Senators Introduce 58 Bills Impacting Agriculture, the Environment, Cannabis, Liquor and Water Resources

The First Regular Session of the 108th Nebraska Legislature convened on January 4, 2023.  As of January 25, 75 legislative days remain in the session.  The Legislature will adjourn sine die on June 9.

Below are summaries of the 58 introduced bills that relate to agricultural, the environment, natural-resources and regulated-substances law.  A comprehensive chart of the bills of interest to this newsletter is at this link.  Summaries of the bills of interest to our companion, the Dirt Alert newsletter, are at this link.

LB 7 (Blood) proposes to set a 10-year statute of limitations for suits to recover damages from injury or death due to exposure to hazardous or toxic chemicals.  This bill would also adopt the discovery rule for toxic and hazardous injuries, meaning the limitations period would not commence until a patient reasonably discovered the injury.  On January 5, 2023, the Legislature referred this bill to the Judiciary Committee. The committee hearing date was January 25, 2023.

LB 22 (Wayne) proposes to decriminalize the use and possession of marijuana.  The bill would also remove marijuana from the marijuana and controlled substances tax.  On January 5, 2023, the Legislature referred this bill to the Judiciary Committee. The committee hearing date is February 9, 2023.

LB 40 (Blood) proposes to adopt the Riparian Protection and Water Quality Practices Act.  Such Act would require landowners adjacent to “public waters of the state” or “public drainage systems,” to maintain buffers along those water systems’ banks.  The Act does not define “public waters of the state” or “public drainage systems.”  Within those buffers, the landowner must maintain structural, vegetative and management practices that protect the water resources, stabilize soils, shores and banks and protect riparian corridors.  On January 5, 2023, the Legislature referred this bill to the Natural Resources Committee.

LB 100 (Erdman) proposes to amend the ImagiNE Nebraska Act by adding “Waste Water Treatment and Disposal” to the business activities set forth in the definition of “qualified location” under the Act.  This change would entitle such activities to certain tax-advantaged programs.  On January 10, 2023, the Legislature referred this bill to the Revenue Committee.

LB 118 (Brandt) proposes to decrease the minimum investment amount for livestock modernization or expansion that qualifies for the refundable credit under the Nebraska Advantage Rural Development Act.  Under the bill, the minimum investment amount would decrease from $50,000 to $10,000 for all applications filed on or after January 1, 2024.  On January 10, 2023, the Legislature referred this bill to the Revenue Committee.

LB 125 (Bostelman) proposes to permit the Department of Natural Resources to yield investment earnings on its Surface Water Irrigation Infrastructure Fund and return such earnings to the Fund.  On January 10, 2023, the Legislature referred this bill to the Appropriations Committee. The committee hearing date is March 14, 2023.

LB 150 (Dover) proposes to amend the specifications for an entertainment district liquor license such that Lincoln and Omaha would have more restrictive specifications than other cities and villages.  In Lincoln and Omaha, the entertainment district could only locate within an area having limited pedestrian access and no vehicular traffic, while in other cities and villages, such restrictions would not apply so long as reasonable safety measures were in place.  On January 11, 2023, the Legislature referred this bill to the General Affairs Committee.

LB 158 (McDonnell) proposes to appropriate $2 million in each of the next two years to the Department of Agriculture.  The Department must distribute grants for vegetation management in flood plains.  On January 11, 2023, the Legislature referred this bill to the Appropriations Committee.

LB 171 (McKinney) proposes to eliminate sections in the Metropolitan Utilities District Act providing for an “outside member” on the board of directors of a metropolitan utilities district.  This bill provides that the seven members of the board of directors of a metropolitan utilities district will be chosen by the registered voters within each respective election subdivision of the district and that terms of the members will be staggered.  On January 11, 2023, the Legislature referred this bill to the Urban Affairs Committee.

LB 180 (Brandt) proposes to adopt the Nebraska Biodiesel Tax Credit Act.  The Act would provide a tax credit to retail dealers of biodiesel.  Those dealers would receive a credit of 14 cents multiplied by the total gallons of biodiesel they produced annually.  They could refund the credit against any state income tax.  On January 11, 2023, the Legislature referred this bill to the Revenue Committee.

LB 229 (Erdman) proposes an amendment to the Livestock Brand Act to permit cattle that originate from states lacking brand inspection but that have adequate evidence of ownership to move directly into a registered feedlot.  On January 12, 2023, the Legislature referred this bill to the Agriculture Committee. The committee hearing date is February 7, 2023.

LB 237 (Wayne) proposes to appropriate $1 million in each of the next two years to the Department of Environment and Energy to assist with efficiency audits and weatherization improvements under the Low-Income Weatherization Assistance Program.  On January 12, 2023, the Legislature referred this bill to the Appropriations Committee. The committee hearing date is March 13, 2023.

LB 241 (Briese) proposes to amend Neb. Rev. Stat. section 46-613.01, which regulates transfers of water out of state.  The bill would prohibit the Department of Natural Resources from issuing any permit to transport groundwater more than 10 miles out of state, unless such transportation was necessary to comply with an interstate compact or decree.  On January 12, 2023, the Legislature referred this bill to the Natural Resources Committee. The committee hearing date was January 26, 2023.

LB 258 (Lowe) proposes to repeal Neb. Rev. Stat. sections 53-103.24 and 53-160.02, which provide a regulatory exception under the Liquor Control Act for “near beer.”  Such beer would instead likely fall under the standard regulations for beer.  On January 12, 2023, the Legislature referred this bill to the General Affairs Committee. The committee hearing date was January 30, 2023.

LB 259 (Lowe) proposes to permit farm winery licensees to sell beer and other liquor on site so long as the licensee also holds the appropriate retail license for such sales.  On January 12, 2023, the Legislature referred this bill to the General Affairs Committee. The committee hearing date was January 30, 2023.

LB 263 (Agriculture Committee) proposes to amend the Hemp Farming Act to adjust when license fees and sampling requests are due and provide a 30-day window for producers to destroy any crops found by the Department of Agriculture to exceed the acceptable hemp tetrahydrocannabinol (THC) level.  On January 12, 2023, the Legislature referred this bill to the Agriculture Committee. The committee hearing date is February 21, 2023.

LB 270 (McKinney) proposes to require residential landlords to replace any lead service lines on the premises with modern service lines.  Additionally, the bill would require any municipality that has adopted a rental registration ordinance to notify tenants of any code violations the municipality finds.  Before condemning a rental property for violations of code, the municipality would need to meet with tenants and have a plan for providing their housing, food, transportation, moving expenses and legal services.  On January 12, 2023, the Legislature referred this bill to the Judiciary Committee.

LB 292 (Cavanaugh, M.) proposes to amend the Jobs and Economic Development Initiative Act, which last year appropriated funds for the Department of Natural Resources to develop a lake between Lincoln and Omaha.  This bill would prohibit the state from acquiring any land for the project using eminent domain.  On January 13, 2023, the Legislature referred this bill to the Natural Resources Committee. The committee hearing date is February 8, 2023.

LB 301 (Linehan) proposes to raise a significant tax on read-to-drink cocktails.  From the present tax rate of 95 cents per gallon, this bill would increase the tax to $3.75 per gallon.  On January 13, 2023, the Legislature referred this bill to the General Affairs Committee. The committee hearing date was January 30, 2023.

LB 336 (Halloran) proposes to amend the Hemp Farming Act and replace the Hemp Commission with a Hemp Advisory Board.  The Board’s duty would be to make recommendation to the Department of Agriculture and Legislature regarding how to implement the Hemp Farming Act.  The Board would consist of certain academic, political, agricultural and manufacturer representatives.  On January 13, 2023, the Legislature referred this bill to the Agriculture Committee. The committee hearing date is February 21, 2023.

LB 361 (Dorn) proposes to appropriate $2,000,000 to the Public Service Commission to implement the Precision Agriculture Infrastructure Grant Program.  On January 17, 2023, the Legislature referred this bill to the Appropriations Committee. The committee hearing date is March 1, 2023.

LB 375 (Lowe) proposes to amend the Liquor Control Act to permit craft brewery and microdistillery retail licensees to purchase up to five “alcoholic liquor products” per week from gas stations, grocery stores, liquor stores and similar establishments for resale.  “Alcoholic liquor products” would include (1) a single case of pack or beer, ready-to-drink cocktails or ciders, (2) a single bottle of wine or (3) a single bottle of alcoholic liquor.  Upon purchasing such products, the craft brewery or microdistillery retail licensee would need to notify the Liquor Control Commission within 24 hours.  On January 17, 2023, the Legislature referred this bill to the General Affairs Committee.

LB 376 (Lowe) proposes to amend the Liquor Control Act to require licensed manufacturers, wholesalers and shippers, before selling or shipping alcoholic liquor into the state, to remit certain forms and fees to the Liquor Control Commission.  The forms must disclose information about the licensee, the product, compliance with federal laws and the name of the primary source of supply in the United States.  On January 17, 2023, the Legislature referred this bill to the General Affairs Committee. The committee hearing date was January 30, 2023.

LB 377 (Lowe) proposes to permit fraternal, charitable and public service nonprofit corporations to exceed the 12 calendar days’ maximum use of a special designated license under the Liquor Control Act.  On January 17, 2023, the Legislature referred this bill to the General Affairs Committee. The committee hearing date was January 30, 2023.

LB 393 (Erdman) proposes to amend certain provisions dealing with hybrid corn.  The bill would make it unlawful to represent any seed corn as hybrid unless it is (1) seed of the first generation of a cross involving two, three or four different inbred lines of corn or their combinations and (2) the result of a cross produced by properly conducted cross fertilization.  Under the bill, children between 16 and 19 years of age could participate in roguing or detasseling, but no seed corn producer could require a worker to work (1) more than 10 hours in any one day, (2) more than 60 hours in any one week or (3) before 6 a.m. or after 10 p.m.  On January 17, 2023, the Legislature referred this bill to the Business and Labor Committee. The committee hearing date is February 13, 2023.

LB 394 (Erdman) would standardize damages calculations in eminent domain proceedings and give a premium to owners of agricultural land.  Damages presently equal the fair and reasonable market value of the damages.  Douglas Cnty. Sch. Dist. No. 10 v. Tribedo, LLC, 307 Neb. 716, 726 (2020).  This bill would codify that rule for non-agricultural land and allow for reasonable severance damages and abstracting expenses.  For agricultural land, however, this bill would set damages at two times the fair market value of the condemned property, in addition to reasonable severance damages, abstracting expenses and the replacement costs for any dwellings, garages, sheds, barns, wells, septic systems, fences and other permanent structures.  On January 17, 2023, the Legislature referred this bill to the Judiciary Committee.

LB 395 (Erdman) proposes to increase the compensation of the Oil and Gas Conservation Commission members from $400 to $500 per day and to continue updating that compensation every two years according to changes in the Consumer Price Index.  On January 17, 2023, the Legislature referred this bill to the Natural Resources Committee. The committee hearing date was January 26, 2023.

LB 396 (Erdman) proposes to authorize each natural resources district to develop surface-water augmentation projects in accordance with Nebraska Revised Statutes section 46-715.  The bill would require each district, upon developing an augmentation project, to sell the overlying land and continue withdrawing groundwater as if the district had retained that land.  On January 17, 2023, the Legislature referred this bill to the Natural Resources Committee.

LB 397 (Erdman) proposes to relocate the Game and Parks Commission headquarters from Lincoln to Sidney beginning in 2025.  On January 17, 2023, the Legislature referred this bill to the Natural Resources Committee. The committee hearing date is February 9, 2023.

LB 398 (Erdman) proposes to require the Game and Parks Commission to put any land it acquires for wildlife management purposes to that land’s highest and best use.  Nebraska Revised Statutes section 37-335 presently requires such land to go to the use it had immediately before acquisition.  On January 17, 2023, the Legislature referred this bill to the Revenue Committee.

LB 400 (Brewer) proposes to adopt the Pheasant Restoration Act.  This Act would authorize the Game and Parks Commission to pay up to 50,000 nest predator bounties to hunters who hunt or trap a badger, coyote, opossum, raccoon, red fox or striped skunk.  On January 17, 2023, the Legislature referred this bill to the Natural Resources Committee. The committee hearing date is February 8, 2023.

LB 401 (Dorn) proposes to appropriate an additional $550,000 in each of the next fiscal years to the Department of Natural Resources for costs associated with operating the Mesonet System.  On January 17, 2023, the Legislature referred this bill to the Appropriations Committee. The committee hearing date is March 14, 2023.

LB 403 (Vargas) proposes to amend the Liquor Control Act to permit craft brewery licensees to directly sell or resale up to 5,000 barrels per calendar year of products it produces.  The existing limit is 250 barrels.  This bill would also permit craft brewery licensees to self-distribute utilizing an employee or common carrier.  Existing law only allows such self-distribution via a person exclusively and solely employed by the licensee.  On January 17, 2023, the Legislature referred this bill to the General Affairs Committee.

LB 404 (Vargas) proposes to create a new category of “small producers” under the Liquor Control Act.  Small producers would include beer manufacturers that produce no more than the limit set in Nebraska Revised Statutes section 53-124.04.  The bill would require wholesaler contracts with such small producers to be written, freely negotiated, executed by both parties, adequately certain and filed with the Liquor Control Commission.  On January 17, 2023, the Legislature referred this bill to the General Affairs Committee.

LB 425 (Bostelman) proposes to increase the costs for certain Game and Parks Commission hunting permits.  On January 18, 2023, the Legislature referred this bill to the Natural Resources Committee. The committee hearing date is February 9, 2023.

LB 450 (Brewer) proposes to amend the Integrated Solid Waste Management Act to prohibit the land disposal of wind turbine blades and their component parts.  On January 18, 2023, the Legislature referred this bill to the Natural Resources Committee. The committee hearing date is February 8, 2023.

LB 452 (Murman) proposes to amend the Liquor Control Act to permit microdistillery licensees to sell up to 2,000 gallons of product per year at retail if (1) 51 percent of the finished product comes from agricultural products grown in the state, (2) the licensee self-distributes using only persons solely employed by the licensee in vehicles owned by the licensee and (3) the licensee complies with all applicable distribution laws.  On January 18, 2023, the Legislature referred this bill to the General Affairs Committee. The committee hearing date was January 30, 2023.

LB 505 (Bostar) proposes to reduce the standard vehicle registration fee for plug-in hybrid vehicles and adjust certain excise taxes for vehicle fuels.  For gas, diesel and ethanol power vehicles, the excise tax would equal $.09 per gallon, and for electric-powered vehicles, the excise tax would equal $.03 per kilowatt hour used for charging.  The bill would also permit commercial electric vehicle charging stations to offtake energy directly from renewable energy generators.  On January 19, 2023, the Legislature referred this bill to the Revenue Committee.

LB 506 (Bostar) proposes to appropriate $200,000,000 of federal funds to the Department of Natural Resources so that it may award the City of Lincoln a grant for the costs to acquire, permit and construct new facilities and pipelines for its supply of potable water.  The City has contemplated installing a municipal wellfield along the Missouri River between Omaha and Nebraska City as a second drinking-water source.  This bill would additionally appropriate $20,000,000 of federal funds to the Department of Environment and Energy to provide grants for small and rural communities to install reverse osmosis systems in community water systems.  On January 19, 2023, the Legislature referred this bill to the Appropriations Committee. The committee hearing date is March 14, 2023.

LB 512 (Brewer) proposes to increase the number of retail locations that craft brewery and microdistillery licensees may operate from five to 10.  On January 19, 2023, the Legislature referred this bill to the General Affairs Committee. The committee hearing date was January 30, 2023.

LB 534 (Slama) would appropriate $150,000,000 of federal funds from the American Rescue Plan Act of 2021 to the Department of Environment and Energy to provide grants for small and rural communities to address nitrate in drinking water.  The Department would administer the funds via the Drinking Water State Revolving Fund to facilities at which drinking water test levels are above 10 parts per million of nitrate.  On January 19, 2023, the Legislature referred this bill to the Appropriations Committee. The committee hearing date is March 13, 2023.

LB 543 (Lowe) proposes to amend Nebraska Revised Statutes section 53-123.17 to remove the local governing body’s ability to “at any time” revoke an entertainment district’s designation.  This bill would only remove the words “at any time.”  On January 19, 2023, the Legislature referred this bill to the General Affairs Committee.

LB 565 (Bostelman) would appropriate $250,000 in each of the next two years to the Department of Economic Development to award grants for Nebraska Public Power District to apply for a regional clean hydrogen hub designation and associated federal funding.  This follows from Nebraska Revised Statute section 66-2301, which the Legislature adopted last year.  On January 19, 2023, the Legislature referred this bill to the Natural Resources Committee. The committee hearing date was February 1, 2023.

LB 571 (Lippincott) proposes to appropriate $750,000 in each of the next two years to the Department of Environment and Energy to aid in carrying out the provisions of the Water Well Standards and Contractors’ Practice Act.  On January 19, 2023, the Legislature referred this bill to the Appropriations Committee. The committee hearing date is March 13, 2023.

LB 588 (Wishart) proposes to adopt the Medicinal Cannabis Act.  The Act would partially legalize and comprehensively regulate the possession, sale and use of cannabis for medicinal purposes.  A “certified patient” under the Act could possess up to two and one-half ounces of cannabis or cannabis product.  Certified patient would include any Nebraska resident who has recently received health care practitioner’s written certification that the patient has been diagnosed with a “qualifying medical condition.”  Qualifying medical conditions would include amyotrophic lateral sclerosis, autism, cancer, Crohn’s disease or ulcerative colitis, epilepsy or epileptic seizures, glaucoma, hepatitis C, H.I.V., Huntingdon’s disease, Parkinson’s disease, spinal cord injury, terminal illness with a probably life expectancy of under one year, Tourette’s syndrome, a serious medical condition that causes severe nausea or muscle spasms or severe or chronic pain that lasts longer than six months.  The Act would also permit registered dispensaries to acquire, possess and dispense cannabis for these purposes.  To administer this program, the Act would create the Cannabis Enforcement Department.  On January 19, 2023, the Legislature referred this bill to the Judiciary Committee. The committee hearing date is February 9, 2023.

LB 596 (Hardin) proposes to amend the Liquor Control Act to allow manufacturers and wholesalers to form sponsorship and advertising agreements with holders of special designated licenses, political subdivisions of the state and operators of property owned by political subdivisions.  On January 19, 2023, the Legislature referred this bill to the General Affairs Committee. The committee hearing date was January 30, 2023.

LB 599 (Armendariz) proposes to exempt “advanced recycling” facilities from certain local regulations under the Integrated Solid Waste Management Act.  The bill would define “advanced recycling” as a manufacturing process for conversion of post-use polymers and recovered feedstocks into basic raw materials, feedstocks, chemicals and other products using advanced processes such as pyrolysis, gasification, depolymerization, catalytic cracking, reforming, hydrogenation, solvolysis and chemolysis.  On January 19, 2023, the Legislature referred this bill to the Natural Resources Committee. The committee hearing date was February 1, 2023.

LB 568 (Bostelman) proposes to adopt the Nuclear and Hydrogen Development Act.  The Act would require the Department of Economic Development to create a Nuclear and Hydrogen Industry Work Group, with representatives from the community colleges, state universities, nuclear and hydrogen industries, public power districts and Legislature.  The Group would determine the workforce training needs of the nuclear and hydrogen industries and establish grant criteria for supporting those needs.  On January 19, 2023, the Legislature referred this bill to the Natural Resources Committee. The committee hearing date is February 16, 2023.

LB 613 (McDonnell) proposes to appropriate $22,500,000 in each of the next two years to the Department of Environment and Energy to provide grants to utilities districts that expedite the replacement of homeowner-owned lead service lines.  On January 19, 2023, the Legislature referred this bill to the Appropriations Committee. The committee hearing date is March 13, 2023.

LB 614 (McDonnell) proposes to appropriate $1,500,000 to the Department of Agriculture to provide a dollar-for-dollar private sector match to test emerging technologies for sustainable irrigation at the University of Nebraska.  On January 19, 2023, the Legislature referred this bill to the Appropriations Committee. The committee hearing date is February 22, 2023.

LB 634 (McKinney) proposes to adopt the Cannabis Control Act and the Cannabis Conviction Clean Slate Act.  The Cannabis Control Act would legalize cannabis production and use.  Any person over 21 years of age could possess, process, transport, purchase, obtain or give away up to one ounce of cannabis.  Such persons could also possess, grow, plant, cultivate, harvest, dry or process up to four cannabis plants.  Licensed cannabis cultivators and manufacturers could also produce cannabis for sale, and licensed cannabis stores could sell cannabis.  Local governing bodies could reasonably regulate cannabis activities but could not altogether prohibit them.  To administer this program, the Cannabis Control Act would create the Cannabis Enforcement Commission.  The Cannabis Conviction Clean Slate Act would make certain persons automatically eligible for clean slate relief from their cannabis offenses.  On January 20, 2023, the Legislature referred this bill to the Judiciary Committee. The committee hearing date is February 9, 2023.

LB 656 (McDonnell) proposes to temporarily transfer $40,000,000 to the Small Watersheds Flood Control Fund.  On January 20, 2023, the Legislature referred this bill to the Natural Resources Committee.

LB 662 (Ballard) would amend the Right to Farm Act to prohibit most nuisance actions against agricultural operations.  Under the bill, the only such nuisance actions that could stand are those brought by a person who either (a) owns a majority interest in real property that is within one-half mile of the defendant and affected by the alleged nuisance or (b) can show a violation of federal, state or local law.  Commonly accepted agricultural practices, as well as employment of new technology or changes in the type of farm product produced, could not give rise to nuisance liability.  On January 20, 2023, the Legislature referred this bill to the Agriculture Committee. The committee hearing date is February 14, 2023.

LB 667 (Hughes) proposes to amend the Liquor Control Act to permit wholesalers to engage in “channel pricing.”  The Act would define channel pricing as a pricing strategy that differentiates the price charged for a product based on the particular distribution channel used to sell such product.  On January 20, 2023, the Legislature referred this bill to the General Affairs Committee. The committee hearing date was January 30, 2023.

LB 672 (Hansen, B.) proposes to appropriate $30,000,000 from the Drinking Water Facilities Loan Fund to the Department of Environment and Energy for grants allowing up to 50 percent loan forgiveness to expand municipal drinking water treatment plants and related facilities.  On January 20, 2023, the Legislature referred this bill to the Appropriations Committee. The committee hearing date is March 13, 2023.

LB 723 (Bostelman, at the request of the Governor) proposes to adopt the Public Water and Natural Resources Project Contracting Act.  The Act would provide the Department of Natural Resources with alternative methods of contracting for public water and natural resources projects.  The Department could, for instance, solicit and execute design build contracts, progressive design-build contracts or construction manager-general contractor contracts.  The Department could also hire an engineering or architectural consultant to assist with various project performance criteria and requests for proposals.  Public letting would need to comply with Act-specified guidelines.  On January 20, 2023, the Legislature referred this bill to the Natural Resources Committee. The committee hearing date was February 2, 2023.

LB 766 (DeKay) proposes to appropriate $3,250,000 of federal funds in each of the next two years to the Department of Environment and Energy for reverse osmosis systems.  On January 20, 2023, the Legislature referred this bill to the Appropriations Committee. The committee hearing date is March 13, 2023.

LB 785 (McKinney) proposes to create the North and South Omaha Recovery Grant Program, which would provide funding to public and private entities to respond to the negative impact of the COVID-19 public health emergency and build resilient communities.  The bill would appropriate $250,000,000 of federal funds to the Department of Natural Resources and $350,000,000 to the Department of Economic Development, each to administer the Program and issue grants thereunder.  On January 20, 2023, the Legislature referred this bill to the Appropriations Committee. The committee hearing date is March 9, 2023.