I needed to drop a line immediately on an fascinating piece of hashish laws shifting via the Oregon legislative session. The invoice at subject is omnibus SB 353 (most up-to-date mark-up here). This can be a very totally different SB 353 than its placeholder from again in January after I Up to date our annual Legislative Forecast and Report. The invoice has been gutted and stuffed as they are saying down in Salem. Most apparently, the reconstituted SB 353 would permit OLCC licensees to export intoxicating merchandise that fall below the federal definition of hemp, together with marijuana seeds.
Import and export of “hemp” cannabinoid merchandise
As drafted, SB 353 would permit OLCC licensees (and others) to import and export objects that fall below the federal definition of hemp. This would come with a good bit of what’s known as “usable marijuana” below OLCC administrative guidelines, in addition to sure edibles and concentrates (ex.: THCa). All very fascinating stuff, particularly coming from the primary state to ban the sale of artificially derived cannabinoids (with restricted exceptions).
You might be questioning: why is that this a giant deal? Nicely, OLCC licensees should not allowed to ship any of their crops or merchandise out of state. Not like hemp licensees and different companies, they aren’t allowed to benefit from the truck-sized, intoxicating loopholes that have been created by the 2018 Farm Invoice. That will change right here.
Why we wish import and export of cannabinoid merchandise
SB 353 has been plugged by trade advocates as probably useful with Oregon’s oversupply subject. OLCC isn’t allowed to say something formally about this invoice (new guidelines), however I’ve gathered from Fee contacts that OLCC is working to help the idea at a technical degree. OLCC can be pushing SB 353, silently, as introducing higher regulated, correctly examined, and safely packaged merchandise to the hemp ingestibles market. That market is a nationwide goat rodeo, so I agree with them right here.
Another excuse Oregon could wish to pursue this invoice is to beat California and different states on an export alternative. Each Oregon and California (and now Washington) have THC program export payments, however these legal guidelines are anticipatory and largely symbolic. (See our ideas right here and right here). SB 353 would permit shipments instantly for federally lawful merchandise, even when they originate inside the OLCC system. Neither California nor Washington – nor another state with a closed-loop, “marijuana” program – permits for licensee shipments interstate.
How import and export of cannabinoid merchandise would work
SB 353 requires OLCC to “set up a registration program for hemp merchandise that include cannabinoids and are meant for human or animal consumption or use.” The registry would apply to sellers each inside and outdoors of Oregon, and the registrants must submit product info to OLCC and meet numerous labeling necessities.
Observe that hemp-derived topical merchandise are excepted from the SB 353 regime. That is per FDA’s place that such merchandise are authorized below the Farm Invoice, when sourced from industrial hemp. Usually, the import and export of all cannabinoid merchandise below SB 353 would merely should adjust to federal legislation.
Import and export of marijuana seeds
This can be a separate consideration, relying on who you ask, however SB 353 handle seeds as nicely. Particularly, the draft invoice removes from the definition of “marijuana objects” each “marijuana seeds [and] industrial hemp seeds imported or exported in accordance with relevant state and federal legislation.” So, seeds possessed by OLCC licensees that can germinate into excessive THC crops could be shippable too.
I’m not going to investigate immediately whether or not the cargo of marijuana seeds is definitely authorized below federal legislation. Suffice it to say that DEA has opined that it is— a minimum of for now. That appears to be adequate for the drafters of this invoice.
Will SB 353 go?
I’m not certain and I doubt anybody else is. The invoice has been shifting, although. It’s already been via the Judiciary Committee (incomes a “Do Cross” suggestion), then public hearings and a piece session. As of April 12, SB 353 is off to the Methods and Means Committee. I’ve written many occasions that Methods and Means generally is a graveyard of types, though we do see payments pushed via.
If SB 353 passes with import/export intact, one fascinating factor to observe could be interaction between Oregon’s new legislation and the federal Farm Invoice, which is reauthorized each 5 years. The 2018 Farm Invoice is ready to run out September 30, 2023. Oregon’s legislative session ends June 25, 2023. I’ll test in once more on the finish of the Oregon session, until one thing huge occurs prior.