Oregon Hashish License Moratorium: Virtually There

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It seems like a everlasting Oregon hashish license moratorium will lastly take impact. I say “seems like” as a result of key contingencies are nonetheless in play and, though issues look promising, it might additionally get dicey as of March 31^st— and even sooner.

On this submit, I’ll clarify what’s occurring with Home Invoice 4121, which is definitely greater than marketed, each in content material and in progress. And I’ll clarify what all of it means for the Oregon hashish {industry}.

HB 4121 and the hashish license moratorium

On February 6^th, 2024, I ran our annual legislative forecast and report on the proposed Oregon hashish legal guidelines. We solely had one vital hashish invoice in play, which made the 2024 session totally different than any yr going again to 2015. The invoice at subject for 2024 is HB 4121.

The enrolled model of HB 4121 is just not considerably totally different than the launched model previewed in my February 6^th weblog submit. I’ll subsequently dispense with one other fulsome commentary, besides to notice that HB 4121 is mostly bought as a pro-industry moratorium invoice. HB 4121 is way more than that, nevertheless– particularly relating to two large matters: legislation enforcement and hemp merchandise.

HB 4121 highlights

Regulation enforcement; inspections

• Authorizes collaborative mapping of hashish develop websites, to tell legislation enforcement the place licensed (and subsequently, unlicensed) grows are positioned
• Requires the Oregon Liquor and Hashish Fee (OLCC) to work with the Oregon Division of Agriculture (ODA) to develop testing methodology to tell apart marijuana and hemp vegetation
• Provides ODA energy to require destruction of marijuana vegetation by hemp growers
• Permits ODA and OLCC to enter into agreements to permit OLCC to examine hemp crops
• Requires ODA to undertake guidelines to permit legislation enforcement to accompany ODA on-site inspections
• Approved the Governor to name within the Nationwide Guard to assist ODA and legislation enforcement with hemp web site visits

Hemp product registration

• Requires OLCC and ODA to determine a registration program for hemp merchandise supposed for human or animal consumption or use
• Requires in- and out-of-state hemp producers, packagers and distributors to pay charges, register in Oregon, submit a boatload of data, and adjust to many guidelines

Marijuana license caps and moratorium

• Prohibits OLCC from accepting new license functions just about endlessly, on account of restrictive, ratio-based formulation tied to inhabitants
• Accommodates an exception for producers trying to change cover dimension, and for analysis labs
• Accommodates an exception for the renewal or “switch” of an current license

Minor decoy operations

• Requires OLCC to develop uniform requirements for minor decoy operations
• Requires OLCC requirements to adapt to legislation enforcement requirements for minor decoy stings

Short-term permits

• Requires OLCC to develop a course of for candidates to work at a licensed enterprise till they obtain a marijuana employee allow, or a denial
• Permits OLCC to revoke or droop a allow for actions a person took whereas in non permanent allow standing

Is HB 4121 going to cross? Does it matter if or when the Governor indicators?

The invoice might be going to cross, but it surely issues very a lot when the Governor indicators.

It was a reduction to see the OLIS web site up to date on March 13^th, three days after the session ended, exhibiting that the Speaker of the Home signed the invoice. The Senate President, Rob Wagner, must signal subsequent, after which Governor Tina Kotek. At this level, OLIS would usually present that the invoice is awaiting signature by Wagner. For no matter cause the web site doesn’t mirror this standing, because it usually would; however I’m informed by drafters of the invoice that it’s headed to Wagner’s desk, after which Kotek’s. Each are anticipated to signal.

If the Governor indicators HB 4121, it’s going to turn out to be legislation instantly, based mostly on its textual content. If the Governor vetoes HB 4121, it is not going to turn out to be legislation. And if she neither indicators nor vetoes, HB 4121 will turn out to be legislation 30 days after its passage, which might be April 12 or thereabouts. That final situation presents an issue for OLCC and the hashish {industry}. It’s because the present marijuana license moratorium expires on March 31, 2024.

In a “no signal and no veto” situation, we might be taking a look at a spot of 12 days or so when OLCC is compelled to take functions. An identical scenario occurred again on Might 31^st, 2018, when OLCC introduced a June 15^th “pause” of software processing. Over 1,000 new functions flooded the portal in a two-week interval. This exacerbated an already vital OLCC bottleneck; and, whereas lots of these functions fell away, others made it by. We had a number of clients make a fairly penny reselling these landgrab licenses.

On Friday, March 15^th, I used to be informed by HB 4121 architects that OLCC has alerted the Governor’s workers to the timing exigency. This informs my feedback up high that “issues look promising.” If and when HB 4121 passes, although, please keep in mind that we’re in for greater than a license moratorium. The legislation enforcement element of this invoice is outstanding. Additional, Oregon is ready to maneuver forward with a restrictive, outlying regime for hemp and hemp-derived merchandise.

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