Nebraska, one of the last bastions of marijuana prohibition, is at a critical juncture, with a medical marijuana initiative set to be on the November 2024 ballot. In an exclusive interview with Benzinga Cannabis, Paula Savchenko, founding partner of Cannacore Group and PS Law Group, discusses the main obstacles, how the proposed program addresses patient needs, and how to invest in this emerging market. He talked about potential opportunities for the house.
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Legal challenges for the 2024 election
Nebraska has two separate initiatives related to medical marijuana. One effort focuses on legalizing medical marijuana for patients, and the other works on regulating the medical marijuana industry. This strategy was adopted to avoid violating the single-subject rule, which caused problems in previous attempts to take the lead in voting.
Nebraska medical marijuana efforts face significant legal challenges. “The main issues arise from questions regarding the validity of the signature and violation of the single-subject rule,” Savchenko explained.
These challenges, led by former Sen. John Kuehn and Smart Approaches to Marijuana (SAM), seek to remove the initiative from the ballot. Although fraudulent signatures in Hall County have raised concerns, Savchenko said, “The petition is still certified and meets the criteria.” She remains optimistic, considering polls show 70% of Nebraskans support legalizing medical marijuana.
patient needs
The Nebraska Medical Marijuana Protection Act is designed to provide patients with flexible access to medical marijuana. “Rather than having a restrictive list of eligibility criteria, it allows practitioners to recommend cannabis based on their own judgment,” Savchenko said.
This opens the door to a wider range of patients and ensures access to a variety of product forms, including floral, topical, and edibles.
“With more than 17% of Nebraska being rural, regulators must ensure patients have access to cannabis across the state, which could mean allowing delivery services or locating dispensaries in specific areas. “It could take the form of specifying the number of cases,'' she pointed out.
timeline
If the initiative passes, Nebraska's medical marijuana program could begin as early as summer 2026. “The Nebraska Medical Cannabis Commission plans to enact regulations by July 2025 and begin licensing by October 2025,” Savchenko said. However, she cautioned that rulemaking, litigation and licensing processes could cause delays and impact timelines.
Related article: Officials allow medical marijuana to be on Nebraska's November ballot
How big is the market?
Nebraska's medical marijuana market has great potential, especially as one of the last states to legalize medical marijuana. Drawing from the experiences of similar states, Nebraska has the potential for significant growth if its programs are patient-friendly and accessible.
Savchenko highlighted Mississippi, which legalized medical marijuana in 2022, as a comparison. “In our first year in Mississippi, we enrolled 32,000 patients and generated more than $44 million in revenue,” she explained. The state also earned her about $950,000 in sales taxes and more than $2 million in sales taxes. In its first year, there were 393 medical marijuana facilities in Mississippi, and job creation soared as the industry expanded.
“If Nebraska law maintains a comprehensive list of eligibility conditions and ensures patient access across the state, the state is poised to achieve numbers similar to Mississippi,” Savchenko noted. . Ensuring access through delivery services and strategically located pharmacies is especially important for patients in rural areas. In addition, our extensive product lineup, including topicals, edibles, and flowers, appeals to a wide range of patient populations.
Nebraska's proximity to highly regulated states such as Iowa and Kansas opens up additional growth opportunities. “Nebraska carriers have the potential to serve underserved communities in neighboring states,” Savchenko said, creating new market opportunities for companies and investors. Gender will be added.
Opportunities for companies entering the market
For companies, establishing themselves early in Nebraska's medical cannabis market could be the key to long-term success. “Operators that enter early can capture significant market share before competitors crowd in,” Savchenko stressed.
Additionally, being surrounded by states like Iowa and Kansas with restrictive cannabis laws creates an opportunity for Nebraska to serve an underserved market.
Savchenko advises companies to start preparing now to ensure a successful application process, including consulting with experts, understanding regulations, and building local partnerships. “While the Nebraska Medical Marijuana Regulation Act requires regulations to be completed by July 1, 2025, prospective operators need to start preparing now,” Savchenko concluded.
Read next: Former Republican senator wants to block Nebraska marijuana vote: Lawsuit targeting secretary of state over medical marijuana petition
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