Nebraska Medical Cannabis Program Faces Early Hurdles Under Strict Emergency Rules

Published: 1 July 2025

Updated: 8 August 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, in effect until September 28, were enacted to meet ballot initiative requirements for license applications to be accepted by July 1 and awarded no later than October 1.

Strict Market Structure

Under the rules, Nebraska will have one of the most restrictive medical cannabis markets in the country:

• Only one dispensary is allowed in each of Nebraska's 12 judicial districts, limiting geographic access—especially in rural areas.
• Smokable flower, vape cartridges, infused edibles, flavored cannabis products, and any cannabis intended for combustion or inhalation are banned.
• Approved products include: oral tablets, tinctures, patches, and topicals.

While patients may legally possess inhaled or flavored products if obtained elsewhere, Nebraska-based cultivators and dispensaries cannot produce or sell them.

Patient Pushback Over Product Restrictions

These restrictions sparked heated debate at the commission’s August meeting.

• 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.

Commissioners defended the bans, citing public health concerns, the absence of FDA approval for smoked medicines, and forthcoming research by Commissioner Monica Oldenburg pointing to potential harms from smoking and flavor additives, particularly for youth exposure.

Industry Participation Requirements

Other eligibility and operational rules for the industry remain strict:

• 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 is prohibited, meaning a business may only hold one type of license—cultivation, manufacturing, transport, or retail.

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.

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 exploring unconventional approaches, such as having licensees pay seed-to-sale tracking providers directly - in a method untried by other states.

Licensing Timeline

Applications for cultivation, manufacturing, transportation, and dispensary licenses are being accepted by email, though the official application form is still in development. The commission may phase in approvals, starting with cultivators, to stay on track for the October deadline.

What’s Next

The next commission meeting is scheduled for September 2, when updated draft rules are expected. Whether Nebraska can balance public health priorities, patient needs, and the realities of building a regulatory system from scratch remains an open question.