“People need to understand that this issue is still going to be fought hard to the end, even though I think the voters of Nebraska have spoken.”

Zach Wendling, Nebraska Examiner

The The Omaha tribe in Nebraska is moving forward with legalizing marijuanathe tribe’s attorney general says Nebraska officials used them to disrupt negotiations over an unrelated state-tribal tobacco tax deal.

The tribe called the move “just retaliation.”

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

The Omaha Tribal Council voted unanimously in July legalize medical cannabis and recreational marijuana for adults. The initial focus of the tribe’s cannabis commission is “strictly” medical cannabis.

“It gave me pause for about 30 seconds there because I didn’t really anticipate that level of obstruction,” Cartier told the Nebraska Examiner on Thursday. “At least I appreciated the honesty and the honesty of it.”

If a tobacco tax deal gets the green light, states and tribes could split revenue from tobacco sales on the reservation. It could be a new potential hundreds of thousands of dollars for the tribe.

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

‘Direct retaliation’

In a follow-up interview 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 the intense negotiations. Pill’s office did not respond to questions about the dispute this week.

Cartier said he doesn’t foresee any change because “none of them fundamentally believe in the cannabis industry.” He said the AG’s Office also plans to spend additional tax dollars on more policing of the Omaha Tribe’s border because of the new tribal law.

“If that’s their official position, in our opinion, that’s direct retaliation, to potentially shirk their responsibilities legally and use this as leverage,” Cartier said.

Cartier added, “People need to understand that this issue is still being fought to the hilt, although I think the voters of Nebraska have spoken, and they should honor that.”

“two plus two is four”

In November 2024, voters overwhelmingly voted to allow someone to possess 5 ounces of medical cannabis with a doctor’s prescription. Voters also created a new state commission to regulate the new drug. The state board’s rules would eventually allow the purchase of medical cannabis 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; The federal government says the drug has a high potential for abuse and has not approved it for medical use. A bipartisan group of advocates has called for drug rescheduling for decades.

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

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

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

Nebraska followed dozens of other states in passing medical cannabis laws in 2024, a nationwide push Hilgers acknowledges is part of voter frustrations. He called the failure to enforce the laws created by the federal government “a colossal failure.”

“I’m a big guy. It doesn’t bother me,” Hilgers, a former state lawmaker, said of opponents of his policy stance. “I’ve been through wars. What people mean, they mean.”

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

Negotiations began in July

Cartier said the Omaha tribe contacted Pillen in July to begin discussing the tobacco tax deal. The Santee Sioux Nation has that agreement, which allows the Santee Sioux to retain 75 percent of tobacco tax revenue. The Omaha tribe says it wants to keep 90 percent of the tobacco tax revenue from the state’s additional regulatory obligations, subject to negotiations.

State and tribal officials met in August on a tobacco tax contract, a meeting Cartier said was “very productive” and left “hopeful for real progress.” The state promised to offer suggestions or a counter proposal within weeks.

“After months and months of promises and negotiations that they have to take away from us at the last minute, it really makes no sense to me,” Cartier said.

Cartier said it’s easy to get emotional or moved by such a response, which he described as a continuation of the government’s punishment of Native Americans “for just existing.” He said the Omaha Tribe is working to support its members and has adopted a policy that could provide millions in economic development and job opportunities without relying on the federal government.

A contrasting tribal committee

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

“We are moving forward to commit to our sovereignty, responsible regulation and economic diversification,” Robinson said. “Looking forward to what’s to come.”

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

“I just trust all of you,” Sheridan told the committee.

The Omaha Tribe on Monday swore in four members to its cannabis commission: Jayzon Hundley, Amanda Hallowell, Arthur Isagholian and Allison Stockman. Cartier is also on the board as a non-voting member. The tribe can add one more member.

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

The initial meeting included a discussion of future board rules and regulations, with a focus on testing marijuana products for safety and how to navigate a potentially hostile situation beyond its borders. One solution may be to try out the reserve products.

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

Cartier said the tribe will defend its sovereignty and laws if necessary. The committee will meet next November 19, and then it can approve its rules.

‘Driver’s Seat’

The Nebraska Medical Cannabis Commission’s state regulations regarding final approval have been criticized by many as overly burdensome. The restrictions include allowing 12 dispensaries statewide.

Nebraskans must receive a medical cannabis-specific recommendation from a physician registered with the state’s medical cannabis program to enter a licensed state dispensary. Dispensaries could not sell combustible products, vapes, edibles or raw flowers. Couldn’t buy more than 5 grams of delta-9 tetrahydrocannabinol (THC) every 90 days the part associated with most cannabis.

The state board could finalize its regulations and seek final approval of Hilgers and Pill as soon as Monday.

Cartier said the tribe hopes to provide “significant opposition” to state regulations and promote access to medical cannabis, an issue he said would have “nothing to do” with tobacco taxes.

“We decided now is a good point to take this to the public, without waiting for a response from the attorney general and the governor Hilgers, because from our point of view we are not in this,” Cartier said. “We are in the driver’s seat, and we want to maintain that attitude.”

This story was first published by the Nebraska Examiner.