It appears to be like like a everlasting Oregon hashish license moratorium will lastly take impact. I say “appears to be like like” as a result of key contingencies are nonetheless in play and, though issues look promising, it may additionally get dicey as of March 31st— and even sooner.
On this publish, 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 6th, 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 completely different than any 12 months going again to 2015. The invoice at difficulty for 2024 is HB 4121.
The enrolled model of HB 4121 just isn’t considerably completely different than the introduced version previewed in my February 6th weblog publish. I’ll due to this fact dispense with one other fulsome commentary, besides to notice that HB 4121 is usually bought as a pro-industry moratorium invoice. HB 4121 is far more than that, nevertheless– particularly in terms of two large matters: regulation enforcement and hemp merchandise.
HB 4121 highlights
Regulation enforcement; inspections
- Authorizes collaborative mapping of hashish develop websites, to tell regulation enforcement the place licensed (and due to this fact, 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 differentiate 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 regulation enforcement to accompany ODA on-site inspections
- Approved the Governor to name within the Nationwide Guard to assist ODA and regulation enforcement with hemp web site visits
Hemp product registration
- Requires OLCC and ODA to determine a registration program for hemp merchandise meant 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 knowledge, and adjust to many guidelines
Marijuana license caps and moratorium
- Prohibits OLCC from accepting new license purposes just about endlessly, as a result of restrictive, ratio-based formulation tied to inhabitants
- Accommodates an exception for producers seeking to change cover measurement, and for analysis labs
- Accommodates an exception for the renewal or “switch” of an present license
Minor decoy operations
- Requires OLCC to develop uniform requirements for minor decoy operations
- Requires OLCC requirements to adapt to regulation 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 momentary allow standing
Is HB 4121 going to go? Does it matter if or when the Governor indicators?
The invoice might be going to go, but it surely issues very a lot when the Governor indicators.
It was a reduction to see the OLIS website up to date on March 13th, three days after the session ended, displaying 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 motive the web site doesn’t mirror this standing, because it usually would; however I’m instructed 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 would develop into regulation instantly, based mostly on its textual content. If the Governor vetoes HB 4121, it won’t develop into regulation. And if she neither indicators nor vetoes, HB 4121 will develop into regulation 30 days after its passage, which might be April 12 or thereabouts. That final state of affairs presents an issue for OLCC and the hashish {industry}. It is because the present marijuana license moratorium expires on March 31, 2024.
In a “no signal and no veto” state of affairs, we may very well be a niche of 12 days or so when OLCC is pressured to take purposes. A similar situation occurred again on Might 31st, 2018, when OLCC introduced a June 15th “pause” of utility processing. Over 1,000 new purposes flooded the portal in a two-week interval. This exacerbated an already vital OLCC bottleneck; and, whereas a lot of these purposes fell away, others made it by way of. We had a number of purchasers make a fairly penny reselling these landgrab licenses.
On Friday, March 15th, I used to be instructed by HB 4121 architects that OLCC has alerted the Governor’s employees to the timing exigency. This informs my feedback up prime that “issues look promising.” If and when HB 4121 passes, although, please do not forget that we’re in for greater than a license moratorium. The regulation enforcement element of this invoice is distinguished. Additional, Oregon is about to maneuver forward with a restrictive, outlying regime for hemp and hemp-derived merchandise.