Oregon: Recreational Marijuana Regulation Policy Likely to Be Stricter Than Medical

Jacob Redmond

Well-Known Member
Oregon is exactly five weeks away from officially legalizing recreational marijuana. But as July 1st looms in the near distance, the hard rules are still waiting in the wings.
The reason being, the state legislature has pulled the focus back to medical marijuana.

A much-debated piece of medical marijuana legislation has bounced from a joint House-Senate Committee to the Senate's special committee, and now resides on the Senate floor for a vote.

The bill in question would require the Oregon Health Authority to track medical marijuana through the supply chain to curb black market sales.

"At the grower level, it's completely un-regulated," said Senator Ginny Burdick (Portland-D), co-chair of the joint legislative committee to implement Measure 91, or recreational marijuana. "Oregon is a great producer of marijuana and much of it is ending up in the black market."

If passed, the legislation would vastly limit the size of cannabis crops, while allowing cities and counties to ban medical marijuana dispensaries and processors. For sick people this could be a serious roadblock to getting their preferred treatment.

Up to this point, most of the Senate's attention has gone to tackling the wild west of medical regulations, which means the laws surrounding recreational marijuana have been put on the backburner.

"What we're trying to do is put some sideboards around the medical market, so it doesn't end up sabotaging the recreational market," said Burdick.

But as the clamp down on medical marijuana goes to a vote, the parameters of its recreational use will no doubt get tougher too.

"It was always intended that the recreational rules would be strict," continued Burdick. "You're going to have a much more tightly regulated market for recreational than for medical. That was always assumed."

Traceability, From Seed To Sale

Earlier this month, the Oregon Liquor Control Commission (OLCC) — which has been given the authority to tax, license and regulate recreational marijuana — organized a Rules Advisory Committee that will make recommendations to implement Measure 91.

The committee will begin meeting in June to prepare for January 2016, when the OLCC will start accepting licenses for commercial marijuana businesses, from seed to sale.

Licenses will not be issued until spring of next year, however, followed by retail outlets opening in the third-quarter of 2016.

The Rules Advisory Committee has been given an autumn deadline to make full recommendations to the OLCC.

"In order to have a regulated recreational marijuana market, you need a traceability program that tracks the marijuana from the time it's planted until it's sold to the consumer," said Tom Towslee, media relations for recreational marijuana at the OLCC. "Whether that takes the form of a formal inspection remains to be seen."

Last summer, the Oregon Health Authority inspected 58 medical marijuana dispensaries, resulting in two shutdowns. Violations reported across the board included inadequate record keeping, inconsistent labeling, faulty surveillance equipment, and marijuana stored in unsecured areas.

Protocol for inspecting recreational marijuana operations might follow suit.

"In writing the rules for recreational marijuana retail outlets, what is being done with medical marijuana dispensaries provides a good model to start with," said Towslee.

But similar to the medical market, "it's not in the dispensary where marijuana is leaking into the black market, it's at the grower level," he confirmed.

Advice for Commercial Marijuana Businesses

While the laws are still in gestation, potential applicants for recreational marijuana businesses can begin their research.

According to Amy Margolis, attorney at Emerge Law Group and member of the OLCC's technical advisory subcommittee, future applicants should closely follow the rule-making process over the next six to nine months

"A potential applicant will certainly need to have their corporate work done by a competent business attorney," said Margolis. "As well as have their financials in order, including taxes, in case the OLCC requests that information."

She said the application — whether for a growing or retail operation — should also be submitted by an attorney, or at least checked by one.

And come January, Margolis anticipates a huge rush to apply for both cultivators and dispensary licenses.

"That means professionals will be backed-up in the months to come. Getting the work done early will be a huge benefit," she said.

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Full Article: GoLocalPDX | Recreational Marijuana Regulation Policy Likely to Be Stricter Than Medical
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