Marijuana Residency Requirement Repeal Approved by Committee
Thursday, February 11, 2016
The bill removes the two-year residency requirement for license applicants in a law passed by the Oregon State Legislature. The requirement states that all cannabis-related businesses, including grow operations, manufacturers and retailers, among other businesses, need to be at least 51 percent owned by an Oregon residence.
Marijuana advocates have said that the residency requirement is major obstacle for recreational cannabis businesses looking for an infusion of cash. Some even said the requirement is a social justice issue, as it affects minority-owned businesses more than others.
Senate Majority Leader Ginny Burdick said the issue was critical and time sensitive at hearings earlier this week, calling the pending marijuana legislation represents "some of the major work that will be done in this session."
"People are making decisions and license applications right now, even as we speak," she said.
Hurting Businesses?
Experts in the marijuana industry say the rule is unnecessarily restrictive, and they are working to change it.
“I definitely think the residency requirements should be overturned,” Leah Maurer, co-chair of Portland’s Women Grow chapter, told GoLocal. “It limits the number of people that can get involved in this newly emerging industry and could really stifle some of the growth that we are hoping to see. To be honest, I even think it could be a social justice issue, because it hurts women and minorities.”
Amy Margolis, Executive Director of the Oregon Cannabis Association, told GoLocal that the OCA “strongly supports repealing all residency requirements for investors in cannabis businesses.”
"They will have the unintended effect of making it more difficult for small local businesses to attract investors,” Margolis told GoLocal. “This also increases barriers faced by Oregon businesses owned by women, people of color, and others who have traditionally had limited access to capital."
Margolis testified to the legislature regarding the residency restrictions, and told lawmakers that the restrictions should be repealed.
"Our members have always opposed residency requirements because they have the unintended effect of making it more difficult for smaller, local and family owned businesses to attract investors,” Margolis said. “Residency requirements also increase barriers faced by Oregon businesses owned by women, people of color, and others who have traditionally had limited access to capital."
Pushing Out the Little Guy?
Some people have concerns about repealing the restrictions, however. Morgan Fox of the Marijuana Policy Project, said that generally, residency requirements are put in place to limit business owners to local residents, rather than large companies.
“In most cases the general impetus is trying to keep business small and local,” Fox said. “States typically are wary of a big business, in state or out of state, coming in and hurting local companies.”
Maurer said that while she would like to see the residency restrictions be repealed, she is concerned that big business could look to Oregon as an untapped market.
“I’m still a big advocate of keeping the industry local and in the hands of Oregonians,” Maurer said. “Even if the restrictions are lifted or loosened I would not want to see big corporations or holding companies be able to drive up profits and squeeze out smaller businesses.
Other Provisions
Along with ending residency requirements, House Bill 4014 would enact other provisions regarding the sale of medical and retail marijuana. Under the bill, annual medical marijuana card registration fees for veterans would fall from $200 to $20.
Also included in House Bill 4014 are provisions that address the sale of medical marijuana and tax regulations for cannabis business.
There are also other changes to recreational marijuana regulations being considered. Senate Bill 1511 would allow businesses with recreational licenses to produce, process and sell medical marijuana products tax-free.
Other provisions being considered include:
• Decriminalize sharing of up to one ounce of extracts and up to eight ounces of marijuana or with other household members who are 21 or older
• Determine the crime of “open container marijuana” is defined as using the drug while operating a motor vehicle or having an unsealed or partially-used container in the vehicle
• Legalize medical marijuana use for offenders on parole, probation or other conditional release programs
• Change classification of certain marijuana-related crimes. Export of marijuana would be a Class C felony if committed for the purpose of profit and otherwise, a Class A misdemeanor. Manufacturing pot within 1,000 feet of a school would be a Class B felony, while delivering to a minor, a Class C felony
• Form a task group to recommend guidelines for prescribing cannabis and to issue a report to the Legislature by January 1, 2017
• Allocate funds for a pilot program to increase awareness among students about the impacts of using pot
• Allow agreements between the states and Indian tribes to allow tribes to use state programs to sell marijuana.
Related Slideshow: 20 Things You Need to Know About Buying Pot in Oregon
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