A Nebraska proposal to ban most hemp-derived THC products has stalled after State Senator Kathleen Kauth (R) requested that Legislative Bill 316 be “passed over” due to a lack of sufficient support from her colleagues, according to the Nebraska Examiner.
The bill aimed to ban the sale of all hemp-derived cannabinoids except cannabidiol (CBD), a move that would have had significant implications for Nebraska’s hemp and cannabis industries. With the legislative session drawing to a close, the proposal will now be tabled until at least 2026, giving lawmakers time to revisit and potentially rework the measure.
Bill Faced Internal Opposition
Despite widespread support from the Republican majority in the Legislature, LB 316 hit a critical roadblock when Sen. Ben Hansen (R), one of the few GOP holdouts, announced he would oppose the measure unless it was amended to protect Nebraska’s medical cannabis program.
“That’s something I cannot have,” Hansen stated. “I think the people passed [medical cannabis] for a specific reason, and I think they are then due to have what they voted for.”
The current version of the bill, he argued, could undermine the medical cannabis access that Nebraska voters approved via ballot initiative last year—although lawmakers have yet to implement any comprehensive regulations for the medical program.
Details of the Proposal
LB 316 proposed to:
- Ban the sale of hemp-derived THC and other cannabinoids aside from CBD.
- Impose a 10% wholesale tax on remaining legal hemp products.
- Allocate tax revenues toward property tax relief.
- Include a “consumer safe harbor period” through the end of 2025, allowing Nebraskans to discard existing products legally.
- Exempt mature hemp stalks to preserve the viability of hemp fiber and textile industries.
Supporters argued the bill was necessary to regulate an unmonitored market of intoxicating hemp products, while critics said it overreached and jeopardized medical cannabis access without offering a viable alternative.
With LB 316 now shelved for the year, both hemp business owners and medical cannabis advocates are left in limbo as the future of the industry in Nebraska remains uncertain.
Despite voters approving medical cannabis in 2023, the state has yet to roll out a working regulatory framework. Lawmakers are expected to revisit hemp and cannabis policy next year, where the debate over regulation vs. access will likely intensify.
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