Oregon grows a lot of legal weed, supposedly enough to last us more than six years if production stopped today. In an attempt to curb production, Governor Kate Brown signed a bill this week that gives the OLCC the authority to refuse to issue production licenses to applicants who submitted for approval after June 15th, 2018. This process will be based on market supply analysis, was officially signed on June 17th, and took effect immediately. Here are more details on SB 218:
- The OLCC must process applications submitted before June 15th, 2018. Land use compatibility statements for those applications must be submitted by July 8th, 2019.
- For outstanding production applications submitted before June 15th, 2018, applicants are no longer able to make a change of ownership of 51 percent or more, or change the location on their application.
- The OLCC is authorized to cap production licenses until January 2, 2022.
- The bill does not apply to existing licenses.
- The bill only applies to production licenses and applications and won’t directly affect retailers, wholesalers, or processors.
- The OLCC will be required to study the effects of this measure on the cannabis industry and report their findings annually to the state legislature.
The second bill signed by Governor Brown makes a number of tweaks to Oregon’s cannabis regulations, including granting the OLCC the authority to revoke marijuana retail licenses once a retailer has failed to pay or file returns twice in any consecutive four quarters. For more information on HB 2098, see below:
- Directs the OLCC to set up an advisory committee to help oversee standards for testing the potency of cannabis and cannabis items.
- Allows a pharmacist to dispense prescription drugs that contain cannabinoids, if those drugs have been approved by the FDA.
- Gives the OLCC the authority to create pilot programs—lasting no more than three years—that expand access to medical cannabis.
- Allows producers to produce and transfer “kief.” The bill also officially defines “kief” as “resinous trichomes of marijuana that accumulate or fall off when marijuana flowers are sifted through a mesh screen or sieve.”
- Certified retailers are authorized to sell and deliver medical cannabis to medical card holders at least 18 years of age.
- Retailers can now accept a NEXUS card issued by U.S. Customs and Border Protection as a valid form of identification
- Instructs the OLCC to revoke marijuana retail licenses if the retailer fails to pay or file returns twice in any four consecutive quarters.
- Increases maximum civil penalty from $5,000 to $10,000 for each violation for licensees.
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