Liquor Control Director Asks Committee to Reserve $400,000 for Contract, Outlines Medical Cannabis Fee Ceiling

Micah Chaffee, executive director of the Nebraska Liquor Control Commission, told the Appropriations Committee that after preparing a mid‑biennium budget adjustment he learned that $400,000 of reappropriated funds remain needed to meet final contractual hosting obligations for the commission’s modernization project. “I respectfully request that 400,000 of the reappropriated funds remain available to the control commission to cover remaining contractual obligations,” he said.

Chaffee explained the Liquor Control Commission’s role shifted to provide most operational support for the Medical Cannabis Commission and described how the Medical Cannabis Commission has licensed three cultivators but until now lacked statutory authority to charge licensing fees. He said the commission’s rules identify licensing fee types, but statutory authority is needed to set and appropriate fees. Chaffee referenced LB1235, which the commission and governor have proposed; the bill would create a cash fund and authorize licensing fees with a $25,000 ceiling for qualifying license types.

Why it matters: if the Medical Cannabis program is to be self‑supporting, licensing and registration fees must be authorized and appropriable. Chaffee and committee members discussed whether initial startup costs might require general fund support and whether fees and cash‑fund appropriation authority should be built into enabling legislation.

Next steps: The committee noted LB1235 and said it would monitor the bill; Chaffee’s request to reserve $400,000 for the vendor contract will be reflected in committee consideration of the governor’s mid‑biennium adjustments.