OLCC Rule Changes For 2018

Here is an extensive list of rule changes that the OLCC recently passed. These rules become effective on December 28th. It's a long read but worth running through if you are operating an OLCC licensed business:

845-025-1015 Definitions

Defines “attractive to minors” w/r/t packaging, labeling, and advertising

Includes industrial hemp as a source of cannabinoids in definition of “cannabinoid”

Defines “other cannabinoid product” within the already existing definition of “cannabinoid product”

Defines “cannabinoid tincture” – Removes definition of “tincture”

Defines “cartoon”

Adds language to the definition of “financial interest” to modify the lending of money, real property or personal property to an applicant/licensee as a financial interest if it “constitutes a substantial portion of the business cost or is lent at a commercially unreasonable rate.” Before, this was only included as a financial interest if lent at a commercially unreasonable rate.

Defines “hemp grower”

Defines “hemp handler”

Defines “hemp item”

Defines “inventory tracking”

Defines “industrial hemp”

Defines “industrial hemp concentrate”

Defines “industrial hemp commodity or product”

Defines “industrial hemp extract”

Defines “principal officer”

Adds the word “propagation” to the definition of “produces”

Removes “marijuana processor” from “produces” definition exclusion for the cultivation and growing of marijuana plant by a marijuana processor, marijuana wholesaler, or marijuana retailer if the marijuana processor, marijuana wholesaler, or marijuana retailer purchased/received the plant from a licensed producer.

Removes “of the plant Cannabis family Cannabaceae” form the definition of “propagate”

Defines “UID tag” and “UID number”

845-025-1030 Application Process

Removes requirement that estimated monthly water and electricity be included for license renewal

045-025-1060 Fees

Adds license fee of $100 for medical canopy

Adds license fee of $500 for hemp certificates

845-025-1090 Application Review

Increases response time for applicants who fail an initial inspection from 15 days to 30 days and increases the permissible extension time from 30 days to 45 days.

845-025-1115 Denial of Application

Adds language that the commission must deny an application when the proposed premises is at the same address as a retail, processor, or wholesale license unless “the licenses are of different types.” The rule keeps the rule that all licenses at the same address must have identical owners. 

Adds that the commission may deny a license if applicant shows they are unable to understand these rules.

Adds language that the commission may deny an application if the applicant does not have access to the proposed license premises.

Adds language that the commission may revoke a license for any reasons that it may deny a license.

845-025-1160 Notification of Changes

Adds language that a licensee must notify the commission/receive approval prior to changes/additions to the business trade name and that the commission may deny such requests.

845-025-1175 Changing, Altering, or Modifying Licensed Premises

Adds language to the beginning of this section that “The Commission issues licenses with the understanding that the licensee will operate the business as proposed at the time of licensing.”

845-025-1190 License Renewal

Adds language that, if a licensee does not submit a renewal application within 30 days after their license expires, then they must repay the application/license fee when they submit a new application.

Adds language that the commission may refuse to renew a license if the licensee has any unresolved OLCC compliance issues.

845-025-1230 Licensed Premises

Adds that minors may be on the licensed premises if the minor passes through the licensed area to reach an unlicensed area, so long as the minor is not present in areas that contain marijuana items or if the minor is a current OMMP cardholder/caregiver

Adds that a visitor badge is not required for govt officials and that all visitors must be accompanied by a licensee representative at all times to the “Log” section. Removes these provisions from the “Tour groups” sections.

845-025-1275 Closure of Business

Changes must to may regarding commission responsibility to address the manner/condition under which marijuana items held by the closing licensee may be transferred or sold to other licensees or be disposed.

845-025-1300 Licensee Prohibitions

Adds walk-up windows to prohibition of drive-thru windows.

 

 

845-025-1330 Trade Samples

Adds producers and processors to list of license types that a processor may provide samples to (previously only ws and retail)

Adds labeling requirements to trade samples that must include the language “TRADE SAMPLE NOT FOR RESALE”, the product identity, the UID #, and the net weight or contents.

845-025-1335 Marijuana Promotional Events

New Section creating rules allowing licensed businesses to transport marijuana items to and exhibit marijuana items at trade shows/similar events. Event, location, and licensee must be approved by the commission. Sets limits on the amount that a licensee may transport to or possess at the event in the following amounts:

-        24 ounces of usable marijuana

-        4 mature marijuana plants

-        10 immature plants

-        500 seeds

-        16 ounces of solid cannabinoid products

-        72 ounces of liquid cannabinoid products

Creates CTS requirements, creates application requirements

845-025-2000 Canopy Definitions

Defines “Immature Canopy” to mean the area used exclusively to propagate immature marijuana plants

845-025-2020 Producer Privileges; Prohibitions

Adds language allowing producers to accept or make returns of usable marijuana, immature plants, seeds and whole non-living plants; from the licensee who originally received/purchased them. Producer must track return in CTS.

845-025-2025 Micro Tier Processing, Privileges, Prohibitions

New section allows micro tier producers to apply for a concentrate endorsement to process concentrates processed by a mechanical process using water (but not steam) as the solvent.

845-025-2040 Production Size Limitations

Adds language to specify that existing canopy size limits are for mature canopy.

Creates immature canopy size limits:

  1. 625 sqft – Micro Tier I
  2. 1250 sqft – Micro Tier II
  3. 5000 sqft – Tier I
  4. 10,000 sqft – Tier II

Limits multiple canopy areas to 20 including both immature and mature canopy areas. These areas must be identified on applications/renewals

Removes language that local governments may petition OLCC for increased canopy sizes in their jurisdiction.

845-025-2045 Propagation Endorsement

New Section allowing a producer to apply for a propagation endorsement to grow additional immature canopy. This requires an application and a LUCS, unless a LUCS is already submitted and there is no change to the aggregate size of canopy areas approved on the original LUCS.

845-025-2060 Recreational Producer – Start-up Inventory

Extends the deadline, from 12/31/2017 to 7/1/2018, for the immaculate conception in which a marijuana producer may receive immature marijuana plants and seeds from any source in Oregon for up to 90 days following initial licensure.

845-025-2070 Pesticides, Fertilizers and Ag Chemicals

Moves, from a Category I to a Category III violation, failure to maintain complete records of MSDS and original labels for all pesticides, fertilizers, and ag chemicals and a log of all pesticide, fertilizer, and ag chemical used.

845-025-2080 Harvest Lot Segregation

Adds language that, within 45 days of harvest, producers must affix a UID tag to each receptacle that is linked to each plant that was harvested and ensure all tracking procedures, including accurate records of current weight of receptacles and accounting for waste and moisture loss, in CTS.

845-025-2100 Transfer of MMJ Grower Inventory

Changes transfer rules for outdoor MMJ grow from 12 pounds/patient to 12 pounds/mature plant.

Changes transfer rules for indoor MMJ grow from 6 pounds/patient to 6 pounds/mature plant.

845-025-2110 Medical Marijuana Registrant CTS Registration

New section requiring all PRMG – person responsible for a marijuana grow site – and medical processors and dispensaries to use CTS.

845-025-2120 Medical Registrant CTS Requirements

New section detailing the tracking requirements for medical registrants and PRMGs

845-025-2130 Grow Site Transfers to Processor or WS License

New section allowing MMJ grow sites authorized to produce more than 12 mature plants to transfer limited quantities to OLCC processor or WS license if registered in CTS, proves legal water source, and complies with testing requirements

845-025-2140 Grower to Patient Transfers

New section requiring medical grow to use CTS to document transfers to patients.

845-025-2150 MMJ Inspections and Compliance

New section requiring all OHA registrants subject to CTS registration to permit OLCC inspections. OLCC refers compliance issues to OHA who, using their discretion, determines any enforcement action necessary.

845-025-2500 Medically Designated Canopy Registration

New section allowing OLCC producers to designate a portion of their canopy for MMJ that is equal to 10% of approved total canopy as long as at least 75% of the yield of usable MMJ is given to patients or a patient’s primary caregiver for no consideration. This requires additional registration/application and fee. This replaces former medical grow registration requirements.

 

845-025-2510, 2520, 2530, 2540 Removals from rules re MMJ

Removes (replaces with new rules described here) sections: Licensed Producer and patient Agreements, Termination of Producer and Patient Agreements, Adding or Replacing Patient Agreements, Grow Canopy Limitation for Producers Registered to Produce Marijuana for Patients.

845-025-2550 Requirementss for Producing Medically Designated Canopy

New section requiring OLCC producers who register to grow for patients to comply with all tracking, testing, and labeling requirements. Producers may:

-        transfer immature plants, seeds, tissue cultures from rec stock to medical stock

-        provide a patient or patient’s primary caregiver up to 24oz/transfer and up to 3 pounds/year

-        terminate registration with notice to OLLC

Producers may not:

-        be compensated for producing/providing MMJ

-        transfer more than 25% of total annual yield of usable MJ from producers medically designated canopy to licenses of the commission

845-025-2700 Application for Industrial Hemp Certification

Requires an OLCC industrial hemp certificate to transfer industrial hemp from a grower to a licensed processor.

845-025-2750 Industrial Hemp Certificate Privileges; Prohibitions

Grower may only transfer industrial hemp to OLCC processor if processor has an industrial hemp endorsement. Hemp may only be transferred if it passes testing requirements.

845-025-2800 Retailer Privileges; Prohibitions

Adds language that retailers may sell or delver hemp concentrates, extracts, or commodities.

Adds language that an OLCC retailer can sell MMJ to patients if the retailer has a valid medical endorsement. Retailer can accept returns but may not resell returns. All transactions must be tracked in CTS.

Adds language that returned rec marijuana must be turned into waste and not resold.

Adds language that a retailer must not a “knowingly” oversell customers.

Adds language that a retailer may not sell only industrial hemp products that contain cannabinoids if those products were received from an OLCC ws or processor.

845-025-2820 Retailer Operational Requirements

Adds language that an ID card issued by a federally recognized Indian tribe with name, DOB, and photo is sufficient proof of age.

845-025-2840 Retailer Premises

Adds language that a retailer may be located b/t 500’ and 1000’ of a school if OLCC determines there is a physical or geographic barrier capable of preventing children from traversing to the retailer premises.

 

 

845-025-2890 Collection of Taxes

Adds language that a retailer may not collect a tax on sales to OMMP patients or a patient’s primary caregiver or on any sale other than marijuana items.

845-025-3210 Processor Endorsements

Adds other cannabinoid processor and industrial hemp processor to list of processor endorsements.

Adds language that the OLCC may revoke and existing endorsement for the same reasons they may deny a request for an endorsement.

845-025-3215 Processor Privileges, Prohibitions

Adds language that processors may transfer, sell or transport industrial hemp in addition to marijuana.

Adds OMMP card holder and primary caregiver to list of entities that a processor may purchase or receive non-living marijuana plants entirely removed from any growing medium.

Adds language that a processor may purchase and receive industrial hemp or hemp items from a grower or hemp handler certified by OLCC.

Adds industrial hemp to waste that a processor may purchase and receive.

Adds language allowing processor to accept returns.

845-025-3220 General Processor Requirements

Adds hemp to storage and non-marketability-to-children requirements.

Adds polyethylene glycol to list of prohibitive additives to cannabinoid products.

Adds that a processor must maintain records of industrial hemp test results for 2 years.

845-025-3260 Cannabinoid Concentrate and Extract Processor Requirements

Adds that a processor can have equipment and facilities used in processing approved by either the local or state fire code official.

845-025-3285 Industrial Hemp Processor Requirements

New section detailing that, with an industrial hemp certificate, a processor may:

-        receive hemp and hemp items from growers and handlers with hemp certificates

-        process industrial hemp into any hemp commodity product

-        use industrial hemp as an ingredient in processing marijuana items.

-        Transfer hemp products to retailers, ws, and processors

Tracking, testing, labeling requirements apply

845-025-3290 Processor Recordkeeping

Adds that a processor must keep records of how much hemp is in each process lot in addition to marijuana.

845-025-3305 Processing for Cardholders

New section allowing a processor registered to process medical marijuana items to receive usable marijuana from a patient or patient’s primary caregiver and, for a fee, process that into cannabinoid products, concentrates and extracts for transfer back to that patient or patient’s primary caregiver.

845-025-3500 Wholesale License Privileges; Prohibitions

Adds that a WSer may sell, transfer and transport hemp commodities or products received from OLCC processors

Adds that a WSer may purchase or receive hemp items from OLCC processors

Adds language allowing WSers to accept returns.

Adds language that allows WSers to trim whole non-living pants and usable marijuana on behalf of a producer on the WSers licensed premises or at the producer’s premises if the WSer holds a “For Hire Trimming Privilege”

845-025-3505 WSwer For-Hire Trimming Privilege

New section providing definitions and application requirements for the privilege.

845-025-3510 Micro-WSer License Privileges

Adds language that allows micro-WSer to accept or make returns.

845-025-5540 Marijuana Worker Permit Denial Criteria

Changes “offense” to “misdemeanor or felony” related to manufacture of a controlled substance w/in 3 years for reasons OLCC must deny a permit application.

Adds language that the OLCC must deny an application for a permit if the applicant has been convicted of a firearm related felony w/in 3 years.

845-025-7570 Cultivation Batches

Adds language that a producer must create cultivation patches of immature marijuana plants less than 24” tall that are not required to be individually tagged by the rules. Must assign each cultivation batch a UID number.

845-025-7700 Transportation and Delivery of MJ Items

Changes language so that individuals authorized to transport marijuana may have a license from any state rather than just from Oregon.

Adds language that any vehicle transporting marijuana may not remove the marijuana from the vehicle until they arrive at their final destination, may not bring items into a hotel or other unlicensed premises, and may not travel with any person not listed on the manifest.

845-025-7750 Waste Management

Adds language that any product containing marijuana or hemp waste may not be transferred or sold to any licensee for consumption

845-025-8590 Suspension, Cancellation, Civil Penalties, Sanction Schedule

Adds language that the OLLC may not impose a civil penalty more than $500 for each day the violation occurs.