Nebraska Tribe Says State Officials Are Punishing It For Legalizing Marijuana By Suspending Talks On Separate Tobacco Tax Deal

*“People need to understand that they are still fighting bitterly to the
very end on this topic, even though I think Nebraska voters have spoken.”*

*By Zach Wendling, Nebraska Examiner*

The Omaha Tribe of Nebraska is moving ahead with legalizing marijuana, a
move the tribe’s attorney general says Nebraska officials used to suspend
negotiations on an unrelated state-Tribal tobacco tax compact.

The tribe called the move “direct retaliation.”

Omaha Tribe Attorney General John Cartier said an assistant attorney
general for the state called him Monday, an hour before the first meeting
of the tribe’s cannabis commission. Cartier learned state officials would
no longer negotiate on a tobacco tax compact because of the tribe’s more
permissive position on marijuana.

The Omaha Tribe Council unanimously voted in July to legalize medical
cannabis and adult-use recreational marijuana. The initial focus of the
tribe’s cannabis commission is “strictly” medical cannabis.

“It made me pause for about 30 seconds there, because I wasn’t really
anticipating that level of obstruction,” Cartier told the Nebraska Examiner
on Thursday. “I at least appreciated the candor and upfrontness about it.”

If a tobacco tax compact is greenlit, the state and tribe could split tax
revenues from tobacco sales on the reservation. It could be a potential new
windfall of hundreds of thousands of dollars for the tribe.

The Omaha Tribe reservation is in northeast Nebraska, more than 300 square
miles, primarily in Thurston County and parts of neighboring Burt and
Cuming Counties.

*‘Direct retaliation’*

In a follow-up conversation with Attorney General Mike Hilgers (R) this
week, Cartier said Hilgers indicated his office would confirm the state’s
official position and how Gov. Jim Pillen (R) wanted to proceed.

Pillen asked Hilgers this summer to negotiate the contract on behalf of the
State of Nebraska. The AG’s Office declined to comment on compact
negotiations. Pillen’s office did not respond this week to questions about
the dispute.

Cartier said he anticipates no change because “none of them fundamentally
believe in a cannabis industry.” He said the AG’s Office has also indicated
it plans to spend additional tax dollars in support of more policing of the
Omaha Tribe’s border, because of the new tribal law.

“If that is their official stance, in our opinion, that’s direct
retaliation, potentially a legal way for them to skirt their
responsibilities and to use this as leverage,” Cartier said.

Cartier added: “People need to understand that they are still fighting
bitterly to the very end on this topic, even though I think Nebraska voters
have spoken, and they should honor that.”
‘Two plus two is four’

Voters in November 2024 overwhelmingly voted to allow someone to possess up
to 5 ounces of medical cannabis with a physician’s recommendation. Voters
also created a new state commission to regulate the new medicine. The state
commission’s rules would ultimately allow medical cannabis to be purchased
in the state, a milestone not expected until at least mid-2026.

Hilgers has argued that cannabis should remain illegal because federal law
classifies marijuana as a Schedule I drug—a drug the federal government
says has a high potential for abuse and no accepted medical uses. A
bipartisan swath of advocates has called for rescheduling the drug for
decades.

Congress has repeatedly prohibited the U.S. Department of Justice from
interfering with state medical cannabis programs. Advocates, including
those in Nebraska, have pointed to the Tenth Amendment to the U.S.
Constitution in upholding states’ rights to legalize marijuana.

“I think two plus two is four, even if everyone else says two plus two is
five,” Hilgers said in May.

Pillen argues he has always supported medical marijuana but wants it to be
strictly regulated to prevent a slide to legalizing recreational use. In
September 2023, as advocates geared up for a third and ultimately
successful petition campaign, Pillen said access to medical cannabis should
only come with approval from the U.S. Food and Drug Administration. That
hasn’t yet happened.

Nebraska followed dozens of other states in passing its medical cannabis
laws in 2024, a nationwide push Hilgers recognizes as part of voters’
frustrations. He has said it’s an “abject failure” of the federal
government not to enforce the laws it has created.

“I’m a big boy. It doesn’t bother me,” Hilgers, a former state lawmaker,
said of opponents to his policy stance. “I’ve gone through the wars. What
people want to say, they want to say.”

Hilgers’s office has not publicly commented on the tribe’s position on
marijuana.

*Negotiations began in July*

Cartier said the Omaha Tribe reached out to Pillen in July to begin
discussing a tobacco tax compact. The Santee Sioux Nation has such an
agreement, which lets the Santee Sioux retain 75 percent of tobacco tax
revenues. The Omaha Tribe says it seeks to keep 90 percent tobacco tax
revenue while also taking on additional regulatory duties from the state,
subject to negotiations.

State and tribal officials met in August related to a proposed tobacco tax
compact, a meeting Cartier said was “highly productive” and left hope for
“real progress.” The state promised to offer suggestions or a
counterproposal within weeks.

“After months and months of promises and negotiations to be taken away from
us at the last minute, it really is unconscionable to me,” Cartier said.

Cartier said it is easy to be rattled or emotional to a response like that,
which he described as a continuation of government punishment of Native
Americans “for just existing.” He said the Omaha Tribe is working to
support its members and has passed a policy that could yield millions in
economic development, plus job opportunities, without reliance on the
federal government.

*A contrasting tribal commission*

Cheyenne Robinson, secretary of the Omaha Tribe Council, said Monday she
was excited about the “historic day” for the Omaha people.

“We’re moving forward to committing to our sovereignty, having responsible
regulation and economic diversification,” Robinson said. “Anxious for
what’s to come.”

Jason Sheridan, chair of the Omaha Tribe Council, said Monday that all
council members knew someone who could benefit from medical marijuana. He
said he was glad the tribe was moving forward.

“I have nothing but confidence in all of you,” Sheridan told the commission.

The Omaha Tribe swore in four members to its own cannabis commission
Monday—Jayzon Hundley, Amanda Hallowell, Arthur Isagholian and Allison
Stockman. Cartier also sits on the commission as a nonvoting member. The
tribe can seat up to one more member.

Hundley, grant accountant for the tribe, and Hallowell, a registered nurse,
are enrolled members of the Omaha Tribe. Isagholian, with a background in
agriculture, and Stockman, with a background in public safety and public
health, bring about 40 years of experience in the cannabis sector in other
states.

The inaugural meeting featured discussion on future commission rules and
regulations, with a focus on how to test marijuana products for safety and
navigate a potentially antagonistic state beyond its borders. One solution
could be testing products on the reservation.

“Even if we think we have a legal right…they’re probably more than willing
to fight that in the courts,” Cartier told commissioners Monday, referring
to the Nebraska AG’s Office.

Cartier has said the tribe will defend its sovereignty and laws if and when
needed. The commission will meet next Nov. 19, when it could approve its
rules and regulations.

*‘The driver’s seat’*

State regulations from the Nebraska Medical Cannabis Commission, nearing
final approval, have been criticized by many members of the public as
overly burdensome. Among the restrictions are allowing up to 12
dispensaries statewide.

Nebraskans would need to receive a specific medical cannabis recommendation
from a physician registered with the state medical cannabis program for
access to a licensed state dispensary. Dispensaries could not sell smokable
products, vapes, edibles or raw flower. No more than 5 grams of delta-9
tetrahydrocannabinol (THC), the part of cannabis most associated with a
“high,” could be purchased every 90 days.

The state commission could seek to finalize its regulations and seek final
approval from Hilgers and Pillen as soon as Monday.

Cartier said the tribe hopes to provide a “stark contrast” to the state
regulations and promote access to medical cannabis, a topic he said “should
have nothing to do” with tobacco taxes.

“We made a determination that now is a good point to bring this to the
public, without waiting for a response from Attorney General Hilgers and
the governor, because, in our perspective, we are not in the backseat on
this,” Cartier said. “We’re in the driver’s seat, and we want to maintain
that position.”

*This story was first published by Nebraska Examiner.*

The post Nebraska Tribe Says State Officials Are Punishing It For
Legalizing Marijuana By Suspending Talks On Separate Tobacco Tax Deal
appeared first on Marijuana Moment.