Nebraska’s Medical Cannabis Commission (MCC) awarded the state’s first cannabis cultivator licenses, almost a week after the Oct. 1 deadline for new licenses passed.
The MCC considered four out of 39 cultivation applications during its Oct. 6 meeting, awarding two. The two successful applicants were Nancy Laughlin-Wagner of Midwest Cultivators Group LLC and Patrick Thomas, of Raymond, Neb.
Nebraska’s impending medical cannabis market is off to a rocky start. It became the 40th state to legalize medical cannabis, thanks to voters last November. The campaign effort was publicly opposed by Gov. Jim Pillen and Attorney General Mike Hilgers, who have since continued to complicate the regulatory process.
The commission is currently operating under emergency regulations that allow up to four cultivators, four processors and 12 dispensaries.
The current rules limit cultivation to 1,250 plants at one time and purchases to no more than 5 ounces in a 30-day period. It also bans the sale of flower, vaping products and edibles. Allowable products include oral tablets, gels, oils and creams, suppositories, transdermal patches, and liquids or oils for use in an inhaler.
Commissioners resign
Pillen announced Sept. 29 that he had accepted the resignation of Bruce Bailey and Kim Lowe as members of the Nebraska Liquor Control Commission. They also served on the state’s Medical Cannabis Commission on behalf of the Liquor Control Commission, which means the cannabis commission is down to three members.
Despite the dearth of members, the MCC unanimously approved cultivation licenses for two cultivators, while denying applications from two other prospective operators. The commission received 39 cultivation applications, an MCC spokesperson said.
The commission said that applicants were randomly selected for scoring and that a score averaging less than 70 would be disqualifying. It has not released the criteria for its business plan matrix scores.
Midwest Cultivators Group in Omaha received scores ranging between 62 and 80. Patrick Thomas, a farmer who holds a USDA hemp license and owns a construction company, according to his application, received scores ranging from 62 to 84.
Crista Eggers, a leader in the Nebraska legalization movement, and Stonepine Works LLC were considered, but were ultimately denied based on their scores. Eggers received a score of only 11 and as high as 72. Stonepipe Works’ scores were between 47 and 88.
A spokesperson from Stonepipe Works declined to comment, while Eggers did not respond to a voicemail inquiry by deadline.
“I am grateful that the commission has moved forward in the licensing process,” Eggers reportedly said during the meeting. “I do hope that we see some transparency with the matrix, and all license applicants have that information to go forward so they know how they were scored.”
Advocates complain about process, rules
At the same time that the commission has slowly moved toward a market launch, there has been growing pushback from advocates claiming the state’s executive branch continues to block the will of the voters who legalized medical cannabis in the first place.
“In September, the Nebraska Medical Cannabis Commission adopted and the Governor approved emergency regulations that limit the availability of medical cannabis to a narrow list of forms found nowhere in statute, limits the accepted written recommendations from medical practitioners to in-state in clear contradiction of the language approved by voters, and prohibits by regulation the sale of cannabis delivery mechanisms that are expressly permitted under statute,” wrote Sen. John Cavanaugh in an Oct. 2 open letter. “All without the benefit of a public hearing or public scrutiny, the Commission and the Governor have chosen to override the clearly expressed will of Nebraska voters.”
Cavanaugh argued that continued opposition to the will of the voters could compel them to push for adult-use cannabis in response.
