NEWS BRIEF

New Oregon law reduces regulatory burdens for cannabis businesses

Oregon relaxed some of its cannabis regulations that industry officials said were limiting business growth, hurting licensees and threatening the economic viability of the state’s $1 billion-plus industry.

Most of the provisions of recently enacted Senate Bill 408 will go into effect Jan. 1, 2022, unless regulators take action earlier through emergency rule-making.

“The passing of SB 408 into law is a huge step towards overhauling and modernizing Oregon’s cannabis regulations – creating a better business environment for the industry,” Jesse Bontecou, co-director of the Oregon Retailers of Cannabis Association, said in a statement.

Kim Lundin, executive director of the Oregon Cannabis Association, noted that “overregulation particularly impacts small businesses” that lack capital, and “jeopardizes businesses of all sizes looking to compete on a national level.”

The new law, which was recently signed by Gov. Kate Brown, includes these provisions:

  • Limits conditions under which Oregon Liquor Control Commission (OLCC) may delay processing, approving or denying a license application.
  • Allows for the transfer of certain marijuana products between producers and processors as well as producers with common ownership.
  • Requires regulators to adopt rules supporting marijuana plant diversity, such as by allowing a qualified producer to receive seeds from any source in the state.
  • Simplifies rules regarding tracking documents for deliveries.
  • Increases edibles concentration limits to bring Oregon in-line with other states and allows regulators to write rules to increase purchase limits.
  • Requires the OLCC to identify ways to further reduce the use of plastics by the cannabis industry and submit its findings to the state Legislature by Dec. 31, 2022.

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