Session Review: General Affairs
The General Affairs Committee advanced proposals this session relating to the regulation of alternative nicotine products, medical cannabis, microdistilleries and mobile sports betting.
LB9, sponsored by Seward Sen. Jana Hughes, amends the definition of alternative nicotine products to include nicotine analogues, or synthetic products that mimic the effects of nicotine.
The measure also updates provisions and procedures related to enforcement of the Tobacco Products Tax Act. Among other provisions, the bill clarifies that the state Department of Revenue is able to confiscate products that are not registered with the department under an existing vaping registry law.
The bill includes provisions of Hughes’ LB125, which levies a 20% wholesale tax on alternative nicotine products beginning Jan. 1, 2026. Currently, such products are subject only to the state’s 5.5-cent sales tax and any local sales taxes.
LB9 passed on a 34-10 vote.
Medical cannabis
A proposal seeking to regulate and tax medical cannabis in Nebraska after approval of two ballot initiatives last November stalled on the first round of debate following a failed cloture motion.
The successful ballot measures protect qualified individuals from legal penalties for possessing and using medical cannabis when recommended by a health care practitioner and create the Nebraska Medical Cannabis Commission to oversee the industry.
The commission is required to establish criteria to accept or deny applications for registered cannabis establishments by July 1. Entities will be able to apply for licensure beginning Oct. 1.
LB677, as introduced by Blair Sen. Ben Hansen, would provide a regulatory framework for medical cannabis and establish licenses for cultivators, dispensaries, product manufacturers, transporters, testing facilities and “vertical” facilities — those that both cultivate and dispense products.
Under the proposal, health care practitioners would be authorized to issue a written recommendation for up to five ounces of medical cannabis for individuals with qualifying medical conditions. Individuals under age 18 would need approval from a legal parent or guardian with authority to make health care decisions.
The use or possession of cannabis on school grounds, at a child care facility or home day care, in a jail, adult or juvenile correctional facility or youth rehabilitation and treatment center and while operating a vehicle would be prohibited under the bill.
The measure also would enact a 4% sales tax on all medical cannabis products, with that revenue directed to the Property Tax Credit Relief Fund.
A pending committee amendment would replace the bill with a modified proposal. Under the amendment, the sales tax would increase to 5.5% and municipalities would be allowed to impose an additional 2% tax on dispensaries.
The committee amendment also would prohibit the consumption of medical cannabis by smoking and limit the amount of dried flower a patient may possess to two ounces. Additionally, the amendment would narrow the definition of “qualifying medical condition” to 15 conditions recommended by the Nebraska Medical Association.
After eight hours of debate, Hansen filed a motion to invoke cloture, which ceases discussion and forces a vote on the bill and any underlying amendments.
The motion failed on a 23-22 vote. Thirty-three votes were needed.
Alcohol
LB113, introduced by Sen. Dan Quick of Grand Island and passed 33-13, increases the amount of alcohol that a holder of a microdistillery license may self-distribute to retail licensees in Nebraska from 500 gallons to 3,500 gallons.
The measure also increases the number of licensed premises and retail locations a craft brewery or microdistillery licensee is permitted to operate from five to eight physical locations.
LB113 contains a stipulation that if any section or part of a section of the measure is declared invalid or unconstitutional, the ruling will not affect the validity or constitutionality of the remaining portions.
Also included in the bill are the provisions of LB186, sponsored by Norfolk Sen. Robert Dover, which make a number of changes to existing law regarding entertainment district licenses.
Those provisions stipulate that alcohol consumption in an entertainment district commons area may occur only during the hours authorized for on-premise alcohol sales and while food service is available in the commons areas or from at least one holder of an entertainment district license.
The bill also creates a new, separate definition of commons areas for licenses of villages, first and second class cities and unincorporated portions of a county. The new definition for smaller communities does not require that an area be completely closed to vehicular traffic when used as a commons area and allows carrying of open alcohol while crossing a street or highway at a designated crosswalk.
The definition of commons area for primary and metropolitan class cities remains unchanged.
A bill that would require mandatory alcohol training for Nebraska servers failed to advance to the second round of debate.
LB178, introduced by Sen. Stan Clouse of Kearney, would require mandatory server training for any individual involved in the sale, service or mixture of alcohol, including those who provide security for a licensed premises or are involved in verifying customers’ ages for purchase or consumption of alcohol.
The required course would provide education on recognizing signs of intoxication, refusal of service to visibly intoxicated individuals and ID and age verification. The Nebraska Liquor Control Commission would be responsible for creating the training and could establish a fee of not more than $30 for the course.
Beginning Jan. 1, 2026, a retail licensee could not employ an individual who lacks the training certification.
Lawmakers voted 9-26 on advancement of LB178 to select file. Twenty-five votes were needed.
Gaming
LB357, introduced by the General Affairs Committee, makes a number of changes to casino and racetrack enclosure regulations in Nebraska. The bill creates a new Racetrack Gaming Fund and consolidates two existing commission cash funds into it.
Among other changes, the measure also reduces the required number of annual commission meetings from eight to six; reduces the term for individual horse racing licenses from five years to three and provides for an application process for a $10,000 three-year racetrack enclosure license.
LB357 passed on a 48-0 vote.
A proposal that would allow Nebraskans to place bets on sports with their mobile devices remains on select file. LR20CA, sponsored by Lincoln Sen. Eliot Bostar, would place a proposed constitutional amendment on the 2026 general election ballot for voter approval.
Under the proposed constitutional amendment, authorized gaming operators that conduct sports wagering within a licensed racetrack enclosure could also allow an individual to place sports wagers by means of a mobile or electronic platform offered by or in partnership with the operator, as long as the individual is within Nebraska’s borders when the bet is placed.
After approximately three hours of second-round debate, Bostar asked that the measure be passed over. It was not scheduled for further consideration this session.
