Proposals to legalize, tax recreational marijuana considered

A pair of proposals that seek to legalize, regulate and tax cannabis for Nebraskans 21 years and older were considered by the Judiciary Committee Aug. 2.

LB52, introduced by Omaha Sen. Justin Wayne, would provide a regulatory framework for the cannabis industry and impose a 25% sales tax on consumers and a 25% excise tax on producers. Revenue generated by the bill would be credited to the Education Future Fund.

LB52 also would establish the Nebraska Cannabis Enforcement Commission to oversee the industry, implement licensing procedures and set forth penalties for violations.

LB71, introduced by Omaha Sen. Terrell McKinney, also would legalize and regulate recreational cannabis and proposes a 16% excise and sales tax on cannabis products. Under the bill, 40% of sales tax revenue would go to the Education Future Fund and 50% to the Property Tax Credit Cash Fund. Remaining revenue would fund grants for economic development, inmate reentry, youth outreach and education.

Both proposals also would remove cannabis from the Uniform Controlled Substances Act. Under LB52, beginning Jan. 1, 2025, qualifying cannabis-related crimes automatically would be eligible for clean slate relief, or the removal of a qualified conviction from an individual’s criminal record.

McKinney said legalizing recreational marijuana not only would generate new tax revenue to help fund education and property tax relief but also would reduce the state’s prison population and save on prison operating costs.

“The overcrowding in our state prisons isn’t just a social issue, it’s an economic burden on taxpayers,” he said. “Each year, millions are spent to maintain a system that has proven ineffective in reducing or rehabilitating those incarcerated.”

Representing ACLU Nebraska, Jason Witmer testified in support of both proposals. The criminalization of cannabis drains public resources, disproportionately affects Black Nebraskans and fails to ensure safer communities, he said. By legalizing recreational cannabis, Whitmer said, Nebraska could provide “tax cuts without tax hikes on hardworking Nebraskans.”

Jennifer Henning, mother of a 7-year-old son with severe disabilities, also testified in support of the bills. Legalizing marijuana could improve her son’s quality of life by providing an alternative to prescription medications such as ketamine and methadone, she said.

“I don’t want my child to be high,” Henning said. “I want him to have access to treatment options that’d improve his quality of life — just as he’d have if he lived in other states.”

Col. John Buldoc, superintendent of the Nebraska State Patrol, testified in opposition to the proposals and warned of unintended consequences for public safety.

“I know from my many years of training and experience that marijuana usage unquestionably impairs the ability to operate a motor vehicle safely and is the illicit drug most frequently found in the blood of drivers who’ve been involved in vehicle crashes,” he said.

Also testifying against the measures was Douglas County Sheriff Aaron Hanson. Neighboring states with legalized recreational marijuana, such as Colorado and Missouri, have experienced a significant rise in homicides, violent crime and traffic fatalities, he said.

Zachary Viglianco, deputy solicitor general in the Nebraska Attorney General’s Office, also opposed both bills, citing potential health threats such as increased risks of heart attack, cancer and mental health conditions from marijuana use.

“There is a perception that marijuana is safe and expanding access to marijuana is harmless, and that perception is a myth,” Viglianco said. “It contradicts the scientific, medical and sociological evidence.”

The committee took no immediate action on LB52 or LB71.