LB262 LB262
2024 2024
LEGISLATIVE BILL 262
Approved by the Governor April 16, 2024
Introduced by Agriculture Committee: Halloran, 33, Chairperson; Brewer, 43;
Hansen, B., 16; Holdcroft, 36; Hughes, 24; Ibach, 44; Riepe, 12.
A BILL FOR AN ACT relating to agriculture; to amend sections 2-501, 2-503,
2-505, 2-509, 2-515, 2-518, 2-958, 2-3611, 2-3615, 2-3619, 2-3620, 2-3622,
2-3623, 2-3629, 2-3631, 2-3632, 2-3634, 2-3635, 2-3804, 2-3966, 75-902,
75-903, 75-903.02, 81-2,251.03, 88-526, 88-527, 88-528.01, 88-541, and
88-549, Reissue Revised Statutes of Nebraska, sections 28-401, 28-476,
75-156, 81-2,162.27, 81-2,244.01, 81-2,245.01, 81-2,248, 81-2,263,
81-2,270, 81-2,271, 81-2,280, 81-2,281, and 88-530, Revised Statutes Cumulative Supplement, 2022, and sections 81-2,239 and 81-2,240, Revised Statutes Supplement, 2023; to change and eliminate provisions of the Nebraska Hemp Farming Act and the Uniform Controlled Substances Act relating to hemp; to change provisions relating to the Nebraska Corn Resources Act, the Nebraska Agricultural Products Marketing Act, warehouse operators, the Grain Dealer Act, the Nebraska Pure Food Act, and the Grain Warehouse Act; to eliminate provisions relating to hemp, the Nebraska Corn Resources Act, and the Nebraska Pure Food Act; to harmonize provisions; to provide operative dates; to repeal the original sections; and to outright repeal sections 2-502, 2-504, 2-506, 2-507, 2-508, 2-510, 2-511, 2-512,
2-513, 2-514, 2-516, 2-517, 2-519, 2-3616, 2-3627, 2-3628, 2-5701,
81-2,242.03, and 81-2,251.02, Reissue Revised Statutes of Nebraska, and sections 81-2,245, 81-2,251.01, and 81-2,272.31, Revised Statutes Cumulative Supplement, 2022.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 2-501, Reissue Revised Statutes of Nebraska, is amended to read:
2-501 Sections 2-501 to 2-518 2-519 shall be known and may be cited as the Nebraska Hemp Farming Act.
Sec. 2. Section 2-503, Reissue Revised Statutes of Nebraska, is amended to
read:
2-503 For purposes of the Nebraska Hemp Farming Act:
(1) Acceptable hemp THC level has the same meaning as in 7 C.F.R. 990.1,
as such section existed on January 1, 2020;
(1) (2) Agriculture Improvement Act of 2018 means section 10113 of the federal Agriculture Improvement Act of 2018, Public Law 115-334, and any regulations adopted and promulgated under such section, as such section, act,
and regulations existed on January 1, 2024 2020;
(3) Approved testing facility means a testing facility approved by the department;
(4) Broker means a person who engages or participates in the marketing of
hemp by acting as an intermediary or negotiator between prospective buyers and sellers;
(5) Commercial sale means the sale of products in the stream of commerce,
at retail, wholesale, and online;
(6) Commission means the Nebraska Hemp Commission;
(2) (7) Cultivate or cultivating means planting, watering, growing, and harvesting a hemp plant or crop. The presence of plants of the plant Cannabis sativa L. growing as uncultivated, naturalized plants in the environment is not cultivating hemp for purposes of the Nebraska Hemp Farming Act;
(8) Cultivator means a person who cultivates hemp;
(9) Department means the Department of Agriculture;
(10) Director means the Director of Agriculture or his or her designee;
(11) GPS coordinates means latitude and longitude coordinates derived from
a global positioning system;
(12) Handle or handling means possessing or storing hemp plants or hemp plant parts prior to cultivation, in the process of cultivation, or after being harvested or dried but before processing. Handle or handling also includes possessing or storing such hemp plants or hemp plant parts in a vehicle for any period of time other than during its actual transport from the premises of a person licensed to cultivate or process hemp to the premises of another licensee. Handle or handling does not include possessing, storing, or transporting finished hemp products or hemp seeds;
(3) (13) Hemp means the plant Cannabis sativa L. and any part of such plant, including the viable seeds of such plant and all derivatives, extracts,
cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or
not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3
percent on a dry weight basis. Hemp shall be considered an agricultural commodity. Notwithstanding any other provision of law, hemp shall not be
considered a controlled substance under the Uniform Controlled Substances Act;
(14) Licensee means an individual or a business entity possessing a license issued by the department under the Nebraska Hemp Farming Act, including authorized employees or agents of such licensee, to cultivate, handle, process,
or broker hemp;
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(15) Location ID means the unique identifier established by a licensee for each unique set of GPS coordinates where hemp is cultivated, handled, or processed;
(16) Lot means a contiguous area in a field, greenhouse, or indoor growing structure containing the same variety or strain of hemp throughout such area;
(17) Measurement of uncertainty has the same meaning as in 7 C.F.R. 990.1,
as such section existed on January 1, 2020;
(4) (18) Person means an individual, partnership, corporation, limited liability company, association, postsecondary institution, or other legal entity;
(19) Postsecondary institution means a postsecondary institution as
defined in section 85-2403 that also meets the requirements of 20 U.S.C. 1001,
as such section existed on January 1, 2019;
(20) Process or processing means converting hemp plants or plant parts into a marketable form;
(5) State-program-licensed hemp producer means a person licensed under a USDA-approved state or tribal program as authorized under the Agriculture Improvement Act of 2018 and includes the authorized employees or agents of such person;
(21) Processor-handler means a person who handles or processes hemp;
(22) Site means an area defined by the same legal description in a field,
greenhouse, or other outdoor area or indoor structure, or for a mobile processor, such processor's primary place of business;
(6) USDA means the United States Department of Agriculture (23) THC means tetrahydrocannabinol; and
(7) (24) USDA-licensed hemp producer means a person licensed by the USDA
United States Department of Agriculture to produce hemp as provided in 7 C.F.R.
part 990, subpart C, as such regulations existed on January 1, 2024, and includes the authorized employees or agents of such person 2020.
Sec. 3. Section 2-505, Reissue Revised Statutes of Nebraska, is amended to
read:
2-505 (1) Hemp may only be cultivated in this state by a USDA-licensed hemp producer, in accordance with such producer's USDA-issued license, or by a state-program-licensed hemp producer, in accordance with such producer's license under a USDA-approved tribal program or a person meeting the requirements of section 2-5701 or in compliance with this section.
(2) Hemp may only be transported pursuant to section 2-515. Before a person may be licensed to cultivate hemp under the Nebraska Hemp Farming Act,
such person shall submit an application on a form prescribed by the department that includes, but is not limited to, the following:
(a) If the applicant is an individual, the applicant's full name,
birthdate, mailing address, telephone number, and valid email address;
(b) If the applicant is an entity and not an individual, (i) the name of
the applicant, mailing address, telephone number, and valid email address, (ii)
the full name of each officer, director, partner, member, or owner owning in
excess of ten percent of equity or stock in such entity, (iii) the full name of
each key participant as defined in 7 C.F.R. 990.1, and (iv) the birthdate,
title, mailing address, telephone number, and valid email address of each such person or key participant;
(c) The proposed acreage to be cultivated or the square footage of a greenhouse or other indoor space to be cultivated;
(d) The street address, legal description, location ID, and GPS
coordinates for each field, greenhouse, building, or other site where hemp will be cultivated. The site information may be verified by the department; and
(e) Maps depicting each site where hemp will be cultivated, with appropriate indications for entrances, field boundaries, and specific locations corresponding to the GPS coordinates provided under subdivision (d) of this subsection.
(3) Before a person may be licensed to cultivate hemp under the Nebraska Hemp Farming Act, such person shall submit with the application a nonrefundable application fee as set by the department pursuant to section 2-508.
(4) Before a person may be licensed to cultivate hemp under the Nebraska Hemp Farming Act, such person shall submit a site registration fee as set by
the department pursuant to section 2-508. The site registration fee shall be
paid for each separate site where the applicant will cultivate hemp. Subsequent modifications to the sites listed in the application shall be submitted on
forms prescribed by the department along with a site modification fee and shall only take effect upon written approval of the department. The applicant must certify that all sites where hemp is to be cultivated are under the control of
the applicant and that the department shall have unlimited access to all such sites.
(5) After the department receives approval by the United States Secretary of Agriculture for the state plan described in section 2-516, an initial cultivator license application may be submitted at any time, except that the department may set a cutoff date for applications ahead of the growing season.
An initial cultivator license issued by the department expires on December 31
in the calendar year for which it was issued.
(6) A renewal application for a license to cultivate hemp shall be
submitted on forms prescribed by the department. A renewal application is due by December 31 and shall be accompanied by the cultivator license fee and the site registration fee for all sites listed in the renewal application. The renewal cultivator license is valid from January 1 or when the license is
granted, whichever is later, through December 31 next following.
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(7) A cultivator license shall lapse automatically upon a change of
ownership or location, and a new license must be obtained. The licensee shall promptly provide notice of change in ownership or location to the department.
(8) An application and supporting documents submitted to the department under this section are not public records subject to disclosure pursuant to
sections 84-712 to 84-712.09. Such information may be submitted to the United States Department of Agriculture pursuant to the requirements of the federal Agriculture Improvement Act of 2018 or any other federal statute, rule, or regulation, and may be submitted to law enforcement.
Sec. 4. Section 2-509, Reissue Revised Statutes of Nebraska, is amended to
read:
2-509 The Nebraska Hemp Program Fund is established. The fund terminates on the operative date of this section and the State Treasurer shall transfer any money in the fund on such date or as soon thereafter as administratively possible to the Noxious Weed Cash Fund shall be administered by the department for the purpose of covering the costs of the department in administering sections 2-504 to 2-516 and 2-5701. The fund may receive appropriations by the Legislature, gifts, grants, federal funds, and any other funds both public and private. All fees collected by the department under sections 2-508 and 2-5701
shall be remitted to the State Treasurer for credit to the fund. Transfers from the Nebraska Hemp Program Fund to the Noxious Weed Cash Fund may be made as
provided in section 2-958. Transfers from the Nebraska Hemp Program Fund to the Fertilizers and Soil Conditioners Administrative Fund may be made as provided in section 81-2,162.27. Any money in the fund available for investment shall be
invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.
Sec. 5. Section 2-515, Reissue Revised Statutes of Nebraska, is amended to
read:
2-515 (1) Except as provided in subsection (3) (4) of this section, any USDA-licensed hemp producer or state-program-licensed hemp producer cultivator transporting hemp cultivated under the Nebraska Hemp Farming Act shall carry with the hemp being transported a copy of the USDA cultivator license or state program license under which it was cultivated and a copy of the test results pertaining to each lot of hemp being transported.
(2) Except as provided in subsection (4) of this section, any processor-
handler transporting hemp processed under the Nebraska Hemp Farming Act shall carry with the hemp being transported a copy of the processor-handler license under which the hemp is being transported and a copy of the test results pertaining to such hemp.
(2) (3)(a) A USDA-licensed hemp producer or state-program-licensed hemp producer under a USDA-approved tribal program cultivating hemp in this state licensee shall maintain a record of shipments of hemp shipped from or received by such producer the licensee. Such record shall, for each shipment of hemp,
indicate the date of shipment, identify the point of origin and destination,
identify the name of the person sending and receiving the shipment, and include the vehicle identification number of the vehicle transporting the hemp. Each shipment of hemp shall be entered on the record of shipments kept by the licensee by the close of the business day the shipment is shipped from or
received by the licensee.
(b) A licensee may give notice to the Nebraska State Patrol up to seven days prior to a shipment of hemp to be shipped from or received by the licensee. Such notification shall be given in a manner and form prescribed by
the Nebraska State Patrol and shall not be considered a public record for purposes of sections 84-712 to 84-712.09.
(3) (4) Any USDA-licensed hemp producer or state-program-licensed hemp producer licensee transporting hemp cultivated or processed under such producer's USDA license or state program license the Nebraska Hemp Farming Act shall not be required to carry a copy of the test results relating to such hemp as provided in subsection (1) or (2) of this section if such producer licensee carries with the hemp being transported a copy of the applicable USDA license or state program license and is transporting:
(a) Hemp between two registered sites listed on the producer's USDA or state program licensee's license application;
(b) Samples of hemp for testing to determine the tetrahydrocannabinol THC
level for private testing purposes prior to testing pursuant to section 2-514;
or
(c) Live hemp plants to a registered site listed on the producer's USDA or state program licensee's license application prior to cultivating such hemp plants.
(4) Any person who is carrying or transporting hemp who is not a USDA-
licensed hemp producer or state-program-licensed hemp producer shall only carry or transport hemp if such hemp meets the following requirements:
(a) The hemp is carried or transported with a bill of lading stating the owner of the hemp, the point of origin of the hemp, and the destination of the hemp;
(b) The hemp is carried or transported with a copy of the valid USDA or state program license under which the hemp was cultivated;
(c) The hemp is carried or transported with a copy of the test results pertaining to each lot of hemp being transported; and
(d) The hemp is not unloaded or in any way removed from the vehicle transporting such hemp unless authorized by state or federal law enforcement.
(5) No person shall transport or carry hemp in this state concurrently with any other plant material that is not hemp.
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Sec. 6. Section 2-518, Reissue Revised Statutes of Nebraska, is amended to
read:
2-518 The Hemp Promotion Fund is established. The fund terminates on the operative date of this section and the State Treasurer shall transfer any money in the fund on such date or as soon thereafter as administratively possible to
the Noxious Weed Cash Fund shall be administered by the commission for the purposes set forth in section 2-517. The fund may receive appropriations by the Legislature and gifts, grants, federal funds, and any other funds both public and private. All fees collected as set forth in section 2-519 shall be remitted to the State Treasurer for credit to the fund. Any money in the fund available for investment shall be invested by the state investment officer pursuant to
the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.
Sec. 7. Section 2-958, Reissue Revised Statutes of Nebraska, is amended to
read:
2-958 (1) A noxious weed control fund may be established for each control authority, which fund shall be available for expenses authorized to be paid from such fund, including necessary expenses of the control authority in
carrying out its duties and responsibilities under the Noxious Weed Control Act. The weed control superintendent within the county shall (a) ascertain and tabulate each year the approximate amount of land infested with noxious weeds and its location in the county, (b) ascertain and prepare all information required by the county board in the preparation of the county budget, including actual and expected revenue from all sources, cash balances, expenditures,
amounts proposed to be expended during the year, and working capital, and (c)
transmit such information tabulated by the control authority to the county board not later than June 1 of each year.
(2) The Noxious Weed Cash Fund is created. The fund shall consist of
proceeds raised from fees imposed for the registration of pesticides and earmarked for the fund pursuant to section 2-2634, funds credited or
transferred pursuant to sections 2-509, 2-518, 81-201, and