Who's Really Taking the Initiative?
Spring is here! and with it some fun in the sun, a 4/20 Easter, and fresh ballot initiatives. Ballot initiatives? That's right, ballot initiatives!
Having been put to shame in the last legislative cycle by both our neighbor to the North and self-titled upstart 'Bongistan' to the East, the cannabis community in Oregon is now eager to show all the other states what progressive marijuana reform really looks like. While it may seem strange that signature gatherers are already out in force for this, remember: in Oregon, a bi-polar state whose cannabis use has historically outpaced the national average by about 40%, everything is politics.
Many of us, in our quest to see full legalization happen in our lifetime, are eager to support legislation that will realize this, "...and damn the cost!" some say. But with multiple ballot measures competing for the same voter demographic the situation can become complicated. For a good example of this just look at California's recent ballot initiative debacle from 2012. None of those measures could come to fruition due to the others, and California continues to be a patchwork of municipal and county regulations.
If you aren't already clear on the details of what's happening this fall, let us bring you up to speed; two Adult-Use legalization initiatives are trying to make their way onto the State ballot this November: notably Initiatives 21 & 22 (The Oregon Cannabis Tax Act) (OCTA), promoted by Paul Stanford of The Cannabis and Hemp Foundation (an effort which Oregon voters previously rejected in 2012 at 43% of the vote); also, the Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act (CRTMIHA) coming from New Approach Oregon's Anthony Johnson.
In an initial comparison of the basic details: the CRTMIHA is 34 pages long, with 86 sections of new regulation amending existing drug laws to exempt marijuana, and designates the Oregon Liquor Control Commission (OLCC) as the agency to tax and regulate marijuana production and sales; the OCTA is 4 pages long, creates a new Oregon Revised Statutes chapter (ORS 474), outlining the responsibilities of a newly-created Oregon Cannabis Commission as the agency to tax and regulate cannabis cultivation and sales. Both include provisions for Industrial Hemp. Neither affect the Oregon Medical Marijuana Act (OMMA).
There is simply too much text to sufficiently examine the CRTMIHA in a single blog post, so instead we will look at those aspects which most differentiate it from the OCTA.
State Sales vs. Private Sales
Anyone who can drink alcohol in the State of Oregon is aware of the OLCC, who, in addition to putting the fear of God into lenient bartenders and convenience store clerks everywhere, sell all their products to contracted liquor stores at a set price. So while the OLCC has decades of regulatory experience, we have to question the wisdom of CRTMIHA assigning this task to them. The alcohol and cannabis markets may have some similarities, but we are very different industries with very different needs! We believe the OCTA approach of a new Commission (to be chosen by the Governor), hopefully made up of responsible industry leaders, would better serve our industry.
Vertical Integration vs. Corporate Cannabis
The fear of many Oregonians in the cannabis community is "the Marlboro-ization of Marijuana," and this is a legitimate concern. Small-scale "Mom & Pop Shop" grow operations are the norm here in Oregon, who much like their Emerald Triangle counterparts are not equipped politically or financially to maintain their place in the coming "green rush." So while the OCTA allows "the cultivation and possession of up to 24 cannabis plants and 24 ounces for personal, non-commercial use" (ORS 474.065(3)), The CRTMIHA calls for the OLCC to process 4 separate types of license: Production, Processor, Wholesale, and Retail (Sections 19-22), and limits private grows to 4 marijuana plants and 8 ounces of personal possession. Furthermore, Section 24 of the CRTMIHA states that a person may hold one or more licenses in any category. It is clear to see that the OCTA promotes vertical integration for homegrown cannabis while the CRTMIHA will create barriers of entry for existing growers, while simultaneously opening the door for out-of-state corporate interests.
The Future of Concentrates
Section 6 of the CRTMIHA sets the allowable "non-commercial" amounts for the "making, processing, keeping, and storage, of homemade marijuana products" at: (a) 8oz of flower, (b) 16oz of Solid, and (c) 72oz of liquid. These weight amounts defy logic (i.e. many concentrates come in liquid form) so we appealed to the Definitions for clarification ...which gave none. Section 57 of the CRTMIHA, copied here in full, goes even further: "Homemade marijuana extracts prohibited. No person may produce, process, keep, or store homemade marijuana extracts." Again we searched Definitions for language to differentiate "extract" from "concentrate" and found none. Our conclusion? With cannabis extract and concentrate products on the rise in both the medical and recreational markets, the CRTMIHA does not appear to be well-structured as a forward-thinking policy.
"Is Not of Good Repute or Moral Character"
The last point we will take up today is Section 29 in the CRTMIHA which covers under what grounds the OLCC can refuse to issue a license. While many of the stated reasons are perfectly reasonable a few stand out as being potentially difficult to qualify, let alone quantify. For example: Section 29 (b)(B) "is in the habit of using alcoholic beverages [...] to excess;" Section 29 (b)(E) "has maintained an insanitary establishment;" Section 29 (b)(F) "is not of good repute or moral character;" Section 29 (b)(I) Is not possessed of or has not demonstrated financial responsibility sufficient to adequately meet the requirements of the business proposed to be licensed." These all seem like good points to consider when describing what sort of person you don't want dating your daughter, but writing into law that an agency can deny license to a person solely based on its interpretation of that individual's moral character or financial solvency is simply too much.
We here at Oregon Growers Analytical are big supporters of vertical integration for the 'boutique' grower and concentrate producer. We want to see local businesses succeed in building a respectable brand that contributes to the quality of our industry. In any emerging market there are always shady agendas and unscrupulous operators playing the field, so as the petitions start flying this Summer please strive to educate yourself about what you are signing and more importantly what you intend to vote on. Not all Initiatives are created equal, and the devil is definitely in the details.