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Nebraska Lawmakers Propose Regulations For New Medical Marijuana Program

Nebraska is taking strides toward implementing its newly voter-approved medical marijuana program. Last week, State lawmakers introduced legislative proposals to regulate the process of accessing medical cannabis, shaping how patients, caregivers, and businesses interact with the new program. With medical marijuana overwhelmingly supported by Nebraskans, the state’s legislators are working on transforming this approval into actionable laws.

Let’s take a look at the key bills proposed by Nebraska lawmakers, the structure of the program they aim to create, and the broader implications for patients, caregivers, and businesses.

The Path to Nebraska’s Medical Marijuana Program

On Election Day, nearly 70% of Nebraskans voted in favor of measures to legalize and regulate medical cannabis through Initiatives 437 and 438. The public’s desire for access to medical marijuana is clear. However, implementing these measures requires thoughtful legislation and a clear regulatory framework.

Recognizing this need, three Nebraska lawmakers—State Sens. Danielle Conrad of Lincoln, Ben Hansen of Blair, and Terrell McKinney of Omaha—introduced separate but similar legislative proposals, as reported by the Nebraska Examiner. These bills (LB 651, LB 677, and LB 705) aim to establish registry programs, define key licensing structures, and outline the responsibilities of the newly created Nebraska Medical Cannabis Commission.

  • LB 651 (Conrad) and LB 705 (McKinney) propose slightly broader patient and caregiver protections and flexibility for healthcare professionals to recommend larger amounts of cannabis based on patient needs.
  • LB 677 (Hansen) focuses heavily on aligning regulations with those of other states, drawing lessons from existing programs to ensure efficiency.
  • A fourth bill, LB 483, introduced by State Sen. Jared Storm, takes a stricter approach, limiting medical cannabis to low doses of THC and only in pill or tincture form.

These bills represent different strategies, but they all share a unifying goal—to create a functioning medical marijuana system that reflects the public’s preferences and addresses patients’ needs.

Creating a Framework for Medical Marijuana in Nebraska

The proposed bills aim to build a structure for managing medical marijuana while balancing patient access, public safety, and program sustainability. Here are the foundational elements they address:

Patient and Caregiver Registries

All three main bills propose a patient and caregiver registry. Qualified patients with a written recommendation from a healthcare provider can apply for a registry card identifying them as eligible participants in the medical cannabis program. Caregivers, especially for minors, will also be added.

The registry provides transparency and accountability while helping ensure that medical marijuana is used responsibly and safely.

Licensing System

The new Nebraska Medical Cannabis Commission, with support from other state departments, would oversee licensing according to the proposed regulations. Licenses will be divided into specific categories:

  • Cultivator Licenses for cannabis growers.
  • Dispensary Licenses for retail establishments.
  • Manufacturing Licenses for processing cannabis into products.
  • Testing Licenses for ensuring product safety and compliance.
  • Vertically Integrated Licenses, combining cultivation, manufacturing, and one retail location per congressional district.

The number of licenses, particularly vertically integrated ones, could potentially be capped to avoid market oversaturation. For example, Conrad’s proposal (LB 651) would limit vertically integrated licenses to just ten statewide.

Each license class will have specific set fees, operational criteria, and regulations to ensure fairness, transparency, and adherence to legal standards.

Proposed Sales Tax Adjustments

To fund the program and contribute to public initiatives, proposed bills suggest subjecting medical cannabis sales to state and local taxes. LB 705 and LB 651 propose the standard 5.5% tax, while LB 677 recommends a reduced 4% tax rate, redirecting funds toward property tax relief.

Social Equity Considerations

LB 705 uniquely addresses past inequities caused by marijuana laws. It reserves over half of all licenses for social equity applicants—those from communities disproportionately affected by past cannabis-related offenses. Additionally, the proposal includes mentorship programs, financial assistance for equity applicants, and automatic record expungement for eligible marijuana-related offenses.

Use Restrictions

While voters approved the legalization of medical marijuana in Nebraska, specific usage scenarios would remain restricted. For example, cannabis use would still be prohibited:

  • While driving or performing tasks where negligence could occur.
  • On school grounds, in child care facilities, or correctional facilities.
  • On publicly owned premises other than a patient’s private property.

Employers would also retain the right to establish drug-free workplace policies.

If implemented, Nebraska’s laws are expected to position the state as a cautious adopter of medical cannabis, similar to other states navigating federal restrictions. However, the program’s success hinges on balancing regulations with accessibility and equity.

Under the three main bills, Nebraska medical marijuana patients could access up to 5 ounces of medical marijuana monthly unless a healthcare practitioner specifies a greater amount. The proposals would also require patients and caregivers to pay an application fee of $45, providing an accessible entry point for participation.

Controversial Approach To Medical Marijuana in Nebraska

Not all proposals align with the broader movement toward legalized medical marijuana. State Sen. Jared Storm’s LB 483 takes a far more restrictive approach, capping THC content at 300 milligrams per package and limiting consumption to pills or tinctures. Critics argue that this undermines the will of the voters, who supported more comprehensive measures.

Another challenge stems from ongoing court battles and federal scrutiny. Governor Jim Pillen and Attorney General Mike Hilgers have raised concerns about the federal government’s Schedule I classification of marijuana, which has, throughout history, complicated state marijuana legalization efforts.

Lastly, lawmakers must collaborate and reach the three-fourths majority vote required to amend voter-approved measures under Nebraska’s Constitution. Without legislative consensus, the self-executing measures will move forward unaltered.

Looking to the Future of Medical Cannabis in Nebraska

The introduction of these bills marks a significant step forward for medical marijuana in Nebraska. Once enacted, the legislation has the potential to create a robust and fair system, providing relief for patients who need it while addressing concerns around public safety and program integrity.

State Sen. Ben Hansen perhaps summed up the process best when he said, “It’s about the will of the people.” The coming months will demonstrate whether lawmakers can honor this sentiment and work together to meet the needs of patients and communities.

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