420 with CNW — Nebraskan Lawmakers Consider Proposals to Implement Voter-Approved Medical Marijuana Program

Three pieces of legislation have been introduced in Nebraska aiming to implement medical marijuana legalization and regulation initiatives approved by voters in the November election.

The legislation, sponsored by Senators Terrell McKinney, Ben Hansen, and Danielle Conrad of Omaha, Blair, and Lincoln, respectively, center on setting up registry systems and outlining the Nebraska Medical Marijuana Commission’s regulating and licensing responsibilities.

The proposed bills—LB 705 (McKinney), LB 677 (Hansen), and LB 651 (Conrad)—would allow residents to acquire registry cards after obtaining a healthcare provider’s written recommendation, confirming their eligibility as a medical cannabis patient. The registry system would also cover caregivers, including those assisting minors.

Currently, the law requires the commission to finalize criteria for approving or denying applications for marijuana businesses by July 1, with licensing anticipated to begin by October 1. However, the new proposals suggest delaying the licensing process until January 1, 2026, to allow more time for regulatory preparations.

A separate proposal, LB 483, introduced by Senator Jared Storm (David City) aims to restrict the amount of delta-9 THC that can be used for medical purposes to 300 milligrams and only permit the use of liquid tinctures or pills. This restriction significantly narrows the scope compared to what voters had approved, which was overwhelmingly supported in the recent ballot measures.

Senator Conrad noted that some patients cannot consume cannabis in pill form due to medical conditions, prompting her to draft a more expansive bill to align with voters’ wishes. Senator Hansen highlighted his commitment to honoring the people’s will, citing his previous work with Senator Anna Wishart on similar efforts.

The voter-approved measures remain under legal scrutiny, with challenges still pending in state and federal courts. Attorney General Mike Hilgers and Governor Jim Pillen have raised concerns about conflicts with federal law, which classifies cannabis as a Schedule I substance. Conrad dismissed this as a political viewpoint, arguing that states have considerable authority under the Constitution to create such programs.

The measures from Hansen, McKinney, and Conrad include protection from arrest for caregivers, patients, and officials involved in medical cannabis. They would legalize medical cannabis use for patients, allowing up to 5 ounces, with exceptions for higher quantities based on a physician’s recommendation.

Each bill outlines licensing structures and fees. Conrad’s plan features five license categories: testing facility, cultivator, product manufacturer, dispensary, and vertically integrated businesses. Hansen’s bill adds a transporter license. McKinney introduces tiers for businesses—micro, small, and large-scale—and reserves over half of the licenses for social equity candidates from communities disproportionately affected by drug policies.

Tax revenue from cannabis sales would be redirected differently under each bill. Hansen prioritizes property tax relief, while McKinney and Conrad propose reinvesting funds into the cannabis program. McKinney’s plan also includes automatic expungement for specific marijuana-related offenses.

Changes or revisions to these laws need a supermajority vote in the legislature since they are the result of initiatives that were passed by the electorate. The provisions will be self-enforcing if legislators do nothing, guaranteeing that they are implemented as intended.

When the program is finally launched, numerous business opportunities will become available in the state, including for companies operating like Innovative Industrial Properties Inc. (NYSE: IIPR) that have found a niche in serving marijuana companies.

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