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Legislators advance OLCC budget including distillery IT, headquarters move and fee corrections
Summary
The Joint Committee on Ways and Means forwarded House Bill 5,019, the Oregon Liquor and Cannabis Commission budget bill, recommending amendments that fund IT modernization, a headquarters and distribution move, and address a duplicated marijuana fee entry; the measure was reported out due pass as amended.
Representative Maxine Gomberg, co-presenting the measure, told the committee that House Bill 5,019 is the budget bill for the Oregon Liquor and Cannabis Commission and outlined major program and capital items.
The nut graf: The Transportation and Economic Development Subcommittee recommended a budget for the OLCC that funds IT modernization and a distilled spirits supply chain system, pays to relocate the agency’s headquarters and distribution operations, and removes a duplicated $3.5 million recreational marijuana fee entry that had appeared in both the agency's and the governor’s budgets. The full committee reported the bill out due pass as amended.
Representative Maxine Gomberg, Representative (presenter), summarized the recommendation: "House Bill 5,019 is the budget bill for the Oregon Liquor and Cannabis Commission." The subcommittee recommended approximately $404,756,012 in other funds and 410 positions for the 2025–27 biennium and noted the overall change is under 1% from current service levels.
Legislative Fiscal Office analyst Michelle Dyster explained the $3.5 million removal. "That was an entry that the agency had made to account for the fee revenue. And in the governor's budget, as the analysts were going through in the governor's budget, they made that entry again, by mistake because they didn't believe that it had had already been entered. So, they realized that mistake and asked us to adjust for it in the legislative process," she said.
The recommended package includes: $6.8 million in expenditure limitation tied to bond proceeds previously approved for IT modernization; $2.4 million to move the OLCC headquarters and liquor distribution operations; $11.1 million and 17 positions (seven limited duration) to implement and operate a distilled spirits supply-chain IT system; $1.7 million for regulatory costs tied to implementation of House Bill 4,121 (hemp regulation); two additional managers for the recreational marijuana program; and replacement of nine agency motor pool vehicles. The subcommittee said these costs are offset in part by reduced allocations for liquor and distillery agent compensation due to lower sales forecasts.
Representative John Smith asked about recent agency issues and morale; Dyster replied she could not speak directly to morale but noted contracts and contractors are now in place and some projects have moved from slow starts to active work. "So, I think it is probably, I think we can expect to see them hitting future milestones in a much more timely manner than has been the case in the past," she said.
Outcome: The Transportation and Economic Development Subcommittee recommended House Bill 5,019 be amended by the -2 amendment and reported out due pass as amended. The committee approved the recommendation; several members voiced concerns during discussion but the motion passed on the floor of the committee.
Ending: Committee members said they will continue oversight as implementation milestones and contracts proceed, and that the Legislative Fiscal Office will track related deliverables and revenue forecasts.
