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LB 677

Change provisions of the Nebraska Medical Cannabis Regulation Act and provide for regulation of medical cannabis

109th Legislature (2025-2026) Introduced by Ben Hansen

Creates a Nebraska medical cannabis regulatory system via a new Nebraska Medical Cannabis Commission to license, track, test, tax, and oversee patients, providers, and products.

Title printed. Carryover bill
2
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Bill Summary · LB 677

Summary — LB 677 (2025)

Title: Change provisions of the Nebraska Medical Cannabis Regulation Act and provide for regulation of medical cannabis
Introduced: January 22, 2025 — Senator Ben Hansen (primary)
Committee: General Affairs (advanced to General File with amendment(s))
Status note: Multiple amendments and motions pending (see Procedural Status).

Purpose

LB 677 establishes a comprehensive regulatory framework to implement medical cannabis in Nebraska following Initiative 437/438. The bill creates state-level licensing, oversight, product-safety, tracking, and taxation rules intended to provide lawful access for qualified patients while minimizing diversion, protecting public health, and generating state revenue.

Key provisions

  • Creates the Nebraska Medical Cannabis Commission to license and regulate the medical-cannabis industry (cultivators, dispensaries, product manufacturers, testing laboratories, transporters, and related entities).
  • Sets detailed definitions (cannabis, concentrated cannabis, cannabis products, caregivers, cultivator, dispensary, etc.) and clarifies that cannabis excludes hemp and certain FDA‑approved CBD products.
  • Licensing framework: application standards, grounds for denial or cancellation, and “disqualifying offenses” (certain felony convictions within 10 years) for licensure.
  • Product standards and safety: mandatory testing for potency and contaminants, labeling requirements, child‑resistant packaging, and exclusion of non-cannabis ingredient weight from “allowable amount.”
  • Supply‑chain controls: authorizes a seed‑to‑sale tracking system to monitor movement of cannabis products and reduce diversion.
  • Taxation: imposes a special sales-and-use tax rate on medical cannabis sales and directs tax revenue distribution (including support for property-tax relief).
  • Changes to existing law: amends criminal and regulatory statutes (controlled substances, liquor control commission statutes, motor vehicle/open-container provisions, and related sections) to harmonize state law with the medical-cannabis regulatory scheme.
  • Repeals and harmonization: repeals obsolete statutory provisions and clarifies that sections of Initiative Law No. 438 together with LB 677 form the Nebraska Medical Cannabis Regulation Act. Includes an emergency clause.

Who is affected

  • Qualified medical patients and registered caregivers (access and possession rules).
  • Businesses seeking to participate in the medical‑cannabis market (cultivators, dispensaries, manufacturers, labs, transporters).
  • State and local regulators and law enforcement (new licensing, enforcement, and inspection roles).
  • Nebraska taxpayers (tax revenue from sales earmarked in statute, including property tax relief).

Procedural status (high‑level)

  • Referred to General Affairs; heard March 3, 2025; advanced to General File with amendments.
  • Multiple amendments (AM1251 and many sponsor/committee amendments) and motions have been filed; several procedural motions (including motions to indefinitely postpone and cloture attempts) were filed and some failed. As of the latest entries, several motions by Senator Storm and amendment packages remain pending.

Notes / Impacts to watch

  • Specifics (exact tax rate, licensing fees, fee schedules, timelines for Commission rulemaking) are set in the bill text and pending amendments; these details will determine regulatory costs and patient prices.
  • The bill removes conflicts between Initiative provisions and existing statutes; implementation will require Commission rulemaking and administrative setup before licensed sales begin.

Compiled from official sources — confirm details with the bill’s official record.

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