Nebraska Narrows Medical Cannabis Rules With License Caps and Plant Limits

Published: 1 July 2025

Updated: 12 September 2025

Nebraska’s medical marijuana program is moving forward, but its rollout is proving more complicated than lawmakers anticipated. The Nebraska Medical Cannabis Commission - created by two voter-approved 2024 ballot measures - is racing to meet a statutory October 1 deadline to issue licenses, all while operating without dedicated funding, full-time staff, or authority to collect licensing fees.

Emergency Rules in Effect

The program’s framework was established by emergency regulations signed by Governor Jim Pillen on June 29 and reaffirmed in late July. These temporary rules were in effect until September 28 to meet ballot initiative requirements for license applications to be accepted by July 1 and awarded no later than October 1.

On September 2, the commission approved a stricter package of emergency rules that now awaits the governor’s approval. These rules, effective for up to 90 days if signed, replace the earlier framework. They include new limits on licenses, detailed prescribing protocols, and added compliance requirements.

Strict Market Structure

Under the original rules, Nebraska was set to have one of the most restrictive medical cannabis markets in the country. Only one dispensary was allowed in each of Nebraska's 12 judicial districts, and smokable flower, vape cartridges, infused edibles, flavored cannabis products, and any cannabis intended for combustion or inhalation were banned. Approved products included oral tablets, tinctures, patches, and topicals.

The September revisions made the system even narrower. Dispensaries remain capped at 12 statewide, but now cultivators and product manufacturers are limited to four each. Patients or caregivers may purchase up to five ounces in 30 days, though only the physician-prescribed amount and only once in 30 days at a designated dispensary. Within that framework, no more than 5 grams of delta-9 THC may be purchased from the same dispensary within 90 days.

The new rules also ban edibles entirely and prohibit sales of smoking and vaping products. The only permitted ingestible form will be oral tablets with a thin flavor coating.

Patient Pushback Over Product Restrictions

These restrictions sparked heated debate at the commission’s August and September meetings. Veterans with PTSD testified about the need for inhaled cannabis to treat sudden panic episodes. Patients with chronic pain and severe nausea argued that flavored products can make treatment more tolerable, pointing to the widespread use of flavored medications in other contexts.

Criticism intensified after the September vote. Crista Eggers, who led the successful 2024 ballot drive, accused commissioners of “defiance, obstruction, and betrayal” for imposing new caps and broad product prohibitions. Advocates warned that too few cultivators and a ban on edibles could lead to shortages, high prices, or force patients to seek relief outside Nebraska.

Commissioners defended the framework, citing public health concerns, the absence of FDA approval for smoked medicines, and forthcoming research by Commissioner Monica Oldenburg.

Industry Participation Requirements

Applicants must be majority Nebraska-owned for at least four years. Owners must pass FBI background checks and have no recent felony convictions. Licenses are non-transferable and must be renewed every two years. Vertical integration remains prohibited.

In addition, a September 2 revision requires cultivators to comply with new plant caps. On September 8, after weeks of negotiation, the commission capped cultivation at 1,250 plants per facility. With four cultivators allowed, Nebraska will begin with 5,000 active plants at any given time and up to 10,000 annually under two harvest cycles. Commissioners emphasized that numbers could be revisited as patient enrollment grows.

Consumer Protection Standards

Consumer protections include tight packaging, labeling, and inventory tracking requirements. Marketing materials cannot feature imagery or branding likely to appeal to minors.

New rules also mandate a Recommending Health Care Practitioner Directory restricted to in-state providers. Physicians must complete 10 hours of initial cannabis-specific continuing education, followed by two hours annually. Prescribers must specify dosage and potency for each patient.

Funding and Operational Challenges

Funding remains a major obstacle. The Legislature provided no direct budget for the commission, allocating just $30,000 to the Nebraska Liquor Control Commission for overlapping duties. Commissioners are now temporarily sharing up to $150,000 in operating costs with the Liquor Control Commission while exploring a self-funded seed-to-sale model. Because the commission cannot legally accept fees without new legislation, Nebraska remains reliant on stopgap financing.

Litigation also clouds the program’s future. Although one lawsuit challenging the voter-approved laws was dismissed, it is now on appeal. The Attorney General has warned of additional legal action once licensing begins.

Licensing Timeline

Applications for cultivation licenses are open from September 4 through 23. A lottery system, rather than a merit-based process, will determine awards, though some stakeholders have urged a hybrid approach to prioritize quality and local participation.

The commission intends to prioritize cultivator licensing first, with a statutory deadline to award licenses by October 1. Applications for manufacturers, transporters, and dispensaries will follow.

The commission reconvenes September 30 for further oversight, leaving little room for delay.

What’s Next

The next commission meeting is scheduled for September 30, when further oversight continues. Whether Nebraska can balance public health priorities, patient needs, and the realities of building a regulatory system from scratch remains unresolved. With strict product bans, capped licenses, and plant limits now written into the emergency rules, the program’s narrow scope has raised fears of shortages even before the first sale.

The coming weeks — as licenses are issued and appeals advance — will determine whether Nebraska’s experiment can launch on time, or whether its rigid framework risks undermining the voter mandate that created it.