Nebraska medical cannabis cultivators call for changes to lab testing, fees, physician protections

LINCOLN — Nebraska’s four licensed medical cannabis cultivators are pushing for changes to testing, fees and legal protections for healthcare providers as questions loom over when the fledgling program will provide for legal sales.

Representatives for the four licensed cultivators sent a joint letter to the Nebraska Medical Cannabis Commission on Oct. 15 urging the commission to consider the licensing and availability of cannabis testing laboratories and the assessment of fees before the cultivators even have a “viable path to revenue.”

Dustin Krajewski of Meadowlark Medicinals LLC, former state Sen. Kent Rogert of KRL Med LLC, Pat Thomas of MahāMotā Cultivation Co. and Robert Wagner of Midwest Cultivators Group signed the letter.

Under the commission’s regulations, only four cultivators can be licensed.

An uncertain supply chain

MahāMotā, near Raymond, moved ahead with planting despite delays from the commission. 

The Legislature did not authorize the commission to assess fees until April, and the commission had already been working to finalize a prior set of regulations. The commission is refusing to grant more licenses until it can assess fees for future licenses. 

A MahāMotā representative said Monday that the company is still on track to harvest this year but sees no path to how testing facilities could legally receive, possess or test their plant.

“We request an update to the current proposed regulations that provide clarification of the licensing or authorization process, who may transport samples to a laboratory, how transportation and manifest requirements apply to those transfers and whether out-of-state laboratories may be used,” the cultivators said in their letter.

Commissioner Lorelle Mueting, interim commission chair, said the regulatory process has been the commission’s “primary concern,” so she couldn’t speak to the testing concerns. She instead flipped the onus on MahāMotā and said they were warned the supply chain wouldn’t be fully up and running by the time the first harvest came.

“Every cultivator assured us that they could store product and that wasn’t a problem, and there was no reason to delay planting because storage was a viable option,” Mueting said.

The MahāMotā representative said the company assumed a smaller time frame, maybe three to six months. Mueting said the commission never gave that estimate and had questioned whether the product could be stored for up to two years before issuing licenses.

“I understand that it may degrade and all those things,” Mueting continued, “but I feel like those were things that possibly you knew or the owner of the company knew going in.”

Nebraska voters overwhelmingly approved legalizing and regulating medical cannabis almost two years ago, in November 2024.

‘Safe, accountable and sustainable program’

In their letter, the cultivators also expressed concern that the proposed fee structure calls for $36,500 in annual costs, before required bond premiums and other compliance costs — $23,500 to renew the license each year and $13,000 to use the commission-authorized seed-to-sale inventory tracking system. 

The companies said the fees should reflect the program’s “operational readiness” and licensees’ ability to “lawfully bring products to market.”

“We ask the Commission to consider the time current operators will need to reach revenue, accounting for any necessary laboratory licensing or authorization and the issuance of manufacturer and dispensary licenses,” the letter states.

The cultivators are also making a call to the Nebraska Legislature to provide clear legal protections for physicians who recommend the medicine, calling the law “essential to encouraging practitioner participation, supporting patient access and sustaining Nebraska’s medical cannabis industry.” Bills to do so failed to pass in 2025 and 2026.

The cultivators urged commissioners to defer substantial recurring charges until such “essential components” are in place. If not, the companies suggested reduced fees or a payment schedule, such as for the $13,000 annual fee to integrate with the state’s seed-to-sale tracking.

If not, the cultivators warned, the delays could risk the viability of licensed establishments, potentially requiring repeat licensing or facility development and delays for patients.

Said the cultivators: “We share an opportunity, and a responsibility, to support one another’s success and build a safe, accountable and sustainable program that carries out the will of Nebraska voters.”

The commission is set to consider comments on its regulations on Nov. 16. If approved, the proposal would head to the Attorney General’s Office for review and then to the governor.