The 2019 Oregon legislative session formally concluded on June 30 and it was a doozy. With respect to cannabis, nonetheless, the session was considerably much less eventful than any convention since 2015 (and that’s principally a superb factor). When you’d like to trace how we acquired right here, we previewed the 2019 session and we gave a mid-session replace. When you’re simply right here for the ultimate tally, it’s sufficient to report that we didn’t get any laws on hemp, social consumption, off-work use, or develop taxation. As an alternative, we acquired new legal guidelines limiting manufacturing, permitting the potential for interstate commerce, permitting the expungement and discount of marijuana crimes, and banning system improvement prices focusing on marijuana grows. Every new legislation is summarized under.
Manufacturing License Caps (Senate Invoice 218)
This legislation authorizes the Oregon Liquor Management Fee (OLCC) to refuse to challenge preliminary marijuana manufacturing licenses at its sole discretion, based mostly on provide and demand within the state. As we’ve coated extensively on this weblog, there may be huge marijuana oversupply within the OLCC market. Though demand can also be greater than anticipated, Governor Brown (who requested this invoice pre-session) and others have been wanting to curb manufacturing, apparently as a consequence of some mixture of protectionist instincts and federal strain.
Though SB 218 is simple, current and potential purchasers have come to us with confusion over sure facets of the brand new regime. Here’s a abstract of how the legislation impacts sure events:
- Current licensed producers. No change. In case you are already licensed within the OLCC system, it is possible for you to to resume your license yearly (in case you have been behaving), apply for adjustments in possession in any quantity, and apply for a change in location.
- Pending producer candidates generally. OLCC will now not enable adjustments in possession larger than 51% for these candidates, or adjustments of premises location. Who qualifies as a pending producer applicant? Anybody with a license dashboard standing of “New,” “Native Authorities Evaluation,” or “Applicant Maintain.”
- Pending producer functions submitted on or earlier than June 15, 2018. OLCC will proceed to course of producer functions acquired previous to the June 15, 2018 “pause” as long as these candidates have submitted an accepted Land Use Compatibility Assertion (“LUCS”). Candidates on this class with out an accepted LUCS has been moved to “inactive” standing.
- Producer functions submitted on or after June 16, 2018. OLCC will inactivate all producer functions acquired after June 15, 2018, no matter whether or not a LUCS has been acquired. It’s unclear whether or not OLCC will refund the $250 software charge.
Is SB 218 going to repair the oversupply challenge? We doubt it very a lot. As I wrote a number of months again, if Oregon had wished to cap marijuana manufacturing within the OLCC market, it’s about 4 years and 900 grows too late. Nonetheless, SB 218 creates some new wrinkles and affected events should plan accordingly.
Interstate Commerce (Senate Invoice 582)
This legislation authorizes the Governor “to enter into agreements with different states for functions of cross-jurisdictional coordination and enforcement of marijuana-related companies and cross-jurisdictional supply of marijuana objects.” The export provision would take impact on the sooner of: (a) the date Federal legislation is amended to permit for the interstate switch of marijuana objects between licensed marijuana-related companies; or (b) the U.S. Division of Justice points an opinion or memorandum permitting or tolerating the interstate switch of marijuana objects between licensed marijuana-related companies.
In a powerful present of state-federal coordination, Oregon Senator Rony Wyden and Consultant Earl Blumenauer launched the State Hashish Commerce Act shortly after SB 582 handed, which might defend all state licensed cannabis industries from federal interference, and which particularly shields commerce between states which have entered into commerce agreements. It is a vital transfer. As we defined within the spring of final yr:
“the interstate compact would virtually actually should be buttressed by Congressional consent, which is a proper legislative motion contemplated by Article I, Part 10, Clause three of the Structure. When Congressional consent is given, an interstate compact actually transforms into federal legislation.”
Does the State Hashish Commerce Act stand any likelihood of passing? It looks like a protracted shot given the present composition of the U.S. Senate. Nonetheless, the export and interstate commerce dialogue is a constructive improvement and Oregon has proven each management and creativity in shifting the dialog ahead.
Expungement and Discount of Marijuana-Associated Convictions (Senate Invoice 420 and Senate Invoice 975)
SB 420 permits people to make use of an expedited course of to put aside most convictions for possession, supply and manufacture of marijuana, as long as the underlying conduct is now not against the law. Anybody with a conviction that wouldn’t be unlawful now, is eligible for an expedited course of to expunge the conviction. Companion legislation SB 975 permits for a discount in offense classification for different marijuana convictions.
Ban on Transportation Programs Improvement Fees (SDCs) (Senate Invoice 365)
Final however not least, SB 365 prohibits native governments (particularly, Deschutes County) from imposing SDCs for elevated use of transportation facility ensuing from marijuana manufacturing in unique farm use zone. Deschutes County has typically made a large number of cannabis regulation, and its ham-handed try and levy SDCs on cannabis manufacturing pressured the legislature’s hand.