STATE OF CONNECTICUT
SOCIAL EQUITY COUNCIL - FINANCE COMMITTEE
Special Meeting
August 31, 2021, 10 A.M.
Location: TEAMS
AGENDA
1. Call to Order
2. Discussion of Committee Mandate, Timeline
3. Discussion of Revenue Assumptions for An Act Concerning Responsible and Equitable Regulation of Adult-Use Cannabis (June 2021 SS Public Act No. 21-1, a.k.a. “the Cannabis bill”)
4. Discussion of Expenditure Assumptions for the Cannabis bill
5. Next Steps
6. Adjournment
MINUTES
A special meeting of the Social Equity Council’s Finance Committee was held via TEAMS on Tuesday August 31, 2021.
1. Call to Order:
Christine Shaw, Chair of the committee, noting the presence of a quorum, called the meeting to order at 10:01 a.m. Council members present:
David Lehman
Melissa McCaw
Christine Shaw
Ed Shirley
Joe Williams
Members introduced themselves briefly.
Staff attending/ presenting: Ginne-Rae Clay, Executive Director, Social Equity Council (SEC), Andrea Comer, Chair, Social Equity Council, and Patrick Hulin, Office of the Governor.
2. Discussion of Committee Mandate, Timeline
Christine Shaw presented the general charge of the committee and laid out the primary objective of laying out a budget for FY 2022-23. She referred to OFA’s fiscal note which
has FY 2022 Cannabis Industry implementation costs estimated and approved for $16.9M with a budget for FY 2022, that covers, primarily staffing and the RFP Study.
From the materials: “The finance committee's primary goal is to develop the annual budget for the Council and ensure appropriately expenditures. The committee's short-term work will include developing a budget for fiscal year 2023.” There are also be recommendations for spending of funds that will come in to the Council from licensing revenue and the like.
Patrick Hulin, from the Office of the Governor, spoke of the provisions around revenues and expenditures. He explained that the budget work for FY23 will include transmitting to OPM the estimated expenditure requirements, in December 2021.
A discussion ensued.
Edwin Shirley asked whether the existing medical producers are planning to convert to participating in this recreational program. Sec. McCaw suggested the group ask for DCP to report at the next meeting about what the most current information about the licensing front.
3. Discussion of Revenue Assumptions for An Act Concerning Responsible and Equitable Regulation of Adult-Use Cannabis (June 2021 SS Public Act No. 21-1, a.k.a. “the Cannabis bill”)
4. Discussion of Expenditure Assumptions for the Cannabis bill
Item 3 and 4 were taken together – revenues and expenditures.
A discussion ensued about the timing of funds that might be expected. It was noted that the work of the SEC will determine how quickly the application process is finalized so that applicants can apply and pay the fees.
Sec. McCaw noted that for future meetings, a report will be requested (through the chair of DECD, OFA) on budget amount and what has been approved to date, so the committee can track that. Also a budget v. actual report would be helpful.
Christine Shaw noted the intersection of this committee with others. She asked about the process for hiring staff and which committee would oversee issues related to staffing. Andrea Comer stated that the policy committee would be the one to look at staffing issues, and that perhaps SEC should rename the Policy Committee the Policy and Personnel committee, so that there is clarity on where that responsibility lies.
Sec. McCaw clarified that the $5M in FY22 funds was allocated to OPM, and that OPM would work with DECD to ensure those funds would be allocated appropriately.
5. Next Steps
Christine Shaw noted that there is a lot of activity happening. With the most pressing items for this group is the timing for license conversions. Sec. McCaw explained that the full $16M allocated is expected to be spent in FY22, but if there is any left over, it can be carried over to FY23. But eventually the funds created by the Cannabis Act will cover the cannabis expenses, Sec. McCaw said it may take a year or two to get to that point.
Joe Williams reiterated the importance of understanding the expected flow of revenue from the fees expected.
Andrea Comer expects to present a timeline at the September full council meeting.
A discussion ensued.
6. Adjournment
Upon a motion made by Sec. McCaw, and seconded by Ed Shirley, with no objections, the meeting was adjourned at 10:50 AM.
