The General Affairs Committee heard joint testimony March 3 on a pair of bills that seek to regulate, tax and establish licensure for medical cannabis in Nebraska.

The proposals follow approval of two ballot initiatives by voters last November.

The ballot measures protect qualified individuals from legal penalties for possessing and using medical marijuana when recommended by a health care practitioner. They also create a Nebraska Medical Cannabis Commission to oversee the industry.

The commission is required to establish criteria to accept or deny applications for registered cannabis establishments by July 1.

LB 651, introduced by Lincoln Sen. Danielle Conrad, would provide a framework of regulations for medical cannabis, establishing licenses for cultivators, dispensaries, product manufacturers, testing facilities and “vertical” facilities — those that both cultivate and dispense products.

Conrad said the bill would provide responsible and thoughtful access to medical cannabis for vulnerable Nebraskans, such as children with epilepsy, cancer patients, veterans with PTSD and individuals suffering from chronic pain and other conditions.

More than 70% of Nebraska voters approved the use of medical cannabis in the state, Conrad said, and lawmakers should honor that choice.

“We know that these needs are real (and) … that these treatments can be efficient and effective in bringing relief to so many Nebraskans,” Conrad said.

LB 677, as introduced by Blair Sen. Ben Hansen, also would provide regulations for medical cannabis in the state and create an additional license for transporters. The bill also would enact a 4% sales tax on all medical cannabis products, and deposit that revenue into the Property Tax Credit Relief Fund.

Both bills would limit the number of licenses issued in each congressional district and give the commission through Oct. 1 to establish criteria for registering cannabis establishments.

Entities could apply for licensure beginning Jan. 1, 2026.

Under the proposals, health care practitioners — defined as a physician, osteopathic physician, physician assistant or nurse practitioner — would be authorized to issue a written recommendation for up to five ounces of medical cannabis for individuals with qualifying medical conditions.

Individuals under age 18 would need approval from a legal parent or guardian with authority to make health care decisions.

After receiving written notation from a health care provider, both proposals would require an individual to apply for a registry card to identify them as a qualified patient or registered caregiver.

Conrad’s LB 651 would operate the confidential registry through the state Department of Health and Human Services. Under Hansen’s LB 677, the registry would be established directly through the commission and require an application fee of up to $45.

Restricted areas, other regulations

Both proposals would prohibit the use or possession of cannabis on school grounds, at a child care facility or home day care, in a jail, adult or juvenile correctional facility or youth rehabilitation and treatment center and while operating a vehicle. Schools would have authority to establish regulations that allow students to use non-smoked or vaporized medical cannabis in certain areas.

Hansen said while legislation is not required to implement the successful ballot initiatives, responsible governance demands that the medical cannabis industry be regulated properly to ensure public safety and accountability.

LB 677 would ensure patient access while prioritizing public health and safety through strict regulations, he said, including product testing, a seed-to-sale tracking system, labeling requirements and childproof packaging.

“The message is clear — Nebraskans want legal access to medical cannabis,” Hansen said. “Now it is our responsibility to ensure that access is safe, responsible and well-regulated.”

In support

Odilia Underwood, a registered nurse and cannabis educator, testified in support of both proposals, saying medical cannabis has helped her manage the effects of Lupus. She said that a combination of lifestyle changes and medical cannabis enabled her to stop taking the 12 prescribed medications that had left her barely able to function.

“Both of these bills take the right approach by creating a structured, well-regulated medical cannabis program in Nebraska that ensures safe and legal access to tested medical cannabis,” Underwood said. “Nebraskans like me shouldn’t have to struggle … just to access a plant that has been medicinally used for thousands of years.”

Grant Wistrom, a former professional football player and current owner of cannabis manufacturing and dispensary facilities in Missouri, also spoke in favor of the bills.

Access to medical cannabis could help prevent athletes and other individuals from becoming addicted to opioids, he said, which often are the only pain relief that is readily available. Wistrom said medical cannabis provided him with a more effective form of pain relief with fewer side effects after he was injured.

Crista Eggers also testified in support of both measures on behalf of Nebraskans For Medical Marijuana. As one of the last states to legalize medical cannabis, she said, Nebraska has the unique opportunity to learn from the successes and failures of other states.

Eggers said the proposed bills would offer strong protections that allow health care providers and patients to decide the medical cannabis delivery method that best suits their needs.

“Both of these bills treat medical cannabis as a medicine — (as) it should be,” Eggers said.

In opposition

Acting Nebraska Deputy Solicitor General Zachary Pohlman opposed both measures. Legal challenges regarding the ballot initiatives still are being considered in the courts, he said, and any action from the Legislature should wait until the legal landscape is clear.

Pohlman also said the Nebraska Attorney General’s Office is prepared to take legal action should the newly created commission issue licenses to dispense marijuana, which currently is prohibited under federal law.

Roger Donovick, executive medical officer at DHHS, also spoke in opposition to both proposals. Cannabis currently is classified as a Schedule I drug under the Controlled Substance Act, he said, which means it has been determined to have high potential for abuse and no accepted medical use.

The committee took no immediate action on LB 651 or LB 677.

(The Unicameral Update is the official news service of the Nebraska Legislature.)

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