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It seems to be like a everlasting Oregon hashish license moratorium will lastly take impact. I say “seems to be like” as a result of key contingencies are nonetheless in play and, though issues look promising, it might additionally get dicey as of March thirty first— and even sooner.
On this put up, I’ll clarify what’s occurring with Home Invoice 4121, which is actually 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 sixth, 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 concern 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 sixth weblog put up. I’ll subsequently 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 relating to two large subjects: 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 differentiate marijuana and hemp crops
Provides ODA energy to require destruction of marijuana crops 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 knowledge, and adjust to many guidelines
Marijuana license caps and moratorium
Prohibits OLCC from accepting new license functions just about perpetually, resulting from restrictive, ratio-based formulation tied to inhabitants
Comprises an exception for producers seeking to change cover measurement, and for analysis labs
Comprises 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 legislation enforcement requirements for minor decoy stings
Non permanent 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 short-term allow standing
Is HB 4121 going to go? Does it matter if or when the Governor indicators?
The invoice might be going to go, nevertheless it issues very a lot when the Governor indicators.
It was a reduction to see the OLIS web site up to date on March thirteenth, 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 cause 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’ll turn out to be legislation instantly, based mostly on its textual content. If the Governor vetoes HB 4121, it won’t 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 state of affairs 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” state of affairs, we may very well be taking a look at a niche of 12 days or so when OLCC is pressured to take functions. An identical state of affairs occurred again on Might thirty first, 2018, when OLCC introduced a June fifteenth “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 a lot of these functions fell away, others made it via. We had a number of shoppers make a fairly penny reselling these landgrab licenses.
On Friday, March fifteenth, 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 high 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 legislation enforcement element of this invoice is outstanding. Additional, Oregon is about to maneuver forward with a restrictive, outlying regime for hemp and hemp-derived merchandise.
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