PREPARED BY: Clinton Verner
LB 316 DATE PREPARED: February 7, 2025
PHONE: 402-471-0056
Revision: 01
Revised to include an estimate for sales tax impact. FISCAL NOTE
LEGISLATIVE FISCAL ANALYST ESTIMATE
ESTIMATE OF FISCAL IMPACT – STATE AGENCIES (See narrative for political subdivision estimates)
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS See below See below
CASH FUNDS See below See below
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS See below See below
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB316 makes the following amendments to the Nebraska Hemp Farming Act:
- Adds definitions and clarifies definitions;
- Clarifies the legal production, possession, handling, transportation, processing, use, or consumption of cannabidiol products;
- Harmonizes the Nebraska Hemp Farming Act with the Agricultures Improvement Act of 2018; and
- Clarifies definition of marijuana under the act .
LB316 creates no additional duties for the Department of Agriculture or Attorney General’s office. Agree with their estimates for no fiscal
impact.
Removing cannabidiol from the Hemp F arming Act would prohibit sales within the state. Minnesota regulates products with up to 3%
THC separately from consumable hemp. Normalizing their numbers for Nebraska’s population and sales tax rate we estimate
approximately $1,600,000 General Fund reduction and approximately $80,000 High way Trust Fund reduction per year. This fiscal note
will be modified with Department of Revenue response should it be received.
Sec. 2, subsection 2 of LB316 would make any cann abidiol product possessed, handled, transported, used, and consumed in
accordance with the Nebraska Pure Food Act. Currently, the Pure Food Act does not provide any regulation of consumable hemp
products. If the intent of LB316 is to have consumable hemp regulated under the Pure Food Act the Pure Food Act would require
amendments. Regulation of consumable hemp products under the Nebraska Pure Food Act as defined in LB316 would create
significant new duties upon the agency, requiring either contracting for testing or purchase of testing equipment and hiring of personnel.
ADMINISTRATIVE SERVICES ST ATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 316 AM: AGENCY/POLT. SUB: Attorney General
REVIEWED BY: Jacob Leaver DATE: 1/23/2025 PHONE: (402) 471-4173
COMMENTS: Concur with the Attorney General’s estimate of no fiscal impact as a result of LB 316.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 316 AM: AGENCY/POLT. SUB: Department of Agriculture
REVIEWED BY: Jacob Leaver DATE: 1/22/2025 PHONE: (402) 471-4173
COMMENTS: Concur with the Department of Agriculture’s estimate of no fiscal impact as a result of LB 316.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 316 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Department of Agriculture
Prepared by:
(3) Ashley Dempsey Date Prepared:
(4)
1/17/2025 Phone:
(5)
402-429-2487
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
No fiscal impact.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid……………………………………… …...
Capital improvements……………………...
TOTAL……………………………… .....