The Medical Cannabis Commission has all the necessary tools to fulfill its duties.
By Zach Wendling, Nebraska Examiner
Nebraska’s three government branches are rarely involved with the same topic. In the next few days, medical cannabis will take center stage.
Governor Jim Pillen (R) announced Friday that he “intentions” to offer administrative support and resources for medical cannabis regulators who have been approved by voters. Jim Pillen announced Friday that the Executive Branch staff would be offering administrative resources and support to help medical cannabis regulators begin their work.
The Medical Cannabis Commission, with the support of the Policy Research Office and Department of Administrative Services, and any other agency, as needed, is able to fulfill its obligations under the Patient Protection Act, and Regulation Act, and meet the milestone date of July 1. [for regulations] The 1st of October [for licensing]”, a press release stated.
The Attorney General and Governor would have to approve any regulations that the Commission proposes. Policy Research Office (PRO) is the Governor’s lobbying arm and personal policy-making body.
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.
According to him, LB677 represents the Legislature’s duty to act. It also sets parameters that can’t “be changed on 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 believe that the establishment of the cannabis control committee was actually thought through.” Holdcroft, speaking to The Nebraska Examiner Friday, said that the commission was a good thing.
But Hansen, in response, said: “I’m not worried about the ‘wild west’ anymore. I am worried that nothing will happen, then in two more years we’ll have legalized cannabis.
The voter who said this was a group of voters that would push for a recreational cannabis ballot in 2026 if they felt the rules were too strict. This included some voters who only wanted medical marijuana.
Appointees will follow ‘letter of the law’
Hansen comments that the two “potentials” Pillen has appointed to the Nebraska Medical Cannabis Commission at large are a big reason why LB677 is needed. The three Nebraska Liquor Control Commission Commissioners would also be joining them to create a new entity. Voters approved it in November.
Pillen appointed anesthesiologist Dr. Monica Oldenburg from Lincoln and Lorelle Mutna of Gretna as prevention directors at Heartland Family Service. The organization focuses on the prevention of drug abuse. They have both consistently opposed the efforts of Nebraskans, who won the election last year after a decade-long campaign.
Pillen stated that Oldenburg, and Mueting, are both “well-qualified, experienced individuals,” who will make sure to enforce strong regulations, “to the letter” of the laws the Nebraskans passed.
“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.
‘Other motives may be at play’
Crista Eggers of Nebraskans For Medical Marijuana said that although supporters appreciated Pillen’s actions, it was “disingenuous” for the new appointments to be described as “well qualified” or “experienced”.
“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 percent of the state,” Eggers said in a statement.
The legalization position passed with 71 percent of the vote, while the regulatory measure trailed just slightly, with about 67 percent 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 was designed to allow up to 300 mg, or 0.21 percent of 5 ounces approved by voters.
The General Affairs Committee will hold confirmation hearings for both appointees on Thursday before the whole Legislature takes a vote.
Laura Strimple is a Pillen spokesperson. She said two people were selected after the interview process. As the person responsible for overseeing the material used to nominate appointees Friday was away, the Oldenburg/Mueting materials could not be made immediately available.
Cavanaugh is the vice chairperson of the General Affairs Committee and a state senator from Omaha. He said that he was looking forward to hearings on Pillen, but remains “skeptical”.
Cavanaugh stated in an email that he would keep an “open mind” but was opposed to any effort by the bureaucracy to overturn what voters had passed. “In the mean time, the Legislature needs to pass LB677 so that medical cannabis can be legalized, accessible, and safe in Nebraska.”
The Executive Branch Fund
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 has offered $30,000 per year for the next two years, to be paid annually by the Liquor Control Commission employees who are assigned additional responsibilities under the new law. In comparison, the Liquor Control Commission has a $2 million annual budget, including for enforcement of regulations for compliance.
No additional funds are available for the last two months of this fiscal year.
Department of Administrative Services may provide some financial assistance to agencies drafting regulations. Strimple cited the former director of the Department who oversaw the State’s Budget, and said that the Liquor Control Commission is allocated $100,000 in cash funds, but this money “is rarely used.”
The funding authority is a new source of funds that will be available to [the Cannabis Commission] “To operate, together with registration fees as revenue”, she wrote in an email.
Liquor Control Commission receives money from sales of publications, such as its regulations, its law, and its other publications. It also gets funds from a number of fees for registration, server training and more, according to a Legislative Fiscal Office directory of state funds and programs.
State law allows the funds to be used for “any administrative costs” associated with specific liquor statutes. In the state law, medical cannabis was placed under a separate section. Budget bills also did not explicitly authorize any additional spending.
Legal and legislative fights are awaiting
Hansen’s LB 677 is expected to be filibustered at each stage of debate, at a maximum of eight hours on Tuesday. It would then require 33 votes for it to become law.
Hansen noted that Oldenburg, and Mueting “are both openly staunch opponents of medical marijuana people. You can only speculate on the direction in which they might go with the implementation.”
Hansen: “If you don’t act, what can we expect?”
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 is to have medical conditions. [and] Pillen stated last month that if you want it you will get it but the taste is going to be awful. It’s going be bitter to take.”
‘Effectively do business’
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 defends Pillen and others state officials is fundamentally opposed to medical marijuana. The regulatory commissioners, the ballot measure sponsor and he are all asking for the case to be dismissed.
Hilgers’ staff believes that it is the Attorney General’s Office, and not an individual citizen who should challenge laws.
LB677 is also a threat to a pending Nebraska Supreme Court Appeal, which includes Hilgers’ Office, alleging fraudulent signatures in the medical marijuana ballot measures. Strong rejected those arguments in November and upheld the ballot measures. Both the AG’s Office as well as a former senator from New York who presented both cases to Strong, appealed.
Hilgers has acknowledged that LB 677 could weaken, or even nullify, the pending lawsuit because it would give additional weight to ballot measures in 2024. Hilgers stated that the appeal should receive a “fair battle” before the state’s high court. Ilgers also said that he would sue the commission in future if they issued any more medical cannabis licenses.
Pillen joined Hilgers and U.S. Senator Pete Ricketts (R-Neb.) in announcing that the lawmakers should hold off and not pass any cannabis-related legislation this year.
Strimple said: “Governor Pillen believes it is not necessary that LB 677 pass, because the Medical Cannabis Commission has all it needs in terms of statutory authority and resource.”
Nebraska Examiner was the first to publish this story.
According to a study, legalizing cannabis reduces workers compensation costs and decreases drug prescriptions by patients.
Side Pocket Images. Photo by Chris Wallis.