LINCOLN, Neb. (Nebraska Examiner) – Nebraska Governor Jim Pillen’s recent proposal to shift the responsibility of regulating medical cannabis to the executive branch will not provide immediate funding for the Nebraska Medical Cannabis Commission. This move aims to bypass pending legislative discussions, specifically Legislative Bill 677, which is set for debate in the statehouse.
On Monday, representatives from both the governor’s office and the Nebraska Department of Administrative Services confirmed that under this plan, the commission will not receive any additional funds to develop necessary rules or regulations for medical cannabis. This situation arises as lawmakers prepare to discuss further regulatory measures for the medical cannabis laws that were approved by voters in November.
Governor Pillen’s strategy suggests that the commission will have to later recover any operational costs through registration fees. However, the commission’s ability to generate this revenue remains in question, especially since the Nebraska Attorney General’s Office has vowed to sue if the commission issues state licenses for medical cannabis.
Despite the uncertainty, Governor Pillen and Attorney General Mike Hilgers have raised legal concerns regarding medical cannabis, although the governor certified the voter-approved measure in December, and the laws have been in effect since then.
In a budget passed last Thursday, the Appropriations Committee allocated a modest $30,000 each year for the next two fiscal years to support employees in the Liquor Control Commission, who will take on additional responsibilities under the new cannabis laws. In contrast, the Liquor Control Commission has a budget of $2 million annually, mostly for enforcement of its regulations.
Currently, the Medical Cannabis Commission has no extra funding for the last two months of the fiscal year, which poses a challenge as the law mandates regulations by July 1 and licensing by October 1. The Department of Administrative Services can offer limited financial help for agencies developing regulations but has not provided adequate resources for the Medical Cannabis Commission.
Laura Strimple, a spokesperson for the governor, mentioned that the Liquor Control Commission has a rarely used cash fund with a spending authority of $100,000. The commission plans to establish a new cash fund to capture revenue from cannabis-related activities, which could assist in its operations. However, the existing cash fund, which derives from the sale of rules and publications, does not explicitly permit additional funding for cannabis regulations due to the laws being categorized differently.
As the situation develops, the Nebraska Medical Cannabis Commission remains under pressure to establish a regulatory framework without sufficient funding, creating uncertainty for the future of medical cannabis in the state.
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