Nebraska Hemp Licensing & Business Opportunities

Medical Marijuana

Currently, Nebraska has not legalized medical or recreational cannabis. Possession of cannabis remains illegal under state law, with varying penalties depending on the amount and the number of offenses. In response to advocacy efforts, there have been moves to introduce a medical cannabis program through ballot initiatives, but these have not yet resulted in legalization.

Current Legalization Efforts

Advocacy groups like Nebraskans for Medical Marijuana are pushing for a medical cannabis program through a ballot initiative in 2024. They are working to gather the required 175,000 signatures to bring the initiative to a vote.

Proposed Medical Cannabis Regulation

The proposed Nebraska Medical Cannabis Regulation Act, if passed, would establish the Nebraska Medical Cannabis Commission to regulate the medical cannabis industry. The act aimed to set regulations by July 1, 2023, and outlines the licensing for four types of medical cannabis businesses:

  • Producers (cultivation): Limited to 10 licenses
  • Processors
  • Dispensaries: Limited to 10 licenses
  • Testing Labs

 

Local municipalities would have the authority to define zoning laws or outright ban cannabis businesses. The application fees for these licenses are proposed to range from $25,000 to $40,000.

Past Legalization Efforts

A 2020 initiative led by Nebraskans for Medical Marijuana received enough signatures and gubernatorial approval to appear on the ballot. However, the Nebraska Supreme Court ruled against including it due to legal technicalities. The group continues to advocate for a 2024 ballot inclusion.

Hemp

In Nebraska, hemp is regulated under the Nebraska Hemp Farming Act, which aligns with the federal 2018 Farm Bill allowing for the cultivation, processing, and sale of hemp-derived products. Here’s a comprehensive breakdown of Nebraska’s hemp business laws:

Hemp was legalized at the federal level with the signing of the 2018 Farm Bill, which defined hemp as cannabis with a THC concentration of no more than 0.3% on a dry weight basis. Following this, Nebraska enacted the Nebraska Hemp Farming Act through LB 657 in 2019, establishing guidelines for the local hemp industry regulated by the Nebraska Department of Agriculture (NDA).

The Nebraska Department of Agriculture is responsible for overseeing hemp licensing and regulation in the state. They provide detailed guidelines and resources for potential and current licensees.

Types of Licenses and Costs

In Nebraska, individuals interested in hemp cultivation or processing must obtain appropriate licenses from the NDA. The types of licenses available include:

  • Hemp Cultivator License: Allows for the cultivation of hemp.
  • Hemp Processor-Handler License: Permits the processing of hemp into finished products and handling of hemp.

 

The application fees are structured as follows:

  • Hemp Cultivator License: $150 application fee plus $600 per site.
  • Hemp Processor-Handler License: $150 application fee plus $1,200 per site.

 

Additionally, there are site modification fees and other associated costs depending on the specifics of the operation.

Application Process

The application process for both types of licenses involves several key steps:

  • Application Submission: Applicants must submit a completed form along with the required fees and supporting documents such as an FBI Identity History Summary Check.
  • Site Specifications: Applicants need to provide detailed maps and descriptions of the cultivation or processing sites.
  • Approval Process: The Nebraska Department of Agriculture reviews the applications to ensure compliance with state and federal laws.

 

Restrictions and Regulations

  • Zoning Requirements: Hemp cultivation and processing facilities must comply with local zoning laws, although municipalities cannot outright ban these activities.
  • THC Testing: Hemp crops are subject to THC content testing to ensure they do not exceed the legal limit of 0.3% THC.
  • Transportation: Licensees must carry specific documentation when transporting hemp, including a bill of lading and proof of compliance with federal laws.

Psychedelics

Nebraska maintains traditional policies on controlled substances, including psychedelics, which are strictly regulated under state law.

  • State Scheduling of Psychedelics: Psychedelics such as LSD, psilocybin, and others are classified under Schedule I controlled substances in Nebraska, indicating no recognized medical use and a high potential for abuse. This classification aligns with the federal scheduling under the Controlled Substances Act.
  • Ketamine Laws: Ketamine, while used medically for anesthesia, is also classified as a Schedule III controlled substance in Nebraska due to its potential for abuse and dependency. The state allows the use of ketamine in medical settings, but its use is tightly controlled, and prescriptions must adhere to strict regulatory requirements. The prescription of controlled substances like ketamine through telehealth remains tightly regulated. Providers must follow specific federal and state guidelines to ensure proper handling and prescribing practices.
  • State Right to Try: Nebraska adheres to the “Right to Try Act,” which allows terminally ill patients to try experimental treatments that have not yet been approved by the FDA. However, this law does not explicitly include the use of Schedule I substances like psychedelics but applies to drugs that have completed Phase 1 of a clinical trial.
  • State Religious Exemptions: Currently, Nebraska does not provide any religious exemptions for the use of psychedelics. The state’s controlled substances laws do not carve out any exceptions for the ceremonial or sacramental use of Schedule I drugs, reflecting a strict stance compared to some other states that have started to acknowledge such uses under specific circumstances.

Check Other States Licensing Guide

  • Adult Use
  • Medical
  • Limited Medical
  • Illegal

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