Marijuana Legalization in Oregon 2015
July 8, 2015
Marijuana Legalization in Oregon – The Impact of Measure 91 and Its
Legislative Amendments. Presentation by Russ Belville, Executive
Director of Portland NORML.
What is the new marijuana law that took effect in Oregon on July 1,
2015? How has the legislature amended the original Measure 91 law
that 56% of Oregon voters passed?
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
How does the legalization law in Oregon differ from existing laws in
Colorado and Washington and the new law in Alaska? How did the
political effect of regional conflicts within Oregon shape the legislative
amendment process? What is the outcome of this process, including its
effect on medical marijuana? Industrial hemp was also legalized, what is
its status? What will the business climate be like in Oregon compared to
other legal states?
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
Measure 91 as it was written granted similar possession rights as
Washington State did in 2012: an ounce of marijuana, a pound of
edibles, and 72 ounces of liquids. But Oregon included a half-pound of
marijuana at home to go along with the four plants we can home grow.
We are also allowed an ounce of extracts (store bought), but our
definition of “extract” was both expansive and vague.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
House Bill 3400A updated our possession limits by clearly defining that
“extracts” are those made with “anes”; that is, butane, hexane, or
propane. “Concentrates” are defined as those made with alcohol, ice
water, carbon dioxide, glycerin, fats, or mechanical (finger hash or rosin
press) means – and we may possess a pound of those. (One exception: if
you use carbon dioxide + high heat and pressure, it’s an “extract”.)
Extracts must be store-bought and manufacture or possession of
homemade extracts is a crime.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
Measure 91 as written envisioned a $250 application fee and a $1,000
license fee for any of four licenses, the producer, processor, and retailer
licenses found in the other legal states, and a new wholesaler license
unique to Oregon. Taxation would have been at the producer: $35/oz for
flowers, $10/oz for leaves and trim, $5 per seedling. But that meant a
$560 tax per pound, and as wholesale price plummets, that $560
remains the same. Plus, its extra cost is pushed through the entire retail
process. Measure 91 was also silent on residency requirements.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
So House Bill 3400A adjusted most of these items. Fees for licenses will
be set by the OLCC based on costs to manage those licenses. Production
licenses will be tier-based, with greater fees for larger grows. The
production tax by weight has become an excise tax at point of sale, set at
17% to the state, and up to 3% local tax, if that locality allows for all four
types of licensees. Prior to recreational stores opening in mid-2016,
there will be a 25% temporary tax for adult purchases at medical
dispensaries (more on that later).
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
Measure 91 as written also de-penalized what remained of marijuana
crimes. Up to twice the legal amounts became just Class B violations – a
presumptive $650 ticket with no criminal record. Up to quadruple the
limits became Class B misdemeanors. Then, the crimes over 4x the legal
limit were downgraded to Class C felonies, the lowest type, and which
can be more easily expunged from one’s criminal records. The only
exceptions are homemade extracts, up to ¼ oz of those is a Class B
misdemeanor, over is a Class C felony; and home grows, up to double is a
Class B misdemeanor, over is a Class C felony. Except…
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
House Bill 3400A gave us an even better deal. The remaining marijuana
crimes that Measure 91 made Class C felonies got downgraded to just
Class A misdemeanors. There is no amount of marijuana you can possess
in Oregon that will earn you a felony. The ¼ oz or more of homemade
extracts and more than 8 plants at home, though, remain Class C
felonies.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
House Bill 3400A also reduced other remaining marijuana crimes:
unlawful delivery is just a ticket under an ounce, and a Class A
misdemeanor over an ounce. But unlawful delivery by an adult over 21
to a minor under 18 remains a Class C felony (despite the equivalent
alcohol crime being a misdemeanor). And unlawful cultivation or
delivery with 1000 ft of a school remains a Class A felony! Importing or
exporting for no consideration is a misdemeanor, but if you were trying
to sell it, it’s a Class C felony. Minors trying to access marijuana or
possessing less than an ounce is a ticket, possession by minors of any
amount of marijuana product is a misdemeanor.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
Despite Measure 91 passing statewide with 56% of the vote, vast
expanses of rural, sparsely populated counties in Eastern Oregon are
very culturally opposed to marijuana. They wanted the ability to tax
marijuana locally, to be able to ban marijuana businesses, and to clamp
down on what they felt was medical marijuana out of control. Sen. Ted
Ferrioli led efforts to obstruct passage of any statewide regulations
unless the counties prejudiced against marijuana got special rights.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
House Bill 3400A created an “Eastern Compromise”. The counties that
voted greater than 55% against Measure 91 (i.e., all the counties east of
the Cascade Mountains but Deschutes and Wasco) could, for the next six
months, enact local bans of medical and recreational marijuana licensees
without voter approval. The rest of the counties would have to put any
bans to a vote of the people, as Measure 91 was written.
Green = counties that voted for Measure 91 / Yellow = counties that
voted against Measure 91 <55% / Red = counties that voted against
Measure 91 >55%
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
As noted before, House Bill 3400A cleared up the difference between an
“extract” and a “concentrate”. Measure 91 had included alcohol and
carbon dioxide concentrates in the definition of “extract”, and wasn’t
clear about what vegetable oil and animal fat extracted products would
be. We can have a pound of concentrate and an ounce of store-bought
extract. Also, the definition of a mature plant is now one that is
flowering, not an absurd twelve-inch rule that defines maturity.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
House Bill 3400A opened up the door to marijuana business advertising.
While Measure 91 gave the OLCC the potential to prohibit advertising,
HB 3400A is clear that only advertising that is appealing to minors,
promotes excessive use, promotes illegal activity, or otherwise presents
a significant risk to public health and safety can be prohibited.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
Measure 91 had disqualified licensees for having convictions of illegal
marijuana cultivation or delivery to a minor if they occurred within the
past five years. House Bill 3400A reduced that period to just two years.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
Marijuana producers must be 21 and have lived in Oregon for two years,
but that residency requirement ends in 2020. Indications are that
regulators may limit outdoor grows to 60,000 sqft, greenhouse grows to
30,000 sqft, and indoor grows to 10,000 sqft. However, there can be no
limits on immature marijuana plants. Grows will be licensed in a tiered
system based on sqft with a sliding fee scale, but shall not apply to
producers of immature plants only.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
Processors, Wholesalers, and Retailers must be 21 and have lived in
Oregon for two years, but that residency requirement ends in 2020. They
can’t be in exclusive residential zones or within 1,000 ft of schools, but if
a school moves in near a Retailer, the retailer may stay open so long as
his or her license is not revoked for cause.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
There will be development of retail server, or “budtender”, permits with
possible training requirements. Felons may not be budtenders, except
for marijuana cultivation or delivery felonies over two years old.
Budtenders will be given whistleblower and collective bargaining
protection.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
There may be the requirement for bonding and liability insurance, but
there shall be a seed-to-sale tracking system for commercial marijuana
production, processing, and sale. Minors must be kept out of retail stores
and decoys will be used to perform minor stings. Local governments can
adopt “time, place, and manner” restrictions and regulations, including
requiring that licensees be up to 1,000 feet from each other, but no
greater. And the right of adults to personally produce, process, and
possess marijuana within 1,000 feet of a school has been established.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
For purposes of cross-referencing with other established farming, land
use, and zoning laws, marijuana crops are defined as “farm use” or “farm
practice” and cannabis seeds are defined as “nursery stock”. Mature
(budding) marijuana plants may not be sold, but vegetative plants of any
size may be. All marijuana products and processing must be kept out of
public view. For those with prior marijuana convictions, the penalties
established under the new law, or a minimum of a Class C misdemeanor
for acts now made legal, will be used to determine lessening penalties
and expunging records.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
Senate Bill 460 addressed the fact that marijuana is legal to possess and
grow, but there is nowhere to buy marijuana and seeds, thus fueling the
black market. Now, in cities that allow it, existing medical marijuana
dispensaries may choose to sell to all adults 21 and older, starting
October 1, 2015 and running through 2016. Adults would only be
allowed to purchase ¼ oz of flower, 4 seedlings, or seeds. Such sales
would be tax-free through the end of 2015.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
House Bill 2041A establishes a temporary 25% excise tax on recreational
purchases at medical marijuana dispensaries for the year 2016. Once
recreational stores open, they will be subject to the 17% state excise tax
and up to a 3% local tax. The eastern Oregon counties that ban
marijuana will still get a share of that marijuana tax revenue until July 1,
2017. Then, only cities and counties that allow marijuana licensees will
receive a share of marijuana tax revenues, proportional to how many
licensees they have.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
There have been many changes to medical marijuana. Veterans with
PTSD now qualify for an OMMP card at a special $20 rate. Serious
neurological conditions now qualify for OMMP cards. Patients can no
longer be denied organ transplants for their medical marijuana use (the
Jim Klahr Rule). Hospices and palliative care centers can now be
additional caregivers for dying and debilitated patients. Patients may
reimburse growers for all the costs of producing medicine, including
labor.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
Medical marijuana benefits from the new definitions of concentrate (not
made with –ane) and immature plant (not budding) in the recreational
law. Medical marijuana processors now exist to match the recreational
side. Processors and dispensaries must track the transfer of marijuana
products. Growers (for two or more patients), Processors, and
Dispensaries will be inspected. Medical Growers can decide to also
become recreational Producers, if they meet recreational licensing
criteria.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
Growers producing for two or more patients will have to track their
possession and transfers, reporting monthly to the Oregon Health
Authority and keeping their records for two years. There will also be a
two-year residency requirement for Growers, Processors, and Dispensary
Owners/Operators until 2020. People convicted of Class A or B felonies
are disqualified for two years and anyone convicted twice of a Class A or
B felony is disqualified for life.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
Medical marijuana grow sites now have limits. Grows with 6 mature
plants per patient that existed in 2014 are now capped at 24 mature
plants in a residential area and 96 mature plants in a non-residential
area. New grows after January 1, 2015, are capped at 12 mature plants
in a residential area, 48 in a non-residential area. However, indoor grows
may now possess 6 lbs per mature plant and outdoor grows may possess
12 lbs per mature plant. And remember, nobody is counting immature
plants anymore, which may be any size but non-budding.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
House Bill 2668 would have revoked existing hemp permits and banned
any new hemp permits until 2017, so the state would have some time to
sort out the science regarding possible hemp/marijuana crosspollination. That bill died, so the thirteen existing hemp permits have
hemp crops in the ground and are looking forward to harvest. (Perhaps
limit new hemp licenses to the east side of the Cascades, where they
don’t want any marijuana farms?)
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
Oregon should provide a far better business climate for marijuana than
the other legal states. With massive marijuana production, low retail
taxation, and the most-free market approach to marijuana yet, Oregon
should crash the price of marijuana in-state and regionally as
Washington and California adjust to compete. Oregon’s numerous tourist
destinations should steal some of the Colorado tourism dollars. Expect
the medical marijuana program to shrink to serving just the most
debilitated, as Oregon’s generous recreational limits and access will
forestall many patients from paying $200 for a card.
©2015 Portland NORML
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Marijuana Legalization in Oregon 2015
July 8, 2015
As always, you can contact us at [email protected] and on
Facebook and Twitter @PortlandNORML and on our website,
PortlandNORML.org.
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