Oregon Gov. Kate Brown signed HB 4014 A into law effective March 3. HB 4014 A is a real game changer for the marijuana industry. The bill repeals the Oregon Liquor Control Commission’s two-year residency requirement for licensed marijuana producers, wholesalers, processors and retailers. Most states with a cannabis industry, be it medical or retail, have required members of the team (investors, key license holders and others) to be two-year residents.

Other changes to Oregon’s marijuana program include reclassification of criminal penalties relating to specified marijuana crimes, and allowing Oregon Medical Marijuana Program growers, processors and retailers to transfer inventory when becoming an Oregon Liquor Control Commission licensee. The bill requires the Oregon Health Authority to approve or deny OMMP registration applications within 30 days of receipt, and to conduct a youth prevention pilot project in an urban and a rural area of the state. It also protects OLCC license applicants from public disclosure. Other parts of the bill prohibit retailer discounting on marijuana products.

Oregon HB 4014 A

The bill also:

  • Allows Oregon Medical Marijuana Program growers to enter into personal agreements to provide marijuana to multiple OMMP cardholders with their existing plant counts.
  • Allows applicant for OMMP registration to use completed application receipt as registry identification card for 30 days following date upon which receipt was issued.
  • Establishes fee for all veterans registering for the OMMP program at $20.
  • Requires OHA to convene work group to develop recommendations on clinical guidelines for physicians who prescribe marijuana.
  • Requires OHA to report work group recommendations to specified Legislative committees on or before Jan. 1,
  • Requires OHA to report to specified Legislative committees on rules adopted or steps taken relating to recalling contaminated or unfit marijuana or marijuana derived products on or before Jan. 1, 2017.
  • Amends criminal penalties relating to marijuana crimes.
  • Amends Oregon consumption of marijuana in a vehicle while on the highway is Class B violation.
  • Allows governing board of city or county to repeal ordinances prohibiting establishment of one or more types of licensed or registered marijuana establishments.
  • Allows Governor or Governor’s designee to enter into agreements with federally recognized Indian tribes to allow for cross-jurisdictional enforcement and coordination of marijuana-related businesses on tribal lands.
  • Requires agreements include enforceable public health and safety standards.
  • Requires conditions of supervision for OMMP cardholders who are released from prison or jail, or enter into a diversion agreement related to marijuana use must be imposed in same manner as conditions of supervision related to prescription drugs.
  • Allows all marijuana establishments to deduct business expenses allowable under section 280E of the Internal Revenue Code when filing a state tax return.
  • Establishes operative dates for specified parts of measure.
  • Declares emergency, effective on passage.

Want to establish or expand a cannabis cultivation, grow, dispensary, extraction or retail business? Let Pinnacle Consultation help with your business plan, site location, financial projections, operational plans, licensing assistance and state and local compliance visits. Pinnacle Consultation has an experienced and knowledgeable team ready to help with every step of the process. Pinnacle Consultation offers a variety of services to the cannabis industry. Contact us today at 719.330.5301 or email info@pinnacleconsultationinc.com.