaha Sen. Kathleen Kauth, would prohibit the sale of hemp products containing more than 0.3% of any strain of THC and classify hemp products above that limit as marijuana.

Under the bill, a 10% excise tax on the retail sale of cannabidiol products would be imposed beginning Jan. 1, 2026, with all revenue generated directed to the Property Tax Credit Cash Fund.

Additionally, LB316 would provide for a consumer “safe harbor” period and prevent prosecution for possessing illegal hemp until Dec. 31, to allow consumers to dispose of products legally.

Kauth said the proposal would prohibit the sale of “dangerous” merchandise in the state and ensure that the products Nebraskans purchase are safe.

“Our job is to provide product safety [and the] certainty that when you walk into a store and you purchase something off the shelf, that it is not going to kill you,” she said.

Omaha Sen. John Cavanaugh opposed LB316 and offered a motion to return the bill to the Judiciary Committee.

Rather than banning cannabinoids, he said, lawmakers could ensure product safety by enacting a regulatory framework to require that businesses are properly licensed, check IDs and adhere to packaging rules.

“This is an industry that needs regulation, and [LB316] is not the way to do it,” Cavanaugh said. “This will shut down all of these stores, these growers and these folks who can be good actors in our community.”

Sen. Danielle Conrad of Lincoln also opposed the measure. Consumer demand for the products the bill would ban is clear, she said, with over 300 stores in Nebraska selling cannabinoids.

“We live in a free society,” Conrad said. “If these products are not right for you, don’t take them.”

As discussion neared the time for a cloture motion to cease debate, Blair Sen. Ben Hansen said he could not support the bill without an amendment to ensure that it would not conflict with the implementation of the medical cannabis initiative passed last year.

“The language that is in this bill could be used to greatly impact medical marijuana, and that is something I cannot have,” Hansen said. “I think the people passed that [initiative] for a specific reason, and I think they are then due to have what they voted for.”

Following Hansen’s announcement, Kauth requested that LB316 be passed over. The Legislature then moved to the next item on the agenda without voting on the measure. The bill is unlikely to be debated again this session.