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LINCOLN — The Nebraska Legislature approved its first-ever bill related to a state medical cannabis program Wednesday, which regulators say is key to getting the medicine to Nebraskans.
Lawmakers voted 46-2 to pass Legislative Bill 1235, led by the General Affairs Committee. The bill would give the voter-created regulatory commission the ability to set fees and raise revenue. With other funding in LB 1071’s state budget adjustments, approved 35-13 Wednesday as well, the Nebraska Medical Cannabis Commission could soon hire its first dedicated staff.
The commission did not formally support or oppose LB 1235, but lawmakers made clear the measure was introduced on the commission’s behalf.
Nebraska Medical Cannabis Commission awaits passage of budget, regulatory bill
The legislation would have initially expanded commission authority to regulate patients, caregivers and medical providers, authority not contemplated in the ballot measure creating the commission that 67% of voters passed in 2024. Those provisions were removed.
In the same 2024 election, 71% of voters legalized possession of up to 5 ounces of medical cannabis for patients and their caregivers with a health care practitioner’s recommendation.
Lawmakers have estimated getting medical cannabis to patients might still be at least a year out. When it does, the medicine would not be subject to sales taxes under current law.
Crista Eggers, executive director of Nebraskans for Medical Marijuana, said the passage of LB 1235 was “one very small step” but “something to celebrate.”
“Still so much that has to be done to turn this into a program patients can actually access,” Eggers said. “And until we see that day, we cannot call it success.”
Eggers said Nebraska still needs to pass LB 933 to protect health care practitioners who choose to recommend medical cannabis to patients or caregivers, which she says is important for a medical cannabis program to function at all.
LB 933, from State Sen. John Cavanaugh of Omaha, advanced 30-7 through first-round debate March 20. It would need to pass two more rounds by April 17 and needs at least 33 votes to become law.
LB 1235 ultimately passed with four main components, as well as other provisions related to alcohol and liquor regulation:
- Paying medical cannabis commissioners a salary of $12,500 for their work.
- Creating a dedicated state cash fund to collect legislative funding, fees, gifts, grants and other monies collected by the commission, which can be used for medical cannabis regulation.
- Authorizing the commission to set application fees, such as for cultivators, manufacturers and dispensaries, of up to $50,000.
- Requiring applicants for registered medical cannabis establishment licenses to submit fingerprints for a background check, which the commission was already doing.
The state budget changes, at the recommendation of Gov. Jim Pillen, would give the Nebraska Liquor Control Commission, which houses the Medical Cannabis Commission, an additional $1.38 million this fiscal year ending June 30 and $1 million for the next fiscal year.
Medical Cannabis Commissioner Lorelle Mueting of Gretna, interim commission chair, in mid-March described LB 1235 as a “first step.”
Commissioner J. Michael Coffey of Omaha, a retired district judge, had said delays were not intentional but “more or less a practical hurdle we had to get over,” in part because of limitations on ballot measure campaigns. Authorizing spending, for instance, belongs to the Legislature.
“Appears there may be a light at the end of the tunnel,” Coffey said in March. Added Mueting right after: “Fingers crossed.”
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- 12:00 pmEditor’s note: This article has been updated to include comment from Crista Eggers of Nebraskans for Medical Marijuana.
