With 70% In Favor, Could Nebraska's Cannabis Program Unlock Underserved Markets? Local Expert Weighs In

Nebraska, one of the last strongholds of cannabis prohibition, is approaching a critical moment with medical cannabis initiatives set to appear on the November 2024 ballot. In an exclusive interview with Benzinga Cannabis, Paula Savchenko, Esq., founding partner of Cannacore Group and PS Law Group, discussed the main obstacles, how the proposed program addresses patient needs and the potential opportunities for investors in this emerging market.

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Legal Challenges Leading Up To The 2024 Election

There are two separate initiatives in Nebraska related to medical cannabis. While one initiative focuses on the legalization of medical cannabis for patients, the other addresses the regulation of the medical cannabis industry. This strategy was employed to avoid violating the single-subject rule, which had caused issues during earlier attempts to get the initiative on the ballot​.

The Nebraska Medical Cannabis initiatives are facing significant legal challenges. "The primary issues stem from questions about the validity of signatures and the violation of the single-subject rule," Savchenko explained. 

Led by former Senator John Kuehn and Smart Approaches to Marijuana (SAM), these challenges seek to remove the initiative from the ballot. While fraudulent signatures in Hall County have raised concerns, Savchenko noted, "the petitions were still certified, meeting the threshold." She remains optimistic, given that polls show 70% of Nebraskans support medical cannabis legalization.

Patient Needs 

The Nebraska Medical Cannabis Protection Act aims to provide flexible access to medical cannabis for patients. "Rather than a restrictive list of qualifying conditions, it allows practitioners to recommend cannabis based on their judgment," Savchenko shared. 

This opens the door to a wider range of patients and ensures they have access to various product forms, including flowers, topicals, and edibles. 

"With over 17% of the state of Nebraska being rural, regulators will have to ensure patients can access cannabis throughout the state, which may be in the form of permitting delivery services and/or designating the number of dispensaries to be placed in specific areas," she noted. 

Timeline 

If the initiatives pass, Nebraska's medical cannabis program could begin as early as Summer 2026. "The Nebraska Medical Cannabis Commission is expected to establish regulations by July 2025 and begin granting licenses by October 2025," Savchenko said. However, she warns that delays are possible due to rule-making, litigation, and licensing processes, which could affect the timeline.

Read Also: Medical Marijuana Will Be On The November Ballot In Nebraska, Officials Confirm

How Big Is The Market?

Nebraska's medical cannabis market holds significant potential, particularly as one of the last states to legalize it. Drawing on the experience of similar states, Nebraska could see substantial growth if the program is patient-friendly and accessible.

Savchenko highlighted Mississippi, which legalized medical cannabis in 2022, as a point of comparison. "In Mississippi's first year, 32,000 patients registered, generating over $44 million in sales," she explained. The state also netted nearly $950,000 in excise tax and over $2 million in sales tax. With 393 medical cannabis establishments in Mississippi during the first year, job creation surged as the industry expanded.

"If Nebraska law maintains an inclusive list of qualifying conditions and ensures patient accessibility throughout the state, the state is poised to see similar numbers to that of Mississippi," Savchenko noted. Ensuring access through delivery services or strategically located dispensaries will be key, especially for rural patients. Additionally, a wide product range, including topicals, edibles, and flowers, will appeal to a broad patient base.

Nebraska's location next to restrictive states like Iowa and Kansas opens further growth opportunities. Savchenko emphasizes that "operators in Nebraska could also serve underserved communities from neighboring states," adding another layer of market potential for businesses and investors.

Opportunities For Businesses Entering The Market

For businesses, early positioning in Nebraska's medical cannabis market could be key to long-term success. "Operators who enter early can capture substantial market share before competitors flood in," Savchenko emphasized. 

Furthermore, being surrounded by states like Iowa and Kansas with restrictive cannabis laws creates an opportunity for Nebraska to serve underserved markets. 

Savchenko advises companies to start preparing now by consulting experts, understanding regulations, and building local partnerships to ensure a successful application process. "Even though the Nebraska Medical Cannabis Regulation Act requires regulations to be finalized by July 1, 2025, prospective business operators should begin preparing now," Savchenko concluded. 

Read Next: Former GOP Senator Wants To Stop Cannabis Ballot In Nebraska: Lawsuit Targets Secretary Of State Over Medical Marijuana Petitions