• Mr. Sessions Goes to Oregon
    Will the (former) Senator yield?The Oregonian, Willamette Week, and KGW, to name a few, are reporting that US Attorney General Jeffrey Sessions is visiting Portland today to meet with federal and local law enforcement. These reports suggest Mr. Sessions is in town primarily to discuss immigration, sanctuary cities, and his unconscionable position on the Deferred Action for Childhood Arrivals program (“DACA”). Given the recent exchange of letters between Oregon Governor Brown and the Attorney General, it seems likely Mr. Sessions has also come to Oregon to discuss and criticize Oregon’s medical and recreational cannabis programs. We’ve recently discussed how this exchange of letters demonstrates how Oregon sits uncomfortably within Mr. Sessions’ crosshairs. Governor Brown eviscerated Mr. Sessions’ reliance on a leaked, incomplete, and misleading draft of a report prepared by the Oregon State Police on cannabis in Oregon. Our money says Mr. Sessions is also here on a fact-finding mission, to see if he can drum up some better (or any?) sources for his claims that Oregon has so far failed to comply with Cole Memorandum guidelines. Anyone in the cannabis industry here in Oregon knows Oregon treats these guidelines with the utmost respect and importance. Heck, if they didn’t, our Oregon cannabis business lawyers would not all be putting in 12 hour days! The Governor, the legislature, and Oregon’s relevant regulatory agencies, including the Oregon Liquor Control Commission and Oregon Health Authority, have been working tirelessly to improve their policies and procedures to ensure that Oregon’s recreational and medical cannabis programs protect public safety and prevent illegal activity. Hopefully, Mr. Sessions’ visit will change his heart, but I wouldn’t count on it.         ... read more
    Source: Canna Law Blog – OregonPublished on 2017-09-19
  • Oregon’s marijuana regulatory agency faces state audit
    The Oregon Secretary of State plans to audit the state’s recreational marijuana regulatory agency and how the program enforces cannabis rules. According to The Oregonian, the audit announcement precedes a Tuesday visit to Oregon by U.S. Attorney General Jeff Sessions, who wrote to Gov. Kate Brown this summer expressing concerns that the state has been unsuccessful in slowing the state’s black market. The Oregon Liquor Control Commission (OLCC) – which manages the state’s recreational marijuana program – also was audited earlier this year by an outside group, The Oregonian reported. The independent audit concluded that ... Oregon’s marijuana regulatory agency faces state audit is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs ... read more
    Source: MMJ Business DailyPublished on 2017-09-19
  • No Bankruptcy, No Problem? Receivership and Cannabis.
    Receiver time?Back in 2014, we wrote that bankruptcy is not an option for marijuana businesses. That issue has been litigated here and there since then, but as of today, cannabis businesses are no better off than before. The hard reality is this: all bankruptcy cases are handled in federal courts under rules outlined in the U.S. Bankruptcy Code. Those courts have held that it would be impossible for a U.S. Trustee to control and administer a debtor’s assets (cannabis) without violating the federal Controlled Substances Act. Bankruptcy laws are designed to afford a fresh start to honest but unfortunate debtors, while providing equal treatment to creditors. Without recourse to bankruptcy, parties can only: (1) liquidate without court supervision, or (2) explore state court receivership. Liquidating without court supervision offers no protection to creditors. State court receivership does afford protections, but it is complex because states closely regulate who is allowed to possess and sell marijuana (through licenses). For a while, it was an open question as to whether a state court receivership would actually work in the cannabis context. Recently, one actually did. In the case at issue, a landlord (creditor) had leased space to a licensed marijuana business tenant (debtor). The tenant failed to pay rent, and the landlord evicted the tenant and acquired a judgment for unpaid rent. Because RCW 7.60.010 et seq. provides that a Washington state court may appoint a receiver over a marijuana business, the landlord convinced the court to issue an order appointing a receiver to sell the tenant’s cannabis and satisfy the judgment. The landlord then successfully navigated the licensure issue with the Washington State Liquor and Cannabis Board, sold the pot, and collected on its judgment. Washington is not the only pro-cannabis state with statutes and administrative rules that seek to bridge the bankruptcy gap by allowing creditors to seize and sell cannabis. In Oregon, OAR 845-025-1260 provides “Standards for Authority to Operate a Licensed Business as a Trustee, a Receiver, a Personal Representative or a Secured Party.” Have our cannabis lawyers assisted numerous clients in acquiring and perfecting security interests in the assets of marijuana businesses in Oregon and Washington? You bet. Will California adopt a similar rule? Almost certainly. One of the reasons creditors get such high rates of interest for loans to cannabis businesses—in addition to the fact that banks won’t lend to them—is because many pot businesses lack lienable collateral. For many of them, the net worth of the business is mostly tied up in the cannabis itself. ... read more
    Source: Canna Law Blog – OregonPublished on 2017-09-19
  • More Summer Events and Dispensary Stops: Walking with Redhat Ralph
    More summer events and dispensary stops in Week 16 with RedHat Ralph…. This week includes serving Root Beer at the Oregon Brewers Festival, the Canna Closet Oregon launch, and The Summer Fair 2.  Here is how I walked 22.6 miles from Sunday July 23 through Saturday, July 29. Sunday, 7/23/17, 0.2 miles. Today it will [...] The post More Summer Events and Dispensary Stops: Walking with Redhat Ralph appeared first on The Weed Blog. ... read more
    Source: The Weed BlogPublished on 2017-09-15
  • The Many Reasons Cannabis is a Medicine Worth Legalizing
    28 states in the United States, as well as many other countries around the world, have legalized medical marijuana – with some even legalizing the recreational use of marijuana. Canada, under the Liberal Government, recently proposed a bill legalizing not only medical marijuana, but also recreational marijuana.  There are many reasons why cannabis is a [...] The post The Many Reasons Cannabis is a Medicine Worth Legalizing appeared first on The Weed Blog. ... read more
    Source: The Weed BlogPublished on 2017-09-15
  • Oregon Implements Universal Pesticide Testing for Cannabis
    At the beginning of this month, Oregon implemented a critical change to its cannabis pesticide testing regulations: As of August 30, 2017, every batch of cannabis produced in Oregon must be tested for pesticides prior to transfer or sale. This simply wasn’t possible a year ago, when the Oregon Liquor Control Commission (“OLCC”) issued a finding that there were not enough accredited labs available to allow for universal pesticide testing. As a stop-gap measure, the OLCC limited testing to one-third of all batches from each harvest. According to the OLCC, the situation on the ground has changed substantially. There are now twice as many accredited labs and the Oregon Health Authority (“OHA”) has recently increased testing batch sizes. The net result is that the OLCC believes there is now capacity to ensure universal pesticide testing. We’ve written quite a bit about how Oregon is slowly shifting responsibility for medical cannabis from the OHA to the OLCC, but product testing remains an outlier. The OHA retains responsibility for issuing cannabis testing rules for both the medical and recreational program, and has issued some of the strictest pesticide testing requirements in the nation. With this recent change, all Oregon cannabis, recreational and medical, will be tested for pesticide contamination prior to transfer to retailers and processors, and ultimately to the consumers.   ... read more
    Source: Canna Law Blog – OregonPublished on 2017-09-14
  • Oregon Implements Universal Pesticide Testing
    At the beginning of this month, Oregon implemented a critical change to its cannabis pesticide testing regulations: As of August 30, 2017, every batch of cannabis produced in Oregon must be tested for pesticides prior to transfer or sale. This simply wasn’t possible a year ago, when the Oregon Liquor Control Commission (“OLCC”) issued a finding that there were not enough accredited labs available to allow for universal pesticide testing. As a stop-gap measure, the OLCC limited testing to one-third of all batches from each harvest. According to the OLCC, the situation on the ground has changed substantially. There are now twice as many accredited labs and the Oregon Health Authority (“OHA”) has recently increased testing batch sizes. The net result is that the OLCC believes there is now capacity to ensure universal pesticide testing. We’ve written quite a bit about how Oregon is slowly shifting responsibility for medical cannabis from the OHA to the OLCC, but product testing remains an outlier. The OHA retains responsibility for issuing cannabis testing rules for both the medical and recreational program, and has issued some of the strictest pesticide testing requirements in the nation. With this recent change, all Oregon cannabis, recreational and medical, will be tested for pesticide contamination prior to transfer to retailers and processors, and ultimately to the consumers.   ... read more
    Source: Canna Law Blog – OregonPublished on 2017-09-14
  • 7 Diseases Medical Marijuana Can Treat
    Even though marijuana is approved for medical use in nearly 60% of U.S. states, there’s still somewhat of a stigma attached. However, doctors and patients agree that marijuana can be medically beneficial to many people.  Here, we will explain 7 diseases that medical marijuana can treat.   A 2013 New England Journal of Medicine study [...] The post 7 Diseases Medical Marijuana Can Treat appeared first on The Weed Blog. ... read more
    Source: The Weed BlogPublished on 2017-09-11
  • Oregon Medical Marijuana: Tracking Begins December 1st
    We recently mentioned that the Oregon Health Authority would soon offer guidance on seed-to-sale tracking requirements for medical cannabis. Last week, the Oregon Health Authority (OHA) did exactly that, with its Medical Marijuana Information Bulletin 2017-07. The Bulletin comes pursuant to Senate Bill 1057, the most significant pot bill of the recent Oregon legislative session. In our recap of that bill, we ended with our oft-repeated observation that “the OHA regime will soon recede to strictly limited, patient-caregiver relationships. The money there is gone.” So, this is a public service post for anyone out there growing marijuana in the OHA system with the goal of helping patients and not getting rich. As a reminder, the goal with SB 1057 and tracking medical marijuana in Oregon is to limit diversion and black market activity. To accomplish this, SB 1057 gave the following parameters for tracking: Required marijuana produced and transferred within OHA’s Oregon Medical Marijuana Program (OMMP) system to be tracked by the OLCC tracking system. (The OLCC oversees non-medical, adult use marijuana.) Specified funding for the tracking system to be paid from the Oregon Marijuana Account prior to any other distribution. Required OHA to impose an additional fee on marijuana grow sites, processing sites, and dispensaries to pay costs incurred by the tracking system. Specified timelines for tracking system phase in. As provided in last week’s OHA Bulletin, December 1, 2017, has been chosen as Oregon’s tracking system phase in date. On or before that date, OMMP registrants will be required to track the production, processing and transfer of all marijuana items in the OLCC’s Cannabis Tracking System (CTS), and pay an associated fee of $480. The alternative is to apply for an OLCC license prior to January 1, 2018, or to indicate that the registrant falls under an exemption. The exemption is narrow: it occurs only where a registrant is a patient growing for him- or herself, with a ceiling of 12 mature plants and 24 immature plants. Did we mention it would be impossible to make any money in the OHA system going forward? It is. Going forward, the only marijuana sold at retail to medical cardholders will be at OLCC licensed dispensaries, tracked in CTS. In that sense, the December 1 deadline should come as a surprise to no one: SB 1057 has been on the books since May, and OHA licensed dispensaries had become vanishingly rare before that. If any OHA licensed dispensaries still exist after December, they will likely be vestigial to sparsely populated eastern Oregon counties, ... read more
    Source: Canna Law Blog – OregonPublished on 2017-09-10
  • A New ACLU Campaign for District Attorney Accountability has Some DA’s Upset
      ACLU Campaign for District Attorney Accountability The American Civil Liberties Union (ACLU) has typically been supportive of marijuana law reform efforts.  After all, there is no denying the way that cannabis prohibition has negatively affected minorities and their families. Well, the ACLU of Oregon launched a new district attorney (DA) accountability campaign to teach people [...] The post A New ACLU Campaign for District Attorney Accountability has Some DA’s Upset appeared first on The Weed Blog. ... read more
    Source: The Weed BlogPublished on 2017-09-07
  • Medical Marijuana Laws in Popular Counties of California
    Medical Marijuana Laws in Popular Counties of California   The rush is on for the 1st of January 2018. On this date, all marijuana rules have to be in place. If they are not, then those who fall short will be liable as they would be in violation of State and Federal law. Last November, [...] The post Medical Marijuana Laws in Popular Counties of California appeared first on The Weed Blog. ... read more
    Source: The Weed BlogPublished on 2017-09-07
  • Oregon Governor Kate Brown fires back at Attorney General Jeff Sessions
    Oregon Governor Kate Brown fights for cannabisAs we have discussed elsewhere, US Attorney General Jeff Sessions has been sending out intimidating letters to the Governors of cannabis-friendly states. In his letter to Oregon Governor Kate Brown, Mr. Sessions focused significant attention on a recent draft report created by the Oregon State Police that raised concerns about Oregon’s success in complying with the Cole Memorandum guidelines. Fortunately, Governor Brown is having none of it. In her August 22, 2017 response, Governor Brown meets Mr. Sessions head on with a simple message: “It is important to understand that this draft report does not (and frankly does not purport to), reflect the ‘on the ground’ reality in Oregon in 2017. This document was originally meant to provide a baseline understanding of the state of things related to marijuana in Oregon prior to legalization. Of course, such a baseline provides little insight into the effectiveness of Oregon’s post-legalization regulatory measures aimed at Cole Memorandum compliance.” Governor Brown then notes that the leaked draft report was not ready for primetime and “required significant additional work and revision, because the data was inaccurate and the heavily extrapolated conclusions were incorrect.” In particular Governor Brown notes that the draft report relies on “an assortment of random blog and newspaper articles that should hardly form the basis of informed policy discussion.” (you wound me Governor!) In other words, Mr. Sessions, your sourcing is bad and you should feel bad. After thoroughly dismantling the Attorney General’s assumptions, Governor Brown outlines Oregon’s recent legislative efforts to ensure Oregon is at the forefront of common-sense cannabis regulation: Oregon has already implemented seed to sale tracking for all recreational cannabis, and on May 30, 2017 Oregon Senate Bill 1057 expanded the seed to sale tracking to the medical regime as well. On August 21, 2017 Oregon Senate Bill 302 expanded criminal penalties for cannabis crimes, and “makes it easier to prosecute the unlawful imports and export of marijuana products, a provision specifically aimed at stopping diversion of marijuana across Oregon’s borders.” Oregon already has the “most robust resting regime of any state to legalize marijuana.” Governor Brown finishes her letter to Sessions by explaining that she is “confident that Oregon’s regulated marketplace, coupled with our enforcement work, will serve to ensure compliance with the Cole Memorandum” and by inviting further dialogue with the Attorney General and the Department of Justice. Your move Mr. Sessions. ... read more
    Source: Canna Law Blog – OregonPublished on 2017-09-07
  • Cannabis Season Week 15: More Pot Shop Touring in Portland
      Cannabis Season – Week 15   I will be continuing my Dispensary Tour north and east of the Willamette River.  Here is how I walked 42.4 miles from Sunday July 16 through Saturday, July 22.  This is after the most recent update to the prosthetic in my right shoe, and is definitely more like [...] The post Cannabis Season Week 15: More Pot Shop Touring in Portland appeared first on The Weed Blog. ... read more
    Source: The Weed BlogPublished on 2017-09-06
  • Will Prohibition Return to Legalized States?
    Will Prohibition Return to Legalized States? In addition to the barrage of questions that customers ask regarding the effects of indicas, sativas and hybrids that I get as a budtender, there is another question that comes up a great deal when people come visit me at the bud bar. Yes, we have the damn gummies [...] The post Will Prohibition Return to Legalized States? appeared first on The Weed Blog. ... read more
    Source: The Weed BlogPublished on 2017-09-06
  • Oregon Cannabis Companies Take Note: Noncompetition Provisions May Become a Thing of the Past
    Our Oregon cannabis lawyers are often asked to include noncompetition provisions in employment agreements to ensure our cannabis clients don’t lose top talent to their competition. In many states, such as California, noncompetition provisions are flat out prohibited. Though Oregon allows noncompetes in principle, the reality is they are still strongly disfavored by the courts and the legislature. An Oregon cannabis employer must jump through a number of hoops to get an enforceable noncompete, but even that looks likely to change. In Oregon, noncompete provisions are governed by ORS 653.295, which provides some severe restrictions: At least two weeks before the first day of employment, a prospective employee must receive a written employment offer explaining that a noncompete will be required. Alternatively, a new noncompetition provision can be created when an employee receives a legitimate advancement, such as a promotion that expands job responsibilities to include protectable company information along with a raise. The employee must: have access to trade secrets; or have access to other competitively sensitive confidential business or professional information, such as product development plans, product launch plans, marketing strategy, and sales plans. Unless the employer is willing to pay 50% of the employee’s previous compensation during the noncompetition period then: The employee must be paid at least $62,000 annually (this is tied to US Census Bureau data, so will sometimes fluctuate). The employee must be engaged in administrative, executive, or professional work and perform predominantly intellectual, managerial, or creative tasks; exercise discretion and independent judgment; and earn a salary and be paid on a salary basis. The noncompete can only last 18 months after the termination of employment. The geographical area for noncompetition must be reasonable (“Southern Oregon” might be reasonable, “the Continental United States” is probably not). The first take away is that noncompetes in Oregon can’t currently bind your rank and file employees unless you want to continue paying 50% of their previous wages after they leave. If you want to prevent your trimmers and budtenders from seeking greener grass next door, it is going to cost you. The second take away is that your employment agreements should include nondisclosure provisions to prohibit your employees from sharing trade secrets, such as processes and procedures, with their new employers when they do jump ship. As we said above, it looks like the Oregon legislature intends to clamp down even more severely on noncompetes. As initially introduced this session, Oregon SB 977 would follow California’s example and effectively void all noncompetition provisions. SB 977 was referred to the Oregon Senate Committee on Judiciary, where ... read more
    Source: Canna Law Blog – OregonPublished on 2017-09-03
 
  • Mr. Sessions Goes to Oregon
    Will the (former) Senator yield?The Oregonian, Willamette Week, and KGW, to name a few, are reporting that US Attorney General Jeffrey Sessions is visiting Portland today to meet with federal and local law enforcement. These reports suggest Mr. Sessions is in town primarily to discuss immigration, sanctuary cities, and his unconscionable position on the Deferred Action for Childhood Arrivals program (“DACA”). Given the recent exchange of letters between Oregon Governor Brown and the Attorney General, it seems likely Mr. Sessions has also come to Oregon to discuss and criticize Oregon’s medical and recreational cannabis programs. We’ve recently discussed how this exchange of letters demonstrates how Oregon sits uncomfortably within Mr. Sessions’ crosshairs. Governor Brown eviscerated Mr. Sessions’ reliance on a leaked, incomplete, and misleading draft of a report prepared by the Oregon State Police on cannabis in Oregon. Our money says Mr. Sessions is also here on a fact-finding mission, to see if he can drum up some better (or any?) sources for his claims that Oregon has so far failed to comply with Cole Memorandum guidelines. Anyone in the cannabis industry here in Oregon knows Oregon treats these guidelines with the utmost respect and importance. Heck, if they didn’t, our Oregon cannabis business lawyers would not all be putting in 12 hour days! The Governor, the legislature, and Oregon’s relevant regulatory agencies, including the Oregon Liquor Control Commission and Oregon Health Authority, have been working tirelessly to improve their policies and procedures to ensure that Oregon’s recreational and medical cannabis programs protect public safety and prevent illegal activity. Hopefully, Mr. Sessions’ visit will change his heart, but I wouldn’t count on it.         ... read more
    Source: Canna Law Blog – OregonPublished on 2017-09-19
  • Oregon’s marijuana regulatory agency faces state audit
    The Oregon Secretary of State plans to audit the state’s recreational marijuana regulatory agency and how the program enforces cannabis rules. According to The Oregonian, the audit announcement precedes a Tuesday visit to Oregon by U.S. Attorney General Jeff Sessions, who wrote to Gov. Kate Brown this summer expressing concerns that the state has been unsuccessful in slowing the state’s black market. The Oregon Liquor Control Commission (OLCC) – which manages the state’s recreational marijuana program – also was audited earlier this year by an outside group, The Oregonian reported. The independent audit concluded that ... Oregon’s marijuana regulatory agency faces state audit is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs ... read more
    Source: MMJ Business DailyPublished on 2017-09-19
  • No Bankruptcy, No Problem? Receivership and Cannabis.
    Receiver time?Back in 2014, we wrote that bankruptcy is not an option for marijuana businesses. That issue has been litigated here and there since then, but as of today, cannabis businesses are no better off than before. The hard reality is this: all bankruptcy cases are handled in federal courts under rules outlined in the U.S. Bankruptcy Code. Those courts have held that it would be impossible for a U.S. Trustee to control and administer a debtor’s assets (cannabis) without violating the federal Controlled Substances Act. Bankruptcy laws are designed to afford a fresh start to honest but unfortunate debtors, while providing equal treatment to creditors. Without recourse to bankruptcy, parties can only: (1) liquidate without court supervision, or (2) explore state court receivership. Liquidating without court supervision offers no protection to creditors. State court receivership does afford protections, but it is complex because states closely regulate who is allowed to possess and sell marijuana (through licenses). For a while, it was an open question as to whether a state court receivership would actually work in the cannabis context. Recently, one actually did. In the case at issue, a landlord (creditor) had leased space to a licensed marijuana business tenant (debtor). The tenant failed to pay rent, and the landlord evicted the tenant and acquired a judgment for unpaid rent. Because RCW 7.60.010 et seq. provides that a Washington state court may appoint a receiver over a marijuana business, the landlord convinced the court to issue an order appointing a receiver to sell the tenant’s cannabis and satisfy the judgment. The landlord then successfully navigated the licensure issue with the Washington State Liquor and Cannabis Board, sold the pot, and collected on its judgment. Washington is not the only pro-cannabis state with statutes and administrative rules that seek to bridge the bankruptcy gap by allowing creditors to seize and sell cannabis. In Oregon, OAR 845-025-1260 provides “Standards for Authority to Operate a Licensed Business as a Trustee, a Receiver, a Personal Representative or a Secured Party.” Have our cannabis lawyers assisted numerous clients in acquiring and perfecting security interests in the assets of marijuana businesses in Oregon and Washington? You bet. Will California adopt a similar rule? Almost certainly. One of the reasons creditors get such high rates of interest for loans to cannabis businesses—in addition to the fact that banks won’t lend to them—is because many pot businesses lack lienable collateral. For many of them, the net worth of the business is mostly tied up in the cannabis itself. ... read more
    Source: Canna Law Blog – OregonPublished on 2017-09-19
  • More Summer Events and Dispensary Stops: Walking with Redhat Ralph
    More summer events and dispensary stops in Week 16 with RedHat Ralph…. This week includes serving Root Beer at the Oregon Brewers Festival, the Canna Closet Oregon launch, and The Summer Fair 2.  Here is how I walked 22.6 miles from Sunday July 23 through Saturday, July 29. Sunday, 7/23/17, 0.2 miles. Today it will [...] The post More Summer Events and Dispensary Stops: Walking with Redhat Ralph appeared first on The Weed Blog. ... read more
    Source: The Weed BlogPublished on 2017-09-15
  • The Many Reasons Cannabis is a Medicine Worth Legalizing
    28 states in the United States, as well as many other countries around the world, have legalized medical marijuana – with some even legalizing the recreational use of marijuana. Canada, under the Liberal Government, recently proposed a bill legalizing not only medical marijuana, but also recreational marijuana.  There are many reasons why cannabis is a [...] The post The Many Reasons Cannabis is a Medicine Worth Legalizing appeared first on The Weed Blog. ... read more
    Source: The Weed BlogPublished on 2017-09-15
  • Oregon Implements Universal Pesticide Testing for Cannabis
    At the beginning of this month, Oregon implemented a critical change to its cannabis pesticide testing regulations: As of August 30, 2017, every batch of cannabis produced in Oregon must be tested for pesticides prior to transfer or sale. This simply wasn’t possible a year ago, when the Oregon Liquor Control Commission (“OLCC”) issued a finding that there were not enough accredited labs available to allow for universal pesticide testing. As a stop-gap measure, the OLCC limited testing to one-third of all batches from each harvest. According to the OLCC, the situation on the ground has changed substantially. There are now twice as many accredited labs and the Oregon Health Authority (“OHA”) has recently increased testing batch sizes. The net result is that the OLCC believes there is now capacity to ensure universal pesticide testing. We’ve written quite a bit about how Oregon is slowly shifting responsibility for medical cannabis from the OHA to the OLCC, but product testing remains an outlier. The OHA retains responsibility for issuing cannabis testing rules for both the medical and recreational program, and has issued some of the strictest pesticide testing requirements in the nation. With this recent change, all Oregon cannabis, recreational and medical, will be tested for pesticide contamination prior to transfer to retailers and processors, and ultimately to the consumers.   ... read more
    Source: Canna Law Blog – OregonPublished on 2017-09-14
  • Oregon Implements Universal Pesticide Testing
    At the beginning of this month, Oregon implemented a critical change to its cannabis pesticide testing regulations: As of August 30, 2017, every batch of cannabis produced in Oregon must be tested for pesticides prior to transfer or sale. This simply wasn’t possible a year ago, when the Oregon Liquor Control Commission (“OLCC”) issued a finding that there were not enough accredited labs available to allow for universal pesticide testing. As a stop-gap measure, the OLCC limited testing to one-third of all batches from each harvest. According to the OLCC, the situation on the ground has changed substantially. There are now twice as many accredited labs and the Oregon Health Authority (“OHA”) has recently increased testing batch sizes. The net result is that the OLCC believes there is now capacity to ensure universal pesticide testing. We’ve written quite a bit about how Oregon is slowly shifting responsibility for medical cannabis from the OHA to the OLCC, but product testing remains an outlier. The OHA retains responsibility for issuing cannabis testing rules for both the medical and recreational program, and has issued some of the strictest pesticide testing requirements in the nation. With this recent change, all Oregon cannabis, recreational and medical, will be tested for pesticide contamination prior to transfer to retailers and processors, and ultimately to the consumers.   ... read more
    Source: Canna Law Blog – OregonPublished on 2017-09-14
  • 7 Diseases Medical Marijuana Can Treat
    Even though marijuana is approved for medical use in nearly 60% of U.S. states, there’s still somewhat of a stigma attached. However, doctors and patients agree that marijuana can be medically beneficial to many people.  Here, we will explain 7 diseases that medical marijuana can treat.   A 2013 New England Journal of Medicine study [...] The post 7 Diseases Medical Marijuana Can Treat appeared first on The Weed Blog. ... read more
    Source: The Weed BlogPublished on 2017-09-11
  • Oregon Medical Marijuana: Tracking Begins December 1st
    We recently mentioned that the Oregon Health Authority would soon offer guidance on seed-to-sale tracking requirements for medical cannabis. Last week, the Oregon Health Authority (OHA) did exactly that, with its Medical Marijuana Information Bulletin 2017-07. The Bulletin comes pursuant to Senate Bill 1057, the most significant pot bill of the recent Oregon legislative session. In our recap of that bill, we ended with our oft-repeated observation that “the OHA regime will soon recede to strictly limited, patient-caregiver relationships. The money there is gone.” So, this is a public service post for anyone out there growing marijuana in the OHA system with the goal of helping patients and not getting rich. As a reminder, the goal with SB 1057 and tracking medical marijuana in Oregon is to limit diversion and black market activity. To accomplish this, SB 1057 gave the following parameters for tracking: Required marijuana produced and transferred within OHA’s Oregon Medical Marijuana Program (OMMP) system to be tracked by the OLCC tracking system. (The OLCC oversees non-medical, adult use marijuana.) Specified funding for the tracking system to be paid from the Oregon Marijuana Account prior to any other distribution. Required OHA to impose an additional fee on marijuana grow sites, processing sites, and dispensaries to pay costs incurred by the tracking system. Specified timelines for tracking system phase in. As provided in last week’s OHA Bulletin, December 1, 2017, has been chosen as Oregon’s tracking system phase in date. On or before that date, OMMP registrants will be required to track the production, processing and transfer of all marijuana items in the OLCC’s Cannabis Tracking System (CTS), and pay an associated fee of $480. The alternative is to apply for an OLCC license prior to January 1, 2018, or to indicate that the registrant falls under an exemption. The exemption is narrow: it occurs only where a registrant is a patient growing for him- or herself, with a ceiling of 12 mature plants and 24 immature plants. Did we mention it would be impossible to make any money in the OHA system going forward? It is. Going forward, the only marijuana sold at retail to medical cardholders will be at OLCC licensed dispensaries, tracked in CTS. In that sense, the December 1 deadline should come as a surprise to no one: SB 1057 has been on the books since May, and OHA licensed dispensaries had become vanishingly rare before that. If any OHA licensed dispensaries still exist after December, they will likely be vestigial to sparsely populated eastern Oregon counties, ... read more
    Source: Canna Law Blog – OregonPublished on 2017-09-10
  • A New ACLU Campaign for District Attorney Accountability has Some DA’s Upset
      ACLU Campaign for District Attorney Accountability The American Civil Liberties Union (ACLU) has typically been supportive of marijuana law reform efforts.  After all, there is no denying the way that cannabis prohibition has negatively affected minorities and their families. Well, the ACLU of Oregon launched a new district attorney (DA) accountability campaign to teach people [...] The post A New ACLU Campaign for District Attorney Accountability has Some DA’s Upset appeared first on The Weed Blog. ... read more
    Source: The Weed BlogPublished on 2017-09-07
  • Medical Marijuana Laws in Popular Counties of California
    Medical Marijuana Laws in Popular Counties of California   The rush is on for the 1st of January 2018. On this date, all marijuana rules have to be in place. If they are not, then those who fall short will be liable as they would be in violation of State and Federal law. Last November, [...] The post Medical Marijuana Laws in Popular Counties of California appeared first on The Weed Blog. ... read more
    Source: The Weed BlogPublished on 2017-09-07
  • Oregon Governor Kate Brown fires back at Attorney General Jeff Sessions
    Oregon Governor Kate Brown fights for cannabisAs we have discussed elsewhere, US Attorney General Jeff Sessions has been sending out intimidating letters to the Governors of cannabis-friendly states. In his letter to Oregon Governor Kate Brown, Mr. Sessions focused significant attention on a recent draft report created by the Oregon State Police that raised concerns about Oregon’s success in complying with the Cole Memorandum guidelines. Fortunately, Governor Brown is having none of it. In her August 22, 2017 response, Governor Brown meets Mr. Sessions head on with a simple message: “It is important to understand that this draft report does not (and frankly does not purport to), reflect the ‘on the ground’ reality in Oregon in 2017. This document was originally meant to provide a baseline understanding of the state of things related to marijuana in Oregon prior to legalization. Of course, such a baseline provides little insight into the effectiveness of Oregon’s post-legalization regulatory measures aimed at Cole Memorandum compliance.” Governor Brown then notes that the leaked draft report was not ready for primetime and “required significant additional work and revision, because the data was inaccurate and the heavily extrapolated conclusions were incorrect.” In particular Governor Brown notes that the draft report relies on “an assortment of random blog and newspaper articles that should hardly form the basis of informed policy discussion.” (you wound me Governor!) In other words, Mr. Sessions, your sourcing is bad and you should feel bad. After thoroughly dismantling the Attorney General’s assumptions, Governor Brown outlines Oregon’s recent legislative efforts to ensure Oregon is at the forefront of common-sense cannabis regulation: Oregon has already implemented seed to sale tracking for all recreational cannabis, and on May 30, 2017 Oregon Senate Bill 1057 expanded the seed to sale tracking to the medical regime as well. On August 21, 2017 Oregon Senate Bill 302 expanded criminal penalties for cannabis crimes, and “makes it easier to prosecute the unlawful imports and export of marijuana products, a provision specifically aimed at stopping diversion of marijuana across Oregon’s borders.” Oregon already has the “most robust resting regime of any state to legalize marijuana.” Governor Brown finishes her letter to Sessions by explaining that she is “confident that Oregon’s regulated marketplace, coupled with our enforcement work, will serve to ensure compliance with the Cole Memorandum” and by inviting further dialogue with the Attorney General and the Department of Justice. Your move Mr. Sessions. ... read more
    Source: Canna Law Blog – OregonPublished on 2017-09-07
  • Cannabis Season Week 15: More Pot Shop Touring in Portland
      Cannabis Season – Week 15   I will be continuing my Dispensary Tour north and east of the Willamette River.  Here is how I walked 42.4 miles from Sunday July 16 through Saturday, July 22.  This is after the most recent update to the prosthetic in my right shoe, and is definitely more like [...] The post Cannabis Season Week 15: More Pot Shop Touring in Portland appeared first on The Weed Blog. ... read more
    Source: The Weed BlogPublished on 2017-09-06
  • Will Prohibition Return to Legalized States?
    Will Prohibition Return to Legalized States? In addition to the barrage of questions that customers ask regarding the effects of indicas, sativas and hybrids that I get as a budtender, there is another question that comes up a great deal when people come visit me at the bud bar. Yes, we have the damn gummies [...] The post Will Prohibition Return to Legalized States? appeared first on The Weed Blog. ... read more
    Source: The Weed BlogPublished on 2017-09-06
  • Oregon Cannabis Companies Take Note: Noncompetition Provisions May Become a Thing of the Past
    Our Oregon cannabis lawyers are often asked to include noncompetition provisions in employment agreements to ensure our cannabis clients don’t lose top talent to their competition. In many states, such as California, noncompetition provisions are flat out prohibited. Though Oregon allows noncompetes in principle, the reality is they are still strongly disfavored by the courts and the legislature. An Oregon cannabis employer must jump through a number of hoops to get an enforceable noncompete, but even that looks likely to change. In Oregon, noncompete provisions are governed by ORS 653.295, which provides some severe restrictions: At least two weeks before the first day of employment, a prospective employee must receive a written employment offer explaining that a noncompete will be required. Alternatively, a new noncompetition provision can be created when an employee receives a legitimate advancement, such as a promotion that expands job responsibilities to include protectable company information along with a raise. The employee must: have access to trade secrets; or have access to other competitively sensitive confidential business or professional information, such as product development plans, product launch plans, marketing strategy, and sales plans. Unless the employer is willing to pay 50% of the employee’s previous compensation during the noncompetition period then: The employee must be paid at least $62,000 annually (this is tied to US Census Bureau data, so will sometimes fluctuate). The employee must be engaged in administrative, executive, or professional work and perform predominantly intellectual, managerial, or creative tasks; exercise discretion and independent judgment; and earn a salary and be paid on a salary basis. The noncompete can only last 18 months after the termination of employment. The geographical area for noncompetition must be reasonable (“Southern Oregon” might be reasonable, “the Continental United States” is probably not). The first take away is that noncompetes in Oregon can’t currently bind your rank and file employees unless you want to continue paying 50% of their previous wages after they leave. If you want to prevent your trimmers and budtenders from seeking greener grass next door, it is going to cost you. The second take away is that your employment agreements should include nondisclosure provisions to prohibit your employees from sharing trade secrets, such as processes and procedures, with their new employers when they do jump ship. As we said above, it looks like the Oregon legislature intends to clamp down even more severely on noncompetes. As initially introduced this session, Oregon SB 977 would follow California’s example and effectively void all noncompetition provisions. SB 977 was referred to the Oregon Senate Committee on Judiciary, where ... read more
    Source: Canna Law Blog – OregonPublished on 2017-09-03