Two Months After Marijuana Legalization, More Changes on Way

Friday, September 04, 2015

Brendan Murray, GoLocalPDX Contributor

It's just been over two months since marijuana legalization went into effect in Oregon. Those involved in cannabis in the state told GoLocalPDX that while plenty has changed in the state in the past 60 days, there are lots of changes to prepare for in the coming weeks.

The next date that many in the cannabis community have circled on their calendars is October 1. That's when already licensed medical marijuana stores will be allowed to sell to recreational patientsLeah Maurer, co-President of Portland’s Women Grow chapter, told GoLocal she thinks it will mean big things for those trying to make a living off the now-legal plant.

“For the industry it's going to be huge,” she said. “It's a good opportunity for the general public to really step into dispensary and see what they’re like, and understand that these are legit business-people running them. They're not not that different from them or their family.”

Mark Pettinger, spokesman for the Oregon Liquor Control Commission, which is in charge of marijuana regulations in the state, said the Commission was busy drafting up rules for the manufacture, sale and purchase of cannabis in the state.

“The OLCC has continued to focus on the rules making process for marijuana,” he said, pointing out that marijuana in the state is essentially a brand new product, meaning there is much to be learned about it.

“The Rules Advisory Committee is working in subcommittees on a number of issues,” related to marijuana regulation, he said, including looking at rules surrounding processing, selling and packing of marijuana. “We are utilizing the expertise of those in the industry and other stakeholders to form these rules.”

Preparing for Sale

Maurer said she thinks it is an exciting time to be in Oregon and to be in the cannabis community.

“It's really refreshing being able to posses cannabis on your person...or in your home, it's a great thing,” Maurer said.

She also said she was pleased to see marijuana become more socially acceptable. .

“It's really going to be a game changer for a lot of people,” she said. “People can walk into the grocery store and buy their groceries, then walk down a few blocks and walk into a dispensary...They can know what the potency levels are, where it was grown, and really understand what they're consuming.”

Pettinger, of the OLCC, said that when medical marijuana dispensaries do open their doors to recreational customers, it will be important to note that the OLCC will not be in control.

“This being a new industry and a new product available to consumers, there is going to be some overlap in what the Oregon Health Authority will regulate and what the OLCC will ultimately regulate,” he said. “For early sales, the Oregon Health Authority will be in control, not the OLCC.”

The OHA has already set rules for the early sell period that kicks off next month. Dispensaries will only be able to sell a quarter-ounce of cannabis at one time, and there will be a 25 percent tax on any purchases.

Rules, Registration on the Way

Pettinger said the regulations that the RAC comes up with will regulate almost every aspect of the industry.

“These are the rules for how your going to operate as a legal business,” he said.

The target date for completion is sometime in October of this year. At that point, the rules will be adopted on a temporary basis, allowing regulators to see what needs fixing before they are permanently adopted.

“The rules will be adopted permanently sometime later in 2016,” he said. “This allows time to make adjustments, and also allows time for the Legislature to weigh in.”

The OLCC is also working on an on-line registration system, which Pettinger said should be done in early January.

“We're continuing to work on an online registration system, where potential licensees can apply for one of the six licenses online,” he said.

Those who wish to be involved in the cannabis industry in Oregon will need to apply for a license as a grower, processor, wholesaler, retailer, researcher or laboratory. Pettinger said that those with plans for large-scale marijuana business will be allowed to apply for multiple licenses.

Related Slideshow: Ten Things to Know About Marijuana Legalization in Oregon

Here are ten things you need to know now that pot is legal in Oregon.

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1) Drug testing will continue

Despite marijuana being as legally permissible as a pint of beer, many of the largest employers of Oregonians will continue to include marijuana in their employee drug screens.

Fred Meyer, one of the largest employers across the state, said the company plans to continue drug testing its Oregon employees regardless of the new law.

Melinda Merrill, Fred Meyer communications director, said the company employs truck drivers, heavy equipment operators and other positions that require drug screening.

“We have to make our employees safe,” Merrill said.

Companies that employ heavy equipment operators are required to buy insurance. Companies that employ workers who operate machinery while simultaneously employing workers who do not are sometimes offered a lower monthly deductible if they test all of their employees across the board, as opposed to only testing a portion.

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2) Your neighborhood dealer may be able to stay in business

The average price for marijuana in Oregon is among the lowest in the nation at sightly over $9 per gram, according to data collected by priceofweed.com.

The economy for recreational pot in Washington failed to gain the footing that was expected by some experts. The notion of Seattle being crowned as the new Amsterdam went up in smoke after consumers saw how the state’s taxes increased the price of marijuana - three joints can run a Washington customer $75, while a gram of the plant’s dried flowers cost around $30.

While the taxation in Oregon isn’t expected to bump prices that high, customers who have grown accustomed to the state’s high quality, low-price buds and hash oils may turn their noses up at even the slightest increase.

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3) Taxes on pot will be different than Washington and Colorado laws

Marijuana sold from licensed vendors in Oregon will carry taxes of $35 per ounce on marijuana flowers, $10 per ounce on all marijuana leaves and trimmings and a $5 tax on all immature plants or clones. The tax rates will be reevaluated every two years and adjusted for inflation. The revenue will be allocated to support government services - 40 percent will support public schools, 20 percent will support law enforcement, 20 percent will support mental health and 5 percent will support the Oregon Health Authority.

State-licensed vendors may still face obstacles, however, when it comes to their federal income taxes. Internal Revenue Section code 280E denies any tax deductions and credits for businesses that traffic any controlled substances that are prohibited under federal law.

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4) You can’t smoke up wherever you please

The law stipulates that use of marijuana, including injection, ingestion and inhalation of the drug is prohibited in public places. In other words, you won't constanty be seeing (or smelling) people lining sidewalks lighting up a joint.

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5) There are also restrictions on growing

No one is permitted to have more than four marijuana plants at a time - considerably less than the 12 plants that Washington residents are allowed to grow. The law also restricts plants being grown in public view.

Sorry, window-sill gardeners.

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6) Marijuana DUIs may be addressed in future legislation

Unlike the Washington law, which included attached regulations concerning driving impairment, Oregon’s law has more room for interpretation.

Driving under the influence of marijuana is classified as a class b traffic violation, which carries a presumptive fine of $260 and is not to exceed maximum fine of $2,000. The Oregon Liquor Control Commission has been tasked with researching the subject of drugged driving and presenting its finding to the Oregon Legislative Assembly no later than January 2017.

After reviewing the OLCC report, the state legislative assembly will decide whether passing more extensive driving regulations will be necessary.

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7) Legalization won't take effect until summer.

Anyone over 21 will be allowed to possess small amounts of marijuana for their personal use from July 1, 2015.

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8) Crossing the Columbia River with a state-licensed spliff will catch you a felony

Although marijuana is simultaneously legal in Oregon and Washington, it's illegal to transfer the drug between the two states.

Measure 91 is only applicable to Oregon and marijuana remains illegal under federal law. Even with a physician’s subscription, marijuana is classified as a Schedule I controlled substance - meaning that anyone transporting it across state lines is prosecutable by federal agencies.

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9) Legalization could mean big money for financial service startups

It’s not just the vendors whose businesses will grow under legalization - companies like Greenpay are expected to expand rapidly once the new legal market gets its footing. Greenpay would allow consumers to instantly purchase marijuana using their smartphones.

Greenpay is a wholly-owned subsidiary of MyEcheck - a publicly traded company whose shares typically trade for less than ten cents on the New York Stock Exchange. With legalization efforts gaining momentum around the country, companies providing auxiliary services for the marijuana industry may create an economic boom.