This funding authority allows for [the Cannabis Commission] Registration fees combined with operating revenue”
By Zach Wendling, Nebraska Examiner
No additional funds would be provided for several months if the governor wanted the executive branch of government to handle the medical marijuana regulations in Nebraska as a means to avoid pending state legislation.
Gov. Jim Pillen, (R), spokesperson for the Nebraska Department of Administrative Services and director of that department’s office confirmed to the Nebraska Medical Cannabis Commission on Monday the plan Pillen announced last Friday would not provide any extra funds towards developing new rules or regulations.
He announced his plan as lawmakers are set to debate Legislative Bill 677 Tuesday, which would legislatively create additional rules and regulations for the medical cannabis laws that voters overwhelmingly approved in November.
According to Pillen’s plan, the commission will need to cover any expenditures later by charging registration fees. However, it is unclear whether the commission can raise these revenues, since the Nebraska Attorney General’s Office pledged to file a lawsuit against the new commission in the event that they issue any licenses to medical marijuana.
Pillen and Attorney-General Mike Hilgers(R) have questioned medical cannabis’ legality, even though Pillen officially certified the vote back in December. Since then the laws in place have not changed.
The governor’s Friday announcement referenced “operational funding” that had already been appropriated for the regulatory work, but when the next two-year state budget passed Thursday, it included limited new funding.
The Appropriations Committee has offered $30,000 annually for each of the two next fiscal years to employees at the Liquor Control Commission who will be taking on new duties in accordance with the medical cannabis laws. In comparison, the Liquor Control Commission has a $2 million annual budget, including for enforcement of regulations.
Medical Cannabis Commission is not receiving any funding in the last two months of this fiscal year.
Voters approved laws mandated regulations to be in place by July 1, and licenses by October 1.
Pillen, the Department of Administrative Services’ director, oversees a limited amount of financial aid to regulatory agencies. Pillen spokesperson Laura Strimple, citing Lee Will, the DAS director who previously oversaw the state’s budget, said the Liquor Control Commission has a cash fund spending authority of $100,000 that is “rarely used.”
The new spending would come through a new administratively created cash fund to capture any new revenue.
This funding authority allows for [the Cannabis Commission] She said that registration fees and operating costs would be used to generate revenue.
Liquor Control Commission’s only cash fund is generated by the sale of copies of the rules and laws that govern its activities. It also gets funds from fees for registration, server training and more, according to a Legislative Fiscal Office directory of state funds and programs. Only a fraction of the funds has been spent in the past few years.
State law allows the funds to be used for “any administrative costs” associated with specific liquor statutes. Medical cannabis statutes were placed in a different section of the law, and the budget bills did not expressly authorize additional spending from that fund.
Nebraska Examiner published this article first.
California officials award $52 million in funding for community reinvestment supported by marijuana tax dollars
Side Pocket Images. Image courtesy Chris Wallis.