LINCOLN — The Omaha Tribe of Nebraska has moved forward with legalizing marijuana, a step its attorney general says prompted state officials to halt talks on an unrelated tobacco tax compact — a move the tribe calls “direct retaliation.”

Omaha Tribe Attorney General John Cartier said an assistant state attorney general called him Monday, roughly an hour before the tribe’s first cannabis commission meeting, to say state negotiators would no longer pursue a tobacco tax compact because the tribe had taken a more permissive stance on cannabis. The tribe’s council unanimously voted in July to legalize medical cannabis and adult-use marijuana; the new commission’s initial focus, Cartier said, is strictly medical cannabis.

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

If approved, a tobacco tax compact would allow the state and tribe to split tax revenues from tobacco sales on the reservation — potentially a windfall of hundreds of thousands of dollars for the tribe. The Omaha reservation covers more than 300 square miles in northeast Nebraska, primarily in Thurston County and parts of Burt and Cuming counties.

Cartier said he later spoke with Nebraska Attorney General Mike Hilgers, who indicated his office would confirm the state’s official position and how Gov. Jim Pillen wanted to proceed. Pillen asked Hilgers this summer to negotiate the compact on the state’s behalf. Hilgers’ office declined to comment on compact negotiations, and Pillen’s office did not respond to questions this week.

Cartier said he does not expect state policy to change because, in his view, “none of them fundamentally believe in a cannabis industry.” He added that the AG’s Office has signaled plans to spend more tax dollars on policing the tribe’s borders 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. He urged the state to honor voters’ decision on medical cannabis, saying, “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.”

Voters in November 2024 approved measures allowing possession of up to five ounces of medical cannabis with a physician’s recommendation and creating a state commission to regulate medical cannabis. The state’s rules would ultimately permit patients to buy medical cannabis in Nebraska, likely not until at least mid-2026. Hilgers has argued cannabis should remain illegal because it is classified federally as a Schedule I drug, though advocates have long pushed for rescheduling. Congress has repeatedly barred the U.S. Department of Justice from interfering with state medical cannabis programs, and supporters point to the Tenth Amendment when asserting 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, reflecting his stance that federal classification should guide state policy. Pillen has said he supports medical marijuana but wants strict regulation to prevent a slide toward recreational legalization.

Cartier said the Omaha Tribe first approached Pillen in July to open negotiations on a tobacco tax compact. The Santee Sioux Nation has a compact that allows it to retain 75% of tobacco tax revenues; the Omaha Tribe sought to retain 90% while taking on additional regulatory responsibilities from the state, subject to negotiations. State and tribal officials met in August; Cartier described that meeting as “highly productive” and said the state promised a counterproposal within weeks — a promise he says was later withdrawn.

“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. He characterized the state’s response as another episode of government punishment of Native Americans “for just existing,” and said the tribe is pursuing policies that could yield millions in economic development and job opportunities without relying on the federal government.

On Monday the Omaha Tribe swore in four members of its cannabis commission — Jayzon Hundley, Amanda Hallowell, Arthur Isagholian and Allison Stockman — with Cartier sitting as a nonvoting member. Hundley, the tribe’s grant accountant, and Hallowell, a registered nurse, are enrolled members of the Omaha Tribe. Isagholian has a background in agriculture; Stockman has experience in public safety and public health. Together, the commission members bring roughly 40 years of experience in the cannabis sector from other states. The tribe may seat one additional member.

Council Chair Jason Sheridan, who noted that many council members know someone who could benefit from medical marijuana, praised the commission. “I have nothing but confidence in all of you,” Sheridan told the new commissioners. Council Secretary Cheyenne Robinson called the swearing-in a “historic day,” saying the tribe is committing to sovereignty, responsible regulation and economic diversification.

At its inaugural meeting the commission discussed drafting rules and regulations, focusing on product safety testing and how to operate amid a potentially antagonistic state. One option under consideration is testing products on the reservation. Cartier warned commissioners that even if the tribe believes it has legal authority, the state — and specifically the AG’s Office — is “probably more than willing to fight that in the courts.” He said the tribe will defend its sovereignty and laws when necessary. The commission is scheduled to meet next on Nov. 19, when it could vote to approve its rules.

The tribe’s plan stands in contrast to the Nebraska Medical Cannabis Commission’s near-final state rules, which have been criticized by the public as overly restrictive. Proposed state limits include allowing no more than 12 dispensaries statewide; requiring patients to receive a recommendation from a physician registered with the state program; banning smokable products, vapes, edibles and raw flower in dispensaries; and limiting purchases to no more than 5 grams of delta-9 THC every 90 days. The state commission could finalize its regulations and seek approval from Hilgers and Pillen as soon as Monday.

Cartier said the Omaha Tribe aims to offer a “stark contrast” to the state rules and to promote access to medical cannabis. “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,” he said. “We’re in the driver’s seat, and we want to maintain that position.”

This article was adapted from an original report published on yahoo.com. All rights belong to the original publisher.