On Thursday, the Senate Committee on Budget, Appropriations and Finance learned about government agencies’ annual income and expenses, including the Licensing and Consumer Affairs Department and the Office of Cannabis Regulation, which falls under the DLCA.
Commissioner H. Nathalie Hodge is facing the DLCA’s fiscal year 2025 budget—$4,947,746 from the General Fund and $500,000 from Consumer Protection Funds appropriations—$669,002 less than the fiscal year 2024 budget.
The General Fund will cover DLCA salaries at $3,068,616.03, fringe benefits at $1,444,844.15, and operating expenses at $434,287. The Consumer Protection Fund is a revolving fund comprising license penalties and citation fines.
Currently, there are 45 employees in nine divisions within DLCA. The divisions within DLCA include the Division of Licensing, which approved 8,314 businesses in FY 2024 through June 30, a seven percent decrease compared to the previous year for a total of $3,131,889.
Another division, Boards and Commissions oversees professions and trades and Consumer Affairs educates and protects consumers against unfair trade practices.
Enforcement Division, Legal Division, the Office of Cannabis Regulations, the Alcohol Control Unit also fall under DLCA.
The commissioner said the department needs more staff and funding. She pointed out the need for three more enforcement officers for a total of nine. After a discussion of monitoring bars and taverns at night, senators agreed with her.
The Office of Cannabis Regulation, a new office resulting from a public referendum 10 years ago, also appeared before the committee to discuss government funding. It was finally established in January 2022 and is supported administratively by the DLCA.
Rules and regulations were necessary to get the department up and running, which were just approved in April of this year. There are now five individual license applicants.
However, people are not allowed to grow or use cannabis until there is a laboratory with the proper equipment to test it. According to the new executive director, Joanne Moorehead, building a laboratory costs a minimum of $200,000. She said she is investigating whether the Health Department’s lab will work.
The first OCR executive director resigned this year after two years on the job. The office was vacant for three and a half months before Moorehead was appointed in May. She is the only employee, and the board of directors doesn’t have a quorum, so she serves on the board as well. Her salary is $100,000 a year.
For income, OCR was appropriated a $500,000 loan in 2021 and then $250,000 in 2022 for software. The Legislature also approved funding of $1 million and Moorehead said they still have almost $800,000. She plans to staff the office as soon as possible, including two enforcement officers per district, an office assistant, and a training specialist. Eventually, the executive director hopes to have another administrative support person, a public safety coordinator, and a training specialist, but she said not until FY 2026.
So far, ODR has spent money on the salary of the previous director and $248,666 on Tyler Technologies to install a registry portal and software. Moorehead said the contract with Tyler is also in force for the next two years.
Senators quizzed her and offered advice. She recognized there is still no budget nor future governmental appropriation for the division.
Sen. Donna Frett-Gregory advised her to order vehicles right away. And hire staff while they have money and also budget for evening and shift workers.
“I’ve got your back,” the committee chair said more than once.
Sen. Dwayne DeGraff advised getting a permanent location rather than sharing with DLCA. Sen. Novelle Francis said the Legislature should increase the department’s fees and that Moorehead needs to plan for rehabilitation and treatment services.
Sens. Frett-Gregory, Francis, Marvin Blyden, Samual Carrión, Ray Fonseca and Javan James attended the hearing.
