Nebraska Awards First Medical Cannabis Cultivator Licenses Amid Legal Uncertainty

Published: 30 September 2025

Updated: 7 October 2025

Nebraska’s voter-authorized medical cannabis rollout has slipped past a key milestone. The Medical Cannabis Commission said it will miss the October 1, 2025 deadline to begin granting registrations to businesses across the supply chain after two members of its three-person application evaluation team resigned days earlier at the request of Gov. Jim Pillen. The departures of Commissioners Bruce Bailey and Kim Lowe from the Liquor Control Commission also removed them from the medical cannabis panel, leaving a single evaluator and preventing the averaging of scores that had been planned for a vote this week.

Commission Chair Dr. Monica Oldenburg said the three remaining commissioners, Oldenburg, Lorelle Mueting, and retired Judge J. Michael Coffey, will now independently score cultivator applications and reconvene October 7 in Lincoln to consider awarding up to four cultivator licenses. A public hearing on proposed regulations is scheduled for October 15, followed by a legislative hearing on October 31.

Under the voter-approved framework, the commission was required to set guidelines by July 1 and to begin issuing registrations by October 1. A separate voter-passed law authorized possession of up to 5 ounces of medical cannabis for patients or caregivers with a practitioner’s recommendation, but the absence of licensed businesses means there is still no lawful in-state purchase option. Supporters and patients, some of whom described the delay as a matter of health urgency, urged the commission to approve licenses quickly and to allow smoking, vaping, and raw flower sales, which the draft rules prohibit.

The proposed regulations would license up to four (4) cultivators, four (4) product manufacturers, 12 transporters, and 12 dispensaries arranged by judicial district. Each cultivator would be limited to 1,250 flowering plants at any time. With two expected harvests, the initial annual output could reach about 10,000 harvestable plants if all plants finish and pass testing. The commission anticipates serving about 20,000 medical patients at launch, with strict testing protocols applied to all products. Dispensaries would not sell smoking or vaping products or edibles, and permitted items would include oral tablets with thin flavoring layers. Purchasing limits would allow up to 5 ounces per 30 days, with no more than 5 grams of delta-9 THC from the same dispensary in any 90-day period.

The Attorney General’s Office has warned it may sue if the commission issues licenses, arguing federal prohibition preempts state licensing. The office has repeated this position in legislative testimony and court filings related to challenges to the voter-passed laws.

The resignations followed the unsealing of federal corruption charges against the Liquor Control Commission’s former executive director, who pleaded not guilty. The indictment did not implicate sitting commissioners. Pillen’s office has said medical cannabis regulations will proceed. The governor will appoint replacements for the two vacant commissioner seats.

Applicants told the commission that a successful harvest could take about five months before material moves to a manufacturer, with four to six additional weeks before products reach dispensaries. Advocates said any further delay will push back access for patients who already have lawful possession rights but no regulated supply.

With two cultivator licenses now awarded, the program will enter a new phase of implementation. Yet early operational outcomes will continue to be shaped by restrictive product rules, modest plant caps, the uncertain fate of remaining license applications, and risks of litigation or regulatory reversal.

Post-Deadline License Awards & Ongoing Challenges

On October 7, 2025, the Nebraska Medical Cannabis Commission unanimously offered the state’s first two medical cannabis cultivator licenses to Nancy Laughlin-Wagner (Midwest Cultivators Group, Omaha) and Patrick Thomas (Raymond). The decision came nearly a week after the October 1 deadline.

These two were among four applications randomly selected (from a pool of 39) for evaluation; the other two - one submitted by Crista Eggers (executive director of Nebraskans for Medical Marijuana) and one by Casey Sledge - were denied for failing to reach the threshold average score of 70. The commission did not publicly release the full scoring rubric, prompting criticism and calls for transparency.

Rejected applicants have until October 23 to file appeals, after which the commission will review or proceed to evaluate additional applications. The public hearing on emergency regulations remains scheduled for October 15, though all three commissioners have stated they will not attend that hearing.

Legal risks persist. The Nebraska Attorney General’s Office had pledged to challenge the licensing process, and observers see the approval of cultivator licenses as a direct test of whether the state will defend its medical cannabis framework or back down under legal pressure. In addition, state Senator John Cavanaugh filed a formal complaint asserting that the emergency regulations may conflict with the text of the voter-approved law.

While the approvals mark progress, the restrictive regulatory structure (plant caps, prohibition of smoking/vaping/edibles) and the slow pace of licensing raise questions about whether the system can deliver adequate access for patients.