City of Omaha approves regulations for medical cannabis businesses

September 30, 2025

The Omaha City Council unanimously voted Tuesday to approve zoning restrictions and other regulations for medical cannabis dispensaries.

Under the regulations, dispensaries and other cannabis businesses like manufacturers, producers and transporters, will not be permitted to operate in residential areas. Cannabis consumption will not be allowed onsite at any cannabis businesses, and they must open no earlier than 8 a.m. and close no later than 11 p.m.

The regulations do not make any changes to the city’s zoning code. At a brief public hearing last week, representatives with the city’s legal department explained the zoning restrictions that will be in effect for the four different types of licenses: Dispensary, cultivator, manufacturer and transporter.

Dispensaries will be allowed to operate in general retail sales districts. Indoor cultivators can operate in commercial, office and industrial districts, while outdoor cultivators can operate in agriculture districts if they are more than 20 acres in size. Cannabis manufacturers can operate in areas zoned for light industry, while transporters can operate in areas zoned for warehousing and distribution.

“Our goal here is to make sure that the safety and welfare of the citizens is kept in place,” David Grauman, a senior attorney with the city’s legal department, said at the public hearing. “We don’t want cannabis dispensaries or grow operations in a residential neighborhood where children are around.”

Nebraskans overwhelmingly voted in favor of legalizing medical marijuana in 2024, but the rollout has been slow and controversial. Under the law enacted by voters, the Nebraska Medical Cannabis Commission is required to begin issuing licenses by Wednesday.

The Medical Cannabis Commission, which is made up of the members of the three-person Nebraska Liquor Control Commission and two other gubernatorial appointees, was thrown into turmoil last week after the former director of the liquor commission was federally indicted. Nebraska Gov. Jim Pillen requested that two other members of the liquor commission resign, which they did on Monday.

Only one person, J. Michael Coffey, remains on the liquor commission. Pillen is expected to announce replacements for the two commissioners who resigned next month.

At a Tuesday meeting, the cannabis commission delayed granting licenses due to the recent departures. It remains unclear when medical marijuana will be available in Nebraska.