$270,000 Drug. One Competitor. Billion-Dollar Market.

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Nebraska's Two-Front War On Cannabis

Rolando García
December 03, 2024

Nebraska's Government is fighting cannabis reform both at the local and federal level.

State Attorney General Mike Hilgers recently filed an amended cross-claim on behalf of Secretary of State Bob Evnen in a lawsuit challenging two successful medical cannabis measures.

This move formally introduces new allegations of circulator fraud and widespread malfeasance. The case is moving forward after Lancaster County District Judge Susan Strong ruled in favor of the cannabis ballot sponsors.

Strong dismissed the claims last week, affirming that the medical cannabis petitions met all constitutional and statutory requirements. Yet, Nebraska's leadership is showing no signs of backing down. Regarding the additions, Hilgers told The Nebraska Examiner that the legal team was merely "taking advantage” of court rules to prepare for an appeal.

Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you’re serious about the business, you can’t afford to miss out.

Nebraska's Legal Opposition Goes National

Being one of the few remaining states where medical cannabis remains illegal, Nebraska's defiance is no longer just a state-level issue. In fact, the Attorney General's Office is the only one of its kind represented at the DEA hearing on marijuana rescheduling hearings where opposing groups are discussing moving marijuana from a Schedule I to a Schedule III substance under the Controlled Substances Act (CSA).

The prohibitionist group Smart Approaches to Marijuana (SAM), with whom the AG of Nebraska shares representation are on the opposite side of rescheduling marijuana.

GOP Governor Jim Pillen and Hilgers frame cannabis reform as a moral and safety issue.

In July 2024, during the public comment period of marijuana rescheduling evaluation, Hilgers and 19 Attorneys General from different states presented a letter where they emphasized the national and international ramifications of rescheduling marijuana, particularly concerning international drug treaties and medical cannabis use.

They claim “rescheduling marijuana as a Schedule III drug is likely the most consequential rule-making DEA has ever undertaken.”

Read Also: Nebraska Says Yes To Medical Cannabis After Years Of Failed Legalization Attempts: Here’s What You Need To Know

Nebraska's Growing Isolation On Cannabis

While other states, including neighboring Missouri and South Dakota, have legalized medical cannabis, Nebraska remains one of the few holdouts.

Now the state GOP is fighting against approved ballots, which they’ve lost on their first round.

Thus Nebraska is increasingly isolated, with national trends shifting toward legalization and decriminalization. Still, much of the rollout of medical marijuana programs will depend on the willingness of authorities to move forward with regulations.

In a state with a single legislative chamber and a history of conservative governance, it's uncertain what will happen if the state chooses not to appeal the judge's ruling on the approved cannabis ballots, particularly when it comes time to establish the terms for medical cannabis.

Read Next: DEA LIVE Hearings On Marijuana Rescheduling, What To Expect

Cover: Benzinga edit using Mike Hilgers media website + Tinakru via Pixabay

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