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A broad coalition of cannabis industry groups came together to work with the
OLCC on common sense legislative updates to support business operations and
protect public health and safety.

SALEM, OR – June 29, 2022 – Governor Brown has signed into law SB408, which
Oregon lawmakers passed earlier this month. The bill, sponsored by Senator Floyd
Prozanski, focuses on regulatory modernization for Oregon’s maturing cannabis
industry. “This represents the first major step toward aligning our state’s cannabis
regulations with the changing reality of the industry and the priorities of Oregonians.
We’re moving away from fear-based rules to those designed to help a modern industry
succeed. Much is owed to the OLCC, the legislature, and the Governor’s office for
engaging with us through this critical process. This is a great start.” Michael Getlin,
Founder and Director, Oregon Industry Progress Association.

Unique for this bill is that it was crafted by a coalition of the major cannabis industry
associations, working with the OLCC to meet the needs of the evolving market and
update regulations created when the market was first legalized. This coalition effort
speaks volumes for the matured growth of Oregon’s Cannabis industry. “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. Its success is the
direct result of the states largest trade associations coming together, creating a single
legislative agenda, speaking with a unified voice, and lobbying the legislature and the
OLCC as a coalition.” Jesse Bontecou, Co-Director, Oregon Retailers of Cannabis

Last year Oregon cannabis retail sales hit a record-breaking $1.1 billion, resulting in
unprecedented tax revenue and job growth for our state. Despite record sales numbers,
Oregon’s cannabis industry is struggling to stay solvent as an evolving industry made up
of entrepreneurs and small business owners, due largely to over-regulation limiting
business growth. “Over-regulation particularly impacts small businesses who do lack the
capital to defend against violations and jeopardizes businesses of all sizes looking to
compete on a national level.” Kim Lundin, Executive Director, Oregon Cannabis
Association, “The exponential growth of the regulated cannabis market has great
potential for economic development and tax revenue for Oregon, but our quickly
evolving industry needed these legislative fixes to support that continued growth.”

Items in this omnibus bill include:

● Updated compliance practices for the OLCC, amending the grounds for
revocation, suspension or restriction of license to major violations, moving
enforcement to a more compliance-based approach working with business
owners for improved public health & safety.

● Improves transparency around the violation and licensing process, requiring the
OLCC to notify Licensees before delaying the processing, approval or denial of a
license application.

● Allows producers under common ownership to transfer product between their
licenses allowing them to make better use of shared resources.

● Provisions allow producers to receive extract products made from their plant
material back from a processor as long as the product does not include cannabis
from another producer.

● Supporting plant diversity by allowing qualified producers to receive marijuana
seeds from any source within Oregon.

● Simplified rules around tracking documents for deliveries, requiring only proof of
the originating license (i.e. who is legally responsible for the product), proof that
the driver is properly licensed, and an accurate manifest of all the product in the

● Doubled possession limits on all cannabis products except for seeds and
immature plants and increasing the concentration limits in edibles to 100 mg.
The increase brings Oregon in-line with other states and will allow the OLCC to
write rules to increase the purchase limits.

See Also

● Require the OLCC to study and identify rule and statute changes that would
further reduce the use of plastics by the cannabis industry and submit its findings
to the Legislature.

“These improvements will forever change the daily life of the farmer. Now producers
will be able to have complete control over extract items made exclusively from their
flower along with the ability to increase genetic diversity.” Amanda Metzler, President,
F.A.R.M.S. Inc. “Most importantly, those with multiple producer licenses will be able to
operate more efficiently by allowing producer to producer transfers.”

SB408 will go into effect on January 1, 2022, however, the OLCC and OHA may take
action before then to begin their own rulemaking in response to the provisions in the
bill. As with the crafting of the legislation, this is expected to be done in partnership with
cannabis industry leaders.

For more information, please contact:

Kim Lundin, Oregon Cannabis Association (OCA): 503-473-2991
Jesse Bontecou, Oregon Retailers of Cannabis Association (ORCA) : 503-381-7173
Amanda Metzler, F.A.R.M.S. Inc.,: 503-967-5289
Mike Getlin,Oregon Industry Progress Association (OIPA): 503-597-9795