Nebraska Marijuana Program Updates: City Ordinances, Cultivator Licenses, and More!

Nebraska’s medical marijuana program is now in its most critical phase, transitioning from voter victory to real-world implementation. However, the path has been challenged by delays, resignations, and regulatory uncertainty. 

This blog provides a comprehensive overview of where things stand, particularly regarding city zoning, cultivator licensing, and the more significant setbacks that have shaken confidence. 

The Promise & the Push to Regulate

When Nebraskans passed medical marijuana legalization in 2024, they entrusted a new body, the Nebraska Medical Cannabis Commission, with sole authority over licensing, regulation, and enforcement. The law required the Commission to have rules in place and begin issuing cultivator licenses by October 1, 2025.

Unfortunately, the Commission has missed that deadline. Two of its five members resigned at the request of Governor Jim Pillen, disrupting the evaluation process. The remaining commissioners are now independently reviewing applications for licenses and plan to meet on October 7 to decide whether to award up to four cultivator licenses.

The Commission adopted emergency rules in mid-2025. These regulations imposed strict limits: banning smokable and edible marijuana forms, capping the number of dispensaries, restricting cultivator size, and requiring that all medical marijuana businesses, including cultivators, processors, and dispensaries, be at least 51% owned by Nebraska residents.

Marijuana businesses also must implement robust security protocols for their facilities and operations to ensure the safe production, storage, and distribution of medical marijuana. Many of these provisions drew immediate criticism for being overly restrictive and for potentially undermining the program’s intentions. 

Regulators Resign, “Missed Deadline” Becomes Reality

In a pivotal turn, Nebraska officials missed the October 1 licensing deadline. That failure was not simply a procedural slip; it stemmed from turmoil within the regulatory body itself. Two Commission members resigned at the governor’s request, prompting a collapse of the original evaluation committee. The result: the Commission no longer had sufficient capacity to score applications under the process it had designed. It forced a pause while a new team was formed to resume evaluation. 

This scenario was documented in a recent Marijuana Moment report. The article describes how the resignations requested by Governor Pillen disrupted the Commission’s ability to meet its obligations. The resignation of key regulators, in effect, delayed the entire launch of the marijuana program. 

The Commission didn’t have enough evaluators to properly score the applications. So even applicants who submitted timely and complete applications could not be granted licenses on schedule. Now, the Commission is resetting its timeline, acknowledging a delay of at least a week, before it resumes awarding cultivator licenses. 

These developments expose systemic fragility in Nebraska’s medical marijuana rollout plan. The agency in charge of licensing, oversight, security, and quality control is now facing criticism from people who say the state isn’t delivering on what voters expected.

Licensing, Cultivation Caps & Program Constraints

Even before the resignations, the emergency rules caused tension and skepticism. The controversial parts of the emergency rules are drawing more attention:

• The emergency rules limit the program to four cultivator licenses statewide.

• Each cultivator is limited to 1,250 plants at a time, whether indoors or outdoors.

• Only 12 dispensaries will be allowed statewide, with one in each judicial district.

• Smokable products, vaping, and many edible forms are prohibited; only non-combustible forms like tinctures, pills, topicals, and patches are permitted.

• Applicants for cultivator or dispensary licenses must demonstrate:

  • Majority Nebraska ownership

  • Advanced security and tracking systems

  • Full background disclosures

  • Financial stability

Some advocates are concerned that the current restrictions could make it harder for patients to access the medicine they need. Restrictions on product types may reduce options for patients who benefit from certain forms of treatment.

Recent leadership changes within the Commission, including resignations requested by the Governor, have also drawn attention to how much influence state officials may have over the program’s rollout.

Zoning & Local Ordinance Action, Omaha’s Move

While the state machinery struggles to get off the ground, cities are taking matters into their own hands. Omaha is the most advanced in setting local rules for how medical marijuana businesses may operate.

Under Omaha’s ordinance:

• Marijuana businesses cannot be located in residential zones.

• Dispensary locations are restricted to general retail areas.

• Indoor cultivation must happen in commercial, office, or industrial districts.

• Outdoor cultivation can only occur in agricultural zones and only on large parcels.

• Manufacturing is allowed in light industrial zones; transporters are limited to warehouse or distribution districts.

• Dispensaries must operate between 8:00 AM and 11:00 PM, as stipulated by local zoning regulations, and on-site consumption is prohibited.

Omaha’s approach is meant to guide where and how marijuana businesses can physically locate, not to decide who gets licensed. That remains a state function. By setting a precedent in zoning, Omaha may shape how other Nebraska municipalities adopt their own ordinances.

Cities will also need to decide whether to mirror the state’s buffer zones or impose stricter limitations. The interplay between city rules and state licensing will become a critical tension as the program expands.

Enforcement of THC and Marijuana Products

The Attorney General’s office has sent cease-and-desist letters to retailers across Nebraska selling unlicensed THC products. Businesses face potential lawsuits and the loss of their tobacco licenses if they continue.

This shows that, although medical marijuana is now legal, existing laws and regulations are still being strictly enforced until the state’s regulated program officially begins. Patients who rely on unregulated THC products may find themselves in a legal gray area.

What to Watch and Upcoming Key Events

• New licensing schedule: The Nebraska Medical Cannabis Commission has to rebuild its evaluation team and begin awarding cultivator licenses.

• Public hearing on permanent rules: Proposed regulations will be open for public comment. These may change or replace the emergency rules, either easing or tightening restrictions.

• Governor and Commission politics: Executive oversight, appointments, and influence over the program are likely to be hot topics.

• City ordinances: More cities in Nebraska are expected to adopt their own rules, similar to Omaha, which could create inconsistent regulations across the state.

• Litigation risks: Legal challenges could arise regarding the new rules, the licensing process, or their constitutionality. The Attorney General may also pursue legal action once licensing begins.

Conclusion

Nebraska’s medical marijuana program is facing serious challenges. Voter approval set high expectations, but so far, there have been missed deadlines, executive intervention, resignations, and regulatory delays. Local efforts like Omaha’s zoning ordinance show cities are stepping in to fill gaps.

However, the core of the program, including licensing, oversight, and access, remains under pressure. Nebraska now needs to restore credibility, streamline operations, and ensure patients have safe access while rules are finalized and the market is established.

Get Ready for Medical Marijuana

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