Oregon: Final Implementation of New Additive Rules Takes Effect July 1, 2021

Final Implementation of New Rules for Inhalable Cannabinoid Products with Non-cannabis Additives starts July 1st

 

Limited Retail Sell Down to Last Through Month of June

OREGON: The July 1, 2021 deadline for “Inhalable Cannabinoid Products with Non-cannabis Additives” (“ICP”) is rapidly approaching.  Generally, ICPs are vape cartridges and pre-rolls with non-cannabis terpenes or flavorings. On and after July 1, 2021, licensees cannot possess or transfer these products unless they comply with the new rule standards.

Before July 1, 2021, licensees can sell, destroy (waste), or return to the processor any ICPs that do not comply with the new rules – but if returning to another licensee, the ICPs will still need to be wasted in compliance with OLCC rules prior to July 1, 2021.

Licensees can use the following to spot labels subject to the “sell down” (cannot be possessed or transferred on and after July 1, 2021) and what labels are not subject to the sell down:

  • Labels subject to the sell down contain product identities like “marijuana extract with non-marijuana terpenes” or “marijuana extract with natural and artificial flavors” and ingredient listings that state “natural” or “artificial flavors.” Here is an example;
  • Labels that are NOT subject to the sell down contain product identities and ingredient listings that contain the words “non-cannabis additives” and list all the ingredients in the product – either on an insert or on the exterior label. Here is an example.
  • Licensees may no longer utilize generic labels for ICPs created on and after April 1, 2021.

In December 2020, the OLCC enacted new additive rules that impact all OLCC marijuana licensees and industrial hemp certificate holders. This is only a summary of the rules and in some instances the rule requirements are generalized. This is not a substitute for reading the rules. A more detailed explanation of the requirements can be found in Compliance Bulletin CE2020-07 along with links to the rules.

There are two important dates for licensees in these rules: April 1, 2021 and July 1, 2021:

  • On and after April 1, 2021, all ICPs manufactured or processed must comply with the new rule requirements;
  • On and after April 1, 2021, all ICPs must be correctly categorized in Metrc (this includes ICPs made before April 1, 2021). Licensees with these products in their inventory must make these changes. See the Inhalable Cannabinoid Products and Metrc Tracking Guide for more information; and
  • There is a limited “sell down” period for ICPs made before April 1, 2021. Processors may transfer ICPs made before April 1, 2021 that do not comply with the new rule requirements until June 30, 2021. As of July 1, 2021 licensees cannot even possess or transfer products that do not meet the new rule requirements.

 

Questions related to the rules or labeling should be directed to marijuana.packaging@oregon.gov.

Questions related to Metrc should be directed to marijuana.cts@oregon.gov.

OLCC Approves Stipulated Settlements for Marijuana Licensees

Commissioners also approve restrictions for marijuana license applicant

OREGON: At its regular monthly meeting on May 26, 2021, the Commission approved seven stipulated settlements for violations committed by recreational marijuana licensees. The Commission also approved restrictions on the applicant for a recreational marijuana producer license.

Commissioners ratified the following violation fines and suspensions based on stipulated settlements (detailed information on specific cases can be found here on the OLCC website):   

E BLOSSOM will pay a $6,150 fine AND serve a 23-day suspension OR serve a 60-day recreational marijuana producer license suspension for three violations.

Licensee is: E Blossom, LLC; Ming Hui Bao, Member.

LF FARMS/LIVE FREE will surrender its marijuana producer license for three violations, on the date the transfer of ownership of the business is completed or on August 27, 2021, whichever is earlier.

Licensee is: LF Farms, LLC; Richard Lewman, President/Stockholder; Brian Lewman, Vice-President/Stockholder; Denise Flansburg, Secretary/Treasurer/Stockholder; Jason Flansburg, Director/Stockholder.

ARTIFACT EXTRACTS will surrender its marijuana processer license for six violations, on the date the transfer of ownership of the business is completed or on August 25, 2021, whichever is earlier.

Licensees are: IND Group, LLC; Peyton Palaio, Member; Mark Jennings, Member/Manager.

RIVER VALLEY REMEDIES in Eugene will surrender its marijuana retailer license for five violations, on the date the transfer of ownership of the business is completed or on August 25, 2021, whichever is earlier.

Licensees are: River Valley Remedies, LLC; Peyton Palaio, Member.

GENESIS PHARMS will pay a $12,045 fine OR serve a 73-day recreational marijuana wholesaler license suspension for three violations.

Licensee is: Compassionate Circles, LLC; Sean Beeman, Member; Kassy Beeman, Member.

ROGUE FARMER AT QUARTZ CREEK will pay a $8,580 fine OR serve a 52-day recreational marijuana producer license suspension for three violations.

Licensees are: Rogue Farmer at Quartz Creek, LLC; Ryan Beyerlein, Member.

THE TRAVELING MEDICINE SHOW will surrender its marijuana producer license for two violations, on the date the transfer of ownership of the business is completed or on June 30, 2021, whichever is earlier.

Licensees are: The Traveling Medicine Show, LLC; Jacqueline Bixler-Wirkkala, Member.

Commissioners also approved restrictions to a recreational marijuana producer license for the applicants of JEF FARMS. The application included two individuals who did not have a good record of compliance as recreational marijuana licensees. The license restrictions require that those two individuals not have any involvement in the operation or management of the business, not act as employees or agents of the business, and not be on the licensed premises (producer site) at any time.

OLCC Recalls Marijuana Vapes Sold Under Naked Extracts and Native Labels

Licensee failed to test its products before selling them to consumers

Products contain untested marijuana ingredients imported from California

 

OREGON:  The Oregon Liquor Control Commission is issuing an immediate health and safety recall for marijuana vaping products sold under the “Naked Extracts” and “Native” labels. An investigation and interviews with the licensees have revealed that the affected products contain marijuana-derived ingredients (terpenes) from out-of-state, and the Naked Extracts and Native marijuana products had not been tested for the presence of ingredients harmful to human health after these ingredients – untested according to Oregon standards – were added. These vaping products were then distributed into the Oregon consumer cannabis market.

An OLCC investigation discovered the licensee of Naked Extracts, LLC., has been using marijuana derived terpenes (flavorings) produced and distributed by True Blue, a California based company. The use of marijuana derived ingredients, including terpenes, sourced from non-OLCC licensed businesses is prohibited under Oregon law and OLCC rules.

The licensee also admitted to adding the marijuana terpenes to Naked Extracts and Native products after the products had been tested for potency, pesticides, and solvents. All final (consumer ready) products sold into Oregon’s regulated cannabis market are required to be tested.

In an attempt to resolve the recall aspect of this investigation, on May 6, 2021 the OLCC notified Naked Extracts, LLC of the investigation, and provided the company with the opportunity to issue a voluntary recall until the investigation is completed and the matter resolved. During the two-week period since initial notification, the licensee did not progress in its pledge to execute a complete recall. Therefore, in order to prevent additional delay and further potential harm to public health, the OLCC is issuing the mandatory recall under its authority to recall products that contain marijuana-derived ingredients from outside the licensed system.

Consumers can identify the affected products with the following information:

Naked Extracts label recallNative label recall

Consumers who have these recalled products should dispose of the products or return them to the retailer where they were purchased. The recall currently covers products manufactured between October 1, 2019, and April 20, 2021. Consumers can follow these instructions found on the OLCC Recreational Marijuana Program website to destroy marijuana on their own.

There have been no reports of illness. The possible health impact of consuming marijuana products with unapproved pesticide and/or residual solvent residues is unknown. Short and long-term health impacts may exist depending on the specific product, duration, frequency, level of exposure, and route of exposure. Consumers with concerns about their personal health should contact their physician with related questions. Consumers with questions or concerns about recalled product or pesticide residues in marijuana products are encouraged to contact the product retailer and/or the Oregon Poison Center at 800-222-1222.

 

 

OLCC Commission Modifies Cannabis License Violations

Changes reflect industry maturation, OLCC regulatory evolution

Commissioners get glimpse of cannabis equity legislation impact on agency

OREGON:  The Oregon Liquor Control Commission has taken additional action to ensure that recreational marijuana license violations better reflect the current cannabis regulatory environment compared to regulations put in place five years ago when the cannabis industry launched in Oregon. At its regular monthly meeting on April 8, 2021, the Commission also formally approved streamlining changes to processing marijuana licenses, an approach OLCC staff have already begun implementing.

In addition OLCC Commissioners learned about likely impacts affecting the agency if cannabis social equity legislation is approved by the Oregon legislature and signed into law by Governor Brown. Commissioners also approved three stipulated settlements for recreational marijuana license violations.

OLCC regulations approved in 2016, at the onset of adult-use cannabis in Oregon, aligned with guidance in the since rescinded U.S. Department of Justice Cole Memorandum, and served as appropriate guard rails for an emerging industry. The changes just approved by the Commission better reflect the regulatory oversight needed for a maturing industry.

Some of the changes assign a different category to a violation if the violation was unintentional instead of intentional. For instance, now if a surveillance camera fails licensees have more time to inform the OLCC about the problem. Another change eliminates the compounding effect of a single violation when a producer fails to notify the OLCC of a marijuana harvest; previously the OLCC assessed a separate violation each additional day the producer failed to tell regulators.

The Commission also ratified changes in the marijuana license application process designed to speed up approvals. Those changes include boosting the ownership threshold for an applicant from 10 to 20 percent, allowing more flexibility for approving business structure changes, and eliminating the pre-licensing inspection requirement prior to issuing a license.

Oregon House Bill 3112 redresses criminal and economic consequences suffered by Black, LatinX and Indigenous Oregonians related to cannabis criminalization. A member of the coalition supporting The Oregon Cannabis Equity Act outlined for Commissioners how the measure would create economic opportunity for previously disenfranchised populations by reducing regulatory costs, and establishing an equity license for individuals who have previous marijuana criminal convictions, or are from Black, LatinX or Indigenous groups.

HB 3112 would create two other license types: a delivery license and a social (on-premises) consumption license. The delivery license would allow deliveries outside the city or county of a delivery business’ location, and it would also allow delivery to a hotel, both activities that are currently prohibited.

Commissioners also ratified the following violation fines and suspensions based on stipulated settlements (detailed information on specific cases can be found here on the OLCC website):

NEBULA CANNABIS in Portland will pay a $1,155 fine OR serve a seven day recreational marijuana retailer license suspension for one violation.

Licensee is: Haramkhor, LLC; Krishna Kumar, Member.

ALTERNATIVE SOLUTIONS in Portland will pay a $5,280 fine OR serve a 32-day recreational marijuana retailer license suspension for two violations.

Licensees are: Alternative Solutions 1, Inc.; Donald VanWormer, President/Director/Stockholder; Brenda Lingle, Secretary/Director.

GRIZZILLA FARMS will surrender its marijuana producer license on the date the transfer of ownership of the business is completed or on July 30, 2021, whichever is earlier.

Licensees are: Grizzilla Farms, LLC; Mark Aguilar, Manager/Member.

Commission Starts Effort to Limit Unchecked Use of Delta-8-THC, Other Artificially-Derived Cannabinoids

Concern grows about easy access to intoxicants at neighborhood convenience stores

OREGON:  The Oregon Liquor Control Commission has initiated rule making for Delta-8-THC and other psychoactive components of hemp and marijuana that currently fall outside the adult-use cannabis market’s system of testing and labeling. At their regular monthly meeting on March 18, 2021, Commissioners expressed concern about the general availability of this unregulated intoxicating product. The Commission also approved three stipulated settlements for violations committed by OLCC recreational marijuana licensees.

Delta-8-THC has recently emerged for sale nationwide, including in the supply chain of the OLCC recreational marijuana market, as well as in unregulated brick and mortar convenience stores and internet websites. Delta-8-THC is present in marijuana, but the OLCC only regulates Delta-9-THC produced in marijuana. When consumed by humans Delta-8-THC produces an effect (“high”) similar to Delta-9-THC.

Delta-8-THC can also be created from hemp, which is regulated under the federal Farm Bill of 2018. Typically, hemp-derived Delta-8-THC is converted from CBD through a chemical process, which also produces a large proportion – as high as 30 – 50% – of unknown byproducts. Delta-8-THC created from hemp can be found in food products and sprayed on hemp flower.

Delta-8-THC isn’t addressed in Oregon statutes, isn’t included in Oregon Health Authority marijuana concentration limits, and there’s no testing for the Delta-8-THC or the by-products included in its chemical conversion. But Delta-8 products are currently widely available for purchase outside the OLCC adult-use market, even by children.

“When this was brought to my attention alarm bells went off in my head,” said Paul Rosenbaum, OLCC Commission Chair. “You have minors going into grocery stores and they understand very well what this is all about. And let me tell you, if there’s a way to find it, people will do it.”

OLCC’s proposed rule-making would only address the presence of Delta-8-THC and other artificially-derived cannabinoids in products grown, manufactured and sold in Oregon’s recreational marijuana market. But for OLCC and the Oregon Department of Agriculture to take effective action on total THC measurement and tamp down the availability of such products to minors, legislative action is required.

“We don’t have sufficient authority over total THC in Oregon,” said Steve Marks, OLCC Executive Director. “But until we get that and ability to do final product testing to help get these things into the right markets where they’re supposed to be, either in the unregulated hemp CBD market or into our market it’s going to be hard.”

Marks observed that all states are facing the issue of how to regulate Delta-8-THC, but that Oregon is at the forefront in addressing it. Regulatory gaps do remain surrounding the broader issue of intoxicating hemp cannabinoid products in the general marketplace that can be legally sold to minors, and who should be responsible for regulating those products.

“Unregulated hemp has no final product testing,” said Marks. “They only test for Delta-9 in the field. You can’t regulate what you don’t test for. We’re talking about two species of the same plant. And that means that federal and state regulators need to harmonize their oversight of this plant, and work towards across-the-board testing of marijuana and hemp products designed for human consumption before they enter the marketplace.”

The House General Government Committee of the Oregon Legislature is expected to take up the Delta-8-THC issue at a public hearing on Thursday, March 25, where it could consider legislation ensuring that all intoxicating THC products, properly tested and labeled, are sold within the OLCC regulated system and also ban the sale of currently non-regulated Delta-8-THC products to minors under age 21.

The Commission also ratified the following violation fines and suspensions based on stipulated settlements (detailed information on specific cases can be found here on the OLCC website):

STONEY ONLY PORTLAND will surrender its recreational marijuana retailer licenseon the date the sale/transfer of the business is completed, or by 12:00 PM on June 16, 2021, whichever is earlier for two violations.

Licensee is: Stoney Only Portland, LLC; Joseph Babb, Member; Ragna TenEyck, Member; Michael Mullins, Member.

HERB N’ SPRAWL will pay a $4,950 fine and serve a two-day recreational marijuana producer license suspension OR serve a 32-day license suspension for one violation.

Licensees are: Prairie Song Organics, LLC; Yotokko Kilpatrick, Member; Rick Saga, Member.

DEEP ROOTS CANNABIS in Springfield will pay a fine of $3,465  OR serve a 21-day recreational marijuana wholesaler license suspension for one violation.

Licensees are: Premier Concepts, LLC; Mary Jane Wilson, Member; Susie Polen, Member; Braden Smith, Manager.

OLCC Notice of Public Hearing

Marijuana Licensing Streamlining

March 15, 2021 @ 1:00 pm

 

Presiding Officer:   Madeline Kane

Phone: 503-872-5081

Email: olcc.rulemaking@oregon.gov

 

To listen to or participate in this Public Hearing, please call: 1 (872) 240-
3311 and enter access code: 230-296-829#

Notice of Proposed Rule-making, including Statement of Need and Fiscal Impact

 

OREGON: OLCC has been inundated with applications for marijuana licenses. The growth of the industry and applicants willing to enter the market has overtaxed the agency’s resources for processing new applications and renewals of current licenses. This has created a queue that has impacted both new applicants and current licensees. For applicants, this has resulted in lengthier timeframes to be assigned which results in an increased financial burden to maintain property while waiting to operate a business. For current licensees, this impact delays their ability to adapt their business needs to industry change which results in a financial burden and in keeping pace with the burgeoning industry. Currently there are approximately 900 applications either being processed or waiting to be assigned.

 

The proposed changes address marijuana licensing process issues. This will provide relief for both licensees and OLCC resources so that OLCC will be able to integrate a more efficient process.

In order to offer oral comment, please email: OLCC.rulemaking@oregon.gov, no later than 12:00 pm on Monday, March 15, 2021. The hearing will end at 1:30 pm, if no interested parties have emailed to offer comment by 12:00 pm that morning; or 5 minutes after the last oral comment has been recorded into the record.

All written comments must be received by 5:00 p.m. on Monday, March 22, 2021.

 

New Additive Rules Take Effect April 1, 2021

New Rules Provide Opportunity for Limited Product Sell Down

Updated Compliance Information:

Labeling Example, Metrc Guide

OREGON:  The OLCC is providing additional information regarding the implementation of and compliance with new additive rules. The rules, enacted in December 2020, impact all OLCC marijuana licensees and industrial hemp certificate holders. The first of these rules takes effect April 1, 2021. A more detailed explanation of the requirements can be found in Compliance Bulletin CE2020-07 along with links to the rules.

These rules apply to “Inhalable Cannabinoid Products with Non-cannabis Additives” (“ICP”). Generally speaking, ICPs are cannabinoid products that are meant for human inhalation and have been combined with non-cannabis ingredients like non-cannabis terpenes or flavorings. The most common example is a vape cartridge with flavorings. See the definitions in 845-025-1015(44) and (64).

There are two important dates for licensees in these rules: April 1, 2021 and July 1, 2021:

  • On and after April 1, 2021, all ICPs manufactured or processed must comply with the new rule requirements.
  • On and after April 1, 2021, all ICPs (including those made before April 1, 2021) must be correctly categorized in Metrc and, in the case of items held by processors, have their ingredients properly recorded in Metrc. (See 845-025-3270 for the requirements regarding categorization and ingredient tracking.)

Licensees with these products in their inventory must make these changes by April 1, 2021. Licensees are able to create the requisite item category in Metrc; an upcoming system enhancement in Metrc will provide the functionality for entry of ingredient tracking by processors. See this Metrc guide for more information.

  • There is a limited “sell down” period for ICPs made before April 1, 2021. Processors may transfer ICPs made before April 1, 2021 that do not comply with the new rule requirements until June 30, 2021. As of July 1, 2021 licensees can neither transfer nor possess products that do not meet the new rule requirements. See Compliance Bulletin CE2020-07 for more detail.

There are required labeling changes:

  • All labels for ICPs created on and after April 1, 2021 must have labels that are compliant with the new rules (and meet the other applicable rule requirements);
  • The product identity must contain the words “non-cannabis additive”;
  • All ingredients in the product must be listed either on the label or an insert accompanying the label. The ingredient listing must also contain the words “non-cannabis additive.” An example of a new label can be found here and an example of an old label can be found here;
  • Licensees must submit “manufacturer documentation” that adheres to the requirements of 845-025-3265(1) and “Non-cannabis Additive Documentation” as part of their label submissions; and
  • Licensees may no longer utilize generic labels for ICPs created on and after April 1, 2021.

Questions related to the rules or labeling should be directed to marijuana.packaging@oregon.gov.

Questions related to Metrc should be directed to marijuana.cts@oregon.gov.

 

 

OLCC Notice of Public Hearing: Marijuana Violation Reclassification Package

Notice of Proposed Rulemaking, including Statement of Need and Fiscal Impact

As the Recreational Marijuana program has grown and evolved, the Commission has endeavored to balance the needs and interests of licensees with public health and safety. The OLCC is committed to working with and educating licensees on compliance matters. The amendments in this package are a revision to the way compliance actions are administered. These permanent rules reclassify violations to better reflect the public health and safety risks, streamline processes for licensees and OLCC staff, and clarify consequences for failure to comply with particular rules.

 

March 16, 2021 @ 2:30 pm

Presiding Officer:   Madeline Kane

Phone: 503-872-5081

Email: olcc.rulemaking@oregon.gov

All written comments must be received by 5:00 p.m. on Monday, March 22, 2021.

To listen to or participate in this Public Hearing, please call: 1 (786) 535-3211 and enter access code: 162-462-581#

 

 

Guidance For OLCC Marijuana Licensees Impacted By Natural Disasters (Power Outages & Ice)

OREGON: Natural disasters throughout Oregon can affect us in a moment’s notice. Business owners should be aware of potential disasters and plan ahead. If you have lost power due to the recent storms, this message is to provide guidance on how to record and notify the OLCC of your situation.

It is important to remember your safety and the safety of others is the first and foremost importance.

Notification Requirements: Recording Sales & Transfers

Notification: Once you are able to connect to the internet, email the OLCC at marijuana@oregon.gov with the following information:

  • License number, outage times, address of your licensed premises so we are aware of the situation, and can track the regional impact.
  • For camera outages, please complete this form.

Sales: please keep a detailed log of all sales/transfers as required by 845-025-7500 (8) Seed-To-Sale Tracking — CTS Requirements so that you can update your CTS account once you have regained power.

Transfers: If you transferred product (refrigerated items) to another licensee, do not request it to be transferred back until your buildings and cameras are operational, and your licensed premises can function according to OLCC rules.

  • For example, if you are a producer planning to transfer product to another licensee, make sure you know how your product will be separated from the other licensee(s) and the care it will receive. It also may be helpful to have any terms or agreements in place prior to the actual emergency evacuation.

OLCC Rules Advisory Committee Meeting February 12, 2021

Marijuana Violation Reclassification Rules Package

OREGON: This past fall the Commission initiated permanent rulemaking to revise the way compliance actions are administered. The proposed amendments in this package clarify and reclassify current violation categories. The Commission’s proposed rule language that will be discussed can be found here:

Due to the outbreak of COVID-19, we are holding Rules Advisory Committee meetings virtually. Please note that invited committee members and OLCC are the only persons allowed to participate in the discussion. Please be respectful and mute your phone.

To listen to the meeting, use the call-in information below:

Date and Time:       9:00 am – 12:00 pm, Friday, February 12, 2021

Location:                 Virtual

To listen to the meeting, dial: 1 (571) 317-3112; Access Code: 886-457-709