Marijuana Residency Requirements May be On the Way Out
Thursday, February 04, 2016
{imaeg_1}As GoLocal reported last year, marijuana advocates have been working with legislators to end restrictions that require that recreational cannabis businesses in Oregon be at last 51 percent owned by a state resident. As the 2016 legislative session opens, lawmakers are proposing changes to the marijuana laws that would end the residency requirements.
Members of the marijuana retail community flooded the State House on Tuesday to discuss changes to the residency requirements, as well as other changes to marijuana regulations.
“I hope you are hearing us try to respond to concerns that we are hearing,” said Rep. Ann Lininger, D-Lake Oswego, co-chairwoman of the Joint Committee on Marijuana Legalization. “This is going to be an ongoing process that probably goes on for several years, but I hope what you’re hearing is we are making a good faith effort to meet people’s needs.”
Hurting Businesses?
One of the major items up for discussion are requirements that say Oregon marijuana businesses must be majority owned by an Oregon resident. Members of the recreational cannabis business community told GoLocal they believe the laws stymie local business.
Experts in the marijuana industry say the rule is unnecessarily restrictive and may be a social justice issue, and they are working to change it.
“I definitely think the residency requirements should be overturned,” Leah Maurer, co-chair of Portland’s Women Grow chapter, told GoLocal. “It limits the number of people that can get involved in this newly emerging industry and could really stifle some of the growth that we are hoping to see. To be honest, I even think it could be a social justice issue, because it hurts women and minorities.”
Amy Margolis, Executive Director of the Oregon Cannabis Association, told GoLocal that the OCA “strongly supports repealing all residency requirements for investors in cannabis businesses.”
"They will have the unintended effect of making it more difficult for small local businesses to attract investors,” Margolis told GoLocal. “This also increases barriers faced by Oregon businesses owned by women, people of color, and others who have traditionally had limited access to capital."
Margolis testified to the legislature regarding the residency restrictions, and told lawmakers that the restrictions should be repealed.
"Our members have always opposed residency requirements because they have the unintended effect of making it more difficult for smaller, local and family owned businesses to attract investors,” Margolis said. “Residency requirements also increase barriers faced by Oregon businesses owned by women, people of color, and others who have traditionally had limited access to capital."
Some people have concerns about repealing the restrictions, however. Morgan Fox of the Marijuana Policy Project, said that generally, residency requirements are put in place to limit business owners to local residents, rather than large companies.
“In most cases the general impetus is trying to keep business small and local,” Fox said. “States typically are wary of a big business, in state or out of state, coming in and hurting local companies.”
Maurer said that while she would like to see the residency restrictions be repealed, she is concerned that big business could look to Oregon as an untapped market.
“I’m still a big advocate of keeping the industry local and in the hands of Oregonians,” Maurer said. “Even if the restrictions are lifted or loosened I would not want to see big corporations or holding companies be able to drive up profits and squeeze out smaller businesses.”
Other Changes
There are also other changes to recreational marijuana regulations being considered. Senate Bill 1511 would allow businesses with recreational licenses to produce, process and sell medical marijuana products tax free.
Other provisions being considered include:
• Decriminalize sharing of up to one ounce of extracts and up to eight ounces of marijuana or with other household members who are 21 or older
• Determine the crime of “open container marijuana” is defined as using the drug while operating a motor vehicle or having an unsealed or partially-used container in the vehicle
• Legalize medical marijuana use for offenders on parole, probation or other conditional release programs
• Change classification of certain marijuana-related crimes. Export of marijuana would be a Class C felony if committed for the purpose of profit and otherwise, a Class A misdemeanor. Manufacturing pot within 1,000 feet of a school would be a Class B felony, while delivering to a minor, a Class C felony
• Form a task group to recommend guidelines for prescribing cannabis and to issue a report to the Legislature by January 1, 2017
• Allocate funds for a pilot program to increase awareness among students about the impacts of using pot
• Allow agreements between the states and Indian tribes to allow tribes to use state programs to sell marijuana.
Related Slideshow: 20 Things You Need to Know About Buying Pot in Oregon
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