For the next two years, the Oregon Liquor and Cannabis Commission ("OLCC") will roll out a series of recently enacted rules and regulations designed to further expand the already successful Oregon cannabis industry. The revised and amended rules and regulations will relax regulations that many have believed to be an overregulation of certain parts of the industry and combat federal taxation issues that are financially impacting the cannabis industry. The amended rules also address concerns on consumer health and safety, licensing regulations for all sized operations in the industry, loopholes in the Farm Bill of 2018 in regards to industrial hemp, and the black market farm production that has extended its reach from the coast of California to Southern Oregon. The highlights of the amendments are as follows:
Senate Bill 408: Benefits to Licensees
S.B. 408 relaxes regulations and removes punitive measures for violations of the regulation and instead focuses on compliance supported by education and training. The easing of regulations will make it easier for people entering into the cannabis market and encourages growth to those already working within the industry. For example, S.B. 408 improves licensees' ability to self-distribute by reducing the time and costs to submit information into Oregon's Cannabis Tracking System. S.B. 408 also places stricter guidelines surrounding when the Oregon Liquor Control Commission can delay the processing, approval, or denial of a license application.
S.B. 408 will also increase the amount of cannabis consumers may purchase from one to two ounces, and concentration limits in edibles increased to 100 mg per package, double the current limit. Both these amendments are effective as of April 1, 2022.
House Bill 2519: Home Delivery
One of the more progressive changes arises from H.B. 2519 which opens the door for cannabis retail delivery services directly to the consumer. Home delivery will be permitted in any city or county that permits cannabis production, procession, or retail use within its boundaries.
House Bill 3000: Curtails THC-hemp products sold in unregulated market
H.B. 3000 omnibus bill makes significant changes to the Oregon cannabis laws by authorizing OLCC to further regulate artificially derived cannabinoids and prevent hemp products with THC over the federally allowed 0.3 percent from being sold by prohibiting anyone who is not a licensed cannabis retailer from selling industrial hemp product to consumers. H.B. 3000 requires delta-8 products and other artificially derived cannabinoids to go through a review process to ensure it meets the regulated standard of "New Dietary Ingredient" within 18 months. H.B. 3000 also establishes a task force to monitor and report on cannabis and cannabinoid products' sale, public health, legality, and safety.
Social Justice and Illegal Market
The Oregon legislature failed to follow in the path of many other states in initiating a social justice component to its cannabis regulation. However, the legislature did pass two laws that are directed toward the illegal cannabis operations in southern Oregon. Senator Jeff Golden authored the bill and explained that the illegal market has been, "using our limited water supply, abusing local workers, threatening neighbors, and negatively impacting businesses run by legal marijuana growers." The legislature approved $25 million to be set aside to address illegal grow operations, with $20 million earmarked for the Illegal Marijuana Market Enforcement Grant Program, and $5 million for Oregon's Water Resources Department to combat water theft.
The amended laws and regulations will become effective throughout 2022 and 2023.
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