The 2023 Oregon legislative session kicked off yesterday. It’s a daily session this 12 months, that means we’re in for an extended stretch– a 160 day calendar, versus the 35 day affair we see in even-numbered years.
Following November’s elections, the state authorities additionally seems fairly completely different than the previous couple of years, from the Governor’s workplace on down. For that reason, contacts I’ve spoken with within the Oregon Liquor Management Fee (OLCC) and elsewhere are reticent to forecast what could occur with hashish legal guidelines.
For its half, the reinvigorated Oregon Hashish Affiliation (OCA) has voiced a request of “do no harm.” Particularly, it has additionally voiced opposition to any native tax improve (may very well be an actual battle), thrown assist behind social consumption (like yearly; not occurring) and addressing wasteful and onerous packaging necessities (a good suggestion).
Under, I’m going to summarize the draft payments presently teed up for this new session. Earlier than I begin, an identical caveat to final 12 months: a majority of those launched or enrolled payments won’t go. Sure early choices will fall apart, or be consolidated into an omnibus or “Christmas tree” invoice. We are likely to see a kind of greater payments every session, alongside work across the edges on discrete points.
This one reads equally to 2021’s failed and controversial HB 2015 and SB 864. It will increase the utmost share of tax {that a} metropolis or county could impose on the sale of marijuana gadgets, from 3% to 10%. The brand new regime would begin January 1, 2024.
Business watchers could recall that SB 864 bought shut just a few years again: it handed the Senate earlier than the Home Income Committee Chair let it drop. I wrote on the time:
One issue there could have been the additional $1B {dollars} contained within the state Might income forecast, plus the $2.6BB obtained from the feds.
Will probably be fascinating to observe what occurs with hashish tax improve proposals sooner or later, particularly if state coffers run gentle once more. A giant lower of the hashish tax income will probably be siphoned off by Measure 110 going ahead. I’m on file saying that hashish taxes may go a bit larger, though for the sake of our purchasers I hope they don’t.
Prepare for one more pitched battle on native hashish taxes right here in 2023. SB 66 was filed pre-session and it’s going to get some play. Cf. HB 2505 under.
This invoice requires the proprietor of actual property used for illegal marijuana manufacture or manufacturing, to scrub up waste upon notification from legislation enforcement. SB 326 is already off to the judiciary committee. It’s a reasonably advanced invoice and a brand new concept so far as I can inform. I fee the probabilities of its passing on the low finish.
In keeping with no matter bot summarizes these payments, SB 353 “requires OLCC to review hashish.” After that, the invoice supplies that OLCC has to submit a report together with any legislative suggestions by September 15, 2024. In our expertise, OLCC appears fairly busy however I suppose it by no means hurts for a authorities company to be taught extra in regards to the object of its regulation.
Related deal right here, however this one requires OLCC to review “unlawful hashish operations.” After which submit an identical report on the identical schedule.
Identical invoice as SB 353; simply the Home submitting.
This one directs the Division of Income (DOR) to switch “specified quantity of moneys… to cities and counties on this state and to the State Police Accounts.” Apparently, somebody thinks the police want extra money given the added enforcement directives handed in current classes. Extra curiously, HB 2019 makes an attempt to re-allocate funds to counties across the state, primarily based upon the “quantity of marijuana produced, processed and offered at wholesale and retails” in every.
Political concerns apart, HB 2019 will virtually actually create a “fiscal influence”, which suggests it’s destined for the Methods & Means committee. Plenty of payments go there to die; however this one has a puncher’s probability in my estimation.
HB 2020 – OLCC, know thyself
This one requires OLCC to review “the fee.” After which submit a report on itself, together with any legislative suggestions by September 15, 2024.
HB 2377 – OLCC homework
Identical invoice as SB 345 and HB 2015. This simply must be cleaned up.
HB 2505 – Increased local marijuana sales taxation authority
This one is similar to SB 66 above, and pre-filed by the identical two legislators. It’s simply the Home submission.
HB 2515 – Motion detection camera systems; age verification scanners; kids on site
This invoice permits licensed hashish producers, wholesalers, processors and retailers to make use of movement detection digital camera techniques at a licensed premises. It additionally permits retail licensees to make use of age verification scanners, as an alternative of performing bodily inspections of buyer IDs. (The knowledge obtained can be used and retained “just for the needs of verifying an individual’s age.”) Lastly, in what is probably going a nod to rural producers, HB 2515 comprises an unrelated provision permitting kids of marijuana enterprise house owners onto a licensed premises if a “wall or related barrier” is in place.
HB 2516 – Direct sales from small farms
This one would enable for sure licensed producers to promote on to prospects, bypassing retailer licensees altogether. The producers must qualify as “small-scale” licensees as later outlined by OLCC. Fascinating!
It additionally comprises a provision which permits licensed wholesalers to promote or switch hashish to licensed retailers at commerce exhibits.
HB 2517 – Hiring agreement exemption
A distinct segment invoice. It exempts hashish enterprise from “first supply hiring settlement necessities in enterprise zones.” In the event you’d wish to learn extra on this scintillating subject, go right here.
HB 3048 – Law enforcement grants
This invoice directs the Oregon Felony Justice Fee to award grants via the Unlawful Marijuana Market Enforcement Grant Program to the Division of State Police, cities, counties and community-based organizations; with a view to chase illegal hashish manufacturing and distribution. Extra deal with dangerous actors right here; much less on serving to trade instantly.
HB 2931 – OLCC homework
Identical invoice as SB 345 and HB 2015 and HB 2377. This simply must be cleaned up.
HB 2932 – OLCC homework
Identical invoice as SB 345 and HB 2015 and HB 2377 and HB 2931. Once more, clear up wanted.
HB 2949 – Local hemp regulations
This invoice provides regulatory carte blanche, it appears, to cities and counties that want to undertake “cheap rules” on most something associated to hemp manufacturing. For instance, localities may restrict “the style by which a grower may produce industrial hemp.” A metropolis or county may additionally restrict the place the hemp may very well be grown; when the positioning may function; and many others. All of this appears pointless, particularly within the context of a beaten-down trade the place Oregon has an actual probability to be a pacesetter.
HB 3049 – Hemp product labeling for human or animal consumption
This one directs OLCC to ascertain and annual registration program and labeling necessities for any industrial hemp commodity or product that comprises cannabinoids, and is meant for human or animal consumption. Among the necessities would come with, e.g.: identify and sort of product; producer identification; substances; web weight; serving dimension; efficiency. Looks as if a good suggestion if carried out appropriately.
What occurs subsequent
Keep tuned to the Canna Regulation Weblog for updates on all of this. We plan to report any large developments throughout this session. We’ll additionally write our annual “wrap up” abstract someday after the session concludes on June 25.
Lastly, within the meantime, to compensate for current Oregon developments and the final state of affairs, try the next current posts: