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Nebraska Misses Medical Marijuana License Deadline as Regulators Resign

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Self-righteous political figures who scream about election integrity are using you to subvert it.

By Zach Wendling, Nebraska Examiner

For months supporters have wondered if Nebraska Medical Cannabis Commission, the commission elected by voters to oversee medical cannabis in Nebraska, would be able to meet their October 1st deadline for granting its first licensing.

No, the commission is not going to meet this deadline. This comes after two resignations were requested and accepted by Governor. Jim Pillen, (R), of the liquor regulators served jointly on the medical marijuana board.

Medical Cannabis Commission announced the new timetable Tuesday during a session originally designed to review and approve first grower licenses, as well as move towards the initial steps in establishing a supply chain for medical cannabis. Two of the five Cannabis Commissioners, who were part of a team of three members evaluating and scoring applications for cultivators received before September 23, resigned on Monday.

Next Tuesday, commissioners are expected to meet and decide on whether or not to grant up to four licenses to cultivators.

Lorelle Mueting, Gretna’s Commissioner said on Tuesday: “We just want to make sure you know that it is not our fault that this situation exists.” We would like you to know that we are doing everything we can in order to get these licenses in a timely fashion and that they will be evaluated in good time.

The timeline is affected by resignations

Former commissioners Bruce Bailey from Lincoln, and Kim Lowe from Kearney, were on the original evaluation team, which was headed by Dr. Monica Oldenburg. It was planned to calculate the average scores and vote at this week’s session on whether or not to issue first licenses.

Oldenburg, an appointee by Pillen in May, is more conservative than Bailey or Lowe when it comes to the votes. Bailey was the one who had the most liberal view of what voters wanted.

Under a state law passed by about 67 percent of voters last November, with majority support in 46 of 49 legislative districts, the commission needed to, “No later than October 1, 2025, begin granting registrations to applicants that meet eligibility standards and other requirements established by the commission.” The guidelines were established by an early July 1 deadline set by voters.

Bailey and Lowe quit on Monday. This threw the deadline of Wednesday for licensing into serious doubt.

Pillen’s request followed the unsealing last week of federal corruption charges against former Liquor Control Commission Executive Director Hobert “Hobie” Rupe. Rupe has not pleaded guilty. This indictment didn’t implicate a single member of the Liquor Control Commission.

While Pillen has rejected all of the pending Liquor Control Commission regulatory changes proposed under the former director, his staff has confirmed that he has no plans to shelve medical cannabis regulations.

Bailey has been the chairperson of the Liquor Control Commission since 2014. Lowe served as a commissioner on the Liquor Control Commission since 2021. Retired Judge J. Michael Coffey joined the commission in June, a vacancy created after Pillen had previously requested the resignation of a third commissioner, Harry Hoch Jr., in May.

Oldenburg Mueting Coffey will evaluate applications using metrics not yet released to the public. Applicants must average 70 points out of 100 to pass. To randomly sort applications, the applicants’ names were put into a lottery.

Pillen opposes the legalization of recreational marijuana and has said Coffey, Mueting and Oldenburg—all his appointees—will keep Nebraska’s medical cannabis system carefully regulated. Pillen will name two commissioners who will succeed Bailey Lowe.

Licensing lawsuit likely

Mike Hilgers, Attorney General of Nebraska (R), could also pose a legal threat to the commission. He has threatened to file a lawsuit against the commission after the first licenses were issued.

This office has held for many years that the federal prohibition on marijuana dispensing in Nebraska is violated by any attempts to grant licenses to entities. [on marijuana],” then-acting Deputy Solicitor General Zach Pohlman testified at a March legislative hearing. The Attorney General’s Office, if the Medical Cannabis Commission does so, will consider it preemptive and non-enforceable.

Office has reiterated this stance numerous times. Hilgers and Pohlman have also stated that it is the AG’s Office’s responsibility to question the constitutionality of laws passed by voters, rather than a citizen.

Hilgers’ spokesperson refused to confirm this position last week. When asked by a Pillen spokesperson last week if the Governor supported Hilgers, the question was directed to the AG’s Office.

Nebraska has passed another law, which allows those with the recommendation of a physician to possess medical cannabis up to 5oz. The law was passed by 71 percent of voters in November last year, with majority support across all legislative districts. Nebraska became the 39th state to authorize a medical cannabis program.

‘We can get started today’

Troy Burgess (one of the cultivator applicant) said on Tuesday that it can take up to five months for a grower to produce enough marijuana before they are able send it off to a producer (another licence type), and another 4-8 weeks until it’s ready for a retail dispensary.

The patients must be helped. Burgess, in his testimony to the Commission, said that we needed to deliver it to these patients. “We can begin today.”

The proposed regulations the commission is considering would cap the four licensed cultivators to no more than 1,250 flowering plants each at any one time. Two harvests are expected per year. That’s up 10,000 plants that can be harvested if the plants grow successfully and without contamination. The commission is anticipating an initial program to support about 20,000 patients.

The commission will set strict requirements for testing all products.

On October 15, at 1, a public meeting will be held in the Nebraska State Office Building. Hearings could run for up to three-hours, and each testifier will have only two to three minutes.

You can submit written comments up until 11:59 p.m., October 15, by mailing them to Nebraska Medical Commission PO Box 95046 in Lincoln, NE, 68509-5046. They can also be sent by fax (402-471-2814) or email. [email protected].

‘Integrity’

Dominic Gillen, a Bellevue resident who has been working with medical marijuana advocates in Nebraska for over ten years, addressed the Nebraska Medical Cannabis Commission on Tuesday. He spoke about “integrity,” and said that the trust of voters is placed solely on the commissioners.

Gillen stated that “the integrity of an election held in accordance with law is stolen by self righteous politicians, who beat their chests and trumpet election integrity whilst quietly using you to undermine it.”

Nebraskans have again asked the commission for approval of sales such as smoking, vaping or raw flowers. The proposed regulation rejects these. Angelica Marsaglia reminded commissioners that they should not be rewriting the law but rather implementing it.

Marsaglia stated that the act was illegal, violated the wishes of voters and exceeded his authority.

Gillen claimed Bailey had “honored his commitment to voters”. He said Bailey “should have been hailed as hero” because he stood up for the voters and demanded more cultivators, as well as an increase in plant caps.

Gillen stated, “The politicians made their choice of heartlessness.” “You on the contrary, have one.”

Next, the Medical Cannabis Commission meets at Lincoln on October 7, 2 pm.

What will the latest Medical Cannabis Regulations mean for you?

The state’s regulations on medical cannabis, if finalized, would allow up to 12 dispensaries, 4 product manufacturers and four transporters. These guidelines will also create a directory of “Recommended Health Care Professionals” as well as make Nebraska’s medical cannabis program low-THC.

In accordance with the regulations, patients, or their caregivers, could buy up to five ounces, about 142 grams, of medical marijuana in any 30-day period. Patients could not purchase more than five grams of delta-9-tetrahydrocannabinol in a 90 day period from a single dispensary. Delta-9 THC in cannabis is most closely associated with “highs.”

The regulations would allow no more than 12 medical cannabis dispensaries statewide, arranged by judicial district. That could mean one dispensary in Douglas County (584,526 residents), Lancaster County (322,608 residents), Sarpy/Cass Counties (217,202 residents) and Buffalo/Hall Counties (112,979 residents), according to 2020 census data.

The dispensaries will not be allowed to sell edibles or smoking products. The sale of oral tablets with “a thin layer” flavoring could make it easier for the product to be swallowed.

According to current laws, any patient or caregiver who is qualified and has received a prescription from a health practitioner may legally possess 5 ounces (or less) of medical marijuana in any form. As no licenses were issued yet, cannabis cannot be bought legally in Nebraska.

The last set of emergency rules expires December 7. The commissioners have said that the set of emergency regulations could be extended by 90 days.

The Medical Cannabis Commission will approve a set of permanent regulations. Once approved, they’ll send them to Gov. Jim Pillen for final approval.

Nebraska Examiner published this article first.

Brian Shamblen provided the photo.

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