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Nebraska commission approves emergency medical cannabis regulations
Nebraska commission approves emergency medical cannabis regulations

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time26-06-2025

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Nebraska commission approves emergency medical cannabis regulations

The Nebraska Medical Cannabis Commission meets for a second time. Commissioners adopted emergency regulations to move forward with a regulated medical cannabis program in the state. Commissioners, from left: Lorelle Mueting of Gretna, Dr. Monica Oldenburg of Lincoln (chair), Bruce Bailey of Lincoln and J. Michael Coffey of Omaha. June 26, 2025. (Zach Wendling/Nebraska Examiner) LINCOLN — The Nebraska Medical Cannabis Commission on Thursday approved emergency regulations to begin accepting medical cannabis applications as soon as Gov. Jim Pillen gives his final green light. State law requires him to do so by Tuesday. The emergency regulations, unveiled for the first time minutes before the 10 a.m. meeting, largely mirror a legislative proposal that lawmakers stalled on last month. The regulations would take effect for up to 90 days, pending Pillen's approval. The two medical cannabis-related laws that voters approved mandate that applications must start being accepted no later than July 1. Commissioner Lorelle Mueting of Gretna, an addiction prevention specialist through Heartland Family Service, affirmed that commissioners want public feedback on the emergency regulations through July 15, to inform future, formal regulations. Public comments may be submitted to the repository for the Nebraska Liquor Control Commission, which will forward the messages onto the state's new Medical Cannabis Commission. 'The input that the public provides on these emergency regulations will help us immediately begin drafting the regular regulations,' Mueting said Thursday. Dr. Monica Oldenburg, an anesthesiologist who chairs the commission, will send a letter to Pillen relaying the emergency regulations and stating that the 'failure' to adopt them by the deadline 'would force Nebraskans to seek medical cannabis or similar products from unregulated and potentially harmful sources.' Pillen's office did not immediately respond to a request for comment on the emergency rules. Licensing of new establishments must begin by Oct. 1, according to the laws. The emergency regulations would allow licenses for, at minimum, cultivators, product manufacturers, dispensaries and transporters, and someone could be awarded only one type of license. Justification for emergency regulations under state law can include 'imminent peril' to public health, safety or welfare. Mueting and Oldenburg will head up a subcommittee to work on the regulations in the meantime. Commissioners also voted 4-0 to enter a legal partnership with the Nebraska Department of Health and Human Services and Pillen's Policy Research Office, which allows the commission to contract with DHHS for 'legal services.' Legislative Bill 677, which fell 10 votes short of the 33 votes needed to change a voter-approved law last month, 23-22, would have provided additional guardrails around the ballot measures that voters overwhelmingly approved in November. Up to 30 dispensaries would have been allowed under that bill, up to 10 in each congressional district. Under the emergency regulations, no more than one dispensary would be allowed in each of the state's 12 District Court Judicial Districts. Douglas County (Omaha) and Lancaster County (Lincoln) are the only counties that occupy a single district. Multiple medical cannabis advocates asked the commission to reconsider that specific restriction. No dispensary could located within 1,000 feet of any school, daycare, church or hospital. At least 51% of an applicant's business or organization would need to have resided in Nebraska and be a U.S. citizen for at least the past four years. Applicants also would need to pay to submit two legible sets of fingerprints to the FBI and the Nebraska State Patrol for a criminal background check. Unlike LB 677, the emergency regulations do not specify qualifying medical conditions. LB 677 would have outlined 15 conditions eligible for the medicine. That list excluded post-traumatic stress disorder. Nebraskans in November overwhelmingly legalized up to 5 ounces with the recommendation of a health care practitioner. The emergency regulations would require that a recommendation (from any provider nationwide) specify the product being recommended, the recommended dosage and potency, the number of doses, the directions for use and the name of the patient. The regulations would allow dispensaries to sell: Oral tablets, capsules or tinctures. Non-sugarcoated gelatinous cubes, gelatinous rectangular cuboids or lozenges in a cube or rectangular cuboid shape. Gels, oils, creams or other topical preparations Suppositories. Transdermal patches. Liquids or oils for administration using a nebulizer or inhaler. Dispensaries could not sell raw plant or flower, food or drinks with cannabis infused into it (edibles), any products containing artificial or natural flavoring or coloring and any products administered by smoking, combustion or vaping. LB 677 would have mandated testing of all products before they could be sold, one of the strictest testing regimes in the country. However, without a legislative change, the commission lacks the explicit authority to regulate testing under the medical cannabis laws. Instead, the emergency regulations say products 'may' be submitted for testing or research for development purposes. Packaging would need to be able to show it had been tampered with, child-resistant, resealable and protected from contamination. Similar to 2024 restrictions on vaping products, cannabis products could not depict cartoon-like fictional characters or mimic characters primarily aimed at entertaining minors, trademarks or trade dress or products that imitate or mimic products primarily marketed to minors, symbols primarily used to market products to minors or the images and likenesses of celebrities. Shari Lawlor of Valley told the commission that her 32-year-old daughter, Brooke, has faced severe seizures for the past 31 years but 'nothing in modern medicine has helped her,' including brain surgery in 2024. Shari Lawlor said her daughter has 11 bottles of medications and takes 'handfuls' of pills. 'They're going to kill her. If it's not one organ, it's another,' Lawlor said. 'I would just like the option to have complete access for the patients, and that's only by letting all different products on the market.' Jim Wilson, a clinical pharmacist speaking on behalf of the Nebraska Pharmacists Association, said he has seen positives and negatives of cannabis. He asked the commission to seek input from pharmacists because of possible side effects with other drug interactions. Wilson advocated for adding medical cannabis to the state's prescription drug monitoring program used for other medications, which LB 677 would have done, too. 'We are not interested in the politics or any particular party or any of that,' Wilson told the commission. 'We're interested in the patient and what might happen to them.' State Sen. John Cavanaugh of Omaha, who helped advocate for LB 677 in the most recent legislative session, said the commission has no legal authority to restrict the forms of cannabis available to patients. 'To disallow by regulation what is clearly allowed by statute is a slap in the face to the patients and families who need this medicine and the voters of Nebraska who approved it by an overwhelming majority,' he said in a text. State Sen. Ben Hansen of Blair, who introduced LB 677, had no immediate reaction. Crista Eggers, executive director of Nebraskans for Medical Marijuana, the campaign that ushered the laws through the 2024 election, said the ballot measures clearly legalized medical cannabis in all forms, including flower. She said it's also unclear where completed applications should be sent. Speaking with reporters after the meeting, Eggers said there are good components to the regulations and that she viewed Thursday's meeting as productive, while it had some drawbacks. She said that includes the commission voicing an intention to listen to the public and seek feedback. 'Today was a positive day, and I believe that we are moving in a forward direction,' Eggers said. 'We're not there. There's a long ways to go. But a good foundation today.' Bailey, who chairs the Liquor Control Commission, told Eggers that he and other commissioners had seen the regulations about 12 hours before Thursday's meeting and hope to tie down and clear up the regulations more about the regulations over the next month. 'We're asking for public feedback such that these things could be made whole,' Bailey said. 'The best we have right now is what's in here.' The eventual formal regulations the commission advances this summer must include at least 30 days notice of what's being considered before a public hearing. The commission set its next meeting for 1 p.m. Aug. 4, with a location to be determined. If there are no meetings before then, the likely public hearing on the more lasting regulations would be in September. Gov. Jim Pillen appointed Lorelle Mueting of Gretna and Dr. Monica Oldenburg of Lincoln as the at-large members of the Nebraska Medical Cannabis Commission. They join the three governor-appointed members of the Liquor Control Commission: Bruce Bailey of Lincoln, retired District Court Judge J. Michael Coffey of Omaha and Kim Lowe of Kearney. This was the first meeting for Mueting and Coffey, whom Pillen appointed last week. Pillen did not reappoint Commissioner Harry Hoch, Jr., to Coffey's seat, even though he applied for reappointment Feb. 2. Three other people applied for the seat. Hoch withdrew his reappointment application May 20 at the Governor's Office's request for more 'cannabis experience,' he told the Nebraska Examiner. State law requires commissions to publish rules or regulations on a commission website, but the Medical Cannabis Commission does not yet have one. It costs $70,000 to create a website through a specific state vendor, but commissioners can't collect fees or levy any taxes on medical cannabis and thus have no funds available, unless they 'borrow' funds from the Liquor Control Commission. The medical cannabis commissioners also don't have separate state emails or a set state address or phone number. Asked by commissioners how to remedy that situation, or if they would violate state law without a website, Assistant Attorney General Benjamin Swanson said: 'I understand that that's the position that you're in. I unfortunately can't — I don't have any information for you on how to fix that problem.' The commission entered closed session multiple times Thursday, often to discuss regulations and/or pending and potential litigation against the commission. Commissioners did not state whether a closed session was 'clearly necessary' for 'the protection of the public interest' or 'prevention of needless injury to an individual, if such individual has not requested a public meting' before any of the three times, as required under the Open Meetings Act. Asked by the Nebraska Examiner whether it was for either of those overarching reasons, Bo Botelho, chief legal officer of the Nebraska Department of Health and Human Services, who is now working with the Medical Cannabis Commission, said, 'No.' — Zach Wendling, Nebraska Examiner reporter SUPPORT: YOU MAKE OUR WORK POSSIBLE

Committee advances two Nebraska Medical Cannabis Commission appointees, one favorably
Committee advances two Nebraska Medical Cannabis Commission appointees, one favorably

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time23-05-2025

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Committee advances two Nebraska Medical Cannabis Commission appointees, one favorably

State Sen. Anna Wishart of Lincoln addresses a group at Duffy's Tavern during the launch of the Nebraskans for Medical Marijuana's 2024 petition on Wednesday, Sept. 13, 2023, on Lincoln, Neb. To her left is campaign manager Crista Eggers and former State Sen. Adam Morfeld, who Wishart co-chairs the group with. (Zach Wendling/Nebraska Examiner) LINCOLN — A legislative committee on Thursday advanced the governor's two appointees to the Nebraska Medical Cannabis Commission, but just one secured the committee's support before heading to the full Legislature. The roughly three-hour confirmation hearing and 15-minute executive session to consider and vote on the appointments came just 48 hours after the defeat of Legislative Bill 677 to provide additional guardrails to the commission. That bill sought to aid implementation of the voter-approved laws and delay a July 1 deadline for rules and regulations to be in place. Gov. Jim Pillen, who opposed the ballot measures legalizing and regulating medical cannabis, appointed Dr. Monica Oldenburg of Lincoln, an anesthesiologist, and Lorelle Mueting of Gretna, prevention director at Heartland Family Service in Omaha, to the commission. The General Affairs Committee voted 5-2, with one member 'present, not voting,' to recommend Oldenburg but tied 4-4 on favorably advancing Mueting. Under legislative rules, all gubernatorial appointments reach the full Legislature anyway. Committees can recommend to approve or reject an appointment, or lawmakers can make no recommendation, which happens in the event of a tie. Either appointee would need 25 votes to be confirmed to a six-year term. They would join the members of the Liquor Control Commission, whom voters also placed on the Medical Cannabis Commission: Bruce Bailey of Lincoln, Harry Hoch Jr. of Omaha and Kim Lowe of Kearney. Liquor commissioners, too, are appointees of the governor. Hoch's term ends Saturday. Mueting said her role as a prevention specialist for 24 years has been to prevent people from having problems with alcohol and other substances. She said she has looked at medical cannabis from a '360-degree view,' and as a self-described 'solutions-focused' person, she said she views the Nebraska medical laws as helping patients with 'debilitating' health conditions. 'Helping to guide the rulemaking process around the needs of the people it's intended to serve is my goal,' Mueting said. 'There's nothing about that goal that says we need to sacrifice public health and safety to attain it.' Mueting has a psychology and health promotion management degree from Hastings College and has a master's degree in kinesiology from Kansas State University. Oldenburg said she is 'not a prohibitionist' of cannabis but is 'pro-research.' She said cannabis has 'a place in pain management' for certain ailments that cause suffering. 'Nebraska needs to seize the opportunity to be slow and deliberate in the manner in which we determine how best to designate appropriate conditions for medical cannabis and regulate those entities that will dispense medical cannabis in our state,' Oldenburg said. 'I look forward to working with various parties to ensure that we in the State of Nebraska get this right.' Oldenburg graduated from the University of Dallas with a degree in biochemistry and chemistry before getting her medical degree from Creighton University. She has been an anesthesiologist for 18 years, first in Colorado and returning to Nebraska in 2017 with her family. Part of the move, she said, was because of how the 'evolution' of medicinal to recreational marijuana went in Colorado. She said there weren't many medical regulations at the start. Pillen has described the women as 'experienced, well-qualified individuals' who would ensure strong regulations 'to the letter of the law the people of Nebraska enacted.' He and other LB 677 opponents, such as State Sen. Jared Storm of David City, say the commission can meet its July 1 deadline. Oldenburg declined to talk with the Nebraska Examiner prior to the Thursday hearing. Mueting did not respond to repeated requests for comment before or after the hearing. Of the appointees, Oldenburg said she was encouraged to apply by Storm, a member of the General Affairs Committee, who called and asked if she had considered the position. Mueting listed Storm as a personal reference on her application to the governor. Under legislative questioning, Mueting at first said she didn't know 'exactly how the governor got my name' before clarifying she applied. She said she didn't know appointments would go before the General Affairs Committee, just that full legislative approval was needed in the end. During the closed-door executive session, which is open to reporters, Storm defended the appointees and said they showed up for a hostile and intimidating environment. State Sen. Victor Rountree of Bellevue spoke for the first time to criticize what he viewed as a conflict of interest. Storm said the application process was public and flipped the question on Rountree and other committee members for not reaching out to possible applicants, too. In addition to Mueting and Oldenburg, Pillen interviewed Erin Bone, a prevention specialist in North Platte. The governor did not interview a fourth applicant: Ogallala City Manager Kevin Wilkins, according to records shared with the Examiner. Mueting and Oldenburg are registered Republicans. Bone is a registered Democrat. Wilkins is a registered nonpartisan. During Tuesday's debate on LB 677, Storm acknowledged he had talked with Mueting but said he hadn't talked about the bill with Mueting. Mueting, when she testified against LB 677 in March, answered questions from Storm about what she'd like to see from medical cannabis in Nebraska. Her answer included limiting allowable forms of cannabis (not smoking or vaping), limiting qualifying conditions and placing restrictions on tetrahydrocannabidiol potency, serving size or servings per package in cannabis products. Mueting was 'neutral' on a Storm bill, LB 483, to reduce the allowable possession down to 300 milligrams, 0.21% of what voters approved, and only allow pills or tinctures for the medicine. Much of Thursday's hearing focused on opposition to the appointments because Oldenburg and Mueting have both consistently opposed the legislative proposals that long-time medical cannabis advocates in Nebraska have supported in the Legislature. Oldenburg testified against proposals in 2018, 2019 and 2021, while Mueting opposed legislation in 2019, 2021, 2023 and 2025. 'Absolute failure': Medical cannabis regulatory bill stalls in Nebraska Legislature After more than a decade of legislative attempts, advocates succeeded last fall by ballot measure at legalizing up to 5 ounces of medical cannabis with a health care practitioner's recommendation. 'Exclusive' regulatory authority is vested in the Medical Cannabis Commission, per voter directive. Crista Eggers, executive director of Nebraskans for Medical Marijuana, which led the campaign, said the appointments seemed like a 'calculated act' by Pillen. She said lawmakers have an 'ethical responsibility' to approve individuals committed to the program's success, 'not its obstruction.' 'I don't think an arsonist should be in charge of the fire department,' Eggers testified. Cavanaugh asked whether that meant Eggers should be appointed. She said, 'Absolutely not.' 'I do not believe that this commission should be made up of anyone that has spent time, energy, in their personal or professional capacity, being opposed or supportive to this,' Eggers said. Shelly Gillen of Bellevue, testifying on behalf of her 23-year-old son Will, said that for people 'enamored' with requiring U.S. Food and Drug Administration approval first — as has been the consistent policy for Mueting's Heartland Family Service — Gillen said those people should ask what FDA-approved meds have done to Will Gillen, making him 'an innocent, unintentional addict.' 'We were told by a neurologist that weaning him off one of his meds would be similar to weaning off someone on heroin. FDA-approved meds landed him in the hospital for two weeks in complete somnolence that made him develop pneumonia and silent aspiration on his own saliva,' Gillen testified. The Gillens were among the first families to consistently fight for medical cannabis, back to 2015 legislation from former State Sen. Sue Crawford of Bellevue. Mueting supported that bill. Gillen said there was 'no doubt in my mind' that the appointees would 'do everything they can to derail, stall and sabotage access to medical cannabis for as many patients as possible.' Angelica Marsaglia of Lincoln, who would benefit from medical cannabis, opposed both appointees and noted Mueting is part of an organization in part to help addicts. Marsaglia urged senators to see patients and 'please hear us.' 'We are not addicts. We are medical patients,' Marsaglia said. 'We just want access to a plant, a plant that grows freely and only the government has made illegal.' Maggie Ballard and Mary O'Neill, both of Heartland Family Service, defended Mueting, as did Sarpy County Sheriff Greg London. London attested to Mueting's character and integrity and said she's 'perfect' for the appointment because she understands the importance of rules and regulations. London was one of 53 sheriffs to join Nebraska Attorney General Mike Hilgers in opposition to LB 677. The AG's Office has vowed to sue the Medical Cannabis Commission if it begins licensing medical cannabis dispensaries, which could begin by Oct. 1 under the laws. Advisement to law enforcement is still a 'work in progress' when it comes to medical cannabis, London said, and he argued no one has a medical cannabis recommendation card yet. Cavanaugh said some people do have a card, to which London asked how many. 'I've met at least one,' Cavanaugh said. 'Oh. Congratulations,' London responded. Keith County Attorney Randy Fair, in his personal capacity, said that while both appointees may be very good people, he said appointees should be neutral-minded individuals who can support good regulations. Fair said that cops will do the same thing they do now during traffic stops: Pull people over now if they smell marijuana for probable cause, search vehicles and issue arrests or tickets if people have more than 5 ounces of marijuana, or not if someone has a recommendation. 'We don't try to arrest tons of people for that because, quite frankly, it would be a waste of resources,' Fair said. 'I do think that a lot of these concerns are blown over.' It would be Fair's 'ethical duty,' he said, not to prosecute someone unless they have actually violated the laws of Nebraska. Ballard said she's served on Heartland Family Service's prevention team with Mueting for 11 of Ballard's 13 years with the organization. When learning that there might have been an overflow room because of widespread opposition, Ballard said, 'Honestly, that hurts my heart.' While Mueting and Ballard have different backgrounds and don't see eye-to-eye on everything, Ballard added, Mueting 'has one of the biggest hearts of anyone I've ever met.' 'I just can't think of anyone better than her to serve on this commission, because she will do a very good job of balancing public health and public safety against people who need help with their debilitating conditions,' Ballard said. Ballard and Mueting said voters have spoken, despite the Heartland Family Service position. Ballard said her coworker's job would be to oversee and 'try to do things as well as possible and not to just bang her head against the wall saying, 'No, we can't do this here.'' 'That's not practical, and it's not in Lorelle's nature either,' Ballard continued. Nothing in the law requires 'debilitating' conditions, Cavanaugh noted. Any health care practitioner, including out-of-state, can recommend cannabis if they feel a patient could benefit. While no one spoke in favor of Oldenburg's appointment, multiple senators said after the hearing that they were impressed with her credentials. State Sen. Stan Clouse of Kearney, who opposed Mueting but supported Oldenburg, said there were some unfair shots taken at Oldenburg whose skill set he highlighted. He did not specify his reservations on Mueting's appointment. State Sen. Bob Andersen of north-central Sarpy County said he was 'very impressed' by Mueting's 24 years in the prevention field and that she was qualified for the role. Mueting said she didn't view her appointment as trying to 'squash' the law, 'because I don't have the power to do that.' 'My goal is not to make this harder for people,' Mueting said. 'My goal is to put some rules around the substance as we were given in statute.' Oldenburg noted that in residency, she was taught to never be afraid of prescribing opioids for patients' pain, but that's changed. She added that Nebraska can learn from other states in the interest of health, safety and well-being for a better program. Multiple opponents of the appointees, including Angela Cornett of Norfolk, a nurse, said patients were tired of waiting, including for new research. Cornett said her mom was one of dozens of advocates who died waiting for possible relief over the past decade. Oldenburg stayed for the whole hearing, but Mueting left after her invited witnesses testified. State Sen. Rick Holdcroft of Bellevue said she had a previously scheduled appointment. Cavanaugh grilled both appointees over what they view as the commission's role, such as whether commissioners should list qualifying conditions, limit permissible forms of using cannabis, restrict how many dispensaries can be licensed and more. Mueting and Oldenburg, noting they are 'one of five' on the commission, said they didn't know and weren't attorneys. They said they would seek guidance as a team, though both said they opposed smoking as a form of using cannabis. 'I'm a law-abiding citizen of the State of Nebraska, and I have to follow the will of the people, and I have to follow the statutes,' Oldenburg said. Andersen, who also opposed LB 677, criticized Cavanaugh's line of questioning about Mueting's personal views on medical cannabis and compared it to asking a public defender whether a client is guilty. 'They're going to do a job and defend the person,' Andersen said. 'That's a really good analogy,' Mueting responded. Storm said that at the end of the day, he and others want to help Nebraskans in the right way. 'If cannabis can help people with ailments, we should do that, very much should do that,' Storm said. 'But we have an obligation to protect society, and we can't let this get out of control.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX

Judge considering whether to dismiss Nebraska medical cannabis preemption lawsuit
Judge considering whether to dismiss Nebraska medical cannabis preemption lawsuit

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time20-05-2025

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Judge considering whether to dismiss Nebraska medical cannabis preemption lawsuit

Attorney Eddie Greim of Kansas City speaks in Lancaster County District Court during a hearing on a lawsuit arguing Nebraska's medical cannabis laws are preempted by federal law. He represents the plaintiff, former State Sen. John Kuehn, at right. May 20, 2025. (Zach Wendling/Nebraska Examiner) LINCOLN — A Lancaster County district judge is reviewing whether to dismiss a lawsuit alleging that Nebraska's voter-approved medical cannabis laws violate federal law after in-person arguments Tuesday. This is the second medical cannabis case to reach District Judge Susan Strong, who in late November ruled against a preelection lawsuit challenging that the ballot measures shouldn't have been placed on the ballot because of allegedly fraudulent notarizations. Strong rejected those arguments. In the latest case, Strong must first decide whether to let the federal preemption case proceed based on whether a longtime marijuana opponent, John Kuehn, has the necessary 'standing' to sue. That's the legal term of art required for cases to proceed, meaning that Kuehn, a former state senator and former member of the State Board of Health, must show injury as a result of the new medical cannabis laws legalizing and regulating the drug. The ballot measures overwhelmingly passed in November, with 71% approval for legalization and 67% approval for a regulatory law. Tuesday's arguments came on the same day state lawmakers are considering Legislative Bill 677, a separate effort to create a clearer regulatory scheme around medical cannabis to assist in the program's implementation. Many of the arguments in court Tuesday mirrored legal briefs filed earlier. Largely, they argue that Kuehn is not the right party to challenge the measures under 'taxpayer standing,' or that, as a taxpayer, he should get to challenge 'illegal' taxpayer spending. All 11 defendants named in the case from Kuehn have filed to dismiss the case. Attorney Jason Grams, for the three members of the new Nebraska Medical Cannabis Commission that voters' regulatory law established, told Strong no taxpayer funds had been spent by Jan. 10, when Kuehn amended his lawsuit to include the commissioners. 'He couldn't wait to take the time to meet the demand requirement for taxpayer standing,' Grams said. Grams represented the Nebraskans for Medical Marijuana campaign in 2020 against a lawsuit brought by Lancaster County Sheriff Terry Wagner. The Nebraska Supreme Court ruled against the campaign and removed the measure from the 2020 ballot. Attorney Daniel Gutman, who is now representing the three sponsors of the 2024 cannabis ballot measures, said the 'ship has long sailed' for election-related challenges against his clients. Gutman continues to defend the sponsors as Kuehn and the Attorney General's Office appeal the earlier notarization case, also from Kuehn, to the Nebraska Supreme Court. Gutman said the sponsors didn't agree to be 'sued in perpetuity' for any challenge from Kuehn. Of the dozens of states that have legalized medical cannabis, Gutman and Grams said no court has tossed the laws. Gutman said states are meant to be 'labs of democracy' and that the federal government and Congress do not preempt the Nebraska laws. He also noted a provision in annual federal spending bills prohibiting the U.S. Department of Justice from spending federal money to prosecute people following state medical cannabis laws. 'We would literally be here all day if I cited all the cases rejecting this recycled argument,' said Gutman. Deputy Solicitor General Zach Pohlman, defending Gov. Jim Pillen, Secretary of State Bob Evnen, Treasurer Tom Briese and two other state defendants in the case, summed up morning arguments that someone should challenge the laws, but Pohlman said it shouldn't be Kuehn. 'Just because that statute is on the books doesn't mean that Kuehn can run around the normal standing requirements,' Pohlman said. Instead, the AG's staff has said Nebraska Attorney General Mike Hilgers and his staff should be the ones to challenge the law, which they've pledged to do if and when the Medical Cannabis Commission issues any dispensary licenses under the new laws. Attorney Eddie Greim of Kansas City, representing Kuehn, said the challenge should proceed in part because public records requests indicate that staff for the Liquor Control Commission, which the regulatory law voters passed and tied closely to the Nebraska Medical Cannabis Commission, have discussed how to implement the laws and estimated possible costs. 'If we can snip this off at the bud, and we can enjoin the NMCC from doing anything,' Greim said, 'then the harms will never flow down to the other defendants.' Some of the records received include fiscal or lobbying requests related to pending legislation just down the street from the courthouse at the Nebraska State Capitol, which Greim said show regulatory steps being taken. Grams said the records are 'utterly irrelevant' to the lawsuit. Grams also filed affidavits from each of the three commissioners on the Nebraska Medical Cannabis Commission stating that the commissioners had taken no regulatory action as of Jan. 10, when the commissioners were added to the lawsuit. Greim objected to that evidence, saying he needed to be able to 'look behind the veil' and challenge the commissioners' statements. Strong said she would take the evidence challenges and the motions to dismiss from all defendants under advisement and rule at a future date. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX

Medical Cannabis Commission would still lack immediate funds for regulation without state law change
Medical Cannabis Commission would still lack immediate funds for regulation without state law change

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time19-05-2025

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Medical Cannabis Commission would still lack immediate funds for regulation without state law change

State lawmakers hosted a series of three public forums in eastern Nebraska on medical cannabis, including one in Lincoln on May 5, 2025. From left, State Sens. Rick Holdcroft of Bellevue, Jane Raybould of Lincoln, Tom Brandt of Plymouth, John Cavanaugh of Omaha, George Dungan of Lincoln, Myron Dorn of Adams, Danielle Conrad of Lincoln, Jana Hughes of Seward, Margo Juarez of Omaha and Merv Riepe of Ralston. State Sens. Ben Hansen of Blair, Machaela Cavanaugh of Omaha and Terrell McKinney of Omaha attended earlier forums. (Zach Wendling/Nebraska Examiner) LINCOLN — The governor's push for the executive branch to take on Nebraska medical cannabis regulations as a way to sidestep pending legislation at the statehouse would include no additional funding for months. Gov. Jim Pillen's spokesperson and the director of the Nebraska Department of Administrative Services confirmed Monday that under Pillen's plan announced Friday, the Nebraska Medical Cannabis Commission still would have no additional funds to spend on developing rules or regulations. He announced his plan as lawmakers are set to debate Legislative Bill 677 Tuesday, which would legislatively create additional rules and regulations for the medical cannabis laws that voters overwhelmingly approved in November. Pillen orders Nebraska medical cannabis regulations to proceed as legislative, legal fights approach Under Pillen's approach, the commission would need to make up for any spending later, such as through registration fees, though the commission's ability to raise such revenue remains uncertain, as the Nebraska Attorney General's Office has pledged to sue the new commission if it issues any state licenses for medical cannabis. Pillen and Attorney General Mike Hilgers have questioned the legality of medical cannabis, though Pillen formally certified the vote in December and the laws have been in place since. The governor's Friday announcement referenced 'operational funding' that had already been appropriated for the regulatory work, but when the next two-year state budget passed Thursday, it included limited new funding. The Appropriations Committee offered an annual $30,000 each of the next two fiscal years for employees in the Liquor Control Commission, who take on additional duties under the new medical cannabis-related laws. In comparison, the Liquor Control Commission has a $2 million annual budget, including for enforcement of regulations. The Medical Cannabis Commission has no additional funding for the remaining two months of the current fiscal year. The voter-approved laws required regulations by July 1 and licensing by Oct. 1. The Department of Administrative Services, which Pillen oversees, can provide limited financial support to agencies crafting regulations. Pillen spokesperson Laura Strimple, citing Lee Will, the DAS director who previously oversaw the state's budget, said the Liquor Control Commission has a cash fund spending authority of $100,000 that is 'rarely used.' The new spending would come through a new administratively created cash fund to capture any new revenue. 'This funding authority will allow for [the Cannabis Commission] to operate, combined with registration fees for revenue,' she said in an email. The one cash fund that the Liquor Control Commission currently has is derived from the commission selling copies of its rules, the law governing its actions and other publications. It also gets funds from fees for registration, server training and more, according to a Legislative Fiscal Office directory of state funds and programs. Just a portion of the fund has been used in recent years. State law allows the funds to be used for 'any administrative costs' associated with specific liquor statutes. Medical cannabis statutes were placed in a different section of the law, and the budget bills did not expressly authorize additional spending from that fund. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX

Pillen orders Nebraska medical cannabis regulations to proceed as legislative, legal fights approach
Pillen orders Nebraska medical cannabis regulations to proceed as legislative, legal fights approach

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time16-05-2025

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Pillen orders Nebraska medical cannabis regulations to proceed as legislative, legal fights approach

Nebraska Gov. Jim Pillen signs off on the 2024 general election results on Monday, Dec. 2, 2024. (Zach Wendling/Nebraska Examiner) LINCOLN — It's not every day that Nebraska's three branches of government are all involved in a single topic. But one issue is front and center within the next week: medical cannabis. Days before legislative debate and a Lincoln court hearing, Gov. Jim Pillen on Friday announced 'intentions' for executive branch staff to offer available administrative support and resources for voter-approved medical cannabis regulators to begin their work. 'With support from the Policy Research Office, the Department of Administrative Services and other agencies, as necessary, the Medical Cannabis Commission is fully enabled to meet and carry out its responsibilities under the Patient Protection Act and the Regulation Act to meet its milestone dates of July 1 [for regulations] and October 1 [for licensing],' the release said. Any regulations proposed by the commission would need to go through the attorney general and the governor. State Sen. Ben Hansen of Blair, whose Legislative Bill 677 seeks to clarify and place additional guardrails, confirmed he will still push forward with the legislation and was 'a little surprised' by an executive about-face that now seeks to 'unilaterally' enact regulations. He said he sees LB 677 as the Legislature's responsibility to act and set parameters for regulators that 'can't be changed at a whim.' State Sen. Rick Holdcroft of Bellevue, chair of the Legislature's General Affairs Committee that is mulling medical cannabis legislation, said the executive action diminishes Hansen's previous argument that the laws could be the 'wild west' if the Legislature doesn't provide more guidance. 'I think there's actually been some thought into establishing the cannabis control commission. It's not a bad thing,' Holdcroft told the Nebraska Examiner on Friday. But Hansen, in response, said: 'I'm not worried about the 'wild west' anymore. I'm worried about nothing happening, and then we have recreational cannabis in two years.' He cites voters who have said that if the regulations are too restrictive, they will push a 2026 ballot measure for recreational marijuana, including some voters who prefer only medical use. Hansen adds that part of the reason LB 677 is still needed is Pillen's two at-large 'potential' appointees to the Nebraska Medical Cannabis Commission. Together, they would join the three commissioners pulling double duty on the Nebraska Liquor Control Commission to create the new entity, which voters approved in November. Pillen has appointed Dr. Monica Oldenburg of Lincoln, an anesthesiologist, and Lorelle Mueting of Omaha, the prevention director at Heartland Family Service, which focuses on drug prevention. Both have consistently opposed efforts pushed by the Nebraskans who prevailed at the ballot box last fall after more than a decade of advocacy. Still, Pillen said that Oldenburg and Mueting are 'experienced, well-qualified individuals' who will ensure strong regulations 'to the letter of the law the people of Nebraska enacted.' 'I urge the Legislature to promptly confirm them so they can take up the urgent work of writing strong and effective 'rules of the road' for the medical cannabis industry,' Pillen said Friday. Both Oldenburg and Mueting opposed the closest legislative attempt to legalize medical cannabis in 2021, LB 474, led by former State Sen. Anna Wishart of Lincoln, who later helped the ballot measures. The 2021 bill fell two votes short, 31-18. Crista Eggers, executive director of Nebraskans for Medical Marijuana, said Friday that while supporters appreciated Pillen's actions, it is 'disingenuous' to characterize the new appointments as 'experienced' or 'well-qualified.' 'Appointing regulators who are fundamentally opposed to the very issue they are charged with overseeing suggests that other motives may be at play — motives that appear misaligned with the public intent, and not to mention the will of 71% of the state,' Eggers said in a statement. The legalization position passed with 71% of the vote, while the regulatory measure trailed just slightly, with about 67% support. Eggers and other long-time advocates support LB 677 as an initial step for regulations. At a March hearing on four medical cannabis bills, Mueting opposed LB 677 and two very similar bills and was 'neutral' on the narrowest bill: LB 483, from State Sen. Jared Storm of David City, seeking to limit medical cannabis to tinctures or pills alone. LB 483 sought to legalize up to 300 milligrams, 0.21% of the 5 ounces that voters approved. Both appointees will go before the General Affairs Committee next Thursday for confirmation hearings before the full Legislature weighs in. Laura Strimple, a spokesperson for Pillen, said the office interviewed three people and selected two. A staff member who oversees application materials for appointees was out of the office Friday, so the materials for Oldenburg and Mueting were not immediately made available. State Sen. John Cavanaugh of Omaha, vice chair of the General Affairs Committee, said he looks forward to the confirmation hearings but is 'skeptical' of Pillen's sincerity in helping voters. 'I will keep an open mind, but any attempt to restrict what the voters passed through bureaucratic red tape should be opposed vigorously,' Cavanaugh said in a text. 'In the meantime, the Legislature should pass LB 677 to make sure that medical cannabis is legal, safe and accessible in Nebraska.' Part of Pillen's Friday announcement mentions 'operational funding' already appropriated to the Medical Cannabis Commission, but when the next two-year state budget passed Thursday, new funding was limited. The Appropriations Committee offered an annual $30,000 each of the next two fiscal years for employees in the Liquor Control Commission, who take on additional duties under the new laws. In comparison, the Liquor Control Commission has a $2 million annual budget, including for enforcement of regulations for compliance. There is no additional funding for the remaining two months of the current fiscal year. The Department of Administrative Services can provide limited financial support to agencies crafting regulations, but the Governor's Office could not immediately provide specifics. Hansen's LB 677 is expected to be filibustered at each stage of debate, at a maximum of eight hours on Tuesday. If so, it would require 33 votes to advance and become law at the end. Hansen said that considering Oldenburg and Mueting are 'both openly staunch anti-medical cannabis people, you can only assume the direction on maybe where they're going to go with the implementation of this.' 'If we don't do anything, we have no idea what to expect,' Hansen said. Holdcroft said he would support Hansen and LB 677 by arguing in favor of a 'compromise' amendment to the bill, which gives an extra three months for regulations, prohibits smoking and outlines qualifying conditions. Pillen previously told the Examiner that cannabis wouldn't be approved in a form that could become recreational. 'My advocacy for it is that if you have a medical condition [and] you need it, you'll get it, but it's going to taste like crap,' Pillen said last month. 'It's going to be a bitter pill to swallow.' Also on Tuesday, Lancaster County District Judge Susan Strong will consider oral arguments on whether to dismiss a lawsuit that argues the voter-approved medical cannabis laws are unconstitutional because of federal laws outlawing marijuana. Nebraska Attorney General Mike Hilgers, whose office is defending Pillen and other state officials, fundamentally opposes medical cannabis. He is asking that the case be dismissed, as are the regulatory commissioners and the ballot measure sponsors. The reason is specific: Hilgers' staff argues that the Attorney General's Office and not a private citizen should be the one to challenge the laws. LB 677 also presents a different threat to a pending appeal to the Nebraska Supreme Court, including from Hilgers' office, alleging signature fraud in the medical cannabis ballot measures. Strong rejected those arguments in November and upheld the ballot measures. The AG's Office and a former state senator who brought both cases before Strong appealed. Because LB 677 would provide additional legislative weight to the 2024 ballot measures, Hilgers and other advocates have acknowledged it could nullify or weaken the pending appeal. Hilgers has said he should get a 'fair fight' in front of the high court. He has also pledged to sue the new commission if it issues any medical cannabis licenses in the future, too. With Pillen's announcement, he joined the likes of Hilgers and U.S. Sen. Pete Ricketts, R-Neb., who have argued that lawmakers should wait and pass no cannabis-related bills this year. Said Strimple: 'Governor Pillen does not believe it is necessary for LB 677 to pass because with existing statutory authority and resources, the Medical Cannabis Commission will have everything it needs to effectively do business.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX

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