Changes the term "marijuana" to "cannabis" in Oregon law.

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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 1111
Sponsored by Senator FREDERICK (at the request of Compassionate Oregon)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced. The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act changes the word “marijuana” to “cannabis” in all of state law and rule. (Flesch
Readability Score: 75.1).
Changes the term “marijuana” to “cannabis” in Oregon law. Directs state agencies that refer
to “marijuana” in agency rules to amend “marijuana” to “cannabis.”
A BILL FOR AN ACT
Relating to cannabis; creating new provisions; and amending ORS 90.243, 90.303, 90.398, 90.440,
105.121, 135.246, 135.893, 137.222, 137.226, 137.542, 144.086, 161.705, 163.547, 165.805, 166.270,
166.291, 166.715, 167.262, 180.405, 181A.195, 181A.640, 223.301, 307.455, 316.680, 317A.100, 323.500,
323.505, 327.008, 419A.015, 419A.265, 419A.300, 419A.305, 420.048, 430.384, 431A.196, 433.850,
471.001, 475.245, 475.525, 475A.225, 475A.250, 475A.400, 475A.477, 475C.001, 475C.009, 475C.013,
475C.017, 475C.021, 475C.025, 475C.029, 475C.037, 475C.049, 475C.057, 475C.065, 475C.069,
475C.073, 475C.077, 475C.081, 475C.085, 475C.089, 475C.093, 475C.097, 475C.101, 475C.105,
475C.109, 475C.113, 475C.117, 475C.121, 475C.125, 475C.129, 475C.133, 475C.137, 475C.141,
475C.145, 475C.149, 475C.153, 475C.161, 475C.169, 475C.177, 475C.181, 475C.185, 475C.201,
475C.205, 475C.209, 475C.213, 475C.217, 475C.221, 475C.229, 475C.233, 475C.237, 475C.241,
475C.245, 475C.249, 475C.253, 475C.257, 475C.265, 475C.269, 475C.273, 475C.289, 475C.297,
475C.301, 475C.305, 475C.309, 475C.313, 475C.317, 475C.321, 475C.325, 475C.329, 475C.333,
475C.337, 475C.341, 475C.345, 475C.349, 475C.353, 475C.365, 475C.369, 475C.373, 475C.377,
475C.379, 475C.389, 475C.397, 475C.409, 475C.417, 475C.421, 475C.441, 475C.445, 475C.449,
475C.453, 475C.457, 475C.459, 475C.469, 475C.473, 475C.477, 475C.481, 475C.489, 475C.493,
475C.497, 475C.501, 475C.505, 475C.513, 475C.521, 475C.523, 475C.529, 475C.531, 475C.533,
475C.535, 475C.540, 475C.544, 475C.548, 475C.560, 475C.564, 475C.586, 475C.590, 475C.600,
475C.604, 475C.608, 475C.612, 475C.616, 475C.620, 475C.624, 475C.632, 475C.644, 475C.670,
475C.674, 475C.678, 475C.682, 475C.688, 475C.692, 475C.706, 475C.710, 475C.718, 475C.726,
475C.728, 475C.730, 475C.734, 475C.738, 475C.742, 475C.770, 475C.773, 475C.777, 475C.780,
475C.783, 475C.786, 475C.792, 475C.794, 475C.795, 475C.797, 475C.798, 475C.800, 475C.803,
475C.806, 475C.809, 475C.812, 475C.815, 475C.821, 475C.824, 475C.827, 475C.833, 475C.840,
475C.843, 475C.847, 475C.850, 475C.853, 475C.856, 475C.859, 475C.862, 475C.865, 475C.868,
475C.871, 475C.874, 475C.877, 475C.880, 475C.883, 475C.886, 475C.889, 475C.891, 475C.892,
475C.894, 475C.897, 475C.903, 475C.910, 475C.916, 475C.930, 475C.939, 475C.945, 475C.950, 537.387,
571.306, 571.330, 571.336, 571.337, 571.339, 571.423, 659A.403, 659A.409, 689.557 and 811.482 and
section 25, chapter 23, Oregon Laws 2016, section 8, chapter 103, Oregon Laws 2018, sections
2 and 3, chapter 464, Oregon Laws 2019, section 44, chapter 525, Oregon Laws 2021, and sections
1, 2, 11 and 19, chapter 16, Oregon Laws 2024.
NOTE: Matter in boldfaced type in an amended section is new; matter [ italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 1557
SB 1111
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Be It Enacted by the People of the State of Oregon:
SECTION 1.
(1) A state agency that refers to “marijuana” in any rule of the agency shall
amend the term “marijuana” to “cannabis.”
(2)(a) The amendments to ORS 475C.297 by sections 103 and 104 of this 2025 Act are in-
tended to change the name of the “Marijuana Control and Regulation Fund” to the “Cannabis
Control and Regulation Fund.”
(b) For the purpose of harmonizing and clarifying statutory law, the Legislative Counsel
may substitute for words designating the “Marijuana Control and Regulation Fund,” wher-
ever they occur in statutory law, other words designating the “Cannabis Control and Regu-
lation Fund.”
(3)(a) The amendments to ORS 475C.531 by section 150 of this 2025 Act are intended to
change the name of the “Illegal Marijuana Market Enforcement Grant Program” to the “Il-
legal Cannabis Market Enforcement Grant Program.”
(b) For the purpose of harmonizing and clarifying statutory law, the Legislative Counsel
may substitute for words designating the “Illegal Marijuana Market Enforcement Grant
Program,” wherever they occur in statutory law, other words designating the “Illegal
Cannabis Market Enforcement Grant Program.”
(4)(a) The amendments to ORS 475C.535 by section 152 of this 2025 Act are intended to
change the name of the “Illegal Marijuana Market Enforcement Grant Program Fund” to the
“Illegal Cannabis Market Enforcement Grant Program Fund.”
(b) For the purpose of harmonizing and clarifying statutory law, the Legislative Counsel
may substitute for words designating the “Illegal Marijuana Market Enforcement Grant
Program Fund,” wherever they occur in statutory law, other words designating the “Illegal
Cannabis Market Enforcement Grant Program Fund.”
(5)(a) The amendments to ORS 475C.726 by section 179 of this 2025 Act are intended to
change the name of the “Oregon Marijuana Account” to the “Oregon Cannabis Account.”
(b) For the purpose of harmonizing and clarifying statutory law, the Legislative Counsel
may substitute for words designating the “Oregon Marijuana Account,” wherever they occur
in statutory law, other words designating the “Oregon Cannabis Account.”
(6)(a) The amendments to ORS 475C.773 by section 186 of this 2025 Act are intended to
change the name of the “Oregon Medical Marijuana Act” to the “Oregon Medical Cannabis
Act.”
(b) For the purpose of harmonizing and clarifying statutory law, the Legislative Counsel
may substitute for words designating the “Oregon Medical Marijuana Act,” wherever they
occur in statutory law, other words designating the “Oregon Medical Cannabis Act.”
SECTION 2.
ORS 90.243 is amended to read:
90.243. (1) A dwelling unit qualifies as drug and alcohol free housing if:
(a)(A) For premises consisting of more than eight dwelling units, the dwelling unit is one of at
least eight contiguous dwelling units on the premises that are designated by the landlord as drug
and alcohol free housing dwelling units and that are each occupied or held for occupancy by at least
one tenant who is a recovering alcoholic or drug addict and is participating in a program of re-
covery; or
(B) For premises consisting of eight or fewer dwelling units, the dwelling unit is one of at least
four contiguous dwelling units on the premises that are designated by the landlord as drug and al-
cohol free housing dwelling units and that are each occupied or held for occupancy by at least one
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tenant who is a recovering alcoholic or drug addict and is participating in a program of recovery;
(b) The landlord is a nonprofit corporation incorporated pursuant to ORS chapter 65 or a
housing authority created pursuant to ORS 456.055 to 456.235;
(c) The landlord provides for the designated drug and alcohol free housing dwelling units:
(A) A drug and alcohol free environment, covering all tenants, employees, staff, agents of the
landlord and guests;
(B) Monitoring of the tenants for compliance with the requirements described in paragraph (d)
of this subsection;
(C) Individual and group support for recovery; and
(D) Access to a specified program of recovery; and
(d) The rental agreement for the designated drug and alcohol free housing dwelling unit is in
writing and includes the following provisions:
(A) That the dwelling unit is designated by the landlord as a drug and alcohol free housing
dwelling unit;
(B) That the tenant may not use, possess or share alcohol, [ marijuana] cannabis items as defined
in ORS 475C.009, illegal drugs, controlled substances or prescription drugs without a medical pre-
scription, either on or off the premises;
(C) That the tenant may not allow the tenant’s guests to use, possess or share alcohol,
[marijuana] cannabis items as defined in ORS 475C.009, illegal drugs, controlled substances or pre-
scription drugs without a medical prescription, on the premises;
(D) That the tenant shall participate in a program of recovery, which specific program is de-
scribed in the rental agreement;
(E) That on at least a quarterly basis the tenant shall provide written verification from the
tenant’s program of recovery that the tenant is participating in the program of recovery and that
the tenant has not used:
(i) Alcohol;
(ii) [Marijuana] Cannabis items as defined in ORS 475C.009; or
(iii) Illegal drugs;
(F) That the landlord has the right to require the tenant to take a test for drug or alcohol usage
promptly and at the landlord’s discretion and expense; and
(G) That the landlord has the right to terminate the tenant’s tenancy in the drug and alcohol
free housing under ORS 90.392, 90.398 or 90.630 for noncompliance with the requirements described
in this paragraph.
(2) A dwelling unit qualifies as drug and alcohol free housing despite the premises not having
the minimum number of qualified dwelling units required by subsection (1)(a) of this section if:
(a) The premises are occupied but have not previously qualified as drug and alcohol free hous-
ing;
(b) The landlord designates certain dwelling units on the premises as drug and alcohol free
dwelling units;
(c) The number of designated drug and alcohol free housing dwelling units meets the require-
ment of subsection (1)(a) of this section;
(d) When each designated dwelling unit becomes vacant, the landlord rents that dwelling unit
to, or holds that dwelling unit for occupancy by, at least one tenant who is a recovering alcoholic
or drug addict and is participating in a program of recovery and the landlord meets the other re-
quirements of subsection (1) of this section; and
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(e) The dwelling unit is one of the designated drug and alcohol free housing dwelling units.
(3) The failure by a tenant to take a test for drug or alcohol usage as requested by the landlord
pursuant to subsection (1)(d)(F) of this section may be considered evidence of drug or alcohol use.
(4) As used in this section, “program of recovery” means a verifiable program of counseling and
rehabilitation treatment services, including a written plan, to assist recovering alcoholics or drug
addicts to recover from their addiction to alcohol, cannabis or illegal drugs while living in drug and
alcohol free housing. A “program of recovery” includes Alcoholics Anonymous, Narcotics Anony-
mous and similar programs.
SECTION 3.
ORS 90.303 is amended to read:
90.303. (1) When evaluating an applicant, a landlord may not consider a previous action to re-
cover possession pursuant to ORS 105.100 to 105.168 if the action:
(a) Was dismissed or resulted in a general judgment for the applicant before the applicant sub-
mits the application.
(b) Resulted in a general judgment against the applicant that was:
(A) Entered five or more years before the applicant submits the application; or
(B) Entered on claims that arose on or after April 1, 2020, and before March 1, 2022.
(2) When evaluating the applicant, a landlord may consider a previous arrest of the applicant
only if the arrest resulted in charges for criminal conduct as described in subsection (3) of this
section and:
(a) The applicant was convicted of the charges; or
(b) The charges are pending and the applicant is not presently participating in a diversion,
conditional discharge or deferral of judgment program on the charges.
(3) When evaluating the applicant, the landlord may consider criminal convictions or pending
charges only for conduct that is presently illegal in this state and is:
(a) A drug-related crime, but not including convictions based solely on the use or possession of
[marijuana] cannabis;
(b) A person crime;
(c) A sex offense;
(d) A crime involving financial fraud, including identity theft and forgery; or
(e) Any other crime if the conduct for which the applicant was convicted or charged is of a
nature that would adversely affect:
(A) Property of the landlord or a tenant; or
(B) The health, safety or right to peaceful enjoyment of the premises of residents, the landlord
or the landlord’s agent.
(4) When evaluating an applicant, a landlord may not consider the possession of a medical
[marijuana] cannabis card or status as a medical [ marijuana] cannabis patient.
(5) When evaluating an applicant, a landlord may not consider an applicant’s unpaid rent, in-
cluding rent reflected in judgments or referrals of debt to a collection agency, that accrued on or
after April 1, 2020, and before March 1, 2022.
SECTION 4.
ORS 90.303, as amended by section 10, chapter 39, Oregon Laws 2021, is amended
to read:
90.303. (1) When evaluating an applicant, a landlord may not consider a previous action to re-
cover possession pursuant to ORS 105.100 to 105.168 if the action:
(a) Was dismissed or resulted in a general judgment for the applicant before the applicant sub-
mits the application.
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(b) Resulted in a general judgment against the applicant that was entered five or more years
before the applicant submits the application.
(2) When evaluating the applicant, a landlord may consider a previous arrest of the applicant
only if the arrest resulted in charges for criminal conduct as described in subsection (3) of this
section and:
(a) The applicant was convicted of the charges; or
(b) The charges are pending and the applicant is not presently participating in a diversion,
conditional discharge or deferral of judgment program on the charges.
(3) When evaluating the applicant, the landlord may consider criminal convictions or pending
charges only for conduct that is presently illegal in this state and is:
(a) A drug-related crime, but not including convictions based solely on the use or possession of
[marijuana] cannabis;
(b) A person crime;
(c) A sex offense;
(d) A crime involving financial fraud, including identity theft and forgery; or
(e) Any other crime if the conduct for which the applicant was convicted or charged is of a
nature that would adversely affect:
(A) Property of the landlord or a tenant; or
(B) The health, safety or right to peaceful enjoyment of the premises of residents, the landlord
or the landlord’s agent.
(4) When evaluating an applicant, a landlord may not consider the possession of a medical
[marijuana] cannabis card or status as a medical [ marijuana] cannabis patient.
SECTION 5.
ORS 90.398 is amended to read:
90.398. (1) If a tenant living for less than two years in drug and alcohol free housing uses, pos-
sesses or shares alcohol, [ marijuana] cannabis items as defined in ORS 475C.009, illegal drugs,
controlled substances or prescription drugs without a medical prescription, the landlord may deliver
a written notice to the tenant terminating the tenancy for cause and take possession as provided in
ORS 105.100 to 105.168. The notice must specify the acts constituting the drug or alcohol violation
and state that the rental agreement will terminate in not less than 48 hours after delivery of the
notice, at a specified date and time. The notice must also state that the tenant can cure the drug
or alcohol violation by a change in conduct or otherwise within 24 hours after delivery of the notice.
(2) If the tenant cures the violation within the 24-hour period, the rental agreement does not
terminate. If the tenant does not cure the violation within the 24-hour period, the rental agreement
terminates as provided in the notice.
(3) If substantially the same act that constituted a prior drug or alcohol violation of which no-
tice was given reoccurs within six months, the landlord may terminate the rental agreement upon
at least 24 hours’ written notice specifying the violation and the date and time of termination of the
rental agreement. The tenant does not have a right to cure this subsequent violation.
SECTION 6.
ORS 90.440 is amended to read:
90.440. (1) As used in this section:
(a) “Cannabis item” has the meaning given that term in ORS 475C.009.
[(a)] (b) “Group recovery home” means a place that provides occupants with shared living fa-
cilities and that meets the description of a group home under 42 U.S.C. 300x-25.
[(b)] (c) “Illegal drugs” includes controlled substances or prescription drugs:
(A) For which the tenant does not have a valid prescription; or
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(B) That are used by the tenant in a manner contrary to the prescribed regimen.
[(c) “Marijuana item” has the meaning given that term in ORS 475C.009. ]
(d) “Peace officer” means:
(A) A sheriff, constable, marshal or deputy;
(B) A member of a state or city police force;
(C) A police officer commissioned by a university under ORS 352.121 or 353.125; or
(D) An authorized tribal police officer as defined in ORS 181A.940.
(2)(a) Notwithstanding ORS 90.375 and 90.435, a group recovery home may terminate a tenancy
and peaceably remove a tenant without complying with ORS 105.100 to 105.168 if the tenant has
used or possessed alcohol, a [ marijuana] cannabis item or illegal drugs within the preceding seven
days.
(b) For purposes of this subsection, the following are sufficient proof that a tenant has used or
possessed alcohol, a [ marijuana] cannabis item or illegal drugs:
(A) The tenant fails a test for alcohol, cannabis or illegal drug use;
(B) The tenant refuses a request made in good faith by the group recovery home that the tenant
take a test for alcohol, cannabis or illegal drug use; or
(C) Any person has personally observed the tenant using or possessing alcohol, a [ marijuana]
cannabis item or illegal drugs.
(3) A group recovery home that undertakes the removal of a tenant under this section shall
personally deliver to the tenant a written notice that:
(a) Describes why the tenant is being removed;
(b) Describes the proof that the tenant has used or possessed alcohol, a [ marijuana] cannabis
item or illegal drugs within the seven days preceding delivery of the notice;
(c) Specifies the date and time by which the tenant must move out of the group recovery home;
(d) Explains that if the removal was wrongful or in bad faith the tenant may seek injunctive
relief to recover possession under ORS 105.121 and may bring an action to recover monetary dam-
ages; and
(e) Gives contact information for the local legal services office and for the Oregon State Bar’s
Lawyer Referral Service, identifying those services as possible sources for free or reduced-cost legal
services.
(4) A written notice in substantially the following form meets the requirements of subsection (3)
of this section:
_______________________________________________________________________________________
This notice is to inform you that you must move out of
(insert address of group
recovery home) by (insert date and time that is not less than 24 hours after delivery
of notice).
The reason for this notice is (specify use or possession of alcohol, [ marijuana]
cannabis or illegal drugs, as applicable, and dates of occurrence).
The proof of your use or possession is (specify facts).
If you did not use or possess alcohol, [ marijuana] cannabis or illegal drugs within the seven
days before delivery of this notice, if this notice was given in bad faith or if your group recovery
home has not substantially complied with ORS 90.440, you may be able to get a court to order the
group recovery home to let you move back in. You may also be able to recover monetary damages.
You may be eligible for free legal services at your local legal services office (in-
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sert telephone number) or reduced fee legal services through the Oregon State Bar at 1-800-452-7636.
_______________________________________________________________________________________
(5) Within the notice period, a group recovery home shall allow a tenant removed under this
section to follow any emergency departure plan that was prepared by the tenant and approved by
the group recovery home at the time the tenancy began. If the removed tenant does not have an
emergency departure plan, a representative of the group recovery home shall offer to take the re-
moved tenant to a public shelter, detoxification center or similar location if existing in the commu-
nity.
(6) The date and time for moving out specified in a notice under subsection (3) of this section
must be at least 24 hours after the date and time the notice is delivered to the tenant. If the tenant
remains on the group recovery home premises after the date and time for moving out specified in
the notice, the tenant is a person remaining unlawfully in a dwelling as described in ORS 164.255
and not a person described in ORS 105.115. Only a peace officer may forcibly remove a tenant who
remains on the group recovery home premises after the date and time specified for moving out.
(7) A group recovery home that removes a tenant under this section shall send a copy of the
notice described in subsection (3) of this section to the Oregon Health Authority no later than 72
hours after delivering the notice to the tenant.
(8) A tenant who is removed under subsection (2) of this section may obtain injunctive relief to
recover possession and may recover an amount equal to the greater of actual damages or three
times the tenant’s monthly rent if:
(a) The group recovery home removed the tenant in bad faith or without substantially complying
with this section; or
(b) If removal is under subsection (2)(b)(C) of this section, the removal was wrongful because the
tenant did not use or possess alcohol, a [ marijuana] cannabis item or illegal drugs.
(9) Notwithstanding ORS 12.125, a tenant who seeks to obtain injunctive relief to recover pos-
session under ORS 105.121 must commence the action to seek relief not more than 90 days after the
date specified in the notice for the tenant to move out.
(10) In any court action regarding the removal of a tenant under this section, a group recovery
home may present evidence that the tenant used or possessed alcohol, a [ marijuana] cannabis item
or illegal drugs within seven days preceding the removal, whether or not the evidence was described
in the notice required by subsection (3) of this section.
(11) This section does not prevent a group recovery home from terminating a tenancy as pro-
vided by any other provision of this chapter and evicting a tenant as provided in ORS 105.100 to
105.168.
SECTION 7.
ORS 105.121 is amended to read:
105.121. (1) A former tenant removed from a group recovery home under ORS 90.440 may bring
an action for injunctive relief to recover possession if the removal was wrongful or in bad faith.
(2) An action under this section shall be governed by the provisions of ORS 105.100 to 105.168
except that:
(a) The complaint shall be in substantially the following form and shall be available from the
court clerk:
_______________________________________________________________________________________
IN THE COURT FOR
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THE COUNTY OF
(Tenant), )
Plaintiff(s), )
)
vs. ) No.
)
(Landlord), )
)
Defendant(s). )
COMPLAINT FOR RETURN
OF POSSESSION OF A
DWELLING UNIT IN A
GROUP RECOVERY HOME
I
Defendant is a group recovery home subject to ORS 90.440. Defendant removed plaintiff from
the group recovery home dwelling unit rented by plaintiff from defendant at:
(street and number)
(city)
(county)
II
Notice of removal from the dwelling unit was served on plaintiff under ORS 90.440. The notice
of removal was served on:
(date)
III
Plaintiff is entitled to possession of the dwelling unit because:
Defendant removed plaintiff wrongfully by failing to comply with the procedural re-
quirements of ORS 90.440.
Defendant removed plaintiff wrongfully because plaintiff did not use or possess al-
cohol, [marijuana] cannabis or illegal drugs within seven days preceding delivery of a written notice
of removal.
Defendant removed plaintiff under ORS 90.440 in bad faith.
Wherefore, plaintiff prays for possession of the group recovery home dwelling unit and costs and
disbursements incurred herein.
Date Signature of plaintiff
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_______________________________________________________________________________________
(b) The complaint shall be signed by the plaintiff or an attorney representing the plaintiff as
provided by ORCP 17 and served by personal delivery on the group recovery home house president
or a person in an equivalent leadership position for the group recovery home.
(c) The answer shall be in substantially the following form and shall be available from the court
clerk:
_______________________________________________________________________________________
IN THE
COURT FOR
THE COUNTY OF
(Tenant), )
)
Plaintiff(s), )
)
vs. ) No.
)
(Landlord), )
)
Defendant(s). )
ANSWER
We deny that the plaintiff is entitled to possession of the group recovery home dwelling unit
that is the subject of the complaint because:
The defendant removed the plaintiff in compliance with the procedural requirements
of ORS 90.440.
The plaintiff used or possessed alcohol, [ marijuana] cannabis or illegal drugs as
described in ORS 90.440 within seven days preceding delivery of a written notice of removal.
The defendant did not remove the plaintiff in bad faith as alleged.
We ask that the plaintiff take nothing by the complaint and that we be awarded our costs and
disbursements.
Date Signature of defendant
_______________________________________________________________________________________
(d) The issue at trial shall be limited to whether the plaintiff is entitled to possession of the
dwelling unit described in the complaint.
(e) If the basis for the complaint is that removal was wrongful because the plaintiff did not use
or possess alcohol, [ marijuana] cannabis or illegal drugs, the defendant has the burden of proving
that the plaintiff used or possessed alcohol, [ marijuana] cannabis or illegal drugs as described in
ORS 90.440 within seven days preceding delivery of the written notice of removal.
(f) A claim for damages may not be asserted by either party in the action for possession of the
dwelling unit under this section, but each party may pursue any claim for damages in a separate
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action.
(g) A party may join an action for possession of the dwelling unit with an action for damages
or a claim for other relief, but the proceeding is not governed by the provisions of ORS 105.100 to
105.168.
(h) If the court determines that the plaintiff is entitled to possession of the dwelling unit that
is the subject of the complaint, the court shall enter an order directing the defendant to return
possession of the dwelling unit to the plaintiff. The court may provide that the defendant have a
period of time to deliver possession of the dwelling unit to the plaintiff.
(i) Subject to the provisions of ORCP 68, a prevailing party who has been represented by counsel
may recover attorney fees as provided by ORS 90.255.
SECTION 8.
ORS 135.246 is amended to read:
135.246. (1) As used in this section, “cannabinoid concentrate,” “cannabinoid extract,” “medical
cannabinoid product,” “registry identification card” and “usable [ marijuana] cannabis” have the
meanings given those terms in ORS 475C.777.
(2) If a person who holds a registry identification card is released under ORS 135.230 to 135.290,
any release conditions related to the use of usable [ marijuana] cannabis, medical cannabinoid pro-
ducts, cannabinoid concentrates or cannabinoid extracts must be imposed in the same manner as
would be imposed release conditions related to prescription drugs.
SECTION 9. ORS 135.893 is amended to read:
135.893. (1) As used in this section, “cannabinoid concentrate,” “cannabinoid extract,” “medical
cannabinoid product,” “registry identification card” and “usable [ marijuana] cannabis” have the
meanings given those terms in ORS 475C.777.
(2) For a person who holds a registry identification card who is subject to a diversion agreement
under ORS 135.891, the diversion conditions related to the use of usable [ marijuana] cannabis ,
medical cannabinoid products, cannabinoid concentrates or cannabinoid extracts must be imposed
in the same manner as the diversion conditions related to prescription drugs.
SECTION 10. ORS 137.222 is amended to read:
137.222. (1)(a) Notwithstanding ORS 161.525, a person by motion may request the court to reduce
the offense classification of a [ marijuana] cannabis conviction as provided in this section.
(b) A [ marijuana] cannabis conviction is eligible for reduction under this section if, since entry
of judgment of conviction, the [ marijuana] cannabis offense has been:
(A) Reduced from a felony to a misdemeanor;
(B) Reduced from a higher level felony to a lower level felony;
(C) Reduced from a higher level misdemeanor to a lower level misdemeanor; or
(D) Reduced from a crime to a violation.
(2) A person filing a motion under this section is not required to pay the filing fee established
under ORS 21.135 or any other fee.
(3)(a) At the time of filing the motion, the person shall serve a copy of the motion upon the of-
fice of the prosecuting attorney of the jurisdiction in which the judgment of conviction was entered.
(b) The prosecuting attorney, within 30 days after the filing of the motion under paragraph (a)
of this subsection, may file an objection to granting the motion only on the basis that:
(A) The person’s conviction is not eligible for reduction under this section; or
(B) The person has not completed and fully complied with or performed the sentence of the
court.
(4) If no objection from the prosecuting attorney is received by the court within 30 days after
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the filing of the motion, the court shall grant the motion and proceed as provided in subsection (6)
of this section if the conviction is eligible for reduction under this section and the court determines
that the person has completed and fully complied with or performed the sentence of the court.
(5)(a) If the court receives an objection from the prosecuting attorney, the court shall hold a
hearing.
(b) At the hearing, the person has the burden of establishing, by a preponderance of the evi-
dence, that:
(A) The conviction is eligible for reduction under this section; and
(B) The person completed and fully complied with or performed the sentence of the court.
(c) If, at the hearing, the court determines that the conviction is eligible for reduction under this
section and the person completed and fully complied with or performed the sentence of the court,
the court shall grant the motion and proceed as provided in subsection (6) of this section.
(6) Upon granting a motion under this section, the court shall enter an amended judgment of
conviction at the appropriate offense level.
SECTION 11.
ORS 137.226 is amended to read:
137.226. (1) Notwithstanding ORS 137.225 (1)(a), a defendant is eligible for an order setting aside
a conviction for a criminal offense in which possession, delivery or manufacture of [ marijuana]
cannabis or a [ marijuana] cannabis item as defined in ORS 475C.009 is an element after one year
has elapsed from the date of entry of judgment of conviction if:
(a) The defendant was under 21 years of age at the time of the conviction;
(b) The defendant has not been convicted of any other offense, excluding motor vehicle vio-
lations; and
(c) The defendant has fully complied with and performed the sentence of the court.
(2) When a person is convicted of an offense involving possession, delivery or manufacture of
[marijuana] cannabis or a [ marijuana] cannabis item as defined in ORS 475C.009, and when the
conduct that is the basis of the conviction occurred before April 21, 2017, the convicted person may
file a motion for a court order setting aside the conviction pursuant to ORS 137.225, and the court,
when determining whether the person is eligible for the order, shall consider the offense to be
classified under ORS 161.535 or 161.555 as if the conduct occurred on or after April 21, 2017, or, if
the offense is no longer a crime, shall consider the offense to be classified as a Class C misdemeanor.
SECTION 12.
ORS 137.542 is amended to read:
137.542. (1) As used in this section, “cannabinoid concentrate,” “cannabinoid extract,” “medical
cannabinoid product,” “registry identification card” and “usable [ marijuana] cannabis” have the
meanings given those terms in ORS 475C.777.
(2) Notwithstanding ORS 137.540, if a person who holds a registry identification card is sen-
tenced to probation, supervision conditions related to the use of usable [ marijuana] cannabis, med-
ical cannabinoid products, cannabinoid concentrates or cannabinoid extracts must be imposed in the
same manner as the court would impose supervision conditions related to prescription drugs.
SECTION 13. ORS 144.086 is amended to read:
144.086. (1) As used in this section, “cannabinoid concentrate,” “cannabinoid extract,” “medical
cannabinoid product,” “registry identification card” and “usable [ marijuana] cannabis” have the
meanings given those terms in ORS 475C.777.
(2) Notwithstanding ORS 144.102 and 144.270, if a person who holds a registry identification card
is released on post-prison supervision or parole, the supervision conditions related to the use of us-
able [ marijuana] cannabis, medical cannabinoid products, cannabinoid concentrates or cannabinoid
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extracts must be imposed in the same manner as supervision conditions related to prescription
drugs.
SECTION 14.
ORS 161.705 is amended to read:
161.705. (1) Notwithstanding ORS 161.525, the court may enter judgment of conviction for a
Class A misdemeanor and make disposition accordingly when:
(a)(A) A person is convicted of any Class C felony; or
(B) A person convicted of a Class C felony, of possession or delivery of [ marijuana] cannabis
or a [ marijuana] cannabis item as defined in ORS 475C.009 constituting a Class B felony, of pos-
session of a controlled substance constituting a Class B felony or of a Class A felony pursuant to
ORS 166.720, has successfully completed a sentence of probation; and
(b) The court, considering the nature and circumstances of the crime and the history and char-
acter of the defendant, believes that a felony conviction would be unduly harsh.
(2) The entry of judgment of conviction for a Class A misdemeanor under this section may be
made:
(a) At the time of conviction, for offenses described in subsection (1)(a)(A) of this section; or
(b) At any time after the sentence of probation has been completed, for offenses described in
subsection (1)(a)(B) of this section.
SECTION 15.
ORS 163.547 is amended to read:
163.547. (1)(a) A person having custody or control of a child under 16 years of age commits the
crime of child neglect in the first degree if the person knowingly leaves the child, or allows the child
to stay:
(A) In a vehicle where controlled substances or cannabinoid extracts as defined in ORS 475C.009
are being criminally delivered or manufactured;
(B) In or upon premises, or in the immediate proximity of premises, where a cannabinoid extract
as defined in ORS 475C.009 is being processed, if the premises have not been licensed under ORS
475C.085;
(C) In or upon premises and in the immediate proximity where controlled substances are
criminally delivered or manufactured for consideration or profit or where a chemical reaction in-
volving one or more precursor substances:
(i) Is occurring as part of unlawfully manufacturing a controlled substance or grinding, soaking
or otherwise breaking down a precursor substance for the unlawful manufacture of a controlled
substance; or
(ii) Has occurred as part of unlawfully manufacturing a controlled substance or grinding, soak-
ing or otherwise breaking down a precursor substance for the unlawful manufacture of a controlled
substance and the premises have not been certified as fit for use under ORS 453.885; or
(D) In or upon premises that have been determined to be not fit for use under ORS 453.855 to
453.912.
(b) As used in this subsection, “vehicle” and “premises” do not include public places, as defined
in ORS 161.015.
(2) Child neglect in the first degree is a Class B felony.
(3) Subsection (1) of this section does not apply if the controlled substance is [ marijuana]
cannabis and is delivered for no consideration.
(4) The Oregon Criminal Justice Commission shall classify child neglect in the first degree as
crime category 6 of the sentencing guidelines grid of the commission if the controlled substance
being delivered or manufactured is methamphetamine.
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SECTION 16.
ORS 165.805 is amended to read:
165.805. (1) A person commits the crime of misrepresentation of age by a minor if:
(a) Being less than a certain, specified age, the person knowingly purports to be of any age other
than the true age of the person with the intent of securing a right, benefit or privilege which by law
is denied to persons under that certain, specified age; or
(b) Being unmarried, the person knowingly represents that the person is married with the intent
of securing a right, benefit or privilege which by law is denied to unmarried persons.
(2) Misrepresentation of age by a minor is a Class C misdemeanor.
(3)(a) In addition to and not in lieu of any other penalty established by law, if a person, using
a driver permit or license or other identification issued by the Department of Transportation of this
state or its equivalent in another state, commits the crime of misrepresentation of age by a minor
in order to purchase or consume alcoholic liquor or cannabis:
(A) The person may be required to perform community service; and
(B) The court may order that the person’s driving privileges and right to apply for driving
privileges be suspended for a period not to exceed one year upon:
(i) The person’s second or subsequent conviction or adjudication for an offense described in this
paragraph;
(ii) The person’s first conviction or adjudication if the person has previously entered into a
formal accountability agreement under ORS 419C.230 for an offense described in this paragraph; or
(iii) The person’s first conviction or adjudication if the offense involved the operation of a motor
vehicle.
(b) If a court has issued an order suspending driving privileges under this section, the court,
upon petition of the person, may withdraw the order at any time the court deems appropriate. The
court notification to the department under this subsection may include a recommendation that the
person be granted a hardship permit under ORS 807.240 if the person is otherwise eligible for the
permit.
(4) The prohibitions of this section do not apply to any person acting under the direction of the
Oregon Liquor and Cannabis Commission or a regulatory specialist or under the direction of state
or local law enforcement agencies for the purpose of investigating possible violations of laws pro-
hibiting sales of alcoholic beverages or [ marijuana] cannabis items, as defined in ORS 475C.009, to
persons who are under a certain, specified age.
(5) The prohibitions of this section do not apply to a person under the age of 21 years who is
acting under the direction of a licensee for the purpose of investigating possible violations by em-
ployees of the licensee of laws prohibiting sales of alcoholic beverages or [ marijuana] cannabis
items, as defined in ORS 475C.009, to persons who are under the age of 21 years.
SECTION 17.
ORS 166.270 is amended to read:
166.270. (1) Any person who has been convicted of a felony under the law of this state or any
other state, or who has been convicted of a felony under the laws of the Government of the United
States, who owns or has in the person’s possession or under the person’s custody or control any
firearm commits the crime of felon in possession of a firearm.
(2) Any person who has been convicted of a felony under the law of this state or any other state,
or who has been convicted of a felony under the laws of the Government of the United States, who
owns or has in the person’s possession or under the person’s custody or control any instrument or
weapon having a blade that projects or swings into position by force of a spring or by centrifugal
force or any blackjack, slungshot, sandclub, sandbag, sap glove, metal knuckles or an Electro-
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Muscular Disruption Technology device as defined in ORS 165.540, or who carries a dirk, dagger
or stiletto, commits the crime of felon in possession of a restricted weapon.
(3) For the purposes of this section, a person “has been convicted of a felony” if, at the time
of conviction for an offense, that offense was a felony under the law of the jurisdiction in which it
was committed. Such conviction shall not be deemed a conviction of a felony if:
(a) The court declared the conviction to be a misdemeanor at the time of judgment; or
(b) The offense was possession of [marijuana] cannabis and the conviction was prior to January
1, 1972.
(4) Subsection (1) of this section does not apply to any person who has been:
(a) Convicted of only one felony under the law of this state or any other state, or who has been
convicted of only one felony under the laws of the United States, which felony did not involve
criminal homicide, as defined in ORS 163.005, or the possession or use of a firearm or a weapon
having a blade that projects or swings into position by force of a spring or by centrifugal force, and
who has been discharged from imprisonment, parole or probation for said offense for a period of 15
years prior to the date of alleged violation of subsection (1) of this section; or
(b) Granted relief from the disability under 18 U.S.C. 925(c) or ORS 166.274 or has had the
person’s record expunged under the laws of this state or equivalent laws of another jurisdiction.
(5) Felon in possession of a firearm is a Class C felony. Felon in possession of a restricted
weapon is a Class A misdemeanor.
SECTION 18.
ORS 166.291 is amended to read:
166.291. (1) The sheriff of a county, upon a person’s application for an Oregon concealed
handgun license, upon receipt of the appropriate fees and after compliance with the procedures set
out in this section, shall issue the person a concealed handgun license if the person:
(a)(A) Is a citizen of the United States; or
(B) Is a legal resident noncitizen who can document continuous residency in the county for at
least six months and has declared in writing to the United States Citizenship and Immigration Ser-
vices the intent to acquire citizenship status and can present proof of the written declaration to the
sheriff at the time of application for the license;
(b) Is at least 21 years of age;
(c) Is a resident of the county;
(d) Has no outstanding warrants for arrest;
(e) Is not free on any form of pretrial release;
(f) Demonstrates competence with a handgun by any one of the following:
(A) Completion of any hunter education or hunter safety course approved by the State Depart-
ment of Fish and Wildlife or a similar agency of another state if handgun safety was a component
of the course;
(B) Completion of any National Rifle Association firearms safety or training course if handgun
safety was a component of the course;
(C) Completion of any firearms safety or training course or class available to the general public
offered by law enforcement, community college, or private or public institution or organization or
firearms training school utilizing instructors certified by the National Rifle Association or a law
enforcement agency if handgun safety was a component of the course;
(D) Completion of any law enforcement firearms safety or training course or class offered for
security guards, investigators, reserve law enforcement officers or any other law enforcement offi-
cers if handgun safety was a component of the course;
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(E) Presents evidence of equivalent experience with a handgun through participation in organ-
ized shooting competition or military service;
(F) Is licensed or has been licensed to carry a firearm in this state, unless the license has been
revoked; or
(G) Completion of any firearms training or safety course or class conducted by a firearms in-
structor certified by a law enforcement agency or the National Rifle Association if handgun safety
was a component of the course;
(g) Has never been convicted of a felony or found guilty, except for insanity under ORS 161.295,
of a felony;
(h) Has not been convicted of a misdemeanor or found guilty, except for insanity under ORS
161.295, of a misdemeanor within the four years prior to the application, including a misdemeanor
conviction for the possession of [ marijuana] cannabis as described in paragraph (L) of this sub-
section;
(i) Has not been committed to the Oregon Health Authority under ORS 426.130;
(j) Has not been found to be a person with mental illness and is not subject to an order under
ORS 426.130 that the person be prohibited from purchasing or possessing a firearm as a result of
that mental illness;
(k) Has been discharged from the jurisdiction of the juvenile court for more than four years if,
while a minor, the person was found to be within the jurisdiction of the juvenile court for having
committed an act that, if committed by an adult, would constitute a felony or a misdemeanor in-
volving violence, as defined in ORS 166.470;
(L) Has not been convicted of an offense involving controlled substances or participated in a
court-supervised drug diversion program, except this disability does not operate to exclude a person
if:
(A) The person can demonstrate that the person has been convicted only once of a [ marijuana]
cannabis possession offense that constituted a misdemeanor or violation under the law of the ju-
risdiction of the offense, and has not completed a drug diversion program for a [ marijuana] cannabis
possession offense that constituted a misdemeanor or violation under the law of the jurisdiction of
the offense; or
(B) The person can demonstrate that the person has only once completed a drug diversion pro-
gram for a [ marijuana] cannabis possession offense that constituted a misdemeanor or violation
under the law of the jurisdiction of the offense, and has not been convicted of a [ marijuana]
cannabis possession offense that constituted a misdemeanor or violation under the law of the ju-
risdiction of the offense;
(m) Is not subject to a citation issued under ORS 163.735 or an order issued under ORS 30.866,
107.700 to 107.735 or 163.738;
(n) Has not received a dishonorable discharge from the Armed Forces of the United States;
(o) Is not required to register as a sex offender in any state; and
(p) Is not presently subject to an order under ORS 426.133 prohibiting the person from pur-
chasing or possessing a firearm.
(2) A person who has been granted relief under ORS 166.273, 166.274 or 166.293 or 18 U.S.C.
925(c) or has had the person’s record expunged under the laws of this state or equivalent laws of
other jurisdictions is not subject to the disabilities in subsection (1)(g) to (L) of this section.
(3) Before the sheriff may issue a license:
(a) The application must state the applicant’s legal name, current address and telephone number,
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date and place of birth, hair and eye color and height and weight. The application must also list the
applicant’s residence address or addresses for the previous three years. The application must contain
a statement by the applicant that the applicant meets the requirements of subsection (1) of this
section. The application may include the Social Security number of the applicant if the applicant
voluntarily provides this number. The application must be signed by the applicant.
(b) The applicant must submit to fingerprinting and photographing by the sheriff. The sheriff
shall fingerprint and photograph the applicant and shall conduct any investigation necessary to
corroborate the requirements listed under subsection (1) of this section. If a nationwide criminal
records check is necessary, the sheriff shall request the Department of State Police to conduct the
check, including fingerprint identification, through the Federal Bureau of Investigation. The Federal
Bureau of Investigation shall return the fingerprint cards used to conduct the criminal records
check and may not keep any record of the fingerprints. The Department of State Police shall report
the results of the fingerprint-based criminal records check to the sheriff. The Department of State
Police shall also furnish the sheriff with any information about the applicant that the Department
of State Police may have in its possession including, but not limited to, manual or computerized
criminal offender information.
(4) Application forms for concealed handgun licenses shall be supplied by the sheriff upon re-
quest. The forms shall be uniform throughout this state in substantially the following form:
_______________________________________________________________________________________
APPLICATION FOR LICENSE TO CARRY
CONCEALED HANDGUN
Date
I hereby declare as follows:
I am a citizen of the United States or a legal resident noncitizen who can document continuous
residency in the county for at least six months and have declared in writing to the United States
Citizenship and Immigration Services my intention to become a citizen and can present proof of the
written declaration to the sheriff at the time of this application. I am at least 21 years of age. I have
been discharged from the jurisdiction of the juvenile court for more than four years if, while a mi-
nor, I was found to be within the jurisdiction of the juvenile court for having committed an act that,
if committed by an adult, would constitute a felony or a misdemeanor involving violence, as defined
in ORS 166.470. I have never been convicted of a felony or found guilty, except for insanity under
ORS 161.295, of a felony in the State of Oregon or elsewhere. I have not, within the last four years,
been convicted of a misdemeanor or found guilty, except for insanity under ORS 161.295, of a
misdemeanor. Except as provided in ORS 166.291 (1)(L), I have not been convicted of an offense in-
volving controlled substances or completed a court-supervised drug diversion program. There are
no outstanding warrants for my arrest and I am not free on any form of pretrial release. I have not
been committed to the Oregon Health Authority under ORS 426.130, nor have I been found to be a
person with mental illness and presently subject to an order prohibiting me from purchasing or
possessing a firearm because of mental illness. I am not under a court order to participate in as-
sisted outpatient treatment that includes an order prohibiting me from purchasing or possessing a
firearm. If any of the previous conditions do apply to me, I have been granted relief or wish to pe-
tition for relief from the disability under ORS 166.273, 166.274 or 166.293 or 18 U.S.C. 925(c) or have
had the records expunged. I am not subject to a citation issued under ORS 163.735 or an order is-
sued under ORS 30.866, 107.700 to 107.735 or 163.738. I have never received a dishonorable discharge
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from the Armed Forces of the United States. I am not required to register as a sex offender in any
state. I understand I will be fingerprinted and photographed.
Legal name
Age Date of birth
Place of birth
Social Security number
(Disclosure of your Social Security account number is voluntary. Solicitation of the number is au-
thorized under ORS 166.291. It will be used only as a means of identification.)
Proof of identification (Two pieces of current identification are required, one of which must bear a
photograph of the applicant. The type of identification and the number on the identification are to
be filled in by the sheriff.):
1.
2.
Height Weight
Hair color Eye color
Current address
(List residence addresses for the
past three years on the back.)
City County Zip
Phone
I have read the entire text of this application, and the statements therein are correct and true.
(Making false statements on this application is a misdemeanor.)
(Signature of Applicant)
Character references.
Name: Address
Name: Address
Approved Disapproved by
Competence with handgun demonstrated by (to be filled in by sheriff)
Date Fee Paid
License No.
_______________________________________________________________________________________
(5)(a) Fees for concealed handgun licenses are:
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(A) $15 to the Department of State Police for conducting the fingerprint check of the applicant.
(B) $100 to the sheriff for the initial issuance of a concealed handgun license.
(C) $75 to the sheriff for the renewal of a concealed handgun license.
(D) $15 to the sheriff for the duplication of a license because of loss or change of address.
(b) The sheriff may enter into an agreement with the Department of Transportation to produce
the concealed handgun license.
(6) No civil or criminal liability shall attach to the sheriff or any authorized representative en-
gaged in the receipt and review of, or an investigation connected with, any application for, or in the
issuance, denial or revocation of, any license under ORS 166.291 to 166.295 as a result of the lawful
performance of duties under those sections.
(7) Immediately upon acceptance of an application for a concealed handgun license, the sheriff
shall enter the applicant’s name into the Law Enforcement Data System indicating that the person
is an applicant for a concealed handgun license or is a license holder.
(8) The county sheriff may waive the residency requirement in subsection (1)(c) of this section
for a resident of a contiguous state who has a compelling business interest or other legitimate
demonstrated need.
(9) For purposes of subsection (1)(c) of this section, a person is a resident of a county if the
person:
(a) Has a current Oregon driver license issued to the person showing a residence address in the
county;
(b) Is registered to vote in the county and has a voter notification card issued to the person
under ORS 247.181 showing a residence address in the county;
(c) Has documentation showing that the person currently leases or owns real property in the
county; or
(d) Has documentation showing that the person filed an Oregon tax return for the most recent
tax year showing a residence address in the county.
(10) As used in this section, “drug diversion program” means a program in which a defendant
charged with a [ marijuana] cannabis possession offense completes a program under court super-
vision and in which the [ marijuana] cannabis possession offense is dismissed upon successful com-
pletion of the diversion program.
SECTION 19.
ORS 166.715 is amended to read:
166.715. As used in ORS 166.715 to 166.735, unless the context requires otherwise:
(1) “Documentary material” means any book, paper, document, writing, drawing, graph, chart,
photograph, phonograph record, magnetic tape, computer printout, other data compilation from
which information can be obtained or from which information can be translated into usable form,
or other tangible item.
(2) “Enterprise” includes any individual, sole proprietorship, partnership, corporation, business
trust or other profit or nonprofit legal entity, and includes any union, association or group of indi-
viduals associated in fact although not a legal entity, and both illicit and licit enterprises and gov-
ernmental and nongovernmental entities.
(3) “Investigative agency” means the Department of Justice or any district attorney.
(4) “Pattern of racketeering activity” means engaging in at least two incidents of racketeering
activity that have the same or similar intents, results, accomplices, victims or methods of commis-
sion or otherwise are interrelated by distinguishing characteristics, including a nexus to the same
enterprise, and are not isolated incidents, provided at least one of such incidents occurred after
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November 1, 1981, and that the last of such incidents occurred within five years after a prior inci-
dent of racketeering activity. Notwithstanding ORS 131.505 to 131.525 or 419A.190 or any other
provision of law providing that a previous prosecution is a bar to a subsequent prosecution, conduct
that constitutes an incident of racketeering activity may be used to establish a pattern of
racketeering activity without regard to whether the conduct previously has been the subject of a
criminal prosecution or conviction or a juvenile court adjudication, unless the prosecution resulted
in an acquittal or the adjudication resulted in entry of an order finding the youth not to be within
the jurisdiction of the juvenile court.
(5) “Person” means any individual or entity capable of holding a legal or beneficial interest in
real or personal property.
(6) “Racketeering activity” includes conduct of a person committed both before and after the
person attains the age of 18 years, and means to commit, to attempt to commit, to conspire to
commit, or to solicit, coerce or intimidate another person to commit:
(a) Any conduct that constitutes a crime, as defined in ORS 161.515, under any of the following
provisions of the Oregon Revised Statutes:
(A) ORS 59.005 to 59.505, 59.710 to 59.830, 59.991 and 59.995, relating to securities;
(B) ORS 162.015, 162.025 and 162.065 to 162.085, relating to bribery and perjury;
(C) ORS 162.235, 162.265 to 162.305, 162.325, 162.335, 162.355 and 162.365, relating to obstructing
governmental administration;
(D) ORS 162.405 to 162.425, relating to abuse of public office;
(E) ORS 162.455, relating to interference with legislative operation;
(F) ORS 163.095 to 163.115, 163.118, 163.125 and 163.145, relating to criminal homicide;
(G) ORS 163.160 to 163.205, relating to assault and related offenses;
(H) ORS 163.225 and 163.235, relating to kidnapping;
(I) ORS 163.275, relating to coercion;
(J) ORS 163.665 to 163.693, relating to sexual conduct of children;
(K) ORS 164.015, 164.043, 164.045, 164.055, 164.057, 164.075 to 164.095, 164.098, 164.125, 164.135,
164.140, 164.215, 164.225 and 164.245 to 164.270, relating to theft, burglary, criminal trespass and
related offenses;
(L) ORS 164.315 to 164.335, relating to arson and related offenses;
(M) ORS 164.345 to 164.365, relating to criminal mischief;
(N) ORS 164.395 to 164.415, relating to robbery;
(O) ORS 164.865, 164.875 and 164.868 to 164.872, relating to unlawful recording or labeling of a
recording;
(P) ORS 165.007 to 165.022, 165.032 to 165.042 and 165.055 to 165.070, relating to forgery and
related offenses;
(Q) ORS 165.080 to 165.109, relating to business and commercial offenses;
(R) ORS 165.540 and 165.555, relating to communication crimes;
(S) ORS 166.180, 166.190, 166.220, 166.250, 166.270, 166.275, 166.410, 166.450 and 166.470, relating
to firearms and other weapons;
(T) ORS 164.377 (2) to (4), as punishable under ORS 164.377 (5)(b), 167.007 to 167.017, 167.057,
167.062 to 167.080, 167.090, 167.122 to 167.137, 167.147, 167.164, 167.167, 167.212, 167.355, 167.365,
167.370, 167.428, 167.431 and 167.439, relating to prostitution, obscenity, sexual conduct, gambling,
computer crimes involving the Oregon State Lottery, animal fighting, forcible recovery of a fighting
bird and related offenses;
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(U) ORS 171.990, relating to legislative witnesses;
(V) ORS 260.575 and 260.665, relating to election offenses;
(W) ORS 314.075, relating to income tax;
(X) ORS 180.440 (2) and 180.486 (2) and ORS chapter 323, relating to cigarette and tobacco
products taxes and the directories developed under ORS 180.425 and 180.477;
(Y) ORS 411.630, 411.675, 411.690 and 411.840, relating to public assistance payments or medical
assistance benefits, and ORS 411.990 (2) and (3);
(Z) ORS 462.140, 462.415 and 462.420 to 462.520, relating to racing;
(AA) ORS 463.995, relating to entertainment wrestling and unarmed combat sports, as defined
in ORS 463.015;
(BB) ORS 471.305, 471.360, 471.392 to 471.400, 471.403, 471.404, 471.405, 471.425, 471.442, 471.445,
471.446, 471.485, 471.490 and 471.675, relating to alcoholic liquor, and any of the provisions of ORS
chapter 471 relating to licenses issued under the Liquor Control Act;
(CC) ORS 475C.005 to 475C.525, relating to [ marijuana] cannabis items as defined in ORS
475C.009;
(DD) ORS 475.005 to 475.285 and 475.752 to 475.980, relating to controlled substances;
(EE) ORS 480.070, 480.210, 480.215, 480.235 and 480.265, relating to explosives;
(FF) ORS 819.010, 819.040, 822.100, 822.135 and 822.150, relating to motor vehicles;
(GG) ORS 658.452 or 658.991 (2) to (4), relating to labor contractors;
(HH) ORS chapter 706, relating to banking law administration;
(II) ORS chapter 714, relating to branch banking;
(JJ) ORS chapter 716, relating to mutual savings banks;
(KK) ORS chapter 723, relating to credit unions;
(LL) ORS chapter 726, relating to pawnbrokers;
(MM) ORS 166.382 and 166.384, relating to destructive devices;
(NN) ORS 165.074;
(OO) ORS 86A.095 to 86A.198, relating to mortgage bankers and mortgage brokers;
(PP) ORS chapter 496, 497 or 498, relating to wildlife;
(QQ) ORS 163.355 to 163.427, relating to sexual offenses;
(RR) ORS 166.015, relating to riot;
(SS) ORS 166.155 and 166.165, relating to bias crimes;
(TT) ORS chapter 696, relating to real estate and escrow;
(UU) ORS chapter 704, relating to outfitters and guides;
(VV) ORS 165.692, relating to making a false claim for health care payment;
(WW) ORS 162.117, relating to public investment fraud;
(XX) ORS 164.170 or 164.172;
(YY) ORS 647.140, 647.145 or 647.150, relating to trademark counterfeiting;
(ZZ) ORS 164.886;
(AAA) ORS 167.312 and 167.388;
(BBB) ORS 164.889;
(CCC) ORS 165.800; or
(DDD) ORS 163.263, 163.264 or 163.266.
(b) Any conduct defined as “racketeering activity” under 18 U.S.C. 1961 (1)(B), (C), (D) and (E).
(7) “Unlawful debt” means any money or other thing of value constituting principal or interest
of a debt that is legally unenforceable in the state in whole or in part because the debt was incurred
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or contracted:
(a) In violation of any one of the following:
(A) ORS chapter 462, relating to racing;
(B) ORS 167.108 to 167.164, relating to gambling; or
(C) ORS 82.010 to 82.170, relating to interest and usury.
(b) In gambling activity in violation of federal law or in the business of lending money at a rate
usurious under federal or state law.
(8) Notwithstanding contrary provisions in ORS 174.060, when this section references a statute
in the Oregon Revised Statutes that is substantially different in the nature of its essential provisions
from what the statute was when this section was enacted, the reference shall extend to and include
amendments to the statute.
SECTION 20.
ORS 167.262 is amended to read:
167.262. (1) It is unlawful for an adult to knowingly use as an aider or abettor or to knowingly
solicit, force, compel, coerce or employ a minor, with or without compensation to the minor:
(a) To manufacture a controlled substance or a [ marijuana] cannabis item as defined in ORS
475C.009; or
(b) To transport, carry, sell, give away, prepare for sale or otherwise distribute a controlled
substance or a [ marijuana] cannabis item as defined in ORS 475C.009.
(2)(a) Except as otherwise provided in paragraph (b) of this subsection, violation of this section
is a Class A felony.
(b) Violation of this section is a Class A misdemeanor if the violation involves delivery for no
consideration of less than one ounce of usable [ marijuana] cannabis as defined in ORS 475C.009.
SECTION 21. ORS 180.405 is amended to read:
180.405. As used in ORS 180.400 to 180.455 and 323.106:
(1) “Brand family” means all styles of cigarettes sold under the same trademark and differen-
tiated from one another by means of additional modifiers or descriptors, including, but not limited
to, cigarettes labeled “menthol,” “lights,” “kings,” “100s” and any cigarettes sold under a brand
name, alone or in conjunction with any other word, trademark, logo, symbol, motto, selling message,
recognizable pattern of colors or other indicia of product identification, that are identical to, similar
to or identifiable with a previously known brand of cigarettes.
(2) “Cigarette” has the meaning given that term in ORS 323.800.
(3) “Distributor” means a person who is licensed under ORS 323.105 or 323.530 and any other
person who is a distributor for the purposes of ORS 323.005 to 323.482 or 323.500 to 323.645.
(4) “Importer” has the meaning given that term in ORS 323.800.
(5)(a) “Inhalant delivery system” means:
(A) A device that can be used to deliver nicotine in the form of a vapor or aerosol to a person
inhaling from the device; or
(B) A component of a device described in this paragraph or a substance in any form sold for the
purpose of being vaporized or aerosolized by a device described in this paragraph, whether the
component or substance is sold separately or is not sold separately.
(b) “Inhalant delivery system” does not include:
(A) Any product that has been approved by the United States Food and Drug Administration for
sale as a tobacco cessation product or for any other therapeutic purpose, if the product is marketed
and sold solely for the approved purpose;
(B) If sold separately, battery chargers, straps or lanyards; or
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(C) [ Marijuana] Cannabis items as defined in ORS 475C.009.
(6) “Master Settlement Agreement” has the meaning given that term in ORS 323.800.
(7) “Nonparticipating manufacturer” means any tobacco product manufacturer that is not a
participating manufacturer.
(8) “Participating manufacturer” has the meaning given that term in section II(jj) of the Master
Settlement Agreement.
(9) “Qualified escrow fund” has the meaning given that term in ORS 323.800.
(10) “Retailer” means a person that sells cigarettes, inhalant delivery systems or smokeless to-
bacco products to individuals for personal consumption.
(11) “Smokeless tobacco products” has the meaning given that term in ORS 323.810.
(12) “Tobacco product manufacturer” has the meaning given that term in ORS 323.800.
(13) “Units sold” has the meaning given that term in ORS 323.800.
SECTION 22.
ORS 181A.195 is amended to read:
181A.195. (1) As used in this section:
(a) “Authorized agency” means state government as defined in ORS 174.111, the Oregon State
Bar or a municipal tax collection agency in a city with a population of 250,000 or more. “Authorized
agency” does not include:
(A) The Oregon State Lottery Commission or the Oregon State Lottery; or
(B) A criminal justice agency, as defined in ORS 181A.010, that is authorized by federal law to
receive fingerprint-based criminal records checks from the Federal Bureau of Investigation.
(b) “Subject individual” means a person from whom an authorized agency may require finger-
prints pursuant to statute for the purpose of enabling the authorized agency to request a state or
nationwide criminal records check.
(2)(a) An authorized agency may request that the Department of State Police conduct a criminal
records check on a subject individual for noncriminal justice purposes.
(b) An authorized agency may request that the department conduct a criminal records check on
a subject individual who is a contractor or vendor and who provides services to the authorized
agency when access to criminal offender information is required to perform noncriminal justice ad-
ministrative functions on behalf of the authorized agency. Criminal records checks performed under
this paragraph are subject to state and federal criminal offender information access policies. An
authorized agency shall conduct fitness determinations for contractors and vendors in coordination
with the department.
(c) If a nationwide criminal records check of a subject individual is necessary, the authorized
agency may request that the department conduct the check, including fingerprint identification,
through the Federal Bureau of Investigation.
(3) The Department of State Police shall provide the results of a criminal records check con-
ducted pursuant to subsection (2) of this section to the authorized agency requesting the check.
(4) The Federal Bureau of Investigation shall return or destroy the fingerprint cards used to
conduct the criminal records check and may not keep any record of the fingerprints, except that the
Federal Bureau of Investigation may retain the fingerprint cards and records of the fingerprints for
purposes described in ORS 181A.205. If the federal bureau policy authorizing return or destruction
of the fingerprint cards is changed, the Department of State Police shall cease to send the cards to
the federal bureau but shall continue to process the information through other available resources.
(5) If the Federal Bureau of Investigation returns the fingerprint cards to the Department of
State Police, the Department of State Police shall destroy the fingerprint cards and may not retain
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facsimiles or other material from which a fingerprint can be reproduced, except that the Department
of State Police may retain the fingerprint cards or create facsimiles for the purpose of providing
information under ORS 181A.205 and for purposes of data security under subsection (12) of this
section.
(6) If only a state criminal records check is conducted, after the criminal records check is
completed, the Department of State Police shall destroy the fingerprint cards and the results of the
criminal records check provided to the authorized agency and may not retain facsimiles or other
material from which a fingerprint can be reproduced, except that the Department of State Police
may retain the fingerprint cards and results or create facsimiles for the purpose of providing infor-
mation under ORS 181A.205.
(7) An authorized agency may conduct criminal records checks on subject individuals through
the Law Enforcement Data System maintained by the Department of State Police in accordance with
rules adopted, and procedures established, by the Department of State Police.
(8) An authorized agency and the Department of State Police shall permit a subject individual
for whom a fingerprint-based criminal records check was conducted to inspect the individual’s own
state and national criminal offender records and, if requested by the subject individual, provide the
individual with a copy of the individual’s own state and national criminal offender records.
(9) Each authorized agency, in consultation with the Department of State Police, may adopt
rules to implement this section and other statutes relating to criminal offender information obtained
through fingerprint-based criminal records checks. The rules may include but need not be limited to:
(a) Identifying applicable categories of subject individuals as specified by the Oregon Depart-
ment of Administrative Services under ORS 181A.215 who are subject to criminal records checks
by the authorized agency.
(b) Identifying applicable information that may be required from a subject individual to permit
a criminal records check as specified by the Oregon Department of Administrative Services under
ORS 181A.215.
(c) Specifying which programs or services are subject to this section.
(d) If the authorized agency uses criminal records checks for agency employment purposes:
(A) Determining when and under what conditions a subject individual may be hired on a pre-
liminary basis pending a criminal records check; and
(B) Defining the conditions under which a subject individual may participate in training, orien-
tation and work activities pending completion of a criminal records check.
(e) Establishing fees in an amount not to exceed the actual cost of acquiring and furnishing
criminal offender information.
(10)(a) Except as otherwise provided in ORS 181A.400, 181A.875, 342.143, 342.223, 443.735,
475C.770 to 475C.919 and 703.090 and paragraph (d) of this subsection, an authorized agency, using
the rules adopted by the Oregon Department of Administrative Services under ORS 181A.215, shall
determine whether a subject individual is fit to hold a position, provide services, be employed or be
granted a license, certification, registration or permit. If a subject individual is determined to be
unfit, then the individual may not hold the position, provide services, be employed or be granted a
license, certification, registration or permit.
(b)(A) Subject to subparagraph (B) of this paragraph, an authorized agency making a fitness
determination of an individual under this subsection may request results of a previously made fitness
determination from an authorized agency that has already made a fitness determination for the in-
dividual. An authorized agency that receives a request under this paragraph shall provide the re-
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quested information.
(B) An authorized agency may make a request under this paragraph only for individuals:
(i) Who are applying to hold a position, provide services, be employed or be granted a license,
certification, registration or permit;
(ii) Who are in a category of individuals as specified by the Oregon Department of Administra-
tive Services by rule under ORS 181A.215; and
(iii) For whom a fitness determination has already been made.
(c) Except as otherwise provided in ORS 181A.400, in making the fitness determination under
this subsection, the authorized agency shall consider:
(A) The nature of the crime;
(B) The facts that support the conviction or pending indictment or that indicate the making of
a false statement;
(C) The relevancy, if any, of the crime or the false statement to the specific requirements of the
subject individual’s present or proposed position, services, employment, license, certification or reg-
istration; and
(D) Intervening circumstances relevant to the responsibilities and circumstances of the position,
services, employment, license, certification, registration or permit, such as:
(i) The passage of time since the commission of the crime;
(ii) The age of the subject individual at the time of the crime;
(iii) The likelihood of a repetition of offenses or of the commission of another crime;
(iv) The subsequent commission of another relevant crime;
(v) Whether the conviction was set aside and the legal effect of setting aside the conviction; and
(vi) The recommendation of an employer.
(d) A subject individual is not entitled to a fitness determination under this subsection if the
subject individual:
(A) Is or seeks to be employed in any capacity having contact with a recipient of support ser-
vices or a resident of a residential facility or adult foster home, as provided in ORS 443.004 (3), and
has been convicted of any crime listed in ORS 443.004 (3) or (5).
(B) Is prohibited by federal law from holding a position, providing services, being employed or
being granted a license, certification, registration or permit for which the fitness determination is
requested by an authorized agency.
(11)(a) In conducting a fitness determination regarding a subject individual other than an indi-
vidual described in paragraph (b) of this subsection, the Department of Human Services or the
Oregon Health Authority may not consider:
(A) A conviction that is more than 10 years old unless the conviction is for a crime listed in
ORS 443.004 (3) or (5);
(B) A charge or arrest for which there was no conviction unless the charge or arrest is for a
crime listed in ORS 443.004 (3) or (5);
(C) A conviction on a charge relating to [ marijuana] cannabis if the charge is no longer a
criminal offense;
(D) A conviction under ORS 813.010 or 830.325, or a misdemeanor conviction under a law in
another jurisdiction that imposes criminal penalties for operating a vehicle or boat while under the
influence of intoxicants, if the subject individual had no more than one conviction described in this
subparagraph in the five-year period prior to the date of the criminal records check;
(E) A deferred sentence, conditional discharge or participation in a diversion program for any
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crime unless the crime is listed in ORS 443.004 (3) and (5); and
(F) A pending indictment for a crime unless the crime is listed in ORS 443.004 (3) or (5).
(b) The department or the authority may consider a charge, arrest, conviction, deferred sen-
tence, conditional discharge, participation in a diversion program or pending indictment that may
not be considered under paragraph (a) of this subsection in making a fitness determination for a
subject individual who is:
(A) Described in ORS 418.016;
(B) An employee, volunteer, contractor or provider in, or an agent of, a proctor foster home as
defined in ORS 418.205 or a child-caring agency as defined in ORS 418.205;
(C) An exempt family child care provider, as defined in ORS 329A.430, the provider’s household
members who are 16 years of age or older or a frequent visitor of a provider who is subject to a
criminal records check;
(D) An employee or volunteer in a facility that:
(i) Provides care to children and is operated by a school district, as defined in ORS 332.002, a
political subdivision of this state, a preschool recorded program, as defined in ORS 329A.250, or a
government agency; and
(ii) Is not required to be certified under ORS 329A.280; or
(E) An emergency medical services provider, as defined in ORS 682.025, for the purpose of de-
termining the fitness of the emergency medical services provider to receive or hold a license under
ORS 670.280.
(12)(a) Criminal offender information is confidential. Authorized agencies and the Department
of State Police shall adopt rules to restrict dissemination of information received under this section
to persons with a demonstrated and legitimate need to know the information.
(b) For each employee, contractor or vendor of an authorized agency who is required to have
access to or review criminal offender information for noncriminal justice purposes, the authorized
agencyshall:
(A) Conduct a state and nationwide fingerprint-based criminal records check;
(B) Ensure that the employee, contractor or vendor meets the security background check re-
quirements of the Federal Bureau of Investigation Criminal Justice Information Services Security
Policy for having unescorted access to criminal offender information; and
(C) Pay fees as required under subsection (9) of this section.
(13) If a subject individual refuses to consent to the criminal records check or refuses to be
fingerprinted, the authorized agency shall deny the employment of the individual, or revoke or deny
any applicable position, authority to provide services, license, certification, registration or permit.
(14) If an authorized agency requires a criminal records check of employees, prospective em-
ployees, contractors, vendors or volunteers or applicants for a license, certification, registration or
permit, the application forms of the authorized agency must contain a notice that the person is
subject to fingerprinting and a criminal records check.
SECTION 23.
ORS 181A.640 is amended to read:
181A.640. (1) The Department of Public Safety Standards and Training may deny the application
for training, or deny, suspend or revoke the certification, of any public safety officer or instructor,
except a youth correction officer or fire service professional, after written notice and hearing con-
sistent with the provisions of ORS 181A.630, based upon a finding that:
(a) The public safety officer or instructor falsified any information submitted on the application
for certification or on any documents submitted to the Board on Public Safety Standards and
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Training or the department.
(b) The public safety officer or instructor has been convicted of a crime or violation in this state
or any other jurisdiction.
(c) The public safety officer or instructor does not meet the applicable minimum standards,
minimum training or the terms and conditions established under ORS 181A.410 (1)(a) to (d).
(d) The public safety officer failed to comply with ORS 181A.790 (3)(b).
(2) The department shall deny the application for training or deny, suspend or revoke the cer-
tification of a police officer, after written notice and hearing consistent with the provisions of ORS
181A.630, based upon a finding that:
(a) The officer has a conviction for any offense designated under the law of the jurisdiction
where the conviction occurred as being punishable as a felony or as a crime for which a maximum
term of imprisonment of more than one year may be imposed;
(b) The officer has a conviction in any jurisdiction for any offense involving the unlawful use,
possession, delivery or manufacture of a controlled substance, narcotic or dangerous drug, except
for offenses involving the use or possession of [ marijuana] cannabis;
(c) The officer has a conviction in any jurisdiction for any offense involving domestic violence,
as defined in ORS 135.230;
(d) The officer has a conviction in any jurisdiction for any offense involving abuse, as defined
in ORS 107.705, of a child who is under 18 years of age and is a natural child, adopted child,
stepchild, a child under the guardianship of, or a child who regularly resides or formerly resided in
the same household as, the officer;
(e) The officer is a sex offender as defined in ORS 163A.005; or
(f) The officer has been discharged for cause from employment as a police officer as a result of
intentional conduct performed under the color of office to:
(A) Obtain false confessions;
(B) Make false arrests;
(C) Create or use falsified evidence, including false testimony, or to destroy evidence to create
a false impression;
(D) Compel a person to abstain from doing, or to do, any act that the person has a legal right
to do or abstain from doing;
(E) Deprive, or attempt to deprive, another person or persons of their legal rights;
(F) Gain advantage for a public or private safety agency or for personal gain;
(G) Use force that was determined to be excessive or without justification;
(H) Engage in the abuse of lawful authority; or
(I) Engage in policing indicative of bias or discriminatory intent against an individual based on
the individual’s real or perceived age, race, ethnicity, color, national origin, language, sex, gender
identity, sexual orientation, political affiliation, religion, homelessness or disability.
(3) The department shall deny, suspend or revoke the certification of a fire service professional,
after written notice and hearing consistent with the provisions of ORS 181A.630, based upon a
finding that the fire service professional has been convicted in this state of a crime listed in ORS
137.700 or in any other jurisdiction of a crime that, if committed in this state, would constitute a
crime listed in ORS 137.700.
(4) The department may deny, suspend or revoke the certification of any fire service professional
after written notice and hearing consistent with the provisions of ORS 181A.630, based upon a
finding:
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(a) That the fire service professional falsified any information submitted on the application for
certification or on any documents submitted to the board or the department; or
(b) Consistent with ORS 670.280, that the fire service professional is not fit to receive or hold
the certification as a result of conviction of a crime in this state, or in any other jurisdiction, other
than a crime described in subsection (3) of this section.
(5) The department shall deny, suspend or revoke the certification of any public safety officer
or instructor, except a youth correction officer, after written notice and hearing consistent with the
provisions of ORS 181A.630, based upon a finding that the public safety officer or instructor has
been discharged for cause from employment as a public safety officer.
(6) The department, in consultation with the board, shall adopt rules specifying those crimes and
violations for which a conviction requires the denial, suspension or revocation of the certification
of a public safety officer or instructor.
(7) Notwithstanding the lapse, suspension, revocation or surrender of the certification of a pub-
lic safety officer or instructor, the department may:
(a) Proceed with any investigation of, or any action or disciplinary proceedings against, the
public safety officer or instructor; or
(b) Revise or render void an order suspending or revoking the certification.
(8) The department shall deny, suspend or revoke the accreditation of a training or educational
program or any course, subject, facility or instruction thereof if the program, course, subject, facility
or instruction is not in compliance with rules adopted or conditions prescribed under ORS 181A.410
(1)(g) or 181A.590 (3).
(9) When the department completes an investigation relating to a person’s qualifications for
employment, training or certification under this section, the department shall issue a report.
(10) In cases involving a proposed denial of training or certification of a public safety officer
or instructor by the department, the department has jurisdiction to proceed with any action against
the public safety officer or instructor notwithstanding a subsequent change in the employment status
of the officer or instructor, if:
(a) The department has issued a notice of intent to deny training or certification; and
(b) The officer or instructor has requested a hearing.
SECTION 24.
ORS 223.301 is amended to read:
223.301. (1) As used in this section, “employer” means any person who contracts to pay
remuneration for, and secures the right to direct and control the services of, any person.
(2) A local government may not establish or impose a system development charge that requires
an employer to pay a reimbursement fee or an improvement fee based on:
(a) The number of individuals hired by the employer after a specified date; or
(b) A methodology that assumes that costs are necessarily incurred for capital improvements
when an employer hires an additional employee.
(3) A methodology set forth in an ordinance or resolution that establishes an improvement fee
or a reimbursement fee shall not include or incorporate any method or system under which the
payment of the fee or the amount of the fee is determined by the number of employees of an em-
ployer without regard to new construction, new development or new use of an existing structure by
the employer.
(4) A local government may not impose a system development charge for increased use of a
transportation facility that results from the production of [ marijuana] cannabis on a property lo-
cated in an exclusive farm use zone.
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SECTION 25.
ORS 307.455 is amended to read:
307.455. (1) As used in ORS 307.453 to 307.459:
(a) “Assessor” means the county assessor, or the Department of Revenue if under ORS 306.126
the department is responsible for appraisal of the facility at which the qualified machinery and
equipment is located.
(b) “Bakery product” has the meaning given that term in ORS 625.010.
(c) “Dairy products” has the meaning given that term in ORS 621.003.
(d) “Food processor”:
(A) Means a person engaged in the business of freezing, canning, dehydrating, concentrating,
preserving, processing or repacking for human consumption raw or fresh fruit, vegetables, nuts,
legumes, grains, bakery products, dairy products, eggs, seafood, meat or wild game in any procedure
that occurs prior to the point of first sale by the processor.
(B) Does not include:
(i) Persons engaged in the business of producing alcoholic beverages or [ marijuana] cannabis
items as defined in ORS 475C.009.
(ii) A person engaged in the business of producing bakery products unless the person has been
issued a wholesale license by the State Department of Agriculture.
(e) “Integrated processing line” does not include forklifts, trucks or other rolling stock used to
transport material to or from a point of manufacture or assembly.
(f) “Qualified machinery and equipment” means property, whether new or used, that is newly
acquired by a food processor and placed into service prior to January 1 preceding the first tax year
for which an exemption under this section is sought, and that consists of:
(A) Real property machinery and equipment that is used by a food processor in the primary
processing of raw or fresh fruit, vegetables, nuts, legumes, grains, bakery products, dairy products,
eggs, seafood, meat or wild game; or
(B) Personal property machinery and equipment that is used in an integrated processing line for
the primary processing of raw or fresh fruit, vegetables, nuts, legumes, grains, bakery products,
dairy products, eggs, seafood, meat or wild game.
(2)(a) On or before March 1 preceding the first tax year for which property is to be exempt from
taxation under this section, a food processor seeking an exemption under this section shall apply to
the assessor for exemption. The application shall be on a form prescribed by the Department of
Revenue and shall include any information required by the department, including a schedule of the
qualified machinery and equipment for which certification is sought.
(b) Notwithstanding paragraph (a) of this subsection, the assessor may approve an application
that is filed after March 1, and on or before December 31 of the assessment year, if the statement
is accompanied by a late filing fee of the greater of $200 or one-tenth of one percent of the real
market value of the property that is the subject of the application.
(c) The assessor shall review the application and, if the machinery and equipment that is the
subject of the application constitutes qualified machinery and equipment certified by the State De-
partment of Agriculture under ORS 307.457, shall approve the application and exempt the qualified
machinery and equipment.
(d) If any of the machinery and equipment that is the subject of the application does not con-
stitute qualified machinery and equipment certified by the State Department of Agriculture under
ORS 307.457, the assessor shall exclude the nonqualified machinery and equipment from the appli-
cation.
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(3) Qualified machinery and equipment for which an application has been approved under sub-
section (2) of this section shall be exempt for the tax year for which the application was approved
and for the next four succeeding tax years, if as of the assessment date for each year the property
constitutes qualified machinery and equipment.
(4) The duration of the exemption under subsection (3) of this section may not be extended as
the result of the value of changes to qualified machinery and equipment that are attributable to
rehabilitation, reconditioning or ongoing maintenance or repair.
(5) Notwithstanding subsection (3) of this section, qualified machinery and equipment that is
used to process grains or bakery products may not be granted exemption under this section unless
the qualified machinery and equipment has a total cost of initial investment of at least $100,000 to
the food processor.
(6) Notwithstanding subsection (3) of this section, qualified machinery and equipment that is
used to process bakery products may not be granted exemption under this section if proceeds from
retail sales made at the processing site constitute more than 10 percent of all proceeds from sales
made at the processing site.
SECTION 26.
ORS 316.680 is amended to read:
316.680. (1) There shall be subtracted from federal taxable income:
(a) The interest or dividends on obligations of the United States and its territories and pos-
sessions or of any authority, commission or instrumentality of the United States to the extent
includable in gross income for federal income tax purposes but exempt from state income taxes un-
der the laws of the United States. However, the amount subtracted under this paragraph shall be
reduced by any interest on indebtedness incurred to carry the obligations or securities described in
this paragraph, and by any expenses incurred in the production of interest or dividend income de-
scribed in this paragraph to the extent that such expenses, including amortizable bond premiums,
are deductible in determining federal taxable income.
(b) The amount of any federal income taxes accrued by the taxpayer during the taxable year as
described in ORS 316.685, less the amount of any refunds of federal taxes previously accrued for
which a tax benefit was received.
(c) Amounts allowable under sections 2621(a)(2) and 2622(b) of the Internal Revenue Code to the
extent that the taxpayer does not elect under section 642(g) of the Internal Revenue Code to reduce
federal taxable income by those amounts.
(d) Any supplemental payments made to JOBS Plus Program participants under ORS 411.892.
(e)(A) Federal pension income that is attributable to federal employment occurring before Oc-
tober 1, 1991. Federal pension income that is attributable to federal employment occurring before
October 1, 1991, shall be determined by multiplying the total amount of federal pension income for
the tax year by the ratio of the number of months of federal creditable service occurring before
October 1, 1991, over the total number of months of federal creditable service.
(B) The subtraction allowed under this paragraph applies only to federal pension income re-
ceived at a time when:
(i) Benefit increases provided under chapter 569, Oregon Laws 1995, are in effect; or
(ii) Public Employees Retirement System benefits received for service prior to October 1, 1991,
are exempt from state income tax.
(C) As used in this paragraph:
(i) “Federal creditable service” means those periods of time for which a federal employee earned
a federal pension.
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(ii) “Federal pension” means any form of retirement allowance provided by the federal govern-
ment, its agencies or its instrumentalities to retirees of the federal government or their benefici-
aries.
(f) Any amount included in federal taxable income for the tax year that is attributable to the
conversion of a regular individual retirement account into a Roth individual retirement account
described in section 408A of the Internal Revenue Code, to the extent that:
(A) The amount was subject to the income tax of another state or the District of Columbia in
a prior tax year; and
(B) The taxpayer was a resident of the other state or the District of Columbia for that prior tax
year.
(g) Any amounts awarded to the taxpayer by the Public Safety Memorial Fund Board under ORS
243.954 to 243.974 to the extent that the taxpayer has not taken the amount as a deduction in de-
termining the taxpayer’s federal taxable income for the tax year.
(h) If included in taxable income for federal tax purposes, the amount withdrawn during the tax
year in qualified withdrawals from a savings network account for higher education established under
ORS 178.300 to 178.360.
(i) Any federal deduction that the taxpayer would have been allowed for the production, pro-
cessing or sale of [ marijuana] cannabis items authorized under ORS 475C.005 to 475C.525 or
475C.770 to 475C.919 but for section 280E of the Internal Revenue Code.
(j) Any federal deduction that the taxpayer would have been allowed for the manufacturing or
sale of psilocybin products or the provision of psilocybin services authorized under ORS 475A.210
to 475A.722 but for section 280E of the Internal Revenue Code.
(k) If included in taxable income for federal tax purposes, any distributions from an ABLE ac-
count that do not exceed the qualified disability expenses of the designated beneficiary as provided
in ORS 178.375 and 178.380 and rules adopted by the Oregon 529 Savings Board.
(2) There shall be added to federal taxable income:
(a) Interest or dividends, exempt from federal income tax, on obligations or securities of any
foreign state or of a political subdivision or authority of any foreign state. However, the amount
added under this paragraph shall be reduced by any interest on indebtedness incurred to carry the
obligations or securities described in this paragraph and by any expenses incurred in the production
of interest or dividend income described in this paragraph.
(b) Interest or dividends on obligations of any authority, commission, instrumentality and terri-
torial possession of the United States that by the laws of the United States are exempt from federal
income tax but not from state income taxes. However, the amount added under this paragraph shall
be reduced by any interest on indebtedness incurred to carry the obligations or securities described
in this paragraph and by any expenses incurred in the production of interest or dividend income
described in this paragraph.
(c) The amount of any federal estate taxes allocable to income in respect of a decedent not
taxable by Oregon.
(d) The amount of any allowance for depletion in excess of the taxpayer’s adjusted basis in the
property depleted, deducted on the taxpayer’s federal income tax return for the taxable year, pur-
suant to sections 613, 613A, 614, 616 and 617 of the Internal Revenue Code.
(e) For taxable years beginning on or after January 1, 1985, the dollar amount deducted under
section 151 of the Internal Revenue Code for personal exemptions for the taxable year.
(f) The amount taken as a deduction on the taxpayer’s federal return for unused qualified busi-
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ness credits under section 196 of the Internal Revenue Code.
(g) The amount of any increased benefits paid to a taxpayer under chapter 569, Oregon Laws
1995, under the provisions of chapter 796, Oregon Laws 1991, and under section 26, chapter 815,
Oregon Laws 1991, that is not includable in the taxpayer’s federal taxable income under the Internal
Revenue Code.
(h) The amount of any long term care insurance premiums paid or incurred by the taxpayer
during the tax year if:
(A) The amount is taken into account as a deduction on the taxpayer’s federal return for the
tax year; and
(B) The taxpayer claims the credit allowed under ORS 315.610 for the tax year.
(i) Any amount taken as a deduction under section 1341 of the Internal Revenue Code in com-
puting federal taxable income for the tax year, if the taxpayer has claimed a credit for claim of right
income repayment adjustment under ORS 315.068.
(j) If the taxpayer makes a nonqualified withdrawal, as defined in ORS 178.300, from a savings
network account for higher education established under ORS 178.300 to 178.360, the amount of the
withdrawal that is attributable to contributions that were subtracted from federal taxable income
under ORS 316.699.
(k) If a taxpayer makes a withdrawal from a savings network account for higher education es-
tablished under ORS 178.300 to 178.360 to pay expenses in connection with enrollment or attendance
at an elementary or secondary school, the amount of the withdrawal that is attributable to contri-
butions that were subtracted from federal taxable income under ORS 316.699 and the amount of the
withdrawal that is attributable to previously untaxed earnings and gains.
(L) If the taxpayer makes a distribution from an ABLE account that is not a qualified disability
expense of the designated beneficiary as provided in ORS 178.375 and 178.380 and rules adopted by
the Oregon 529 Savings Board, the amount of the distribution that is attributable to contributions
that were subtracted from federal taxable income under ORS 316.699.
(3) Discount and gain or loss on retirement or disposition of obligations described under sub-
section (2)(a) of this section issued on or after January 1, 1985, shall be treated for purposes of this
chapter in the same manner as under sections 1271 to 1283 and other pertinent sections of the
Internal Revenue Code as if the obligations, although issued by a foreign state or a political subdi-
vision of a foreign state, were not tax exempt under the Internal Revenue Code.
SECTION 27.
ORS 317A.100, as amended by section 26, chapter 75, Oregon Laws 2024, is
amended to read:
317A.100. As used in ORS 317A.100 to 317A.158:
(1)(a) “Commercial activity” means:
(A) The total amount realized by a person, arising from transactions and activity in the regular
course of the person’s trade or business, without deduction for expenses incurred by the trade or
business;
(B) If received by a financial institution:
(i) If the reporting person for a financial institution is a holding company, all items of income
reported on the FR Y-9 filed by the holding company;
(ii) If the reporting person for a financial institution is a bank organization, all items of income
reported on the call report filed by the bank organization; and
(iii) If the reporting person for a financial institution is a nonbank financial organization, all
items of income reported in accordance with generally accepted accounting principles; and
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(C)(i) If received by an insurer, as reported on the statement of premiums accompanying the
annual statement required under ORS 731.574 to be filed with the Director of the Department of
Consumer and Business Services, all gross direct life insurance premiums, gross direct accident and
health insurance premiums and gross direct property and casualty insurance premiums; and
(ii) The gross amount of surplus lines premiums received on Oregon home state risks as shown
in the report required by ORS 735.465.
(b) “Commercial activity” does not include:
(A) Interest income except:
(i) Interest on credit sales; or
(ii) Interest income, including service charges, received by financial institutions;
(B) Receipts from the sale, exchange or other disposition of an asset described in section 1221
or 1231 of the Internal Revenue Code, without regard to the length of time the person held the asset;
(C) If received by an insurer, federally reinsured premiums or income from transactions between
a reciprocal insurer and its attorney in fact operating under ORS 731.142;
(D) Receipts from hedging transactions, to the extent that the transactions are entered into
primarily to protect a financial position, including transactions intended to manage the risk of ex-
posure to foreign currency fluctuations that affect assets, liabilities, profits, losses, equity or in-
vestments in foreign operations, risk of exposure to interest rate fluctuations or risk of commodity
price fluctuations;
(E) Proceeds received attributable to the repayment, maturity or redemption of the principal of
a loan, bond, mutual fund, certificate of deposit or marketable instrument;
(F) The principal amount received under a repurchase agreement or on account of any trans-
action properly characterized as a loan to the person;
(G) Contributions received by a trust, plan or other arrangement, any of which is described in
section 501(a) of the Internal Revenue Code, or to which title 26, subtitle A, chapter 1, subchapter
(D) of the Internal Revenue Code applies;
(H) Compensation, whether current or deferred, and whether in cash or in kind, received or to
be received by an employee, a former employee or the employee’s legal successor for services ren-
dered to or for an employer, including reimbursements received by or for an individual for medical
or education expenses, health insurance premiums or employee expenses or on account of a de-
pendent care spending account, legal services plan, any cafeteria plan described in section 125 of
the Internal Revenue Code or any similar employee reimbursement;
(I) Proceeds received from the issuance of the taxpayer’s own stock, options, warrants, puts or
calls, or from the sale of the taxpayer’s treasury stock;
(J) Proceeds received on the account of payments from insurance policies, including crop in-
surance policies, owned by the taxpayer, except those proceeds received for the loss of commercial
activity;
(K) Gifts or charitable contributions received, membership dues received by trade, professional,
homeowners’ or condominium associations, payments received for educational courses, meetings or
meals, or similar payments to a trade, professional or other similar association, and fundraising re-
ceipts received by any person when any excess receipts are donated or used exclusively for chari-
table purposes;
(L) Damages received as the result of litigation in excess of amounts that, if received without
litigation, would be treated as commercial activity;
(M) Property, money and other amounts received or acquired by an agent on behalf of another
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in excess of the agent’s commission, fee or other remuneration;
(N) Tax refunds from any tax program, other tax benefit recoveries and reimbursements for the
tax imposed under ORS 317A.100 to 317A.158 made by entities that are part of the same unitary
group as provided under ORS 317A.106, and reimbursements made by entities that are not members
of a unitary group that are required to be made for economic parity among multiple owners of an
entity whose tax obligation under ORS 317A.100 to 317A.158 is required to be reported and paid
entirely by one owner, as provided in ORS 317A.106;
(O) Pension reversions;
(P) Contributions to capital;
(Q) Receipts from the sale, transfer, exchange or other disposition of motor vehicle fuel or any
other product used for the propulsion of motor vehicles;
(R) In the case of receipts from the sale of cigarettes or tobacco products by a wholesale dealer,
retail dealer, distributor, manufacturer or seller, an amount equal to the federal and state excise
taxes paid by any person on or for such cigarettes or tobacco products under subtitle E of the
Internal Revenue Code or ORS chapter 323;
(S) In the case of receipts from the sale of malt beverages or wine, as defined in ORS 471.001,
cider, as defined in ORS 471.023 or distilled liquor, as defined in ORS 471.001, by a person holding
a license issued under ORS chapter 471, an amount equal to the federal and state excise taxes paid
by any person on or for such malt beverages, wine or distilled liquor under subtitle E of the Internal
Revenue Code or ORS chapter 471 or 473, and any amount paid to the Oregon Liquor and Cannabis
Commission for sales of distilled spirits by an agent appointed under ORS 471.750;
(T) In the case of receipts from the sale of [ marijuana] cannabis items, as defined in ORS
475C.009, by a person holding a license issued under ORS 475C.005 to 475C.525, an amount equal to
the federal and state excise taxes paid by any person on or for such [ marijuana] cannabis items
under subtitle E of the Internal Revenue Code or ORS 475C.670 to 475C.734 and any local retail
taxes authorized under ORS 475C.453;
(U) Local taxes collected by a restaurant or other food establishment on sales of meals, prepared
food or beverages;
(V) Tips or gratuities collected by a restaurant or other food establishment and passed on to
employees;
(W) Receipts realized by a vehicle dealer certified under ORS 822.020 or a person described in
ORS 320.400 (8)(a)(B) from the sale or other transfer of a motor vehicle, as defined in ORS 801.360,
to another vehicle dealer for the purpose of resale by the transferee vehicle dealer, but only if the
sale or other transfer was based upon the transferee’s need to meet a specific customer’s preference
for a motor vehicle or is an exchange of new vehicles between franchised motor vehicle dealerships;
(X) Registration fees or taxes collected by a vehicle dealer certified under ORS 822.020 or a
person described in ORS 320.400 (8)(a)(B) at the sale or other transfer of a motor vehicle, as defined
in ORS 801.360, that are owed to a third party by the purchaser of the motor vehicle and passed to
the third party by the dealer;
(Y) Receipts from a financial institution for services provided to the financial institution in
connection with the issuance, processing, servicing and management of loans or credit accounts, if
the financial institution and the recipient of the receipts have at least 50 percent of their ownership
interests owned or controlled, directly or constructively through related interests, by common own-
ers;
(Z) In the case of amounts retained as commissions by a holder of a license under ORS chapter
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462, an amount equal to the amounts specified under ORS chapter 462 that must be paid to or col-
lected by the Department of Revenue as a tax and the amounts specified under ORS chapter 462 to
be used as purse money;
(AA) Receipts of residential care facilities as defined in ORS 443.400 or in-home care agencies
as defined in ORS 443.305, to the extent that the receipts are derived from or received as compen-
sation for providing services to a medical assistance or Medicare recipient;
(BB) Dividends received;
(CC) Distributive income received from a pass-through entity;
(DD) Receipts from sales to a wholesaler in this state, if the seller receives certification at the
time of sale from the wholesaler that the wholesaler will sell the purchased property outside this
state;
(EE) Receipts from the wholesale or retail sale of groceries, including receipts of a person that
owns groceries at the time of sale and compensation of any consignee engaged in effecting the sale
of groceries on behalf the owner of the groceries, but only to the extent that the compensation re-
lates to grocery sales;
(FF) Receipts from transactions among members of a unitary group;
(GG) Moneys, including public purpose charge moneys collected under ORS 757.612 and moneys
collected to plan for and pursue cost-effective energy efficiency resources under ORS 757.054, that
are collected from customers, passed to a utility and approved by the Public Utility Commission and
that support energy conservation, renewable resource acquisition and low-income assistance pro-
grams;
(HH) Moneys collected by a utility from customers for the payment of loans through on-bill fi-
nancing;
(II) Surcharges collected under ORS 757.736;
(JJ) Moneys passed to a utility by the Bonneville Power Administration for the purpose of
effectuating the Regional Power Act Exchange credits or pursuant to any settlement associated with
the exchange credit;
(KK) Moneys collected or recovered, by entities listed in ORS 756.310, cable operators as de-
fined in 47 U.S.C. 522(5), telecommunications carriers as defined in 47 U.S.C. 153(51) and providers
of information services as defined in 47 U.S.C. 153(24), for fees payable under ORS 756.310, right-of-
way fees, franchise fees, privilege taxes, federal taxes and local taxes;
(LL) Charges paid to the Residential Service Protection Fund required by chapter 290, Oregon
Laws 1987;
(MM) Universal service surcharge moneys collected or recovered and paid into the universal
service fund established in ORS 759.425;
(NN) Moneys collected for public purpose funding as described in ORS 759.430;
(OO) Moneys collected or recovered and paid into the federal universal service fund as deter-
mined by the Federal Communications Commission;
(PP) In the case of a seller or provider of telecommunications services, the amount of tax im-
posed under ORS 403.200 for access to the emergency communications system that is collected from
subscribers or consumers;
(QQ) In the case of a transient lodging tax collector, the amount of tax imposed under ORS
320.305 and of any local transient lodging tax imposed upon the occupancy of transit lodging;
(RR) In the case of a seller of bicycles, the amount of tax imposed under ORS 320.415 upon retail
sales of bicycles;
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(SS) In the case of a qualified heavy equipment provider, the amount of tax imposed under ORS
307.872 upon the rental price of heavy equipment;
(TT) Farmer sales to an agricultural cooperative in this state that is a cooperative organization
described in section 1381 of the Internal Revenue Code;
(UU) Revenue received by a business entity that is mandated by contract or subcontract to be
distributed to another person or entity if the revenue constitutes sales commissions that are paid
to a person who is not an employee of the business entity, including, without limitation, a split-fee
real estate commission;
(VV) Receipts from the sale of fluid milk by dairy farmers that are not members of an agricul-
tural cooperative; and
(WW)(i) Cost paid by a dealer for items of precious metal.
(ii) As used in this subparagraph, “item of precious metal” means an item of gold, silver,
platinum, rhodium or palladium that has been put through a process of smelting or refining and that
is in a state or condition that its value depends on its contents and not its form.
(2) “Cost inputs” means:
(a) The cost of goods sold as calculated in arriving at federal taxable income under the Internal
Revenue Code; or
(b) In the case of a taxpayer that is engaged in a farming operation, as defined in ORS 317A.102,
and that does not report cost of goods sold for federal tax purposes, the taxpayer’s operating ex-
penses excluding labor costs.
(3) “Doing business” means engaging in any activity, whether legal or illegal, that is conducted
for, or results in, the receipt of commercial activity at any time during a calendar year.
(4) “Excluded person” means any of the following:
(a) Organizations described in sections 501(c) and 501(j) of the Internal Revenue Code, unless the
exemption is denied under section 501(h), (i) or (m) or under section 502, 503 or 505 of the Internal
Revenue Code.
(b) Organizations described in section 501(d) of the Internal Revenue Code, unless the exemption
is denied under section 502 or 503 of the Internal Revenue Code.
(c) Organizations described in section 501(e) of the Internal Revenue Code.
(d) Organizations described in section 501(f) of the Internal Revenue Code.
(e) Charitable risk pools described in section 501(n) of the Internal Revenue Code.
(f) Organizations described in section 521 of the Internal Revenue Code.
(g) Qualified state tuition programs described in section 529 of the Internal Revenue Code.
(h) Foreign or alien insurance companies, but only with respect to the underwriting profit de-
rived from writing wet marine and transportation insurance subject to tax under ORS 731.824 and
731.828 or if an insurance company is subject to the retaliatory tax under ORS 731.854 and 731.859.
(i) Governmental entities.
(j) Any person with commercial activity that does not exceed $750,000 for the tax year, other
than a person that is part of a unitary group as provided in ORS 317A.106 with commercial activity
in excess of $750,000.
(k) Hospitals subject to assessment under ORS 414.855, long term care facilities subject to as-
sessment under ORS 409.801 or any entity subject to assessment under ORS 414.880 or section 3 or
5, chapter 538, Oregon Laws 2017.
(L) Manufactured dwelling park nonprofit cooperatives organized under ORS chapter 62.
(5) “Financial institution” has the meaning given that term in ORS 314.610, except that “finan-
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cial institution” does not include a credit union.
(6)(a) “FR Y-9” means the consolidated or parent-only financial statements that a holding com-
pany is required to file with the Federal Reserve Board pursuant to 12 U.S.C. 1844.
(b) In the case of a holding company required to file both consolidated and parent-only financial
statements, “FR Y-9” means the consolidated financial statements that the holding company is re-
quired to file.
(7) “Governmental entity” means:
(a) The United States and any of its unincorporated agencies and instrumentalities.
(b) Any incorporated agency or instrumentality of the United States wholly owned by the United
States or by a corporation wholly owned by the United States.
(c) The State of Oregon and any of its unincorporated agencies and instrumentalities.
(d) Any county, city, district or other political subdivision of the state.
(e) A special government body as defined in ORS 174.117.
(f) A federally recognized Indian tribe.
(8) “Groceries” means food as defined in 7 U.S.C. 2012(k), but does not include cannabinoid
edibles or [ marijuana] cannabis seeds.
(9)(a) “Hedging transaction” means a hedging transaction as defined in section 1221 of the
Internal Revenue Code or a transaction accorded hedge accounting treatment under Financial Ac-
counting Standards Board Statement No. 133.
(b) “Hedging transaction” does not include a transaction in which an actual transfer of title of
real or tangible property to another entity occurs.
(10) “Insurer” has the meaning given that term in ORS 317.010.
(11) “Internal Revenue Code,” except where the Legislative Assembly has provided otherwise,
refers to the laws of the United States or to the Internal Revenue Code as they are amended and
in effect on December 31, 2023.
(12) “Labor costs” means total compensation of all employees, not to include compensation paid
to any single employee in excess of $500,000.
(13)(a) “Motor vehicle fuel or any other product used for the propulsion of motor vehicles”
means:
(A) Motor vehicle fuel as defined in ORS 319.010; and
(B) Fuel the use of which in a motor vehicle is subject to taxation under ORS 319.530.
(b) “Motor vehicle fuel or any other product used for the propulsion of motor vehicles” does not
mean:
(A) Electricity; or
(B) Electric batteries or any other mechanical or physical component or accessory of a motor
vehicle.
(14) “Person” includes individuals, combinations of individuals of any form, receivers, assignees,
trustees in bankruptcy, firms, companies, joint-stock companies, business trusts, estates, partner-
ships, limited liability partnerships, limited liability companies, associations, joint ventures, clubs,
societies, entities organized as for-profit corporations under ORS chapter 60, C corporations, S cor-
porations, qualified subchapter S subsidiaries, qualified subchapter S trusts, trusts, entities that are
disregarded for federal income tax purposes and any other entities.
(15) “Retailer” means a person doing business by selling tangible personal property to a pur-
chaser for a purpose other than:
(a) Resale by the purchaser of the property as tangible personal property in the regular course
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of business;
(b) Incorporation by the purchaser of the property in the course of regular business as an in-
gredient or component of real or personal property; or
(c) Consumption by the purchaser of the property in the production for sale of a new article of
tangible personal property.
(16) “Taxable commercial activity” means commercial activity sourced to this state under ORS
317A.128, less any subtraction pursuant to ORS 317A.119.
(17)(a) “Taxpayer” means any person or unitary group required to register, file or pay tax under
ORS 317A.100 to 317A.158.
(b) “Taxpayer” does not include excluded persons, except to the extent that a tax-exempt entity
has unrelated business income as described in the Internal Revenue Code.
(18) “Tax year” means, except as otherwise provided in ORS 317A.103, a taxpayer’s annual ac-
counting period used for federal income tax purposes under section 441 of the Internal Revenue
Code.
(19)(a) “Unitary business” means a business enterprise in which there exists directly or indi-
rectly between the members or parts of the enterprise a sharing or exchange of value as demon-
strated by:
(A) Centralized management or a common executive force;
(B) Centralized administrative services or functions resulting in economies of scale; or
(C) Flow of goods, capital resources or services demonstrating functional integration.
(b) “Unitary business” may include a business enterprise the activities of which:
(A) Are in the same general line of business, such as manufacturing, wholesaling or retailing;
or
(B) Constitute steps in a vertically integrated process, such as the steps involved in the pro-
duction of natural resources, which might include exploration, mining, refining and marketing.
(20) “Unitary group” means a group of persons with more than 50 percent common ownership,
either direct or indirect, that is engaged in business activities that constitute a unitary business.
(21) “Wholesaler” means a person primarily doing business by merchant distribution of tangible
personal property to retailers or to other wholesalers.
SECTION 28.
ORS 323.500 is amended to read:
323.500. As used in ORS 323.500 to 323.645, unless the context otherwise requires:
(1) “Business” means any trade, occupation, activity or enterprise engaged in for the purpose
of selling or distributing tobacco products in this state.
(2) “Cigar” means a roll for smoking that is of any size or shape and that is made wholly or in
part of tobacco, irrespective of whether the tobacco is pure or flavored, adulterated or mixed with
any other ingredient, if the roll has a wrapper made wholly or in greater part of tobacco and if 1,000
of these rolls collectively weigh more than three pounds. “Cigar” does not include a cigarette, as
defined in ORS 323.010.
(3) “Consumer” means any person who purchases tobacco products in this state for the person’s
use or consumption or for any purpose other than for reselling the tobacco products to another
person.
(4) “Contraband tobacco products” means tobacco products or packages containing tobacco
products:
(a) That do not comply with the requirements of ORS 323.500 to 323.645;
(b) That do not comply with the requirements of the tobacco products tax laws of the federal
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government or of other states;
(c) That bear trademarks that are counterfeit under ORS 647.135 or other state or federal
trademark laws; or
(d) That have been sold, offered for sale or possessed for sale in this state in violation of ORS
180.486.
(5) “Department” means the Department of Revenue.
(6) “Distribute” means:
(a) Bringing, or causing to be brought, into this state from without this state tobacco products
for sale, storage, use or consumption;
(b) Making, manufacturing or fabricating tobacco products in this state for sale, storage, use or
consumption in this state;
(c) Shipping or transporting tobacco products to retail dealers in this state, to be sold, stored,
used or consumed by those retail dealers;
(d) Storing untaxed tobacco products in this state that are intended to be for sale, use or con-
sumption in this state;
(e) Selling untaxed tobacco products in this state; or
(f) As a consumer, being in possession of untaxed tobacco products in this state.
(7) “Distributor” means:
(a) Any person engaged in the business of selling tobacco products in this state who brings, or
causes to be brought, into this state from without the state any tobacco products for sale;
(b) Any person who makes, manufactures or fabricates tobacco products in this state for sale in
this state;
(c) Any person engaged in the business of selling tobacco products without this state who ships
or transports tobacco products to retail dealers in this state, to be sold by those retail dealers;
(d) Any person, including a retail dealer, who sells untaxed tobacco products in this state; or
(e) A consumer in possession of untaxed tobacco products in this state.
(8)(a) “Inhalant delivery system” means:
(A) A device that can be used to deliver nicotine in the form of a vapor or aerosol to a person
inhaling from the device; or
(B) A component of a device described in this paragraph or a substance in any form sold for the
purpose of being vaporized or aerosolized by a device described in this paragraph, whether the
component or substance is sold separately or is not sold separately.
(b) “Inhalant delivery system” does not include:
(A) Any product that has been approved by the United States Food and Drug Administration for
sale as a tobacco cessation product or for any other therapeutic purpose, if the product is marketed
and sold solely for the approved purpose;
(B) If sold separately, battery chargers, straps or lanyards; or
(C) [Marijuana] Cannabis items as defined in ORS 475C.009.
(9) “Manufacturer” means a person who manufactures tobacco products for sale.
(10) “Moist snuff” means:
(a) Any finely cut, ground or powdered tobacco that is not intended to be smoked or placed in
a nasal cavity; or
(b) Any other product containing tobacco that is intended or expected to be consumed without
being combusted.
(11) “Place of business” means any place where tobacco products are sold or where tobacco
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products are manufactured, stored or kept for the purpose of sale or consumption, including any
vessel, vehicle, airplane, train or vending machine.
(12) “Retail dealer” means any person who is engaged in the business of selling or otherwise
dispensing tobacco products to consumers. The term also includes the operators of or recipients of
revenue from all places such as smoke shops, cigar stores and vending machines, where tobacco
products are made or stored for ultimate sale to consumers.
(13) “Sale” means any transfer, exchange or barter, in any manner or by any means, for a con-
sideration, and includes and means all sales made by any person. It includes a gift by a person en-
gaged in the business of selling tobacco products, for advertising, as a means of evading the
provisions of ORS 323.500 to 323.645, or for any other purpose.
(14) “Taxpayer” includes a distributor or other person required to pay a tax imposed under ORS
323.500 to 323.645.
(15) “Tobacco products” means cigars, cheroots, stogies, periques, granulated, plug cut, crimp
cut, ready rubbed and other smoking tobacco, snuff, snuff flour, moist snuff, cavendish, plug and
twist tobacco, fine-cut and other chewing tobaccos, shorts, refuse scraps, clippings, cuttings and
sweepings of tobacco and other kinds and forms of tobacco, prepared in such manner as to be suit-
able for chewing or smoking in a pipe or otherwise, or both for chewing and smoking, and inhalant
delivery systems, but does not include cigarettes as defined in ORS 323.010.
(16) “Untaxed tobacco products” means tobacco products for which the tax required under ORS
323.500 to 323.645 has not been paid.
(17) “Wholesale sales price” means the price paid for untaxed tobacco products to or on behalf
of a seller by a purchaser of the untaxed tobacco products.
SECTION 29.
ORS 323.505 is amended to read:
323.505. (1) A tax is hereby imposed upon the distribution of all tobacco products in this state.
The tax imposed by this section is intended to be a direct tax on the consumer, for which payment
upon distribution is required to achieve convenience and facility in the collection and administration
of the tax. The tax shall be imposed on a distributor at the time the distributor distributes tobacco
products.
(2) The tax imposed under this section shall be imposed at the rate of:
(a) Sixty-five percent of the wholesale sales price of cigars, but not to exceed one dollar per
cigar;
(b) One dollar and seventy-eight cents per ounce based on the net weight determined by the
manufacturer, in the case of moist snuff, except that the minimum tax under this paragraph is $2.14
per retail container; or
(c) Sixty-five percent of the wholesale sales price of all tobacco products that are not cigars or
moist snuff.
(3) For reporting periods beginning on or after July 1, 2022, the rates of tax applicable to moist
snuff under subsection (2)(b) of this section shall be adjusted for each biennium according to the
cost-of-living adjustment for the calendar year. The Department of Revenue shall recompute the
rates for each biennium by adding to the rates in subsection (2)(b) of this section the product ob-
tained by multiplying the rates in subsection (2)(b) of this section by a factor that is equal to 0.25
multiplied by the percentage (if any) by which the monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the prior calendar year exceeds the
monthly averaged U.S. City Average Consumer Price Index for the 12 consecutive months ending
August 31, 2020.
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(4) If the tax imposed under this section does not equal an amount calculable to a whole cent,
the tax shall be equal to the next higher whole cent. However, the amount remitted to the Depart-
ment of Revenue by the taxpayer for each quarter shall be equal only to 98.5 percent of the total
taxes due and payable by the taxpayer for the quarter.
(5) A tax under this section is not imposed on inhalant delivery systems that are:
(a) Marketed and sold solely for the purpose of vaporizing or aerosolizing [ marijuana] cannabis
items as defined in ORS 475C.009; or
(b) Purchased in a medical [ marijuana] cannabis dispensary that is registered under ORS
475C.833 by a person to whom a registry identification card has been issued under ORS 475C.783.
(6) No tobacco product shall be subject to the tax if the base product or other intermediate form
thereof has previously been taxed under this section.
SECTION 30.
ORS 327.008 is amended to read:
327.008. (1)(a) There is established a State School Fund in the General Fund.
(b) The Department of Education, on behalf of the State of Oregon, may solicit and accept gifts,
grants, donations and other moneys from public and private sources for the State School Fund.
Moneys received as provided in this paragraph shall be deposited into the State School Fund.
(c) The State School Fund shall consist of moneys appropriated by the Legislative Assembly,
moneys transferred from the Fund for Student Success, moneys transferred from the Education Sta-
bility Fund and the Oregon [ Marijuana] Cannabis Account and moneys received as provided in
paragraph (b) of this subsection.
(d) The State School Fund is continuously appropriated to the Department of Education for the
purposes of ORS 327.006 to 327.077, 327.095, 327.099, 327.101, 327.125, 327.137, 327.348, 327.356 to
327.359, 336.575, 336.580, 336.635, 343.243, 343.533, 343.941 and 343.961.
(2) There shall be apportioned from the State School Fund to each school district a State School
Fund grant, consisting of the positive amount equal to a general purpose grant and a transportation
grant and a high cost disabilities grant minus local revenue, computed as provided in ORS 327.011
and 327.013.
(3) For the first school year after a public charter school ceases to operate because of dissol-
ution or closure or because of termination or nonrenewal of a charter, there shall be apportioned
from the State School Fund to each school district that had sponsored a public charter school that
ceased to operate an amount equal to the school district’s general purpose grant per extended
ADMw multiplied by five percent of the ADM of the public charter school for the previous school
year.
(4) There shall be apportioned from the State School Fund to each education service district a
State School Fund grant as calculated under ORS 327.019.
(5) All figures used in the determination of the distribution of the State School Fund shall be
estimates for the same year as the distribution occurs, unless otherwise specified.
(6) Numbers of students in average daily membership used in the distribution formula shall be
the numbers as of June of the year of distribution.
(7) Each biennium, the Department of Education may expend from the State School Fund no
more than $3 million for expenses incurred by the department in providing support to school dis-
tricts, education service districts and public charter schools at any time before, during or after a
threat or hazard that may affect a school district, an education service district or a public charter
school and for the purpose of helping to improve the safety and security of students and staff.
(8) Each biennium, the Department of Education may expend from the State School Fund no
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more than $10 million for expenses incurred by the Office of School Facilities under ORS 326.125
(1)(b) to (g).
(9) Each fiscal year, the Department of Education shall transfer to the Pediatric Nursing Facil-
ity Account established in ORS 327.022 the amount necessary to pay the costs of educational ser-
vices provided to students admitted to pediatric nursing facilities as provided in ORS 343.941.
(10) Each fiscal year, the Department of Education shall transfer the amount of $55 million from
the State School Fund to the High Cost Disabilities Account established in ORS 327.348.
(11)(a) Each biennium, the Department of Education shall transfer $39.5 million from the State
School Fund to the Educator Advancement Fund established under ORS 342.953.
(b) For the purpose of making the transfer under this subsection:
(A) The total amount available for all distributions from the State School Fund shall be reduced
by $6 million;
(B) The amount distributed to school districts from the State School Fund under this section and
ORS 327.013 shall be reduced by $16.75 million; and
(C) The amount distributed to education service districts from the State School Fund under this
section and ORS 327.019 shall be reduced by $16.75 million.
(c) For each biennium, the amounts identified in this subsection shall be adjusted by the same
percentage by which the instructions furnished to state agencies by the Governor under ORS 291.204
direct the state agencies to adjust their agency budget requests for special payments under ORS
291.216(6)(a)(C).
(12) Each biennium, the Department of Education shall transfer $12.5 million from the State
School Fund to the Statewide English Language Learner Program Account established under ORS
327.344.
(13) Each fiscal year, the Department of Education may expend up to $550,000 from the State
School Fund for the contract described in ORS 329.488. The amount distributed to education service
districts from the State School Fund under this section and ORS 327.019 shall be reduced by the
amount expended by the department under this subsection.
(14) Each biennium, the Department of Education may expend up to $350,000 from the State
School Fund to provide administration of and support for the development of talented and gifted
education under ORS 343.404.
(15) Each biennium, the Department of Education may expend up to $150,000 from the State
School Fund for the administration of a program to increase the number of licensed speech-language
pathologists and certified speech-language pathology assistants under ORS 348.398.
(16) Each biennium, the Department of Education shall transfer $2 million from the State School
Fund for deposit to the Healthy School Facilities Fund established under ORS 332.337.
Notwithstanding ORS 332.337, the department may expend moneys received in the Healthy School
Facilities Fund under this subsection only as grants for costs associated with testing for elevated
levels of lead in water used for drinking or food preparation.
(17) Each biennium, the Department of Education shall transfer an amount not to exceed
$5,595,000 for the purpose of making tampons and sanitary pads available as provided by ORS
326.545.
(18) Each fiscal year, the Department of Education shall transfer the amount of $2.5 million from
the State School Fund to the Small School District Supplement Fund established in ORS 327.359.
(19) Each biennium, the Department of Education shall transfer to the Oregon Military Depart-
ment the amount necessary to pay the costs of educational services provided to students admitted
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to programs operated by the military department for at-risk youth, as described in ORS 396.360, that
are outstanding after any General Fund appropriations and the calculation of available federal funds
for the programs.
SECTION 31.
ORS 419A.015 is amended to read:
419A.015. (1)(a) Once each month, a county juvenile department shall provide to school admin-
istrators of schools or of school districts in the county a list of all adjudicated youths enrolled in
a school in the county who are on probation by order of the juvenile court in the county. The de-
partment shall include in the list the name and business telephone number of the juvenile counselor
assigned to each case.
(b) When an adjudicated youth who is on probation transfers from one school or school district
to a different school or school district, the juvenile counselor assigned to the case shall notify the
school administrator of the school or of the school district to which the adjudicated youth has
transferred of the adjudicated youth’s probation status. The juvenile counselor shall make the no-
tification no later than 72 hours after the juvenile counselor knows of the transfer.
(2) Upon request by the school administrator, the juvenile department shall provide additional
information, including the offense that brought the adjudicated youth within the jurisdiction of the
juvenile court and such other information that is subject to disclosure under ORS 419A.255 (6).
(3) In addition to the general notification required by subsection (1) of this section, the juvenile
department shall notify the school administrator of the specific offense if the act bringing the adju-
dicated youth within the jurisdiction of the juvenile court involved a firearm, delivery of a
[marijuana] cannabis item as defined in ORS 475C.009 or delivery of a controlled substance.
(4) When a school administrator receives any notice under this section, the school administrator
may disclose the information only to school personnel, as defined in ORS 339.326, who the school
administrator determines need the information in order to safeguard the safety and security of the
school, students and staff. A person to whom personally identifiable information is disclosed under
this subsection may not disclose the information to another person except to carry out the pro-
visions of this subsection.
(5) Except as otherwise provided in ORS 192.431, a juvenile department, school district or school
administrator, or anyone employed or acting on behalf of a juvenile department, school district or
school administrator, who sends or receives records under this section is not civilly or criminally
liable for failing to disclose the information under this section.
(6) As used in this section, “school administrator” has the meaning given that term in ORS
419A.305.
SECTION 32.
ORS 419A.265 is amended to read:
419A.265. Notwithstanding ORS 419A.262 (2)(a), a person is eligible for an order of expunction
under ORS 419A.262 if the person was adjudicated for committing an act that, if committed by an
adult, would constitute a criminal offense in which possession, delivery or manufacture of
[marijuana] cannabis or a [ marijuana] cannabis item as defined in ORS 475C.009 is an element and:
(1) The court finds that at least one year has elapsed since the date of the person’s most recent
termination;
(2) The applicant has not been adjudicated or convicted for any other act or offense, excluding
motor vehicle violations; and
(3) The applicant has complied with and performed all conditions of the adjudication.
SECTION 33.
ORS 419A.300 is amended to read:
419A.300. (1)(a) Once each month, the Department of Human Services shall provide to each
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school district a list of all young persons enrolled in a school in the school district who are on
conditional release. The department shall include in the list the name and business telephone num-
ber of the caseworker assigned to each case.
(b) When a young person who is on conditional release transfers from one school district to a
different school district, the caseworker assigned to the case shall notify the superintendent of the
school district to which the young person has transferred of the young person’s status. The
caseworker shall make the notification no later than 72 hours after the caseworker knows of the
transfer.
(2) Upon request by the superintendent of the school district in which a young person is enrolled
or the superintendent’s designee, the department shall provide additional information, including the
offense that brought the young person within the jurisdiction of the juvenile court and such other
information that is subject to disclosure under ORS 419A.255 (6).
(3) In addition to the general notification required by subsection (1) of this section, the depart-
ment shall notify the superintendent or the superintendent’s designee of the specific offense and
whether the act involved a firearm, delivery of a [ marijuana] cannabis item as defined in ORS
475C.009 or delivery of a controlled substance.
(4) ORS 419A.015 (4) and (5) apply to persons sending or receiving records under this section.
SECTION 34.
ORS 419A.305 is amended to read:
419A.305. (1) As used in this section:
(a) “Principal” means a person having general administrative control and supervision of a
school.
(b) “School administrator” means:
(A) The superintendent of the school district in which a youth attends school, or the designee
of the superintendent, if the youth attends a public school that is not a public charter school;
(B) The principal of a public charter school, if the youth attends a public charter school;
(C) The principal of a private school that provides education to one or more instructional levels
from kindergarten through grade 12 or equivalent instructional levels, if the youth attends a private
school;
(D) The superintendent of the school district in which the youth resides, or the designee of the
superintendent, if the school that the youth attends is not known by the person giving notice;
(E) The director of the Oregon School for the Deaf; or
(F) The Superintendent of Public Instruction if the youth is in an educational program under the
Youth Corrections Education Program or in an approved recovery school.
(c) “School district” has the meaning given that term in ORS 332.002.
(2) Notice shall be given to a school administrator when:
(a) A youth makes a first appearance before the juvenile court on a petition described in sub-
section (7) of this section alleging that the youth is within the jurisdiction of the juvenile court
under ORS 419C.005.
(b) A youth admits to being within the jurisdiction of the juvenile court as provided in ORS
419C.005 on a petition described in subsection (7) of this section or is adjudicated by a juvenile court
to be within its jurisdiction on a petition described in subsection (7) of this section.
(c) A youth is found responsible except for insanity under ORS 419C.411.
(d) Notice had been given as provided by paragraph (a) or (b) of this subsection and the juvenile
court:
(A) Sets aside or dismisses the petition as provided in ORS 419C.261; or
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(B) Determines that the youth is not within the jurisdiction of the juvenile court after a hearing
on the merits of the petition.
(3) A notice required by subsection (2) of this section shall be given by:
(a) The district attorney;
(b) In the case of a petition filed under ORS 419C.250, the person who filed the petition;
(c) In the case of a person prosecuting a case who is not the district attorney, the person who
is prosecuting the case; or
(d) In the case of a juvenile department that has agreed to be responsible for providing the no-
tices required under this section, the juvenile department.
(4) A notice required under subsection (2) of this section may be communicated by mail or other
means of delivery, including but not limited to electronic transmission. A notice must include:
(a) The name and date of birth of the youth;
(b) The names and addresses of the youth’s parents or guardians;
(c) The alleged basis for the juvenile court’s jurisdiction over the youth;
(d) The act alleged in the petition that, if committed by an adult, would constitute a crime;
(e) The name and contact information of the attorney for the youth, if known;
(f) The name and contact information of the individual to contact for further information about
the notice;
(g) If applicable, the portion of the juvenile court order providing for the legal disposition of the
youth;
(h) Any conditions of release or terms of probation; and
(i) Any other conditions required by the court.
(5) In addition to the information required by subsection (4) of this section:
(a) A notice required by subsection (2)(a) of this section shall contain substantially the following
statement: “This notice is to inform you that a student who attends your school may come under the
jurisdiction of the juvenile court as the result of a petition filed with the juvenile court. The student
has not yet been determined to be within the jurisdiction of the juvenile court nor to have commit-
ted any violations of law. The allegation pending before the juvenile court must not be discussed
with the student.”
(b) A notice required by subsection (2)(b) of this section shall contain substantially the following
statement: “This notice is to inform you that a student who attends your school has come under the
jurisdiction of the juvenile court as the result of a petition filed with the juvenile court. There may
be pending juvenile court hearings or proceedings, and a disposition order may not yet have been
entered by the court. The allegation pending before the juvenile court must not be discussed with
the student.”
(c) A notice required by subsection (2)(c) of this section shall contain substantially the following
statement: “This notice is to inform you that a disposition order has been entered in a case involv-
ing a student who attends your school about whom a previous notice was sent. The disposition order
finds the student to be responsible except for insanity under ORS 419C.411 for the act alleged in the
petition filed with the juvenile court. The case should not be discussed with the student.”
(d) A notice required by subsection (2)(d) of this section shall contain substantially the following
statement: “This notice is to inform you that a petition involving a student who attends your school
about whom a previous notice was sent has been set aside or dismissed or the juvenile court has
determined the student is not within its jurisdiction. The notice and any documents or information
related to the notice in the student’s education records should be removed and destroyed upon re-
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ceipt of this notice. The case should not be discussed with the student.”
(6) A notice required under subsection (2) of this section must be given within 15 days after:
(a) The youth makes a first appearance before the juvenile court on a petition;
(b) The youth admits to being within the jurisdiction of the juvenile court;
(c) The youth is adjudicated by a juvenile court to be within the jurisdiction of the court;
(d) The petition is dismissed or set aside;
(e) The juvenile court determines that the youth is not within the jurisdiction of the juvenile
court after a hearing on the merits of the petition; or
(f) The juvenile court enters a disposition order finding the youth responsible except for insanity
under ORS 419C.411.
(7) This section applies to petitions filed alleging that the youth engaged in:
(a) Conduct that, if committed by an adult, would constitute a crime that:
(A) Involves serious physical injury or threatened serious physical injury to another person, in-
cluding criminal homicide, felony assault or any attempt to cause serious physical injury to another
person;
(B) Involves the sexual assault of an animal or animal abuse in any degree;
(C) Is a felony sex offense listed in ORS 163A.005, except for rape in the third degree under ORS
163.355 or incest under ORS 163.525;
(D) Involves a weapon, as defined in ORS 166.360, or the threatened use of a weapon;
(E) Involves the possession or manufacture of a destructive device, as defined in ORS 166.382,
or possession of a hoax destructive device, as defined in ORS 166.385; or
(F) Involves an offense in which an element of the crime is:
(i) Manufacture of a controlled substance or a [marijuana] cannabis item as defined in ORS
475C.009;
(ii) Delivery of a controlled substance or a [ marijuana] cannabis item as defined in ORS
475C.009 in conjunction with conduct described in subparagraph (A) of this paragraph; or
(iii) Delivery of a controlled substance or a [ marijuana] cannabis item as defined in ORS
475C.009 to a person under 18 years of age; or
(b) Conduct that is of such a nature that the court determines notice is necessary to safeguard
the safety and security of the school, students and staff. The person or entity responsible for giving
notice under subsection (3) of this section shall request that the court make the determination under
this paragraph when the person or entity believes notice is necessary to safeguard the safety and
security of the school, students and staff and the conduct involves an offense under ORS 163.160.
(8) Except as otherwise provided in ORS 192.431, a person who sends or receives notice under
this section is not civilly or criminally liable for failing to disclose the information under this sec-
tion.
SECTION 35.
ORS 420.048 is amended to read:
420.048. (1)(a) When an adjudicated youth who is in the legal custody of the Oregon Youth Au-
thority transfers from one school or school district to a different school or school district, the per-
son responsible for supervising the adjudicated youth shall notify the school administrator of the
school or of the school district to which the adjudicated youth has transferred of the adjudicated
youth’s status as an adjudicated youth. The person shall make the notification no later than 72
hours after the person knows of the transfer.
(b) When a school administrator receives notification under this section, the school administra-
tor may request the Oregon Youth Authority to provide additional information about the adjudicated
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youth. The youth authority shall provide additional information, including the offense that brought
the adjudicated youth within the jurisdiction of the juvenile court and such other information that
is subject to disclosure under ORS 419A.255 (6).
(2) The youth authority shall include in the notice the following:
(a) The name and date of birth of the adjudicated youth;
(b) The names and addresses of the adjudicated youth’s parents or guardians;
(c) The name and contact information of the attorney for the adjudicated youth, if known;
(d) The name and contact information of the person giving notice under subsection (1) of this
section or the person’s designated representative to contact for further information about the notice;
(e) The specific offense that brought the adjudicated youth within the jurisdiction of the juvenile
court and whether it involved a firearm, the delivery of a [ marijuana] cannabis item as defined in
ORS 475C.009 or the delivery of a controlled substance, a violation of ORS 163.355 to 163.445 or
163.465 or any other offense if the youth authority or juvenile court believes the adjudicated youth
represents a risk to other students or school staff; and
(f) Any terms of probation.
(3) Except as otherwise provided in ORS 192.431, the youth authority, a school district or a
school administrator, or anyone employed or acting on behalf of the youth authority, school district
or school administrator, who sends or receives records under this section is not liable civilly or
criminally for failing to disclose the information under this section.
(4) As used in this section:
(a) “School administrator” has the meaning given that term in ORS 419A.305.
(b) “School district” has the meaning given that term in ORS 332.002.
SECTION 36.
ORS 430.384, as amended by section 67, chapter 70, Oregon Laws 2024, is
amended to read:
430.384. (1) The Drug Treatment and Recovery Services Fund is established in the State Treas-
ury, separate and distinct from the General Fund. Interest earned by the Drug Treatment and Re-
covery Services Fund shall be credited to the fund.
(2) The Drug Treatment and Recovery Services Fund shall consist of:
(a) Moneys appropriated or otherwise transferred to the fund by the Legislative Assembly;
(b) Moneys allocated from the Oregon [Marijuana] Cannabis Account, pursuant to ORS 475C.726
(3)(b); and
(c) All other moneys deposited into the fund from any source.
(3) Moneys in the fund shall be continuously appropriated to the Oregon Health Authority for
the purposes set forth in ORS 430.389.
(4)(a) Pursuant to subsection (2)(a) of this section, the Legislative Assembly shall appropriate
or transfer to the fund an amount sufficient to fully fund the grants program required by ORS
430.389.
(b) The total amount deposited and transferred into the fund shall not be less than $57 million
for the first year ORS 430.383 to 430.390 and 430.394 are in effect.
(c) In each subsequent year, the minimum transfer amount set forth in paragraph (b) of this
subsection shall be increased by not less than the sum of:
(A) $57 million multiplied by the percentage, if any, by which the monthly averaged U.S. City
Average Consumer Price Index for the 12 consecutive months ending August 31 of the prior calendar
year exceeds the monthly index for the fourth quarter of the calendar year 2020; and
(B) The annual increase, if any, in moneys distributed pursuant to ORS 475C.726 (3)(b).
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SECTION 37.
ORS 431A.196 is amended to read:
431A.196. Notwithstanding ORS 431A.194, ORS 431A.190 to 431A.216 do not apply to a person
making a retail sale of an inhalant delivery system at a medical [ marijuana] cannabis dispensary
registered under ORS 475C.833 or at a premises for which a license has been issued under ORS
475C.097, unless the person makes a retail sale of an inhalant delivery system that contains nicotine.
SECTION 38. ORS 433.850 is amended to read:
433.850. (1) An employer:
(a) Shall provide for employees a place of employment that is free of all smoke, aerosols and
vapors containing inhalants; and
(b) May not allow employees to smoke, aerosolize or vaporize inhalants at the place of employ-
ment.
(2) Notwithstanding subsection (1) of this section:
(a) The owner or person in charge of a hotel or motel may designate up to 25 percent of the
sleeping rooms of the hotel or motel as rooms in which the smoking, aerosolizing or vaporizing of
inhalants is permitted.
(b) Smoking of noncommercial tobacco products for ceremonial purposes is permitted in spaces
designated for traditional ceremonies in accordance with the American Indian Religious Freedom
Act, 42 U.S.C. 1996.
(c) The smoking of tobacco products is permitted in a smoke shop.
(d) The smoking of cigars is permitted in a cigar bar that generated on-site retail sales of cigars
of at least $5,000 for the calendar year ending December 31, 2006.
(e) A performer may smoke or carry a lighted smoking instrument that does not contain tobacco
or cannabis, and may aerosolize or vaporize a substance that does not contain nicotine or a
cannabinoid, while performing in a scripted stage, motion picture or television production if:
(A) The production is produced by an organization whose primary purpose is producing scripted
productions; and
(B) The act of smoking, aerosolizing or vaporizing is an integral part of the production.
(f) The medical use of [marijuana] cannabis is permitted in the place of employment of a
licensee of a professional licensing board as described in ORS 475C.892.
(3) An employer, except in those places described in subsection (2) of this section, shall post
signs that provide notice of the provisions of ORS 433.835 to 433.875.
SECTION 39.
ORS 471.001 is amended to read:
471.001. As used in this chapter and ORS chapter 473:
(1) “Alcoholic beverage” and “alcoholic liquor” mean any liquid or solid containing more than
one-half of one percent alcohol by volume and capable of being consumed by a human being.
(2) “Commercial establishment” means a place of business:
(a) Where food is cooked and served;
(b) That has kitchen facilities adequate for the preparation and serving of meals;
(c) That has dining facilities adequate for the serving and consumption of meals; and
(d) That:
(A) If not a for-profit private club, serves meals to the general public; or
(B) If a for-profit private club, serves meals to the club’s members and guests and complies with
any minimum membership and food service requirements established by Oregon Liquor and Cannabis
Commission rules.
(3) “Commission” means the Oregon Liquor and Cannabis Commission.
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(4) “Distilled liquor” means any alcoholic beverage other than a wine, cider or malt beverage.
“Distilled liquor” includes distilled spirits.
(5) “Licensee” means any person holding a license issued under this chapter.
(6)(a) “Malt beverage” means beer, ale, porter, stout and other similar fermented beverages that
contain more than one-half of one percent and not more than 16 percent of alcohol by volume and
that are brewed or produced from malt, wholly or in part, or from rice, grain, bran, glucose, sugar
or molasses as a substitute for malt.
(b) “Malt beverage” does not include cider, mead, sake or wine.
(7) “Manufacturer” means every person who produces, brews, ferments, manufactures or blends
an alcoholic beverage within this state or who imports or causes to be imported into this state an
alcoholic beverage for sale or distribution within the state.
(8) “Permittee” means a person holding a permit issued under ORS 471.360 to 471.385.
(9) “Premises” or “licensed premises” means a location licensed under this chapter and includes
all enclosed areas at the location that are used in the business operated at the location, including
offices, kitchens, rest rooms and storerooms, including all public and private areas where patrons
are permitted to be present. “Premises” or “licensed premises” includes areas outside of a building
that the commission has specifically designated as approved for alcoholic beverage service or con-
sumption.
(10) “Regulatory specialist” means a full-time employee of the commission who is authorized to
act as an agent of the commission in conducting inspections or investigations, making arrests and
seizures, aiding in prosecutions for offenses, issuing citations for violations and otherwise enforcing
this chapter, ORS 474.005 to 474.095, 474.115, 475C.005 to 475C.525, 475C.540 to 475C.586 and
475C.600 to 475C.648, commission rules and any other statutes the commission considers related to
regulating liquor, [ marijuana] cannabis or [ marijuana-derived] cannabis-derived products.
(11) “Wine” means any fermented vinous liquor or fruit juice, or other fermented beverage fit
for beverage purposes that is not a malt beverage, containing more than one-half of one percent of
alcohol by volume and not more than 21 percent of alcohol by volume. “Wine” includes fortified
wine. “Wine” does not include cider.
SECTION 40.
ORS 475.245, as amended by section 53, chapter 70, Oregon Laws 2024, is
amended to read:
475.245. (1)(a) Whenever a person is charged with an offense listed in subsection (5) of this sec-
tion, the court, with the consent of the district attorney and the person, may defer further pro-
ceedings and place the person on probation. The terms of the probation shall be defined by a
probation agreement.
(b) A probation agreement carries the understanding that if the defendant fulfills the terms of
the agreement, the criminal charges filed against the defendant will be dismissed with prejudice.
(c) The agreement must contain a waiver of the following rights of the defendant with respect
to each criminal charge:
(A) The right to a speedy trial and trial by jury;
(B) The right to present evidence on the defendant’s behalf;
(C) The right to confront and cross-examine witnesses against the defendant;
(D) The right to contest evidence presented against the defendant, including the right to object
to hearsay evidence; and
(E) The right to appeal from a judgment of conviction resulting from an adjudication of guilt
entered under subsection (2) of this section, unless the appeal is based on an allegation that the
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sentence exceeds the maximum allowed by law or constitutes cruel and unusual punishment.
(d) The agreement must include a requirement that the defendant pay any restitution owed to
the victim as determined by the court, and any fees for court-appointed counsel ordered by the court
under ORS 135.050.
(e) The agreement may not contain a requirement that the defendant enter a plea of guilty or
no contest on any charge in the accusatory instrument.
(f) Entering into a probation agreement does not constitute an admission of guilt and is not
sufficient to warrant a finding or adjudication of guilt by a court.
(g) Police reports or other documents associated with the criminal charges in a court file other
than the probation agreement may not be admitted into evidence, and do not establish a factual
basis for finding the defendant guilty, unless the court resumes criminal proceedings and enters an
adjudication of guilt under subsection (2) of this section.
(2) Upon violation of a term or condition of the probation agreement, the court may impose
sanctions of up to a total of 30 days of imprisonment, or resume the criminal proceedings and may
find the defendant guilty of the offenses in the accusatory instrument in accordance with the waiver
of rights in the probation agreement. The defendant may not contest the sufficiency of the evidence
establishing the defendant’s guilt of the offenses in the accusatory instrument.
(3) Upon fulfillment of the terms and conditions of the probation agreement, the court shall
discharge the person and dismiss the proceedings against the person. Discharge and dismissal under
this section shall be without adjudication of guilt and is not a conviction for purposes of this section
or for purposes of disqualifications or disabilities imposed by law upon conviction of a crime. There
may be only one discharge and dismissal under this section with respect to any person.
(4) In the event that the period of probation under this section expires, but the terms and con-
ditions of the probation agreement have not been fulfilled and no probation violation proceeding was
initiated prior to the expiration of the period of probation, the court may not discharge the person
and dismiss the proceedings against the person. The court shall instead issue an order requiring the
person to appear and to show cause why the court should not enter an adjudication of guilt as de-
scribed in subsection (2) of this section due to the failure of the person to fulfill the terms and
conditions of the probation agreement prior to expiration of the period of probation. At the hearing
on the order to show cause, after considering any evidence or argument from the district attorney
and the person, the court may:
(a) Order a new period of probation to allow the person to fulfill the terms and conditions of the
probation agreement; or
(b) Enter an adjudication of guilt as described in subsection (2) of this section.
(5) This section applies to the following offenses:
(a) Possession of a controlled substance under ORS 475.752 (3), 475.814, 475.824, 475.834, 475.854,
475.874, 475.884 or 475.894;
(b) Unlawfully possessing a prescription drug under ORS 689.527 (6);
(c) Unlawfully possessing [marijuana] cannabis plants, usable [ marijuana] cannabis,
cannabinoid products, cannabinoid concentrates or cannabinoid extracts as described in ORS
475C.337 or 475C.341, if the offense is a misdemeanor or felony;
(d) Endangering the welfare of a minor under ORS 163.575 (1)(b);
(e) Frequenting a place where controlled substances are used under ORS 167.222; and
(f) A property offense that is motivated by a dependence on a controlled substance or a
[marijuana] cannabis item as defined in ORS 475C.009.
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SECTION 41.
ORS 475.525 is amended to read:
475.525. (1) It is unlawful for any person to sell or deliver, possess with intent to sell or deliver
or manufacture with intent to sell or deliver drug paraphernalia, knowing that it will be used to
unlawfully plant, propagate, cultivate, grow, harvest, manufacture, compound, convert, produce,
process, prepare, test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale or other-
wise introduce into the human body a controlled substance as defined by ORS 475.005.
(2) For the purposes of this section, “drug paraphernalia” means all equipment, products and
materials of any kind that are marketed for use or designed for use in planting, propagating, culti-
vating, growing, harvesting, manufacturing, compounding, converting, producing, processing, pre-
paring, testing, analyzing, packaging, repackaging, storing, containing, concealing, injecting,
ingesting, inhaling or otherwise introducing into the human body a controlled substance in violation
of ORS 475.752 to 475.980. Drug paraphernalia includes, but is not limited to:
(a) Kits marketed for use or designed for use in unlawfully planting, propagating, cultivating,
growing or harvesting of any species of plant that is a controlled substance or from which a con-
trolled substance can be derived;
(b) Kits marketed for use or designed for use in manufacturing, compounding, converting,
producing, processing or preparing controlled substances;
(c) Isomerization devices marketed for use or designed for use in increasing the potency of any
species of plant that is a controlled substance;
(d) Scales and balances marketed for use or designed for use in weighing or measuring con-
trolled substances;
(e) Diluents and adulterants, such as quinine hydrochloride, mannitol, mannite, dextrose and
lactose, marketed for use or designed for use in cutting controlled substances;
(f) Lighting equipment specifically designed for growing controlled substances;
(g) Containers and other objects marketed for use or designed for use in storing or concealing
controlled substances; and
(h) Objects marketed for use or designed specifically for use in ingesting, inhaling or otherwise
introducing a controlled substance into the human body, such as:
(A) Smoking and carburetion masks;
(B) Roach clips, meaning objects used to hold burning material that has become too small or too
short to be held in the hand; or
(C) Miniature cocaine spoons and cocaine vials.
(3) For purposes of this section, “drug paraphernalia” does not include hypodermic syringes or
needles, single-use drug test strips, drug testing tools or any other item designed to prevent or re-
duce the potential harm associated with the use of controlled substances, including but not limited
to items that reduce the transmission of infectious disease or prevent injury, infection or overdose.
(4) The provisions of ORS 475.525 to 475.565 do not apply to persons registered under the pro-
visions of ORS 475.125 or to persons specified as exempt from registration under the provisions of
that statute.
(5)(a) The provisions of ORS 475.525 to 475.565 do not apply to a person who sells or delivers
[marijuana] cannabis paraphernalia as defined in ORS 475C.373 to a person 21 years of age or older.
(b) In determining whether an object is drug paraphernalia under this section or [ marijuana]
cannabis paraphernalia under ORS 475C.373, a trier of fact shall consider, in addition to any other
relevant factor, the following:
(A) Any oral or written instruction provided with the object related to the object’s use;
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(B) Any descriptive material packaged with the object that explains or depicts the object’s use;
(C) Any national or local advertising related to the object’s use;
(D) Any proffered expert testimony related to the object’s use;
(E) The manner in which the object is displayed for sale, if applicable; and
(F) Any other proffered evidence substantiating the object’s intended use.
(6) A person acting in good faith is immune from civil liability for any act or omission of an
acting committed during the course of distributing an item described in subsection (3) of this section.
SECTION 42.
ORS 475A.225 is amended to read:
475A.225. [Members; terms; meetings; compensation. ] (1)(a) The Oregon Psilocybin Advisory Board
is established within the Oregon Health Authority for the purpose of advising and making recom-
mendations to the authority. The Oregon Psilocybin Advisory Board shall consist of:
(A) 14 to 16 members appointed by the Governor as specified in paragraph (b) of this subsection;
(B) The Public Health Director or the Public Health Director’s designee;
(C) If the Public Health Director is not the State Health Officer, the State Health Officer or a
physician licensed under ORS chapter 677 acting as the State Health Officer’s designee;
(D) If the Public Health Director is the State Health Officer, a representative from the Oregon
Health Authority who is familiar with public health programs and public health activities in this
state; and
(E) A designee of the Oregon Health Policy Board.
(b) The Governor shall appoint the following individuals to the board:
(A) Any four of the following:
(i) A state employee who has technical expertise in the field of public health;
(ii) A local health officer, as defined in ORS 431.003;
(iii) An individual who is a member of, or who represents, a federally recognized Indian tribe in
this state;
(iv) An individual who is a member of, or who represents, the Addictions and Mental Health
Planning and Advisory Council within the authority;
(v) An individual who is a member of, or who represents, the Health Equity Policy Committee
within the authority;
(vi) An individual who is a member of, or who represents, the Palliative Care and Quality of
Life Interdisciplinary Advisory Council within the authority; and
(vii) An individual who represents individuals who provide public health services directly to the
public;
(B) A psychologist licensed under ORS chapter 675 who has professional experience engaging
in the diagnosis or treatment of a mental, emotional, or behavioral condition;
(C) A physician licensed under ORS chapter 677 who holds a degree of Doctor of Medicine;
(D) A naturopathic physician licensed under ORS chapter 685;
(E) An expert in the field of public health who has a background in academia;
(F) Any three of the following:
(i) A person who has professional experience conducting scientific research regarding the use
of psychedelic compounds in clinical therapy;
(ii) A person who has experience in the field of mycology;
(iii) A person who has experience in the field of ethnobotany;
(iv) A person who has experience in the field of psychopharmacology; and
(v) A person who has experience in the field of psilocybin harm reduction;
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(G) A person representing the Oregon Liquor and Cannabis Commission who has experience
working with the system developed and maintained by the commission under ORS 475C.177 for
tracking the transfer of [ marijuana] cannabis items;
(H) A person representing the Department of Justice; and
(I) The following:
(i) During the two-year program development period:
(I) One of the chief petitioners of chapter 1, Oregon Laws 2021; and
(II) One or two at-large members; and
(ii) After the two-year program development period, one, two, or three at-large members.
(2)(a) The term of office for a board member appointed under this section is four years, but a
member serves at the pleasure of the Governor. Before the expiration of the term of a member, the
Governor shall appoint a successor whose term begins on January 1 next following. A member is
eligible for reappointment. If there is a vacancy for any cause, the Governor shall make an ap-
pointment to become immediately effective for the unexpired term.
(b) Members of the board described in subsection (1)(a)(B) to (E) of this section are nonvoting
ex officio members of the board.
(3) A majority of the voting members of the board constitutes a quorum for the transaction of
business.
(4) Official action by the board requires the approval of a majority of the voting members of the
board.
(5) The board shall elect one of its voting members to serve as chairperson.
(6) During the two-year program development period, the board shall meet at least once every
two calendar months at a time and place determined by the chairperson or a majority of the voting
members of the board. After the two-year program development period, the board shall meet at least
once every calendar quarter at a time and place determined by the chairperson or a majority of the
voting members of the board. The board also may meet at other times and places specified by the
call of the chairperson or of a majority of the voting members of the board.
(7) The board may adopt rules necessary for the operation of the board.
(8) The board may establish committees and subcommittees necessary for the operation of the
board.
(9) Members of the board are entitled to compensation and expenses as provided in ORS 292.495.
SECTION 43.
ORS 475A.250 is amended to read:
475A.250. [ Grounds for refusing to issue license or issuing restricted license. ] (1) The Oregon
Health Authority may not license an applicant under the provisions of ORS 475A.210 to 475A.722
if the applicant is under 21 years of age.
(2) The authority may refuse to issue a license or may issue a restricted license to an applicant
under the provisions of ORS 475A.210 to 475A.722 if the authority makes a finding that the appli-
cant:
(a) Has not completed any education or training required by the provisions of ORS 475A.210 to
475A.722 or rules adopted under ORS 475A.210 to 475A.722.
(b) Has not passed any examination required by the provisions of ORS 475A.210 to 475A.722 or
rules adopted under ORS 475A.210 to 475A.722.
(c) Is in the habit of using alcoholic beverages, habit-forming drugs, or controlled substances to
excess.
(d) Has made false statements to the authority.
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(e) Is incompetent or physically unable to carry on the management of the establishment pro-
posed to be licensed.
(f) Has been convicted of violating a federal law, state law or local ordinance if the conviction
is substantially related to the fitness and ability of the applicant to lawfully carry out activities
under the license.
(g) Is not of good repute and moral character.
(h) Does not have a good record of compliance with ORS 475A.210 to 475A.722 or any rule
adopted under ORS 475A.210 to 475A.722.
(i) Is not the legitimate owner of the premises proposed to be licensed, or has not disclosed that
other persons have ownership interests in the premises proposed to be licensed.
(j) Has not demonstrated financial responsibility sufficient to adequately meet the requirements
of the premises proposed to be licensed.
(k) Is unable to understand the laws of this state relating to psilocybin products, psilocybin
services, or the rules adopted under ORS 475A.210 to 475A.722.
(3) Notwithstanding subsection (2)(f) of this section, in determining whether to issue a license
or a restricted license to an applicant, the authority may not consider the prior conviction of the
applicant or any owner, director, officer, manager, employee, agent or other representative of the
applicant for:
(a) The manufacture of psilocybin or the manufacture of a [marijuana] cannabis item, as defined
in ORS 475C.009, if:
(A) The date of the conviction is two or more years before the date of the application; and
(B) The person has not been convicted more than once for the manufacture of psilocybin or a
[marijuana] cannabis item; or
(b) The possession of a controlled substance, as defined in ORS 475.005, or a [ marijuana]
cannabis item, as defined in ORS 475C.009, if:
(A) The date of the conviction is two or more years before the date of the application; or
(B) The person has not been convicted more than once for the possession of a controlled sub-
stance or a [ marijuana] cannabis item.
SECTION 44.
ORS 475A.400 is amended to read:
475A.400. [Use of Oregon Liquor Control Commission tracking system for psilocybin products; ex-
emptions; rules. ] (1) The Oregon Health Authority shall:
(a) Develop and maintain a system for tracking the transfer of psilocybin products between
premises for which licenses have been issued under ORS 475A.210 to 475A.722; or
(b) Enter into an agreement with the Oregon Liquor and Cannabis Commission under which the
commission shall permit the authority to use the system developed and maintained under ORS
475C.177 to track the transfer of psilocybin products between premises for which licenses have been
issued under ORS 475A.210 to 475A.722.
(2) The purposes of the system include, but are not limited to:
(a) Preventing the diversion of psilocybin products to other states;
(b) Preventing persons from substituting or tampering with psilocybin products;
(c) Ensuring an accurate accounting of the production, processing and sale of psilocybin pro-
ducts;
(d) Ensuring that laboratory testing results are accurately reported; and
(e) Ensuring compliance with ORS 475A.210 to 475A.722, rules adopted under ORS 475A.210 to
475A.722 and any other law of this state that charges the authority or commission with a duty,
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function or power related to psilocybin.
(3) The system must be capable of tracking, at a minimum:
(a) The manufacturing of psilocybin products;
(b) The sale of psilocybin products by a psilocybin service center operator to a client;
(c) The sale and purchase of psilocybin products between licensees, as permitted by ORS
475A.210 to 475A.722;
(d) The transfer of psilocybin products between premises for which licenses have been issued
under ORS 475A.210 to 475A.722; and
(e) Any other information that the authority determines is reasonably necessary to accomplish
the duties, functions and powers of the authority under ORS 475A.210 to 475A.722.
(4) Notwithstanding ORS 475A.710, before making any other distribution from the Oregon
Psilocybin Account established under ORS 475A.710, the Department of Revenue shall first distrib-
ute moneys quarterly from the account to the commission for deposit in the [ Marijuana] Cannabis
Control and Regulation Fund established under ORS 475C.297 for purposes of paying any costs in-
curred by the commission under subsection (1)(b) of this section. For purposes of estimating the
amount of moneys necessary to pay any costs incurred under this section, the commission shall es-
tablish a formulary based on expected costs for each licensee that is tracked under this section. The
commission shall provide to the Department of Revenue and the Legislative Fiscal Officer before
each quarter the estimated amount of moneys necessary to pay costs expected to be incurred under
this section and the formulary.
SECTION 45.
ORS 475A.477 is amended to read:
475A.477. [ Grounds for revocation, suspension or restriction of license. ] The Oregon Health Au-
thority may revoke, suspend or restrict a license issued under ORS 475A.210 to 475A.722 or require
a licensee or licensee representative to undergo training if the authority finds or has reasonable
ground to believe any of the following to be true:
(1) That the licensee or licensee representative:
(a) Has violated a provision of ORS 475A.210 to 475A.722 or a rule adopted under ORS 475A.210
to 475A.722, including any code of professional conduct or code of ethics.
(b) Has made any false representation or statement to the authority in order to induce or pre-
vent action by the authority.
(c) Is insolvent or incompetent or physically unable to carry on the management of the estab-
lishment of the licensee.
(d) Is in the habit of using alcoholic liquor, cannabis, habit-forming drugs, [ marijuana,]
psilocybin products or controlled substances to excess.
(e) Has misrepresented to a person or the public any psilocybin products sold by the licensee
or licensee representative.
(f) Since the issuance of the license, has been convicted of a felony, of violating any of the
psilocybin products laws of this state, general or local, or of any misdemeanor or violation of any
municipal ordinance committed on the premises for which the license has been issued.
(2) That there is any other reason that, in the opinion of the authority, based on public con-
venience or necessity, warrants revoking, suspending or restricting the license.
SECTION 46.
ORS 475C.001 is amended to read:
475C.001. (1) The People of the State of Oregon declare that the purposes of ORS 475C.005 to
475C.525 are:
(a) To eliminate the problems caused by the prohibition and uncontrolled manufacture, delivery
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and possession of [ marijuana] cannabis within this state;
(b) To protect the safety, welfare, health and peace of the people of this state by prioritizing this
state’s limited law enforcement resources in the most effective, consistent and rational way;
(c) To permit persons licensed, controlled and regulated by this state to legally manufacture and
sell [ marijuana] cannabis to persons 21 years of age and older, subject to the provisions of ORS
475C.005 to 475C.525; and
(d) To establish a comprehensive regulatory framework concerning [ marijuana] cannabis under
existing state law.
(2) The People of the State of Oregon intend that the provisions of ORS 475C.005 to 475C.525,
together with other provisions of state law, will:
(a) Prevent the distribution of [ marijuana] cannabis to persons under 21 years of age;
(b) Prevent revenue from the sale of [ marijuana] cannabis from going to criminal enterprises,
gangs and cartels;
(c) Prevent the diversion of [ marijuana] cannabis from this state to other states;
(d) Prevent [ marijuana] cannabis activity that is legal under state law from being used as a
cover or pretext for the trafficking of other illegal drugs or other illegal activity;
(e) Prevent violence and the use of firearms in association with the cultivation and distribution
of [ marijuana] cannabis;
(f) Prevent drugged driving and the exacerbation of other adverse public health consequences
associated with the use of [ marijuana] cannabis;
(g) Prevent the growing of [ marijuana] cannabis on public lands and the attendant public safety
and environmental dangers posed by [ marijuana] cannabis production on public lands; and
(h) Prevent the possession and use of [ marijuana] cannabis on federal property.
SECTION 47.
ORS 475C.009 is amended to read:
475C.009. As used in ORS 475C.005 to 475C.525:
(1) “Adult use cannabinoid” includes, but is not limited to, tetrahydrocannabinols,
tetrahydrocannabinolic acids that are artificially or naturally derived, delta-8-tetrahydrocannabinol,
delta-9-tetrahydrocannabinol, the optical isomers of delta-8-tetrahydrocannabinol or
delta-9-tetrahydrocannabinol and any artificially derived cannabinoid that is reasonably determined
to have an intoxicating effect.
(2) “Adult use cannabis item” means:
(a) A [marijuana] cannabis item; or
(b) An industrial hemp commodity or product that exceeds:
(A) The concentration of adult use cannabinoids established by the Oregon Liquor and Cannabis
Commission, in consultation with the Oregon Health Authority and the State Department of Agri-
culture, by rule; or
(B) The greater of:
(i) A concentration of more than 0.3 percent total delta-9-tetrahydrocannabinol; or
(ii) The concentration of total delta-9-tetrahydrocannabinol allowed under federal law.
(3)(a) “Artificially derived cannabinoid” means a chemical substance that is created by a chem-
ical reaction that changes the molecular structure of any chemical substance derived from the plant
Cannabis family Cannabaceae.
(b) “Artificially derived cannabinoid” does not include:
(A) A naturally occurring chemical substance that is separated from the plant Cannabis family
Cannabaceae by a chemical or mechanical extraction process;
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(B) Cannabinoids that are produced by decarboxylation from a naturally occurring cannabinoid
acid without the use of a chemical catalyst; or
(C) Any other chemical substance identified by the commission, in consultation with the au-
thority and the department, by rule.
(4) “Cannabinoid” means any of the chemical compounds that are the active constituents derived
from [ marijuana] cannabis.
(5) “Cannabinoid concentrate” means a substance obtained by separating cannabinoids from
[marijuana] cannabis by:
(a) A mechanical extraction process;
(b) A chemical extraction process using a nonhydrocarbon-based solvent, such as water, vege-
table glycerin, vegetable oils, animal fats, isopropyl alcohol or ethanol;
(c) A chemical extraction process using carbon dioxide, provided that the process does not in-
volve the use of high heat or pressure; or
(d) Any other process identified by the commission, in consultation with the authority, by rule.
(6) “Cannabinoid edible” means food or potable liquid into which a cannabinoid concentrate,
cannabinoid extract or dried [ marijuana] cannabis leaves or flowers have been incorporated.
(7) “Cannabinoid extract” means a substance obtained by separating cannabinoids from
[marijuana] cannabis by:
(a) A chemical extraction process using a hydrocarbon-based solvent, such as butane, hexane
or propane;
(b) A chemical extraction process using carbon dioxide, if the process uses high heat or pres-
sure; or
(c) Any other process identified by the commission, in consultation with the authority, by rule.
(8)(a) “Cannabinoid product” means a cannabinoid edible and any other product intended for
human consumption or use, including a product intended to be applied to the skin or hair, that
contains cannabinoids or dried [ marijuana] cannabis leaves or flowers.
(b) “Cannabinoid product” does not include:
(A) Usable [marijuana] cannabis by itself;
(B) A cannabinoid concentrate by itself;
(C) A cannabinoid extract by itself; or
(D) Industrial hemp.
(9)(a) “Cannabis” means the plant Cannabis family Cannabaceae, any part of the plant
Cannabis family Cannabaceae and cannabis seeds.
(b) “Cannabis” does not include:
(A) Industrial hemp; or
(B) Prescription drugs, as that term is defined in ORS 689.005, including those containing
one or more cannabinoids, that are approved by the United States Food and Drug Adminis-
tration and dispensed by a pharmacy, as defined in ORS 689.005.
(10) “Cannabis flowers” means the flowers of the plant genus Cannabis within the plant
family Cannabaceae.
(11) “Cannabis items” means cannabis, cannabinoid products, cannabinoid concentrates
and cannabinoid extracts.
(12) “Cannabis leaves” means the leaves of the plant genus Cannabis within the plant
family Cannabaceae.
(13) “Cannabis processor” means:
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(a) A person that processes cannabis items in this state; or
(b) A person that holds a license issued under ORS 475C.085 and processes industrial
hemp commodities or products pursuant to ORS 571.336.
(14) “Cannabis producer” means a person that produces cannabis in this state.
(15) “Cannabis retailer” means a person that sells cannabis items to a consumer in this
state.
(16)(a) “Cannabis seeds” means the seeds of the plant Cannabis family Cannabaceae.
(b) “Cannabis seeds” does not include the seeds of industrial hemp.
(17) “Cannabis wholesaler” means a person that purchases cannabis items in this state
for resale to a person other than a consumer.
[(9)] (18) “Consumer” means a person who purchases, acquires, owns, holds or uses [ marijuana]
cannabis items other than for the purpose of resale.
[(10)] (19) “Deliver” means the actual, constructive or attempted transfer from one person to
another of a [ marijuana] cannabis item, whether or not there is an agency relationship.
[(11)] (20) “Delta-9-tetrahydrocannabinol” or “delta-9-THC” means (6aR,10aR)-6,6,9-
trimethyl-3-pentyl-6a,7,8,10a-tetrahydro-6H- benzo[c]chromen-1-ol.
[(12)] (21) “Delta-9-tetrahydrocannabinolic acid” or “delta-9-THCA” means (6aR,10aR)-
1-hydroxy-6,6,9-trimethyl-3-pentyl-6a,7,8,10a- tetrahydro-6H-benzo[c]chromene-2-carboxylic acid.
[(13)] (22) “Designated primary caregiver” has the meaning given that term in ORS 475C.777.
[(14)(a)] (23)(a) “Financial consideration” means value that is given or received either directly
or indirectly through sales, barter, trade, fees, charges, dues, contributions or donations.
(b) “Financial consideration” does not include [ marijuana] cannabis , cannabinoid products or
cannabinoid concentrates that are delivered within the scope of and in compliance with ORS
475C.305.
[(15)] (24) “Homegrown” means grown by a person 21 years of age or older for noncommercial
purposes.
[(16)] (25) “Household” means a housing unit and any place in or around a housing unit at which
the occupants of the housing unit are producing, processing, possessing or storing homegrown
[marijuana] cannabis, cannabinoid products, cannabinoid concentrates or cannabinoid extracts.
[(17)] (26) “Housing unit” means a house, an apartment or a mobile home, or a group of rooms
or a single room that is occupied as separate living quarters, in which the occupants live and eat
separately from any other persons in the building and that has direct access from the outside of the
building or through a common hall.
[(18)] (27) “Immature [ marijuana] cannabis plant” means a [ marijuana] cannabis plant that is
not flowering.
[(19)] (28) “Industrial hemp” has the meaning given that term in ORS 571.269.
[(20)] (29) “Licensee” means a person that holds a license issued under ORS 475C.065, 475C.085,
475C.093, 475C.097 or 475C.548.
[(21)] (30) “Licensee representative” means an owner, director, officer, manager, employee, agent
or other representative of a licensee, to the extent that the person acts in a representative capacity.
[(22)(a)] (31)(a) “Manufacture” means producing, propagating, preparing, compounding, convert-
ing or processing a [ marijuana] cannabis item, either directly or indirectly, by extracting from
substances of natural origin.
(b) “Manufacture” includes any packaging or repackaging of a [ marijuana] cannabis item or the
labeling or relabeling of a container containing a [ marijuana] cannabis item.
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[(23)(a) “Marijuana” means the plant Cannabis family Cannabaceae, any part of the plant
Cannabis family Cannabaceae and marijuana seeds. ]
[(b) “Marijuana” does not include: ]
[(A) Industrial hemp; or ]
[(B) Prescription drugs, as that term is defined in ORS 689.005, including those containing one or
more cannabinoids, that are approved by the United States Food and Drug Administration and dis-
pensed by a pharmacy, as defined in ORS 689.005. ]
[(24) “Marijuana flowers” means the flowers of the plant genus Cannabis within the plant family
Cannabaceae.]
[(25) “Marijuana items” means marijuana, cannabinoid products, cannabinoid concentrates and
cannabinoid extracts.]
[(26) “Marijuana leaves” means the leaves of the plant genus Cannabis within the plant family
Cannabaceae.]
[(27) “Marijuana processor” means: ]
[(a) A person that processes marijuana items in this state; or ]
[(b) A person that holds a license issued under ORS 475C.085 and processes industrial hemp
commodities or products pursuant to ORS 571.336. ]
[(28) “Marijuana producer” means a person that produces marijuana in this state. ]
[(29) “Marijuana retailer” means a person that sells marijuana items to a consumer in this state. ]
[(30)(a) “Marijuana seeds” means the seeds of the plant Cannabis family Cannabaceae. ]
[(b) “Marijuana seeds” does not include the seeds of industrial hemp. ]
[(31) “Marijuana wholesaler” means a person that purchases marijuana items in this state for re-
sale to a person other than a consumer. ]
(32) “Mature [ marijuana] cannabis plant” means a [ marijuana] cannabis plant that is not an
immature [marijuana] cannabis plant.
(33) “Medical grade cannabinoid product, cannabinoid concentrate or cannabinoid extract”
means a cannabinoid product, cannabinoid concentrate or cannabinoid extract that has a concen-
tration of adult use cannabinoids that is permitted under ORS 475C.620 in a single serving of the
cannabinoid product, cannabinoid concentrate or cannabinoid extract for consumers who hold a
valid registry identification card issued under ORS 475C.783.
(34) “Medical purpose” means a purpose related to using usable [ marijuana] cannabis,
cannabinoid products, cannabinoid concentrates or cannabinoid extracts to mitigate the symptoms
or effects of a debilitating medical condition, as defined in ORS 475C.777.
(35) “Noncommercial” means not dependent or conditioned upon the provision or receipt of fi-
nancial consideration.
(36)(a) “Premises” includes the following areas of a location licensed under ORS 475C.005 to
475C.525 or 475C.548:
(A) All public and private enclosed areas at the location that are used in the business operated
at the location, including offices, kitchens, rest rooms and storerooms;
(B) All areas outside a building that the commission has specifically licensed for the processing,
wholesale sale or retail sale of [ marijuana] cannabis items; and
(C) For a location that the commission has specifically licensed for the production of
[marijuana] cannabis outside a building, that portion of the location used to produce [ marijuana]
cannabis.
(b) “Premises” does not include a primary residence.
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(37)(a) “Processes” means the processing, compounding or conversion of:
(A) [Marijuana] Cannabis into cannabinoid products, cannabinoid concentrates or cannabinoid
extracts; or
(B) Pursuant to ORS 571.336, industrial hemp or industrial hemp commodities or products into
industrial hemp commodities or products that contain cannabinoids and are intended for human
consumption or use.
(b) “Processes” does not include packaging or labeling.
(38)(a) “Produces” means the manufacture, planting, cultivation, growing or harvesting of
[marijuana] cannabis.
(b) “Produces” does not include:
(A) The drying of [marijuana] cannabis by a [ marijuana] cannabis processor, if the
[marijuana] cannabis processor is not otherwise producing [ marijuana] cannabis; or
(B) The cultivation and growing of an immature [ marijuana] cannabis plant by a [ marijuana]
cannabis processor, [ marijuana] cannabis wholesaler or [ marijuana] cannabis retailer if the
[marijuana] cannabis processor, [ marijuana] cannabis wholesaler or [ marijuana] cannabis retailer
purchased or otherwise received the plant from a licensed [ marijuana] cannabis producer.
(39) “Propagate” means to grow immature [ marijuana] cannabis plants or to breed or produce
[marijuana] cannabis seeds.
(40) “Public place” means a place to which the general public has access and includes, but is
not limited to, hallways, lobbies and other parts of apartment houses and hotels not constituting
rooms or apartments designed for actual residence, and highways, streets, schools, places of
amusement, parks, playgrounds and areas used in connection with public passenger transportation.
(41) “Registry identification cardholder” has the meaning given that term in ORS 475C.777.
(42) “Total delta-9-tetrahydrocannabinol” or “total delta-9-THC” means the sum of the concen-
tration or mass of delta-9-THCA multiplied by 0.877 plus the concentration or mass of delta-9-THC.
(43)(a) “Usable [ marijuana] cannabis” means the dried leaves and flowers of [ marijuana]
cannabis.
(b) “Usable [ marijuana] cannabis” does not include:
(A) [ Marijuana] Cannabis seeds;
(B) The stalks and roots of [ marijuana] cannabis; or
(C) Waste material that is a by-product of producing or processing [ marijuana] cannabis.
SECTION 48.
ORS 475C.013 is amended to read:
475C.013. ORS 475C.005 to 475C.525 may not be construed:
(1) To amend or affect state or federal law pertaining to employment matters;
(2) To amend or affect state or federal law pertaining to landlord-tenant matters;
(3) To prohibit a recipient of a federal grant or an applicant for a federal grant from prohibiting
the manufacture, delivery, possession or use of [ marijuana] cannabis to the extent necessary to
satisfy federal requirements for the grant;
(4) To prohibit a party to a federal contract or a person applying to be a party to a federal
contract from prohibiting the manufacture, delivery, possession or use of [ marijuana] cannabis to
the extent necessary to comply with the terms and conditions of the contract or to satisfy federal
requirements for the contract;
(5) To require a person to violate a federal law;
(6) To exempt a person from a federal law or obstruct the enforcement of a federal law; or
(7) To amend or affect the Oregon Medical [Marijuana] Cannabis Act.
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SECTION 49.
ORS 475C.017 is amended to read:
475C.017. (1) The Oregon Liquor and Cannabis Commission has the duties, functions and powers
specified in ORS 475C.005 to 475C.525 and 475C.540 to 475C.586 and the powers necessary or proper
to enable the commission to carry out the commission’s duties, functions and powers under ORS
475C.005 to 475C.525 and 475C.540 to 475C.586. The jurisdiction, supervision, duties, functions and
powers of the commission extend to any person that produces, processes, transports, delivers, sells,
purchases or tests a [ marijuana] cannabis item in this state. The commission may sue and be sued.
(2) The duties, functions and powers of the commission specified in ORS 475C.005 to 475C.525
and 475C.540 to 475C.586 include the following:
(a) To regulate the production, processing, transportation, delivery, sale, purchase and testing
of [ marijuana] cannabis items in accordance with the provisions of ORS 475C.005 to 475C.525 and
475C.540 to 475C.586.
(b) To issue, renew, suspend, revoke or refuse to issue or renew licenses for the production,
processing, sale or testing of [ marijuana] cannabis items, or other licenses related to the consump-
tion of [ marijuana] cannabis items, and to permit, in the commission’s discretion, the transfer of a
license between persons.
(c) To adopt, amend or repeal rules as necessary to carry out the intent and provisions of ORS
475C.005 to 475C.525 and 475C.540 to 475C.586, including rules that the commission considers nec-
essary to protect the public health and safety.
(d) To exercise all powers incidental, convenient or necessary to enable the commission to ad-
minister or carry out the provisions of ORS 475C.005 to 475C.525 and 475C.540 to 475C.586 or any
other law of this state that charges the commission with a duty, function or power related to
[marijuana] cannabis. Powers described in this paragraph include, but are not limited to:
(A) Issuing subpoenas;
(B) Compelling the attendance of witnesses;
(C) Administering oaths;
(D) Certifying official acts;
(E) Taking depositions as provided by law;
(F) Compelling the production of books, payrolls, accounts, papers, records, documents and tes-
timony; and
(G) Establishing fees in addition to the application, licensing and renewal fees described in ORS
475C.065, 475C.085, 475C.093, 475C.097 and 475C.548, provided that any fee established by the com-
mission is reasonably calculated not to exceed the cost of the activity for which the fee is charged.
(e) To adopt rules regulating and prohibiting advertising [ marijuana] cannabis items in a man-
ner:
(A) That is appealing to minors;
(B) That promotes excessive use;
(C) That promotes illegal activity; or
(D) That otherwise presents a significant risk to public health and safety.
(f) To regulate the use of [marijuana] cannabis items for other purposes as deemed necessary
or appropriate by the commission.
(g) To establish pilot programs, of not more than three years in duration, to expand access to
[marijuana] cannabis for medical use for registry identification cardholders and designated primary
caregivers, as defined in ORS 475C.777.
(h) To regulate the processing, transportation, delivery, sale, purchase and testing of artificially
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derived cannabinoids in accordance with the provisions of ORS 475C.005 to 475C.525 and 475C.540
to 475C.586.
(i) To regulate the testing and labeling of inhalant delivery systems, as defined in ORS 431A.175,
that include industrial hemp-derived vapor items, as defined in ORS 475C.540, that are sold in this
state by any person.
(3) Fees collected pursuant to subsection (2)(d)(G) of this section shall be deposited in the
[Marijuana] Cannabis Control and Regulation Fund established under ORS 475C.297.
SECTION 50.
ORS 475C.021 is amended to read:
475C.021. Subject to any applicable provision of ORS chapter 183, the Oregon Liquor and
Cannabis Commission may purchase, possess, seize, transfer to a licensee or dispose of [ marijuana]
cannabis items as is necessary for the commission to ensure compliance with and enforce the pro-
visions of ORS 475C.005 to 475C.525 and 475C.540 to 475C.586 and any rule adopted under ORS
475C.005 to 475C.525 and 475C.540 to 475C.586.
SECTION 51. ORS 475C.025 is amended to read:
475C.025. The Oregon Liquor and Cannabis Commission may, by rule or order, provide for the
manner and conditions under which:
(1) [Marijuana] Cannabis items left by a deceased, insolvent or bankrupt person or licensee, or
subject to a security interest, may be foreclosed, sold under execution or otherwise disposed.
(2) The business of a deceased, insolvent or bankrupt licensee may be operated for a reasonable
period following the death, insolvency or bankruptcy.
(3) A secured party, as defined in ORS 79.0102, may continue to operate at a premises for which
a license has been issued under ORS 475C.005 to 475C.525 or 475C.548 for a reasonable period after
default on the indebtedness by the debtor.
SECTION 52. ORS 475C.029 is amended to read:
475C.029. The Oregon Liquor and Cannabis Commission may limit the quantity of [ marijuana]
cannabis items transferred to a consumer or other individual if the commission determines that the
limitation is necessary to prevent the resale of [ marijuana] cannabis items.
SECTION 53. ORS 475C.037 is amended to read:
475C.037. (1) The Oregon Liquor and Cannabis Commission may not license an applicant under
the provisions of ORS 475C.005 to 475C.525 or 475C.548 if the applicant is under 21 years of age.
(2) The commission may refuse to issue a license or may issue a restricted license to an appli-
cant under the provisions of ORS 475C.005 to 475C.525 or 475C.548 if the commission makes a find-
ing that the applicant:
(a) Is in the habit of using alcoholic beverages, habit-forming drugs, [ marijuana] cannabis or
controlled substances to excess.
(b) Has made false statements to the commission.
(c) Is incompetent or physically unable to carry on the management of the establishment pro-
posed to be licensed.
(d) Has been convicted of violating a federal law, state law or local ordinance if the conviction
is substantially related to the fitness and ability of the applicant to lawfully carry out activities
under the license.
(e) Is not of good repute and moral character.
(f) Does not have a good record of compliance with ORS 475C.005 to 475C.525 or 475C.540 to
475C.586 or any rule adopted under ORS 475C.005 to 475C.525 or 475C.540 to 475C.586.
(g) Is not the legitimate owner of the premises proposed to be licensed, or has not disclosed that
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other persons have ownership interests in the premises proposed to be licensed.
(h) Has not demonstrated financial responsibility sufficient to adequately meet the requirements
of the premises proposed to be licensed.
(i) Is unable to understand the laws of this state relating to [ marijuana] cannabis items or the
rules adopted under ORS 475C.005 to 475C.525 and 475C.540 to 475C.586.
(3) Notwithstanding subsection (2)(d) of this section, in determining whether to issue a license
or a restricted license to an applicant, the commission may not consider the prior conviction of the
applicant or any owner, director, officer, manager, employee, agent or other representative of the
applicant for:
(a) The manufacture of [ marijuana] cannabis, if:
(A) The date of the conviction is two or more years before the date of the application; and
(B) The person has not been convicted more than once for the manufacture or delivery of
[marijuana] cannabis;
(b) The delivery of [ marijuana] cannabis to a person 21 years of age or older, if:
(A) The date of the conviction is two or more years before the date of the application; and
(B) The person has not been convicted more than once for the manufacture or delivery of
[marijuana] cannabis; or
(c) The possession of [ marijuana] cannabis.
SECTION 54.
ORS 475C.049, as amended by section 21, chapter 16, Oregon Laws 2024, is
amended to read:
475C.049. (1) Subject to section 19, chapter 16, Oregon Laws 2024, the Oregon Liquor and
Cannabis Commission shall approve or deny an application to be licensed under ORS 475C.005 to
475C.525. Except as provided in subsection (2) of this section, upon receiving an application under
ORS 475C.033, the commission may not delay processing, approving or denying the application or,
if the application is approved, issuing the license.
(2) The commission may delay processing, approving or denying an application described in
subsection (1) of this section only if:
(a) The applicant, or a person named on the application, holds a license issued under ORS
475C.005 to 475C.525 and the commission has issued a notice proposing revocation of the license for
one or more violations of ORS 475C.005 to 475C.525 that are administrative in nature, as determined
by the commission, or a notice proposing suspension of the license pursuant to ORS 305.385;
(b) The applicant is applying for a license at a premises where the applicant seeks to assume
ownership of an existing business for which a license has been issued under ORS 475C.005 to
475C.525 and the commission has issued a notice proposing revocation of the license for the existing
business or a notice proposing suspension of the license for the existing business pursuant to ORS
305.385; or
(c) The commission has received information from law enforcement that the applicant or a per-
son named on the application is engaging, or has engaged, in the unregulated commerce of
[marijuana] cannabis items or unlawful manufacture or delivery of controlled substances.
(3) The licenses described in ORS 475C.005 to 475C.525 must be issued by the commission, sub-
ject to the provisions of ORS 475C.005 to 475C.525 and rules adopted under ORS 475C.005 to
475C.525.
(4) The commission may not license a premises that does not have defined boundaries. A prem-
ises does not need to be enclosed by a wall, fence or other structure, but the commission may re-
quire a premises to be enclosed as a condition of issuing or renewing a license. The commission may
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not license a mobile premises.
SECTION 55.
ORS 475C.057 is amended to read:
475C.057. Licensees and licensee representatives may produce, deliver and possess [ marijuana]
cannabis items subject to the provisions of ORS 475C.005 to 475C.525 and rules adopted under ORS
475C.005 to 475C.525. The production, delivery or possession of [ marijuana] cannabis items by a
licensee or a licensee representative in compliance with ORS 475C.005 to 475C.525 and rules adopted
under ORS 475C.005 to 475C.525 does not constitute a criminal or civil offense under the laws of this
state.
SECTION 56. ORS 475C.065 is amended to read:
475C.065. (1) The production of [ marijuana] cannabis is subject to regulation by the Oregon
Liquor and Cannabis Commission.
(2) A [ marijuana] cannabis producer must have a production license issued by the commission
for the premises at which the [ marijuana] cannabis is produced. To hold a production license issued
under this section, a [ marijuana] cannabis producer:
(a) Must apply for a license in the manner described in ORS 475C.033;
(b) Must provide proof that the applicant is 21 years of age or older; and
(c) Must meet the requirements of any rule adopted by the commission under subsections (3) and
(4) of this section.
(3)(a) If the applicant is not the owner of the premises at which the [ marijuana] cannabis is to
be produced, the applicant shall submit to the commission signed informed consent from the owner
of the premises to produce [ marijuana] cannabis at the premises.
(b) The commission may adopt rules regarding the informed consent described in this subsection.
(4) The commission shall adopt rules that:
(a) Require a [marijuana] cannabis producer to annually renew a license issued under this sec-
tion;
(b) Establish application, licensure and renewal of licensure fees for [ marijuana] cannabis pro-
ducers;
(c) Require [ marijuana] cannabis produced by [ marijuana] cannabis producers to be tested in
accordance with ORS 475C.544;
(d) Assist the viability of [ marijuana] cannabis producers that are independently owned and
operated and that are limited in size and revenue with respect to other [ marijuana] cannabis pro-
ducers, by minimizing barriers to entry into the regulated system and by expanding, to the extent
practicable, transportation options that will support their access to the retail market;
(e) Allow a [ marijuana] cannabis producer registered under ORS 475C.137 to produce
[marijuana] cannabis for medical purposes in the same manner that rules adopted under ORS
475C.005 to 475C.525 allow a [ marijuana] cannabis producer to produce [ marijuana] cannabis for
nonmedical purposes, excepting those circumstances where differentiating between the production
of [ marijuana] cannabis for medical purposes and the production of [ marijuana] cannabis for non-
medical purposes is necessary to protect the public health and safety;
(f) Require [ marijuana] cannabis producers to submit, at the time of applying for or renewing
a license under ORS 475C.033, a report describing the applicant’s or licensee’s electrical or water
usage;
(g) Require a [ marijuana] cannabis producer to meet any public health and safety standards and
industry best practices established by the commission by rule related to the production of
[marijuana] cannabis or the propagation of immature [ marijuana] cannabis plants and [ marijuana]
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cannabis seeds; and
(h) Support [ marijuana] cannabis plant diversity by allowing a qualified [ marijuana] cannabis
producer to receive [ marijuana] cannabis seeds from any source in this state, but not more than a
total of 200 [ marijuana] cannabis seeds per month from all sources combined.
(5) Fees adopted under subsection (4)(b) of this section:
(a) May not exceed, together with other fees collected under ORS 475C.005 to 475C.525, the cost
of administering ORS 475C.005 to 475C.525;
(b) Shall be in the form of a schedule that imposes a greater fee for premises with more square
footage or on which more [ marijuana] cannabis plants are grown; and
(c) Shall be deposited in the [ Marijuana] Cannabis Control and Regulation Fund established
under ORS 475C.297.
SECTION 57.
ORS 475C.069 is amended to read:
475C.069. (1) The requirement under ORS 475C.053 to obtain a land use compatibility statement
as a condition of receiving a license under ORS 475C.065 does not apply to an applicant if:
(a) The applicant is applying for a license at an address where a [ marijuana] cannabis grow site
registered under ORS 475C.792 is located;
(b) The address is outside of city limits;
(c) At least one person responsible for a [marijuana] cannabis grow site located at the address
first registered with the Oregon Health Authority under ORS 475C.792 before January 1, 2015, and
is registered with the authority under ORS 475C.792 on the date on which the applicant submitted
the application for a license under ORS 475C.065;
(d) Each person responsible for a [ marijuana] cannabis grow site located at the address first
registered with the authority under ORS 475C.792 before February 1, 2016, and is registered with
the authority under ORS 475C.792 on the date on which the applicant submitted the application for
a license under ORS 475C.065; and
(e) The applicant is applying for a mature [ marijuana] cannabis plant grow canopy of:
(A) 5,000 square feet or less, if the [ marijuana] cannabis is produced outdoors; or
(B) 1,250 square feet or less, if the [ marijuana] cannabis is produced indoors.
(2) For purposes of this section, an applicant for a license under ORS 475C.065 is not required
to demonstrate that:
(a) At least one person responsible for a [ marijuana] cannabis grow site located at the address
for which the applicant is applying for a license has been continuously registered with the authority
under ORS 475C.792 between January 1, 2015, and the date on which the applicant applies for a li-
cense under ORS 475C.065; or
(b) Each person responsible for a [ marijuana] cannabis grow site located at the address for
which the applicant is applying for a license has been continuously registered with the authority
under ORS 475C.792 between February 1, 2016, and the date on which the applicant applies for a
license under ORS 475C.065.
SECTION 58.
ORS 475C.073 is amended to read:
475C.073. (1) A premises for which a [ marijuana] cannabis producer holds a production license
issued under ORS 475C.065 and that is located in an area subject to the jurisdiction of a city or
county that has adopted a prohibition under ORS 475C.950 on [ marijuana] cannabis production, or
has adopted or amended a county or local ordinance that causes [ marijuana] cannabis production
to be a nonconforming land use, since the date on which the production license was first issued may
continue to be used to produce [ marijuana] cannabis.
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(2) A premises described in subsection (1) of this section is not required to be continually owned
or operated by the [ marijuana] cannabis producer that was first issued a license under ORS
475C.065.
(3) A land use compatibility statement, in addition to that required for initial licensure, from the
city or county is not required for a premises described in subsection (1) of this section if:
(a) The [ marijuana] cannabis producer is applying for licensure renewal; or
(b) A change in ownership of the premises occurs but does not alter the [ marijuana] cannabis
plant grow canopy size or whether the [ marijuana] cannabis plant grow canopy is indoors or out-
doors.
(4)(a) Alterations may be made to premises described in subsection (1) of this section if the al-
terations:
(A) Are necessary in order for the premises to comply with a lawful requirement for alteration
in production; or
(B) In the production or in the buildings, structures or physical improvements associated with
the premises have no greater adverse impact to the surrounding area.
(b) The city or county that has jurisdiction over the premises shall perform an evaluation of
proposed alterations and may deny only alterations that do not meet the criteria set out in this
subsection.
(5) If a premises described in subsection (1) of this section is not used for [ marijuana] cannabis
production for a period of at least 12 calendar months, [ marijuana] cannabis production may not
be resumed on the premises unless the [ marijuana] cannabis production conforms to any zoning
requirements or regulations applicable at the time of the proposed resumption.
SECTION 59.
ORS 475C.077 is amended to read:
475C.077. (1) Subject to subsection (3) of this section, the Oregon Liquor and Cannabis Com-
mission shall adopt rules restricting the size of [ marijuana] cannabis plant grow canopies at prem-
ises for which a license has been issued under ORS 475C.065. In adopting rules under this
subsection, the commission shall:
(a) Limit the size of [ marijuana] cannabis plant grow canopies, for premises where [ marijuana]
cannabis is grown outdoors and for premises where [ marijuana] cannabis is grown indoors, in a
manner calculated to result in premises that produce the same amount of harvested [ marijuana]
cannabis leaves and harvested [ marijuana] cannabis flowers regardless of whether the [ marijuana]
cannabis is grown outdoors or indoors.
(b) Adopt a tiered system under which the permitted size of a [ marijuana] cannabis producer’s
[marijuana] cannabis plant grow canopy increases at the time of licensure renewal under ORS
475C.065, except that the permitted size of a [ marijuana] cannabis producer’s [ marijuana] cannabis
plant grow canopy may not increase following any year during which the commission disciplined the
[marijuana] cannabis producer for violating a provision of ORS 475C.005 to 475C.525 or a rule
adopted under ORS 475C.005 to 475C.525.
(c) Take into consideration the market demand for [ marijuana] cannabis items in this state, the
number of [ marijuana] cannabis producers applying for a license under ORS 475C.065, the number
of [ marijuana] cannabis producers that hold a license issued under ORS 475C.065 and whether the
availability of [ marijuana] cannabis items in this state is commensurate with the market demand.
(2) For purposes of this section, the commission may adopt different rules for mature
[marijuana] cannabis plant grow canopies and immature [ marijuana] cannabis plant grow canopies.
(3) This section applies only to that portion of a premises for which a license has been issued
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under ORS 475C.065 that is used to produce [ marijuana] cannabis plants.
SECTION 60.
ORS 475C.081 is amended to read:
475C.081. (1) As used in this section, “commonly owned” means, as further defined by the
Oregon Liquor and Cannabis Commission by rule, that a person included on an application for a li-
cense under ORS 475C.065 has an interest in or authority over the management of another entity
for which a license has been issued under ORS 475C.065.
(2) A [marijuana] cannabis producer that holds a license issued under ORS 475C.065 may deliver
to or receive from a [ marijuana] cannabis processor that holds a license issued under ORS 475C.085:
(a) Cannabinoid products, cannabinoid extracts and cannabinoid concentrates processed by the
[marijuana] cannabis processor from [ marijuana] cannabis produced by the [ marijuana] cannabis
producer and that do not contain [ marijuana] cannabis produced by any other [ marijuana] cannabis
producer; and
(b) [ Marijuana] Cannabis produced by the [ marijuana] cannabis producer that the [ marijuana]
cannabis processor received from the [ marijuana] cannabis producer but that the [ marijuana]
cannabis processor did not process.
(3) Two or more [ marijuana] cannabis producers that hold licenses issued under ORS 475C.065
and are commonly owned by the same person may deliver to and receive from one another
[marijuana] cannabis and usable [ marijuana] cannabis.
SECTION 61. ORS 475C.085 is amended to read:
475C.085. (1) The processing of [ marijuana] cannabis items is subject to regulation by the
Oregon Liquor and Cannabis Commission.
(2) A [ marijuana] cannabis processor must have a processor license issued by the commission
for the premises at which [ marijuana] cannabis items are processed. To hold a processor license
under this section, a [ marijuana] cannabis processor:
(a) Must apply for a license in the manner described in ORS 475C.033;
(b) Must provide proof that the applicant is 21 years of age or older;
(c) If the [marijuana] cannabis processor processes [ marijuana] cannabis extracts or industrial
hemp extracts, as defined in ORS 571.269, may not be located in an area zoned exclusively for resi-
dential use; and
(d) Must meet the requirements of any rule adopted by the commission under subsection (3) of
this section.
(3) The commission shall adopt rules that:
(a) Require a [marijuana] cannabis processor to annually renew a license issued under this
section;
(b) Establish application, licensure and renewal of licensure fees for [ marijuana] cannabis
processors;
(c) Require [ marijuana] cannabis processed by a [ marijuana] cannabis processor to be tested
in accordance with ORS 475C.544;
(d) Require industrial hemp commodities and products processed by a [ marijuana] cannabis
processor to meet any requirements for industrial hemp commodities or products established under
ORS 571.260 to 571.348 or rules adopted under ORS 571.260 to 571.348;
(e) Allow a [ marijuana] cannabis processor registered under ORS 475C.141 to process
[marijuana] cannabis and usable [ marijuana] cannabis into medical grade cannabinoid products,
cannabinoid concentrates and cannabinoid extracts in the same manner that rules adopted under
ORS 475C.005 to 475C.525 allow a [ marijuana] cannabis processor to process [ marijuana] cannabis
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and usable [ marijuana] cannabis into general use cannabinoid products, cannabinoid concentrates
and cannabinoid extracts, excepting those circumstances where differentiating between the pro-
cessing of medical grade cannabinoid products, cannabinoid concentrates and cannabinoid extracts
and the processing of general use cannabinoid products, cannabinoid concentrates and cannabinoid
extracts is necessary to protect the public health and safety; and
(f) Require a [ marijuana] cannabis processor to meet any public health and safety standards and
industry best practices established by the commission by rule related to:
(A) Cannabinoid edibles;
(B) Cannabinoid concentrates;
(C) Cannabinoid extracts; and
(D) Any other type of cannabinoid product or industrial hemp commodity or product identified
by the commission by rule.
(4) Fees adopted under subsection (3)(b) of this section:
(a) May not exceed, together with other fees collected under ORS 475C.005 to 475C.525, the cost
of administering ORS 475C.005 to 475C.525; and
(b) Shall be deposited in the [ Marijuana] Cannabis Control and Regulation Fund established
under ORS 475C.297.
SECTION 62.
ORS 475C.089 is amended to read:
475C.089. (1) Notwithstanding ORS 475C.085, a [ marijuana] cannabis producer that holds a li-
cense issued under ORS 475C.065 and has a mature [ marijuana] cannabis plant grow canopy de-
scribed in subsection (2) of this section may process [ marijuana] cannabis into a cannabinoid
concentrate if the process involves separating cannabinoids from [ marijuana] cannabis by:
(a) A mechanical process; or
(b) An extraction process using water as the solvent.
(2) To be eligible to process [marijuana] cannabis into a cannabinoid concentrate under this
section, a [ marijuana] cannabis producer must have a mature [ marijuana] cannabis plant grow
canopy, as restricted by the Oregon Liquor and Cannabis Commission under ORS 475C.077, that does
notexceed:
(a) For [ marijuana] cannabis grown outdoors, 5,000 square feet; or
(b) For [ marijuana] cannabis grown indoors, 1,250 square feet.
(3)(a) A [ marijuana] cannabis producer that holds a license issued under ORS 475C.065 and that
has a plant grow canopy determined by rule by the commission, may produce and transfer kief.
(b) For purposes of this subsection, “kief” means the resinous trichomes of [ marijuana] cannabis
that accumulate or fall off when [ marijuana] cannabis flowers are sifted through a mesh screen or
sieve.
(4) The processing of [ marijuana] cannabis under this section must comport with any reasonable
condition adopted under ORS 475C.449 that is imposed on the manner in which a [ marijuana]
cannabis processor licensed under ORS 475C.085 may process [ marijuana] cannabis.
SECTION 63.
ORS 475C.093 is amended to read:
475C.093. (1) The wholesale sale of [ marijuana] cannabis items is subject to regulation by the
Oregon Liquor and Cannabis Commission.
(2) A [ marijuana] cannabis wholesaler must have a wholesale license issued by the commission
for the premises at which [ marijuana] cannabis items are received, stored or delivered. To hold a
wholesale license under this section, a [ marijuana] cannabis wholesaler:
(a) Must apply for a license in the manner described in ORS 475C.033;
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(b) Must provide proof that the applicant is 21 years of age or older;
(c) May not be located in an area that is zoned exclusively for residential use; and
(d) Must meet the requirements of any rule adopted by the commission under subsection (3) of
this section.
(3) The commission shall adopt rules that:
(a) Require a [marijuana] cannabis wholesaler to annually renew a license issued under this
section;
(b) Establish application, licensure and renewal of licensure fees for [ marijuana] cannabis
wholesalers;
(c) Require [ marijuana] cannabis items received, stored or delivered by a [ marijuana] cannabis
wholesaler to be tested in accordance with ORS 475C.544;
(d) Allow a [ marijuana] cannabis wholesaler registered under ORS 475C.145 to sell medical
grade cannabinoid products, cannabinoid concentrates and cannabinoid extracts at wholesale in the
same manner that rules adopted under ORS 475C.005 to 475C.525 allow a [ marijuana] cannabis
wholesaler to sell general use cannabinoid products, cannabinoid concentrates and cannabinoid ex-
tracts at wholesale, excepting those circumstances where differentiating between the sale of medical
grade cannabinoid products, cannabinoid concentrates and cannabinoid extracts and the sale of
general use cannabinoid products, cannabinoid concentrates and cannabinoid extracts is necessary
to protect the public health and safety; and
(e) Require a [ marijuana] cannabis wholesaler to meet any public health and safety standards
and industry best practices established by the commission by rule.
(4) Fees adopted under subsection (3)(b) of this section:
(a) May not exceed, together with other fees collected under ORS 475C.005 to 475C.525, the cost
of administering ORS 475C.005 to 475C.525; and
(b) Shall be deposited in the [ Marijuana] Cannabis Control and Regulation Fund established
under ORS 475C.297.
SECTION 64.
ORS 475C.097 is amended to read:
475C.097. (1) The retail sale of [ marijuana] cannabis items is subject to regulation by the
Oregon Liquor and Cannabis Commission.
(2) A [ marijuana] cannabis retailer must have a retail license issued by the commission for the
premises at which [ marijuana] cannabis items are sold. To hold a retail license under this section,
a [ marijuana] cannabis retailer:
(a) Must apply for a license in the manner described in ORS 475C.033;
(b) Must provide proof that the applicant is 21 years of age or older;
(c) May not be located in an area that is zoned exclusively for residential use;
(d) Except as provided in ORS 475C.101, may not be located within 1,000 feet of:
(A) A building where a public prekindergarten or kindergarten program is provided by a school
district or an education service district;
(B) A public elementary or secondary school for which attendance is compulsory under ORS
339.020; or
(C) A private or parochial elementary or secondary school, teaching children as described in
ORS 339.030 (1)(a); and
(e) Must meet the requirements of any rule adopted by the commission under subsection (3) of
this section.
(3) The commission shall adopt rules that:
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(a) Require a [ marijuana] cannabis retailer to annually renew a license issued under this sec-
tion;
(b) Establish application, licensure and renewal of licensure fees for [ marijuana] cannabis
retailers;
(c) Require [ marijuana] cannabis items sold by a [ marijuana] cannabis retailer to be tested in
accordance with ORS 475C.544;
(d) Notwithstanding ORS 475C.205, allow a [ marijuana] cannabis retailer to deliver
[marijuana] cannabis items to another [ marijuana] cannabis retailer that has on the [ marijuana]
cannabis retailer’s license application a person that has an interest in or authority over the man-
agement of the other [ marijuana] cannabis retailer;
(e) Subject to the limitations and privileges described in ORS 475C.149 (3), allow a [ marijuana]
cannabis retailer registered under ORS 475C.149 to sell medical grade cannabinoid products,
cannabinoid concentrates and cannabinoid extracts at retail in the same manner that rules adopted
under ORS 475C.005 to 475C.525 allow a [ marijuana] cannabis retailer to sell general use
cannabinoid products, cannabinoid concentrates and cannabinoid extracts at retail, excepting those
circumstances where differentiating between the sale of medical grade cannabinoid products,
cannabinoid concentrates and cannabinoid extracts and the sale of general use cannabinoid pro-
ducts, cannabinoid concentrates and cannabinoid extracts is necessary to protect the public health
and safety; and
(f) Require a [ marijuana] cannabis retailer to meet any public health and safety standards and
industry best practices established by the commission by rule.
(4) Fees adopted under subsection (3)(b) of this section:
(a) May not exceed, together with other fees collected under ORS 475C.005 to 475C.525, the cost
of administering ORS 475C.005 to 475C.525; and
(b) Shall be deposited in the [ Marijuana] Cannabis Control and Regulation Fund established
under ORS 475C.297.
SECTION 65.
ORS 475C.101 is amended to read:
475C.101. Notwithstanding ORS 475C.097 (2)(d), a [ marijuana] cannabis retailer may be located
within 1,000 feet of a building described in ORS 475C.097 (2)(d) if:
(1)(a) The [ marijuana] cannabis retailer is not located within 500 feet of:
(A) A building where a public prekindergarten or kindergarten program is provided by a school
district or an education service district;
(B) A public elementary or secondary school for which attendance is compulsory under ORS
339.020; or
(C) A private or parochial elementary or secondary school, teaching children as described in
ORS 339.030 (1)(a); and
(b) The Oregon Liquor and Cannabis Commission determines that there is a physical or ge-
ographic barrier capable of preventing children from traversing to the premises of the [ marijuana]
cannabis retailer; or
(2) The [ marijuana] cannabis retailer was established before August 1, 2017, in accordance with
a city or county ordinance adopted under section 29b, chapter 83, Oregon Laws 2016.
SECTION 66. ORS 475C.105 is amended to read:
475C.105. (1) If a building described in ORS 475C.097 (2)(d) that has not previously been attended
by children is established within 1,000 feet of a premises for which a license has been issued under
ORS 475C.097, the [ marijuana] cannabis retailer located at that premises may remain at that lo-
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cation unless the Oregon Liquor and Cannabis Commission revokes the license of the [ marijuana]
cannabis retailer under ORS 475C.265.
(2)(a) If the commission issues a license for a premises under ORS 475C.097 and, after issuance,
the commission becomes aware that a school established prior to issuance of the license is located
within 1,000 feet of the premises, the commission may allow the [ marijuana] cannabis retailer to
relocate to a premises that is not within 1,000 feet of the school without applying for and being is-
sued a new license under ORS 475C.097.
(b) The commission may adopt rules to carry out this subsection.
SECTION 67.
ORS 475C.109 is amended to read:
475C.109. The Oregon Liquor and Cannabis Commission may adopt rules establishing the cir-
cumstances under which the commission may require a [ marijuana] cannabis retailer that holds a
license issued under ORS 475C.097 to use an age verification scanner or any other equipment used
to verify a person’s age for the purpose of ensuring that the [ marijuana] cannabis retailer does not
sell [ marijuana] cannabis items to a person under 21 years of age. Information obtained under this
section may not be retained after verifying a person’s age and may not be used for any purpose
other than verifying a person’s age.
SECTION 68. ORS 475C.113 is amended to read:
475C.113. (1) The governing body of a city or county may adopt ordinances that allow the de-
livery of [ marijuana] cannabis items to consumers located within the jurisdiction of the city or
county from an adjacent city or county.
(2) If the governing body of a city or county adopts an ordinance under this section, the gov-
erning body must provide the text of the ordinance to the Oregon Liquor and Cannabis Commission.
(3) A city or county that adopts an ordinance under this section may not impose a tax or fee
on the retail price or delivery cost of [ marijuana] cannabis items delivered within the city or
county.
SECTION 69. ORS 475C.117, as amended by section 29, chapter 16, Oregon Laws 2024, is
amended to read:
475C.117. (1) A [ marijuana] cannabis retailer that holds a license issued under ORS 475C.097
may make deliveries to a consumer pursuant to the consumer’s bona fide order received by the
[marijuana] cannabis retailer. The delivery of [ marijuana] cannabis items under this section may
be made to a consumer:
(a) Within the same city or unincorporated area of the county in which the [ marijuana]
cannabis retailer is located; or
(b) In a city or the unincorporated area of a county that is adjacent to the city or
unincorporated area of the county in which the [ marijuana] cannabis retailer is located, provided
the adjacent city or county has adopted an ordinance allowing for the delivery of [ marijuana]
cannabis items by a [ marijuana] cannabis retailer located in an adjacent city or unincorporated
area of a county.
(2) A [ marijuana] cannabis retailer that makes deliveries under this section shall:
(a) Ensure that deliveries are made in an efficient and timely manner.
(b) Upon request, provide to the Oregon Liquor and Cannabis Commission information on each
vehicle used to make deliveries of [ marijuana] cannabis items under this section, including the
make, model, year, color, vehicle identification number and registration plate number.
(c) Maintain an electronic or physical record of each bona fide order for the delivery of
[marijuana] cannabis items that the [ marijuana] cannabis retailer fulfills.
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(d) Report to the commission, and as necessary to the appropriate law enforcement agency, any
accidents or losses involving a delivery vehicle.
(3) An individual who makes deliveries on behalf of a [ marijuana] cannabis retailer under this
section:
(a) Shall:
(A) Hold a permit or temporary permit issued under ORS 475C.273 and carry the permit or
temporary permit while making deliveries under this section.
(B) Have a method of secure electronic communication in order to communicate with the
[marijuana] cannabis retailer for which the individual is making deliveries.
(C) Maintain an electronic or physical record of a bona fide order for a delivery of a
[marijuana] cannabis item.
(D) Present to the consumer a printed or electronic delivery manifest and obtain on the manifest
the consumer’s written or electronic signature verifying completion of the delivery of [ marijuana]
cannabis items.
(E) Except in the case of an emergency or unsafe road conditions or as necessary for fuel, rest
or vehicle repair, travel only between the premises of the [ marijuana] cannabis retailer and the
locations at which the deliveries of [ marijuana] cannabis items are made.
(b) May not:
(A) Leave a delivery vehicle that contains [ marijuana] cannabis items unattended unless the
delivery vehicle is locked and equipped with an active vehicle alarm system.
(B) Carry more than $10,000 worth of [ marijuana] cannabis items in a delivery vehicle at any
one time.
(C) Consume, or be under the influence of, [ marijuana] cannabis while making deliveries under
this section.
(4) A delivery vehicle must:
(a) While being used for making deliveries, be equipped with an active global positioning system
device that tracks the location of the delivery vehicle and enables the [ marijuana] cannabis retailer
for which the deliveries are being made to identify the location of the delivery vehicle.
(b) Be equipped with a lockable container in a secured cargo area of the delivery vehicle that
is of a size appropriate to contain the [ marijuana] cannabis items being delivered.
(c) Be free of any markings that may indicate that the delivery vehicle is used for the purpose
of delivering [ marijuana] cannabis items.
(5) A delivery of [ marijuana] cannabis items may not be made to a consumer who is located on
land owned or leased by the federal government.
(6) The commission may adopt rules to carry out the purposes of this section.
SECTION 70.
ORS 475C.121 is amended to read:
475C.121. (1) The Oregon Liquor and Cannabis Commission shall designate any [ marijuana]
cannabis producer that holds a license issued under ORS 475C.065 and that is registered under ORS
475C.137 as an exclusively medical licensee if the [ marijuana] cannabis producer attests, in a form
and manner prescribed by the commission, to:
(a) Producing [ marijuana] cannabis only for medical purposes; and
(b) Transferring usable [marijuana] cannabis only to [ marijuana] cannabis processors registered
under ORS 475C.141, [ marijuana] cannabis wholesalers registered under ORS 475C.145, [ marijuana]
cannabis retailers registered under ORS 475C.149, registry identification cardholders and designated
primary caregivers.
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(2) If the commission makes a designation under this section, the commission shall keep a record
of the designation.
SECTION 71.
ORS 475C.125 is amended to read:
475C.125. (1) The Oregon Liquor and Cannabis Commission shall designate any [ marijuana]
cannabis processor that holds a license issued under ORS 475C.085 and that is registered under
ORS 475C.141 as an exclusively medical licensee if the [ marijuana] cannabis processor attests, in
a form and manner prescribed by the commission, to:
(a) Processing [ marijuana] cannabis only for medical purposes;
(b) Receiving usable [marijuana] cannabis only from a [ marijuana] cannabis producer registered
under ORS 475C.137; and
(c) Transferring cannabinoid products, cannabinoid concentrates and cannabinoid extracts only
to [ marijuana] cannabis wholesalers registered under ORS 475C.145, [ marijuana] cannabis retailers
registered under ORS 475C.149, registry identification cardholders and designated primary
caregivers.
(2) If the commission makes a designation under this section, the commission shall keep a record
of the designation.
SECTION 72. ORS 475C.129 is amended to read:
475C.129. (1) The Oregon Liquor and Cannabis Commission shall designate any [ marijuana]
cannabis wholesaler that holds a license issued under ORS 475C.093 and that is registered under
ORS 475C.145 as an exclusively medical licensee if the [ marijuana] cannabis wholesaler attests, in
a form and manner prescribed by the commission, to:
(a) Selling [ marijuana] cannabis items only for medical purposes;
(b) Receiving usable [ marijuana] cannabis only from [marijuana] cannabis producers registered
under ORS 475C.137 and [ marijuana] cannabis processors registered under ORS 475C.141;
(c) Receiving cannabinoid products, cannabinoid concentrates and cannabinoid extracts only
from a [ marijuana] cannabis processor registered under ORS 475C.141; and
(d) Transferring usable [ marijuana] cannabis, cannabinoid products, cannabinoid concentrates
and cannabinoid extracts only to [ marijuana] cannabis retailers registered under ORS 475C.149.
(2) If the commission makes a designation under this section, the commission shall keep a record
of the designation.
SECTION 73. ORS 475C.133 is amended to read:
475C.133. (1) The Oregon Liquor and Cannabis Commission shall designate any [ marijuana]
cannabis retailer that holds a license issued under ORS 475C.097 and that is registered under ORS
475C.149 as an exclusively medical licensee if the [ marijuana] cannabis retailer attests, in a form
and manner prescribed by the commission, to:
(a) Selling [ marijuana] cannabis items only for medical purposes;
(b) Receiving usable [ marijuana] cannabis only from [marijuana] cannabis producers registered
under ORS 475C.137, [ marijuana] cannabis processors registered under ORS 475C.141 and
[marijuana] cannabis wholesalers registered under ORS 475C.145;
(c) Receiving cannabinoid products, cannabinoid concentrates and cannabinoid extracts only
from a [ marijuana] cannabis processor registered under ORS 475C.141 and [ marijuana] cannabis
wholesalers registered under ORS 475C.145; and
(d) Transferring usable [ marijuana] cannabis, cannabinoid products, cannabinoid concentrates
and cannabinoid extracts only to registry identification cardholders and designated primary
caregivers.
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(2) If the commission makes a designation under this section, the commission shall keep a record
of the designation.
SECTION 74.
ORS 475C.137 is amended to read:
475C.137. (1) To produce [ marijuana] cannabis for medical purposes, a [ marijuana] cannabis
producer that holds a license issued under ORS 475C.065 must register with the Oregon Liquor and
Cannabis Commission under this section.
(2) The commission shall register a [marijuana] cannabis producer for the purpose of producing
[marijuana] cannabis for medical purposes if the [ marijuana] cannabis producer:
(a) Holds a license issued under ORS 475C.065;
(b) Meets any qualifications adopted by the commission by rule;
(c) Applies to the commission in a form and manner prescribed by the commission; and
(d) Pays any fee adopted by the commission by rule.
(3) Subject to subsection (4) of this section, a [ marijuana] cannabis producer registered under
this section may produce [ marijuana] cannabis plants on a medically designated grow canopy in
addition to producing [ marijuana] cannabis plants on the grow canopy allowed under rules adopted
under ORS 475C.077. The commission shall specify the size of medically designated grow canopies
by rule, provided that the size of any medically designated grow canopy does not exceed 10 percent
of the total size of both the medically designated grow canopy and the grow canopy allowed under
rules adopted under ORS 475C.077 at the time that the [ marijuana] cannabis producer applies for
registration under this section.
(4) A [ marijuana] cannabis producer registered under this section must provide, for no consid-
eration, at least 75 percent of the annual yield of usable [ marijuana] cannabis harvested from the
[marijuana] cannabis producer’s medically designated grow canopy to registry identification
cardholders and designated primary caregivers.
(5) A [ marijuana] cannabis producer registered under this section may not, during a single
transaction, provide a registry identification cardholder or the designated primary caregiver of a
registry identification cardholder an amount of usable [ marijuana] cannabis that exceeds the
amount of usable [ marijuana] cannabis that a registry identification cardholder and a designated
primary caregiver may jointly possess under ORS 475C.809.
(6) A [ marijuana] cannabis producer registered under this section may provide immature
[marijuana] cannabis plants to a person responsible for a [ marijuana] cannabis grow site registered
under ORS 475C.792, a registry identification cardholder or a designated primary caregiver of a
registry identification cardholder.
(7)(a) The commission shall adopt rules necessary to administer this section.
(b) The rules must establish sanctions for failure to meet the requirements of this section or a
rule adopted under this section, including revocation of permission for the [ marijuana] cannabis
producer’s medically designated grow canopy.
(c) The rules must provide that any fee adopted by the commission under subsection (2)(d) of this
section be in an amount reasonably calculated to not exceed, together with other fees collected
under ORS 475C.005 to 475C.525, the cost of administering ORS 475C.005 to 475C.525.
SECTION 75.
ORS 475C.141 is amended to read:
475C.141. (1) To process [ marijuana] cannabis for medical purposes, a [ marijuana] cannabis
processor that holds a license issued under ORS 475C.085 must register with the Oregon Liquor and
Cannabis Commission under this section.
(2) The commission shall register a [ marijuana] cannabis processor for the purpose of process-
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ing [ marijuana] cannabis for medical purposes if the [ marijuana] cannabis processor:
(a) Holds a license issued under ORS 475C.085;
(b) Meets any qualifications adopted by the commission by rule;
(c) Applies to the commission in a form and manner prescribed by the commission; and
(d) Pays any fee adopted by the commission by rule.
(3) A [marijuana] cannabis processor registered under this section may:
(a) Process [ marijuana] cannabis and usable [ marijuana] cannabis into medical grade
cannabinoid products, cannabinoid concentrates and cannabinoid extracts; and
(b) Notwithstanding ORS 475C.205, receive [ marijuana] cannabis and usable [ marijuana]
cannabis from, and for a fee process that [ marijuana] cannabis and usable [ marijuana] cannabis
into cannabinoid products, cannabinoid concentrates and cannabinoid extracts for, a registry iden-
tification cardholder or the designated primary caregiver of a registry identification cardholder,
provided that the cannabinoid products, cannabinoid concentrates and cannabinoid extracts meet the
requirements of ORS 475C.540 to 475C.586 and the concentration standards adopted under ORS
475C.620.
(4)(a) The commission shall adopt rules necessary to administer this section.
(b) The rules must provide that any fee adopted by the commission under subsection (2)(d) of this
section be in an amount reasonably calculated to not exceed, together with other fees collected
under ORS 475C.005 to 475C.525, the cost of administering ORS 475C.005 to 475C.525.
SECTION 76.
ORS 475C.145 is amended to read:
475C.145. (1) To sell [ marijuana] cannabis items at wholesale for medical purposes, a
[marijuana] cannabis wholesaler that holds a license issued under ORS 475C.093 must register with
the Oregon Liquor and Cannabis Commission under this section.
(2) The commission shall register a [ marijuana] cannabis wholesaler for the purpose of selling
[marijuana] cannabis items at wholesale for medical purposes if the [ marijuana] cannabis whole-
saler:
(a) Holds a license under ORS 475C.093;
(b) Meets any qualifications adopted by the commission by rule;
(c) Applies to the commission in a form and manner prescribed by the commission; and
(d) Pays any fee adopted by the commission by rule.
(3) A [marijuana] cannabis wholesaler registered under this section may sell medical grade
cannabinoid products, cannabinoid concentrates and cannabinoid extracts at wholesale.
(4) The commission shall adopt rules necessary to administer this section. The rules must pro-
vide that any fee adopted by the commission under subsection (2)(d) of this section be in an amount
reasonably calculated to not exceed, together with other fees collected under ORS 475C.005 to
475C.525, the cost of administering ORS 475C.005 to 475C.525.
SECTION 77.
ORS 475C.149 is amended to read:
475C.149. (1) To sell [ marijuana] cannabis items at retail for medical purposes, a [ marijuana]
cannabis retailer that holds a license issued under ORS 475C.097 must register with the Oregon
Liquor and Cannabis Commission under this section.
(2) The commission shall register a [ marijuana] cannabis retailer for the purpose of selling
[marijuana] cannabis items at retail for medical purposes if the [ marijuana] cannabis retailer:
(a) Holds a license issued under ORS 475C.097;
(b) Meets any qualifications adopted by the commission by rule;
(c) Applies to the commission in a form and manner prescribed by the commission; and
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(d) Pays any fee adopted by the commission by rule.
(3) A [marijuana] cannabis retailer registered under this section:
(a) May sell medical grade cannabinoid products, cannabinoid concentrates and cannabinoid
extracts to registry identification cardholders and designated primary caregivers;
(b) May not sell medical grade cannabinoid products, cannabinoid concentrates and cannabinoid
extracts to individuals other than registry identification cardholders and designated primary
caregivers;
(c) May sell usable [ marijuana] cannabis and medical grade cannabinoid products, cannabinoid
concentrates and cannabinoid extracts to registry identification cardholders and designated primary
caregivers at a discounted price; and
(d) May provide, for no consideration, usable [ marijuana] cannabis and medical grade
cannabinoid products, cannabinoid concentrates and cannabinoid extracts to a registry identification
cardholder and the designated primary caregiver of the registry identification cardholder.
(4)(a) The commission shall adopt rules necessary to administer this section.
(b) The rules must provide that any fee adopted by the commission under subsection (2)(d) of this
section be in an amount reasonably calculated to not exceed, together with other fees collected
under ORS 475C.005 to 475C.525, the cost of administering ORS 475C.005 to 475C.525.
SECTION 78.
ORS 475C.153 is amended to read:
475C.153. Notwithstanding the provisions of ORS 475C.770 to 475C.919, rules adopted by the
Oregon Health Authority under ORS 475C.770 to 475C.919 must allow for the provision, transfer and
sale of usable [ marijuana] cannabis as described in ORS 475C.137.
SECTION 79. ORS 475C.161 is amended to read:
475C.161. As is necessary to protect the public health and safety, the Oregon Liquor and
Cannabis Commission may require a premises licensed under ORS 475C.005 to 475C.525 to be seg-
regated into separate areas:
(1) For conducting the activities permitted under each license, if the licensee holds more than
one license issued under ORS 475C.005 to 475C.525 for the same premises;
(2) For conducting activities related to processing [ marijuana] cannabis into different types of
cannabinoid products, cannabinoid concentrates or cannabinoid extracts, if the licensee is a
[marijuana] cannabis processor that holds a license issued under ORS 475C.085 and that processes
[marijuana] cannabis into any combination of different types of products, concentrates and extracts;
or
(3) For producing [ marijuana] cannabis and processing [ marijuana] cannabis as described in
ORS 475C.089 if the licensee is a [ marijuana] cannabis producer that holds a license issued under
ORS 475C.065 and that processes [ marijuana] cannabis as described in ORS 475C.089.
SECTION 80. ORS 475C.169 is amended to read:
475C.169. (1) The Oregon Liquor and Cannabis Commission shall adopt by rule procedures by
which:
(a) A person responsible for a [ marijuana] cannabis grow site registered under ORS 475C.792,
or, if multiple persons responsible for a [ marijuana] cannabis grow site registered under ORS
475C.792 are located at the same address, each person responsible for a [marijuana] cannabis grow
site located at the address, may apply for a license under ORS 475C.065 to transition from being
registered by the Oregon Health Authority to being licensed by the commission;
(b) A [ marijuana] cannabis processing site registered under ORS 475C.815 may apply for a li-
cense under ORS 475C.085 to transition from being registered by the authority to being licensed by
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the commission; and
(c) A medical [ marijuana] cannabis dispensary registered under ORS 475C.833 may apply for a
license under ORS 475C.097 to transition from being registered by the authority to being licensed
by the commission.
(2)(a) In adopting rules under this section, the commission shall adopt, at a minimum, procedures
by which the inventory possessed by a person responsible for a [ marijuana] cannabis grow site, a
[marijuana] cannabis processing site or a medical [ marijuana] cannabis dispensary on the date on
which the person responsible for a [ marijuana] cannabis grow site, the [ marijuana] cannabis pro-
cessing site or the medical [ marijuana] cannabis dispensary is first subject to tracking by the
commission under ORS 475C.177:
(A) May be delivered to a premises for which a license has been issued under ORS 475C.085,
475C.093 or 475C.097; or
(B) May be sold to consumers by [ marijuana] cannabis retailers that hold a license under ORS
475C.097.
(b) Procedures adopted under this subsection must require a person responsible for a
[marijuana] cannabis grow site registered under ORS 475C.792, or, if multiple persons responsible
for a [ marijuana] cannabis grow site registered under ORS 475C.792 are located at the same ad-
dress, each person responsible for a [ marijuana] cannabis grow site located at the address, to return
to an individual to whom a registry identification card has been issued under ORS 475C.783, and for
whom the person or persons are producing [marijuana] cannabis, all the [ marijuana] cannabis and
usable [ marijuana] cannabis owned by the individual, except as otherwise allowed under a personal
agreement entered into under ORS 475C.798, at the time that the person or the persons receive a
license under ORS 475C.065.
SECTION 81.
ORS 475C.177 is amended to read:
475C.177. (1) The Oregon Liquor and Cannabis Commission shall develop and maintain a system
for tracking the transfer of [ marijuana] cannabis items between premises for which licenses have
been issued under ORS 475C.005 to 475C.525 or 475C.548.
(2) The purposes of the system developed and maintained under this section include, but are not
limited to:
(a) Preventing the diversion of [ marijuana] cannabis items to criminal enterprises, gangs,
cartels and other states;
(b) Preventing persons from substituting or tampering with [ marijuana] cannabis items;
(c) Ensuring an accurate accounting of the production, processing and sale of [ marijuana]
cannabis items;
(d) Ensuring that laboratory testing results are accurately reported; and
(e) Ensuring compliance with ORS 475C.005 to 475C.525 and 475C.540 to 475C.586, rules adopted
under ORS 475C.005 to 475C.525 and 475C.540 to 475C.586 and any other law of this state that
charges the commission with a duty, function or power related to [ marijuana] cannabis.
(3) The system developed and maintained under this section must be capable of tracking, at a
minimum:
(a) The propagation of immature [ marijuana] cannabis plants and the production of
[marijuana] cannabis by a [ marijuana] cannabis producer;
(b) The processing of [ marijuana] cannabis by a [ marijuana] cannabis processor;
(c) The receiving, storing and delivering of [ marijuana] cannabis items by a [ marijuana]
cannabis wholesaler;
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(d) The sale of [ marijuana] cannabis items by a [ marijuana] cannabis retailer to a consumer;
(e) The sale and purchase of [ marijuana] cannabis items between licensees, as permitted by ORS
475C.005 to 475C.525;
(f) The transfer of [ marijuana] cannabis items between premises for which licenses have been
issued under ORS 475C.005 to 475C.525 or 475C.548; and
(g) Any other information that the commission determines is reasonably necessary to accomplish
the duties, functions and powers of the commission under ORS 475C.005 to 475C.525 and 475C.540
to 475C.586.
SECTION 82.
ORS 475C.181 is amended to read:
475C.181. Except as otherwise provided by law, the Oregon Liquor and Cannabis Commission
has any power, and may perform any function, necessary for the commission to prevent the diversion
of [ marijuana] cannabis from licensees to a source that is not operating legally under the laws of
this state.
SECTION 83. ORS 475C.185 is amended to read:
475C.185. (1) The Legislative Assembly finds and declares that the unregulated commerce of
[marijuana] cannabis items constitutes a serious danger to public health and safety.
(2)(a) A person may not produce, process, transport, deliver or sell a [ marijuana] cannabis item
unless the person holds a valid license issued under ORS 475C.005 to 475C.525 or a registration is-
sued under ORS 475C.770 to 475C.919 or is exempted under ORS 475C.305.
(b) A licensee is engaged in the unregulated commerce of [ marijuana] cannabis items if the
licensee allows a person who does not hold a license issued under ORS 475C.005 to 475C.525 or
475C.548 to engage in an activity that requires a license issued under ORS 475C.005 to 475C.525 or
475C.548.
(3) In addition to any other disciplinary action available to the Oregon Liquor and Cannabis
Commission under ORS 475C.005 to 475C.525 or 475C.540 to 475C.586, the commission may imme-
diately:
(a) Restrict, suspend or refuse to renew a license issued under ORS 475C.005 to 475C.525 or
475C.548 if circumstances create probable cause for the commission to conclude that a licensee has:
(A) Purchased or received a [ marijuana] cannabis item from an unlicensed source; or
(B) Sold, stored or transferred a [ marijuana] cannabis item in a manner that is not permitted
by the licensee’s license;
(b) Restrict, suspend or refuse to renew a license issued under ORS 475C.005 to 475C.525 or
475C.548 if circumstances create probable cause for the commission to believe that a person who
does not hold a license issued under ORS 475C.005 to 475C.525 or 475C.548 for the licensed premises
engaged, or is engaging, in an activity that requires a license under ORS 475C.005 to 475C.525 or
475C.548; or
(c) Seize [ marijuana] cannabis items from a licensee if circumstances create probable cause for
the commission to conclude that the licensee has:
(A) Engaged, or is engaging, in the unlawful diversion of [ marijuana] cannabis items; or
(B) Allowed, or is allowing, a person who does not hold a license issued under ORS 475C.005 to
475C.525 or 475C.548 to engage in an activity that requires a license issued under ORS 475C.005 to
475C.525 or 475C.548 at the premises for which a license is issued.
SECTION 84. ORS 475C.201 is amended to read:
475C.201. Except for the power to adopt rules, the Oregon Liquor and Cannabis Commission may
delegate to the administrator appointed under ORS 471.720 any of the commission’s functions, duties
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and powers as prescribed by ORS 475C.005 to 475C.525, 475C.540 to 475C.586, 475C.600 to 475C.648,
475C.770 to 475C.919 and 475C.950 or any other law of the state related to the regulation of
[marijuana] cannabis items.
SECTION 85.
ORS 475C.205 is amended to read:
475C.205. (1) Except as provided in ORS 475C.137 and 475C.850 and rules adopted pursuant to
ORS 475C.065, a [ marijuana] cannabis producer that holds a license issued under ORS 475C.065,
[marijuana] cannabis processor that holds a license issued under ORS 475C.085 or [ marijuana]
cannabis wholesaler that holds a license issued under ORS 475C.093 may deliver [ marijuana]
cannabis items only to or on a premises for which a license has been issued under ORS 475C.065,
475C.085, 475C.093 or 475C.097, or to a registry identification cardholder or designated primary
caregiver as allowed under ORS 475C.005 to 475C.525.
(2) A licensee to which [ marijuana] cannabis items may be delivered under subsection (1) of this
section may receive [ marijuana] cannabis items only from:
(a) A [ marijuana] cannabis producer that holds a license issued under ORS 475C.065,
[marijuana] cannabis processor that holds a license issued under ORS 475C.085, [ marijuana]
cannabis wholesaler that holds a license issued under ORS 475C.093, [marijuana] cannabis retailer
that holds a license issued under ORS 475C.097 or a laboratory licensed under ORS 475C.548;
(b) A researcher of cannabis that holds a certificate issued under ORS 475C.289 and that
transfers limited amounts of [ marijuana] cannabis, usable [ marijuana] cannabis, cannabinoid pro-
ducts, cannabinoid concentrates and cannabinoid extracts in accordance with procedures adopted
under ORS 475C.289 (3)(d) and (e);
(c) A [ marijuana] cannabis grow site registered under ORS 475C.792, [ marijuana] cannabis
processing site registered under ORS 475C.815, or a medical [ marijuana] cannabis dispensary reg-
istered under ORS 475C.833, acting in accordance with procedures adopted by the Oregon Liquor
and Cannabis Commission under ORS 475C.169; or
(d) A [ marijuana] cannabis grow site registered under ORS 475C.792, acting in accordance with
ORS 475C.800 and any procedures adopted by rule by the commission.
(3) Except as provided in ORS 475C.117, the sale of [marijuana] cannabis items by a
[marijuana] cannabis retailer that holds a license issued under ORS 475C.097 must be restricted to
the premises for which the license has been issued.
(4) The commission may by order waive the requirements of subsections (1) and (2) of this sec-
tion to ensure compliance with ORS 475C.005 to 475C.525 or a rule adopted under ORS 475C.005 to
475C.525. An order issued under this subsection does not constitute a waiver of any other require-
ment of ORS 475C.005 to 475C.525 or any other rule adopted under ORS 475C.005 to 475C.525.
SECTION 86.
ORS 475C.209, as amended by section 31, chapter 16, Oregon Laws 2024, is
amended to read:
475C.209. (1) In order to transport [ marijuana] cannabis items, a licensee must create a manifest
that contains the following information:
(a) The name of the driver of the transport vehicle;
(b) Identifying information for the driver’s permit or temporary permit issued under ORS
475C.273;
(c) The license plate number, make and model of the transport vehicle;
(d) The name of the licensee from which the [ marijuana] cannabis or [ marijuana] cannabis
items are being transported;
(e) A detailed inventory of the [ marijuana] cannabis and [ marijuana] cannabis items being
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transported;
(f) The location of any overnight stop during transportation, and the estimated time of the
overnight stop; and
(g) The destination of the [ marijuana] cannabis and [ marijuana] cannabis items being trans-
ported.
(2) Except as provided in subsection (1)(f) of this section, a manifest created under this section
is not required to include transport route information.
(3) The transport driver shall carry in the transport vehicle a copy of the manifest.
SECTION 87.
ORS 475C.213 is amended to read:
475C.213. Except for a [ marijuana] cannabis retailer registered under ORS 475C.149 to sell or
deliver [ marijuana] cannabis items to a registry identification cardholder who is 18 years of age or
older or as allowed pursuant to ORS 475C.770 to 475C.919, a person may not sell or deliver an adult
use cannabis item to a person under 21 years of age.
SECTION 88. ORS 475C.217 is amended to read:
475C.217. (1) Subject to subsection (2) of this section, a licensee or licensee representative, be-
fore selling or providing a [ marijuana] cannabis item to another person, must require the person to
produce one of the following pieces of identification:
(a) The person’s passport, issued by the United States or a foreign government.
(b) The person’s driver license, issued by the State of Oregon or another state of the United
States.
(c) An identification card issued under ORS 807.400.
(d) A United States military identification card.
(e) An identification card issued by a federally recognized Indian tribe.
(f) Any other identification card issued by a state or territory of the United States that bears
a picture of the person, the name of the person, the person’s date of birth and a physical description
of the person.
(g) The person’s proof of participation in the United States Customs and Border Protection Se-
cure Electronic Network for Travelers Rapid Inspection program or NEXUS program, or successor
programs.
(2) The Oregon Liquor and Cannabis Commission may adopt rules exempting a licensee or
licensee representative from this section.
SECTION 89.
ORS 475C.221 is amended to read:
475C.221. (1) As used in this section, “information that may be used to identify a consumer”
means information that may be acquired through the production of a piece of identification as de-
scribed in ORS 475C.217, whether the information is contained in a piece of identification described
in ORS 475C.217 or in a different document or record.
(2) A consumer may not be required to procure for the purpose of acquiring or purchasing a
[marijuana] cannabis item a piece of identification other than:
(a) A piece of identification described in ORS 475C.217; and
(b) If the consumer is a registry identification cardholder, as defined in ORS 475C.777, a registry
identification card, as defined in ORS 475C.777.
(3) A [ marijuana] cannabis retailer may not record and retain any information that may be used
to identify a consumer, except as necessary to make deliveries to consumers pursuant to ORS
475C.117, as required by any rules adopted under ORS 475C.117.
(4) A [ marijuana] cannabis retailer may not transfer any information that may be used to
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identify a consumer to any other person.
(5)(a) Notwithstanding subsection (3) of this section, a [ marijuana] cannabis retailer may record
and retain the name and contact information of a consumer for the purpose of notifying the con-
sumer of services that the [ marijuana] cannabis retailer provides or of discounts, coupons and other
marketing information if:
(A) The [ marijuana] cannabis retailer asks the consumer whether the [ marijuana] cannabis
retailer may record and retain the information; and
(B) The consumer consents to the recording and retention of the information.
(b) This subsection does not authorize a [marijuana] cannabis retailer to transfer information
that may be used to identify a consumer.
(6) This section does not apply to deidentified information the documentation and transfer of
which is required by the Department of Revenue for purposes of ORS 475C.678.
SECTION 90.
ORS 475C.229 is amended to read:
475C.229. (1) For purposes of this section:
(a) “Cannabis item” includes an industrial hemp commodity or product that exceeds the
greater of:
(A) A concentration of 0.3 percent total delta-9-tetrahydrocannabinol; or
(B) The concentration of total delta-9-tetrahydrocannabinol allowed under federal law.
[(a)] (b) “Export” includes placing a [ marijuana] cannabis item in any mode of transportation
for hire, such as luggage, mail or parcel delivery, even if the transportation of the [ marijuana]
cannabis item is intercepted prior to the [ marijuana] cannabis item leaving this state.
[(b) “Marijuana item” includes an industrial hemp commodity or product that exceeds the greater
of:]
[(A) A concentration of 0.3 percent total delta-9-tetrahydrocannabinol; or ]
[(B) The concentration of total delta-9-tetrahydrocannabinol allowed under federal law. ]
(2) A person may not import [ marijuana] cannabis items into this state or export [ marijuana]
cannabis items from this state.
(3) A violation of this section is a Class B violation, except:
(a) As provided in subsection (4) of this section; or
(b) If the item is industrial hemp and does not exceed a total delta-9-tetrahydrocannabinol con-
centration of one percent.
(4) A violation of this section is a:
(a) Class A misdemeanor, if the importation or exportation:
(A) Is not for consideration and the person holds a license issued under ORS 475C.065, 475C.085,
475C.093 or 475C.097; or
(B) Concerns an amount of [ marijuana] cannabis items that exceeds the applicable maximum
amount specified in ORS 475C.337 (1)(a) to (f).
(b) Class C felony, if the importation or exportation:
(A) Is for consideration and the person holds a license issued under ORS 475C.065, 475C.085,
475C.093 or 475C.097;
(B) Concerns an amount of [ marijuana] cannabis items that exceeds 16 times the applicable
maximum amount specified in ORS 475C.337 (1)(a) to (f); or
(C) Concerns a cannabinoid extract that was not purchased from a [ marijuana] cannabis retailer
that holds a license issued under ORS 475C.097.
SECTION 91.
ORS 475C.233 is amended to read:
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475C.233. (1) A licensee may not use or allow the use of a mark or label on the container of a
[marijuana] cannabis item that is kept for sale if the mark or label does not precisely and clearly
indicate the nature of the container’s contents or if the mark or label in any way might deceive a
customer about the nature, composition, quantity, age or quality of the container’s contents.
(2) The Oregon Liquor and Cannabis Commission may prohibit a licensee from selling any brand
of [ marijuana] cannabis item that in the commission’s judgment is deceptively branded or labeled
or contains injurious or adulterated ingredients.
SECTION 92.
ORS 475C.237 is amended to read:
475C.237. (1) A [ marijuana] cannabis item may not be sold or offered for sale within this state
unless the [ marijuana] cannabis item complies with the minimum standards prescribed by the stat-
utory laws of this state.
(2) The Oregon Liquor and Cannabis Commission may prohibit the sale of a [ marijuana]
cannabis item by a [ marijuana] cannabis retailer for a reasonable period of time for the purpose
of determining whether the [ marijuana] cannabis item complies with the minimum standards pre-
scribed by the statutory laws of this state.
SECTION 93. ORS 475C.241 is amended to read:
475C.241. (1) Except for a [marijuana] cannabis producer that holds a license issued under ORS
475C.065 or licensee representative of a [ marijuana] cannabis producer that holds a license issued
under ORS 475C.065, a licensee or licensee representative may not possess a mature [ marijuana]
cannabis plant.
(2) A licensee or licensee representative may not sell a mature [ marijuana] cannabis plant.
SECTION 94. ORS 475C.245 is amended to read:
475C.245. (1) A person may not make false representations or statements to the Oregon Liquor
and Cannabis Commission in order to induce or prevent action by the commission.
(2) A licensee may not maintain a noisy, lewd, disorderly or insanitary establishment or supply
impure or otherwise deleterious [ marijuana] cannabis items.
(3) A licensee may not misrepresent to a customer or to the public any [ marijuana] cannabis
items.
SECTION 95. ORS 475C.249 is amended to read:
475C.249. A license issued under ORS 475C.005 to 475C.525 or 475C.548:
(1) Is issued for both adult use purposes and medical use purposes; and
(2) Serves the purpose of exempting the person that holds the license from the criminal laws of
this state for possession, delivery or manufacture of [ marijuana] cannabis items, provided that the
person complies with all state laws and rules applicable to licensees.
SECTION 96.
ORS 475C.253 is amended to read:
475C.253. (1) An industrial hemp product or commodity offered for sale by a [ marijuana]
cannabis retailer that holds a license issued under ORS 475C.097 must carry a label that clearly
identifies whether the product or commodity is derived from hemp or [ marijuana] cannabis.
(2) The Oregon Liquor and Cannabis Commission may inspect the premises of a [ marijuana]
cannabis retailer that holds a license issued under ORS 475C.097 to ensure compliance with this
section.
SECTION 97. ORS 475C.257 is amended to read:
475C.257. (1) As used in this section:
(a) “Cannabis item” includes an industrial hemp commodity or product that exceeds:
(A) The concentration of adult use cannabinoids established by the Oregon Liquor and
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Cannabis Commission, in consultation with the Oregon Health Authority and the State De-
partment of Agriculture, by rule; or
(B) The greater of:
(i) A concentration of 0.3 percent total delta-9-tetrahydrocannabinol; or
(ii) The concentration of total delta-9-tetrahydrocannabinol allowed under federal law.
[(a)] (b) “Consumer” means a person who purchases, acquires, owns, holds or uses [ marijuana]
cannabis items other than for the purpose of resale.
[(b) “Marijuana item” includes an industrial hemp commodity or product that exceeds: ]
[(A) The concentration of adult use cannabinoids established by the Oregon Liquor and Cannabis
Commission, in consultation with the Oregon Health Authority and the State Department of Agricul-
ture, by rule; or ]
[(B) The greater of: ]
[(i) A concentration of 0.3 percent total delta-9-tetrahydrocannabinol; or ]
[(ii) The concentration of total delta-9-tetrahydrocannabinol allowed under federal law. ]
(2) A person other than a [ marijuana] cannabis retailer that holds a license issued under ORS
475C.097 may not sell [ marijuana] cannabis items to a consumer.
SECTION 98.
ORS 475C.265, as amended by section 32, chapter 16, Oregon Laws 2024, is
amended to read:
475C.265. (1) Subject to subsection (3) of this section, the Oregon Liquor and Cannabis Com-
mission may revoke, suspend or restrict a license issued under ORS 475C.005 to 475C.525 or
475C.548 or require a licensee or licensee representative to undergo training if the commission finds
or has reasonable ground to believe that the licensee or licensee representative:
(a) Has violated a provision of ORS 475C.005 to 475C.525 or 475C.540 to 475C.586 or a rule
adopted under ORS 475C.005 to 475C.525 or 475C.540 to 475C.586.
(b) Has diverted [ marijuana] cannabis to the interstate market or an illicit market or has di-
verted resources to a criminal enterprise.
(c) Has introduced into the [ marijuana] cannabis industry regulated under ORS 475C.005 to
475C.525 cannabinoids or [ marijuana] cannabis not produced or processed by a licensee and not
tracked in the system developed and maintained under ORS 475C.177.
(d) Has made any false representation or statement to the commission regarding compliance
with a provision of ORS 475C.005 to 475C.525 or 475C.540 to 475C.586 or a rule adopted under ORS
475C.005 to 475C.525 or 475C.540 to 475C.586 in order to induce or prevent action by the commis-
sion.
(e) Is in the habit of using alcoholic liquor, habit-forming drugs, [ marijuana] cannabis or con-
trolled substances to excess.
(f) Has misrepresented to a customer or the public any [ marijuana] cannabis items sold by the
licensee or licensee representative.
(g) Since the issuance of the license, has been convicted of a felony, of violating any of the
[marijuana] cannabis laws of this state, general or local, or of any misdemeanor or violation of any
municipal ordinance committed on the premises for which the license has been issued.
(h) Has sold a [ marijuana] cannabis item to a person under 21 years of age.
(2) In addition to the grounds listed in subsection (1) of this section, the commission may take
an action described in subsection (1) of this section if there is a history of a lack of institutional
control involving the premises for which a license has been issued under ORS 475C.005 to 475C.525
or 475C.548.
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(3)(a) The commission may revoke a license under subsection (1)(a) of this section only when the
conduct poses a significant risk to public health or safety.
(b) The commission shall consider as mitigating factors to the conduct described in subsection
(1) of this section the following:
(A) Self-reporting by a licensee or applicant;
(B) A demonstration that, to the satisfaction of the commission, the conduct of the licensee or
applicant is not persistent or serious; and
(C) A demonstration that, to the satisfaction of the commission, the licensee’s willingness and
ability to adequately control the premises for which a license has been issued under ORS 475C.005
to 475C.525 or 475C.548 and any inventory stored at the premises.
(4) The commission may suspend or restrict a license issued under ORS 475C.005 to 475C.525
or 475C.548 or require a licensee or licensee representative to undergo training if the commission
finds or has reasonable grounds to believe that the licensee or licensee representative has violated
a provision of ORS 475C.005 to 475C.525 or 475C.540 to 475C.586 or a rule adopted under ORS
475C.005 to 475C.525 or 475C.540 to 475C.586.
(5) The commission may suspend or revoke a permit or temporary permit issued under ORS
475C.273 to an individual rather than suspend or revoke a license issued under ORS 475C.005 to
475C.525 or 475C.548 if the commission determines that permit suspension or revocation is more
appropriate.
(6)(a) The commission may revoke a [ marijuana] cannabis retailer license issued under ORS
475C.097 if the licensee fails to:
(A) Pay the tax as required under ORS 475C.682 twice in any four consecutive quarters and the
Department of Revenue has issued to the licensee a distraint warrant under ORS 475C.688 for the
nonpayment of tax; or
(B) File a return as required under ORS 475C.682 twice in any four consecutive quarters and
the department has issued to the licensee a notice of determination and assessment under ORS
475C.688 for failure to file a return.
(b) The department’s written notice to the commission that a licensee described under this sub-
section has failed to pay a tax or file a return twice in any four consecutive quarters, and that the
department has issued a distraint warrant or notice of determination and assessment, shall consti-
tute prima facie evidence of the licensee’s failure to pay the tax or file a return.
SECTION 99.
ORS 475C.269, as amended by section 27, chapter 16, Oregon Laws 2024, is
amended to read:
475C.269. (1) An individual who performs work for or on behalf of a licensee or a laboratory li-
censed under ORS 475C.548 must have a valid permit or temporary permit issued by the Oregon
Liquor and Cannabis Commission under ORS 475C.273 if the individual participates in:
(a) The delivery, possession, production, propagation, processing, sampling, securing, selling or
testing of [ marijuana] cannabis items at the premises or laboratory for which the license has been
issued;
(b) The recording of the delivery, possession, production, propagation, processing, sampling, se-
curing, selling or testing of [ marijuana] cannabis items at the premises or laboratory for which the
license has been issued; or
(c) The verification of any document described in ORS 475C.217.
(2) A licensee or a laboratory licensed under ORS 475C.548 must verify that an individual has
a valid permit or temporary permit issued under ORS 475C.273 before allowing the individual to
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perform, or continue to perform, any work described in subsection (1) of this section at the premises
or laboratory for which the license has been issued.
SECTION 100.
ORS 475C.273, as amended by section 28, chapter 16, Oregon Laws 2024, is
amended to read:
475C.273. (1) The Oregon Liquor and Cannabis Commission shall issue permits to qualified ap-
plicants to perform work described in ORS 475C.269. The commission shall adopt rules establishing:
(a) The qualifications for performing work described in ORS 475C.269;
(b) The term of a permit issued under this section;
(c) Procedures for applying for and renewing a permit issued under this section; and
(d) Reasonable application, issuance and renewal fees for a permit issued under this section.
(2)(a) The commission may require an individual applying for a permit under this section to
successfully complete a course, made available by or through the commission, through which the
individual receives training on:
(A) Checking identification;
(B) Detecting intoxication;
(C) Handling [marijuana] cannabis items;
(D) If applicable, producing and propagating [ marijuana] cannabis;
(E) If applicable, processing [ marijuana] cannabis;
(F) The content of ORS 475C.005 to 475C.525 and rules adopted under ORS 475C.005 to 475C.525;
(G) If applicable, the content of ORS 475C.540 to 475C.586 and rules adopted under ORS
475C.540 to 475C.586; or
(H) Any matter deemed necessary by the commission to protect the public health and safety.
(b) The commission or other provider of a course may charge a reasonable fee for the course.
(c) The commission may not require an individual to successfully complete a course more than
once, except that:
(A) As part of a final order suspending a permit issued under this section, the commission may
require a permit holder to successfully complete the course as a condition of lifting the suspension;
and
(B) As part of a final order revoking a permit issued under this section, the commission shall
require an individual to successfully complete the course prior to applying for a new permit.
(3) The commission shall conduct a criminal records check under ORS 181A.195 on an individual
applying for a permit under this section.
(4) Subject to the applicable provisions of ORS chapter 183, the commission may suspend, revoke
or refuse to issue or renew a permit or temporary permit if the individual who is applying for or
who holds the permit or temporary permit:
(a) Is convicted of a felony or is convicted of an offense under ORS 475C.005 to 475C.525, except
that the commission may not consider a conviction for an offense under ORS 475C.005 to 475C.525
if the date of the conviction is two or more years before the date of the application or renewal;
(b) Violates any provision of ORS 475C.005 to 475C.525 or 475C.540 to 475C.586 or any rule
adopted under ORS 475C.005 to 475C.525 or 475C.540 to 475C.586; or
(c) Makes a false statement to the commission.
(5) A permit issued under this section is a personal privilege and permits work described under
ORS 475C.269 only for the individual who holds the permit.
(6)(a) The commission shall establish by rule a process to issue to an individual, upon receipt
of the individual’s application for a permit described in subsection (1) of this section, a temporary
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permit to perform work described in ORS 475C.269 until the issuance or denial of a permit described
in subsection (1) of this section.
(b) A temporary permit expires on the date on which the individual is issued or denied a permit
described in subsection (1) of this section.
(c) The commission may adopt rules to establish conditions for the issuance of a temporary
permit under this subsection.
SECTION 101.
ORS 475C.289 is amended to read:
475C.289. (1) The Oregon Liquor and Cannabis Commission, in consultation with the Oregon
Health Authority and the State Department of Agriculture, shall establish a program for the purpose
of identifying and certifying private and public researchers of cannabis.
(2)(a) The authority shall assist the commission in identifying candidates for certification under
this section with respect to potential medical research.
(b) The department shall assist the commission in identifying candidates for certification under
this section with respect to potential agricultural research.
(3) Subject to subsection (4) of this section, the commission shall adopt by rule or order:
(a) Qualifications for certification under this section;
(b) The term of a certificate issued under this section;
(c) Processes for applying for, receiving and renewing a certificate under this section;
(d) Procedures for tracking [marijuana] cannabis, usable [ marijuana] cannabis, cannabinoid
products, cannabinoid concentrates and cannabinoid extracts received by and disposed or otherwise
made use of by a person that holds a certificate issued under this section; and
(e) Procedures for disposing or otherwise making use of [marijuana] cannabis, usable
[marijuana] cannabis, cannabinoid products, cannabinoid concentrates and cannabinoid extracts.
(4) In establishing qualifications under subsection (3) of this section, the commission shall con-
sider the following:
(a) A research applicant’s access to funding and the overall cost of the proposed research;
(b) The overall benefit of an applicant’s proposed research to this state’s cannabis industry or
to public health and safety; and
(c) Legal barriers to conducting the proposed research or legal risks associated with conducting
the proposed research.
(5) In adopting procedures under subsection (3)(d) and (e) of this section with respect to making
use of [ marijuana] cannabis, usable [ marijuana] cannabis, cannabinoid products, cannabinoid con-
centrates and cannabinoid extracts, the commission shall also adopt procedures by which a person
that holds a certificate issued under this section may transfer limited amounts of [ marijuana]
cannabis, usable [ marijuana] cannabis, cannabinoid products, cannabinoid concentrates and
cannabinoid extracts to another person that holds a certificate issued under this section or to a
premises for which a license has been issued under ORS 475C.065, 475C.085, 475C.093 or 475C.097.
(6) In adopting procedures under subsection (3)(d) and (e) of this section with respect to making
use of [ marijuana] cannabis, usable [ marijuana] cannabis, cannabinoid products, cannabinoid con-
centrates and cannabinoid extracts, the commission shall also adopt procedures by which a person
that holds a certificate issued under this section may give, devise or bequest usable [ marijuana]
cannabis, immature [ marijuana] cannabis plants, [marijuana] cannabis seeds, cannabinoid products,
cannabinoid concentrates and cannabinoid extracts to a medical [ marijuana] cannabis dispensary
registered with the authority under ORS 475C.833 and owned by a nonprofit corporation organized
under ORS chapter 65 for purposes described in ORS 475C.850.
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(7) A person that holds a certificate issued under this section:
(a) May receive [marijuana] cannabis, usable [ marijuana] cannabis , cannabinoid products,
cannabinoid concentrates and cannabinoid extracts from a licensee or a registrant under ORS
475C.770 to 475C.919; and
(b) May not sell or otherwise transfer [ marijuana] cannabis, usable [ marijuana] cannabis,
cannabinoid products, cannabinoid concentrates or cannabinoid extracts to any other person, except
as provided in this section and rules adopted by the commission under this section.
(8) Except as otherwise provided by the commission by rule, rules adopted under ORS 475C.005
to 475C.525 with respect to licensees and licensee representatives apply to persons that hold a cer-
tificate issued under this section and persons employed by or who otherwise perform work for per-
sons that hold a certificate issued under this section.
(9) A person that holds a certificate issued under this section, and an employee of or other
person who performs work for a person that holds a certificate issued under this section, is exempt
from the criminal laws of this state for possession, delivery or manufacture of [ marijuana]
cannabis, aiding and abetting another in the possession, delivery and manufacture of [ marijuana]
cannabis, or any other criminal offense in which possession, delivery or manufacture of
[marijuana] cannabis is an element, while performing activities related to conducting research as
described in this section.
SECTION 102.
Section 25, chapter 23, Oregon Laws 2016, is amended to read:
Sec. 25. The Oregon Health Authority shall solicit proposals through a competitive process for
the purpose of choosing one or more entities to conduct research for the purpose of developing
public health and safety standards for consumers of [ marijuana] cannabis and [ marijuana-derived]
cannabis-derived products.
SECTION 103.
ORS 475C.297, as amended by section 7, chapter 16, Oregon Laws 2024, is
amended to read:
475C.297. The [ Marijuana] Cannabis Control and Regulation Fund is established in the State
Treasury, separate and distinct from the General Fund. Interest earned by the [ Marijuana] Cannabis
Control and Regulation Fund shall be credited to the fund. Moneys in the fund are continuously
appropriated to the Oregon Liquor and Cannabis Commission to administer and enforce ORS
475C.005 to 475C.525, 475C.540 to 475C.586, 475C.600 to 475C.648, 475C.925 and 571.309 and sections
2 and 4, chapter 16, Oregon Laws 2024.
SECTION 104. ORS 475C.297, as amended by sections 7 and 15, chapter 16, Oregon Laws 2024,
is amended to read:
475C.297. The [ Marijuana] Cannabis Control and Regulation Fund is established in the State
Treasury, separate and distinct from the General Fund. Interest earned by the [ Marijuana] Cannabis
Control and Regulation Fund shall be credited to the fund. Moneys in the fund are continuously
appropriated to the Oregon Liquor and Cannabis Commission to administer and enforce ORS
475C.005 to 475C.525, 475C.540 to 475C.586, 475C.600 to 475C.648, 475C.925 and 571.309 and sections
2, 4 and 11 to 14, chapter 16, Oregon Laws 2024.
SECTION 105. ORS 475C.301 is amended to read:
475C.301. (1) In addition to the duties, functions and powers described in ORS 471.775, and sub-
ject to subsection (2) of this section, a regulatory specialist, as defined in ORS 471.001, has the au-
thority as provided in ORS 133.005 to 133.400, 133.450, 133.525 to 133.703, 133.721 to 133.739, 161.233,
161.245, 475C.005 to 475C.525, 475C.540 to 475C.586 and 475C.600 to 475C.648, and chapter 743,
Oregon Laws 1971, to conduct inspections and investigations, make seizures, aid in prosecutions of
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and issue citations to licensees and persons who hold a certificate or permit under ORS 475C.005
to 475C.525 for violations of and offenses related to, and otherwise enforce, ORS 475C.005 to
475C.525, 475C.540 to 475C.586 and 475C.600 to 475C.648, any rule adopted under ORS 475C.005 to
475C.525, 475C.540 to 475C.586 and 475C.600 to 475C.648 and any other law of this state that charges
the Oregon Liquor and Cannabis Commission with a duty, function or power related to a
[marijuana] cannabis item, including enforcing any law or rule related to individuals who use false
identification for purposes of purchasing or possessing a [ marijuana] cannabis item or who engage
in illegal activity on or near a premises.
(2) A regulatory specialist may not:
(a) Be sworn in as a federal law enforcement official and act in that capacity while performing
an activity authorized by this section.
(b) Carry a firearm.
(c) Conduct inspections and investigations of a primary residence.
(d) For purposes of ensuring compliance with ORS 475C.770 to 475C.919, conduct inspections and
investigations of registry identification cardholders or designated primary caregivers, the residences
of registry identification cardholders or designated primary caregivers, or the locations where reg-
istry identification cardholders or designated primary caregivers produce [ marijuana] cannabis.
SECTION 106.
ORS 475C.305 is amended to read:
475C.305. ORS 475C.017, 475C.021, 475C.025, 475C.029, 475C.033, 475C.037, 475C.041, 475C.045,
475C.049, 475C.053, 475C.057, 475C.061, 475C.065, 475C.077, 475C.085, 475C.093, 475C.097, 475C.105,
475C.109, 475C.113, 475C.117, 475C.137, 475C.141, 475C.145, 475C.149, 475C.157, 475C.161, 475C.165,
475C.173, 475C.177, 475C.205, 475C.213, 475C.217, 475C.225, 475C.233, 475C.237, 475C.241, 475C.245,
475C.265, 475C.269, 475C.273, 475C.281, 475C.285, 475C.289, 475C.297, 475C.433, 475C.437, 475C.445,
475C.449, 475C.453, 475C.461, 475C.465, 475C.473, 475C.477, 475C.481, 475C.485, 475C.489 and
475C.493 do not apply:
(1) To the production or storage of homegrown plants in the genus Cannabis within the plant
family Cannabaceae that are otherwise subject to ORS 475C.005 to 475C.525 at a household by one
or more persons 21 years of age and older, if the total amount of homegrown plants at the household
does not exceed four plants at any time.
(2) To the possession or storage of usable [ marijuana] cannabis items at a household by one or
more persons 21 years of age or older, if the total amount of usable [ marijuana] cannabis at the
household does not exceed eight ounces of usable [ marijuana] cannabis at any time.
(3) To the making, processing, possession or storage of cannabinoid products at a household by
one or more persons 21 years of age and older, if the total amount of cannabinoid products at the
household does not exceed 16 ounces in solid form at any time.
(4) To the making, processing, possession or storage of cannabinoid products at a household by
one or more persons 21 years of age and older, if the total amount of cannabinoid products at the
household does not exceed 72 ounces in liquid form at any time.
(5) To the making, processing, possession or storage of cannabinoid concentrates at a household
by one or more persons 21 years of age or older, if the total amount of cannabinoid concentrates
at the household does not exceed 16 ounces at any time.
(6) To the possession of cannabinoid extracts at a household by one or more persons 21 years
of age or older, if the cannabinoid extracts were purchased from a [ marijuana] cannabis retailer
that holds a license under ORS 475C.097, or transferred by a medical [ marijuana] cannabis
dispensary registered by the Oregon Health Authority under ORS 475C.833, and the total amount
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of cannabinoid extracts at the household does not exceed one ounce at any time.
(7) To the delivery of not more than one ounce of usable [ marijuana] cannabis at a time by a
person 21 years of age or older to another person 21 years of age or older for noncommercial pur-
poses.
(8) To the delivery of not more than 16 ounces of cannabinoid products in solid form at a time
by a person 21 years of age or older to another person 21 years of age or older for noncommercial
purposes.
(9) To the delivery of not more than 72 ounces of cannabinoid products in liquid form at a time
by a person 21 years of age or older to another person 21 years of age or older for noncommercial
purposes.
(10) To the delivery of not more than 16 ounces of cannabinoid concentrates at a time by a
person 21 years of age or older to another person 21 years of age or older for noncommercial pur-
poses.
SECTION 107.
ORS 475C.309 is amended to read:
475C.309. (1) A person may not produce, process, possess or store homegrown [ marijuana]
cannabis, cannabinoid products or cannabinoid concentrates if the homegrown [ marijuana]
cannabis, cannabinoid products or cannabinoid concentrates can be seen by normal unaided vision
from a public place.
(2) A person may not possess or store a cannabinoid extract if the cannabinoid extract can be
seen by normal unaided vision from a public place.
(3) A violation of subsection (1) or (2) of this section is a Class B violation.
SECTION 108.
ORS 475C.313 is amended to read:
475C.313. (1) A person other than a [ marijuana] cannabis processor that holds a license issued
under ORS 475C.085 may not process cannabinoid extracts into a cannabinoid product.
(2) A person may not produce, process or store homemade industrial hemp extracts.
(3) Violation of this section is a Class A misdemeanor.
SECTION 109.
ORS 475C.317 is amended to read:
475C.317. (1)(a) A person under 21 years of age may not possess, attempt to purchase or pur-
chase a [ marijuana] cannabis item.
(b) For purposes of this subsection, purchasing a [ marijuana] cannabis item includes accepting
a [ marijuana] cannabis item, and possessing a [ marijuana] cannabis item includes consuming a
[marijuana] cannabis item, provided that the consumption of the [ marijuana] cannabis item oc-
curred no more than 24 hours before the determination that the person consumed the [ marijuana]
cannabis item.
(2) Except as authorized by the Oregon Liquor and Cannabis Commission by rule, or as neces-
sary in an emergency, a person under 21 years of age may not enter or attempt to enter any portion
of a premises that is posted or otherwise identified as being prohibited to the use of persons under
21 years of age.
(3)(a) Except as provided in paragraph (b) of this subsection, a person who violates subsection
(1) or (2) of this section commits a Class B violation.
(b) A person commits a Class A violation if the person violates subsection (1) of this section by
reason of possessing a [ marijuana] cannabis item while the person is operating a motor vehicle as
defined in ORS 801.360.
(4) In addition to and not in lieu of any other penalty established by law:
(a) The court may require a person who violates subsection (1) of this section through misrep-
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resentation of age to perform community service; and
(b) The court shall order that, when a person violates subsection (1) of this section, the person’s
driving privileges and right to apply for driving privileges be suspended pursuant to ORS 809.260
and 809.280. The court notification made to the Department of Transportation under this paragraph
may include a recommendation that the person be granted a hardship permit under ORS 807.240 if
the person is otherwise eligible for the permit.
(5) If a person cited under this section is at least 13 years of age but less than 21 years of age
at the time the person is found in default under ORS 153.102 or 419C.472 for failure to appear, in
addition to and not in lieu of any other penalty established by law, the court shall issue notice under
ORS 809.220 to the department for the department to suspend the person’s driving privileges under
ORS 809.280 (4).
(6) In addition to and not in lieu of any penalty established by law, the court may order a person
who violates this section to undergo assessment and treatment. The court shall order a person to
undergo assessment and treatment if the person has previously been found to have violated this
section.
(7) The prohibitions of this section do not apply to a person under 21 years of age who is acting
under the direction of the commission or under the direction of state or local law enforcement
agencies for the purpose of investigating possible violations of laws prohibiting sales of
[marijuana] cannabis items to persons who are under 21 years of age.
(8) The prohibitions of this section do not apply to a person under 21 years of age who is acting
under the direction of a licensee for the purpose of investigating possible violations by employees
of the licensee of laws prohibiting sales of [ marijuana] cannabis items to persons who are under 21
years of age.
(9)(a) A person under 21 years of age is not in violation of, and is immune from prosecution
under, this section if:
(A) The person contacted emergency medical services or a law enforcement agency in order to
obtain medical assistance for another person who was in need of medical assistance because that
person consumed a [ marijuana] cannabis item and the evidence of the violation was obtained as a
result of the person’s having contacted emergency medical services or a law enforcement agency;
or
(B) The person was in need of medical assistance because the person consumed a [ marijuana]
cannabis item and the evidence of the violation was obtained as a result of the person’s having
sought or obtained the medical assistance.
(b) Paragraph (a) of this subsection does not exclude the use of evidence obtained as a result
of a person’s having sought medical assistance in proceedings for crimes or offenses other than a
violation of this section.
SECTION 110.
ORS 475C.321 is amended to read:
475C.321. (1) A person may not produce any piece of identification that falsely indicates the
person’s age.
(2) Violation of this section is a Class A misdemeanor.
(3) If a piece of identification is offered as evidence in any administrative or criminal prose-
cution of a licensee or licensee representative for sale or service of a [ marijuana] cannabis item to
a person under 21 years of age, the licensee or licensee representative is not guilty of any offense
prohibiting a person from selling or serving a [ marijuana] cannabis item to a person under 21 years
of age unless it is demonstrated that a reasonable person would have determined that the identifi-
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cation exhibited by the person under 21 years of age was altered, or that the identification exhibited
by the person under 21 years of age did not accurately describe the person to whom the
[marijuana] cannabis item was sold or served.
SECTION 111.
ORS 475C.325 is amended to read:
475C.325. When a person is ordered to undergo assessment and treatment as provided in ORS
475C.317, the court shall require the person to do all of the following:
(1) Pay to the court the fee described under ORS 813.030 in addition to any fine imposed under
ORS 475C.850.
(2) Complete an examination by an agency or organization designated by the court to determine
whether the person has a problem condition involving [ marijuana] cannabis as described in ORS
813.040. The designated agencies or organizations must meet minimum standards established under
ORS 430.357 to perform the diagnostic assessment and treatment of problem [ marijuana] cannabis
use and must be certified by the Director of the Oregon Health Authority.
(3) Complete a treatment program, paid at the expense of the person convicted, as follows:
(a) If the examination required under this section shows that the person has a problem condition
involving [ marijuana] cannabis, a program for rehabilitation for problem [ marijuana] cannabis use
approved by the director.
(b) If the examination required by this section shows that the person does not have a problem
condition involving [ marijuana] cannabis, a [ marijuana] cannabis information program approved by
the director.
SECTION 112.
ORS 475C.329 is amended to read:
475C.329. (1) A person may not sell, give or otherwise make available a [ marijuana] cannabis
item to a person who is visibly intoxicated.
(2)(a) A person who exercises control over private real property may not knowingly allow a
person under 21 years of age to consume a [ marijuana] cannabis item on the property, or allow
another person under 21 years of age to remain on the property if the person under 21 years of age
consumes a [ marijuana] cannabis item on the property.
(b) This subsection:
(A) Applies only to a person who is present and in control of the location at the time the con-
sumption occurs; and
(B) Does not apply to the owner of rental property, or the agent of an owner of rental property,
unless the consumption occurs in the individual housing unit in which the owner or agent resides.
(3) Violation of this section is a Class A misdemeanor.
SECTION 113.
ORS 475C.333 is amended to read:
475C.333. (1) A [ marijuana] cannabis item may not be given as a prize, premium or consider-
ation for a lottery, contest, game of chance, game of skill or competition of any kind.
(2) Violation of this section is a Class A misdemeanor.
SECTION 114.
ORS 475C.337 is amended to read:
475C.337. (1) Except for licensees and licensee representatives acting in accordance with ORS
475C.005 to 475C.525 and any rule adopted under ORS 475C.005 to 475C.525, it is unlawful for any
person 21 years of age or older to possess, knowingly or intentionally:
(a) An amount of plants in the genus Cannabis within the plant family Cannabaceae in excess
of the amount allowed under ORS 475C.305 (1).
(b) More than two ounces of usable [ marijuana] cannabis in a public place.
(c) More than eight ounces of usable [ marijuana] cannabis.
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(d) More than 16 ounces of cannabinoid products in solid form or cannabinoid concentrates.
(e) More than 72 ounces of cannabinoid products in liquid form.
(f) More than one ounce of cannabinoid extracts.
(g) A cannabinoid extract that was not purchased from a [ marijuana] cannabis retailer that
holds a license issued under ORS 475C.097.
(2) Except as provided in subsection (3) of this section, unlawful possession of a [ marijuana]
cannabis item is a Class A misdemeanor.
(3) Unlawful possession of a [ marijuana] cannabis item is:
(a) A Class B violation, if the amount possessed is not more than two times the applicable
maximum amount specified in subsection (1)(a) to (f) of this section.
(b) A Class B misdemeanor, if the amount possessed is more than two times, but not more than
four times, the applicable maximum amount specified in subsection (1)(a) to (f) of this section.
(c) A Class C felony, if the amount possessed is:
(A) More than 16 times the applicable maximum amount specified in subsection (1)(a), (c), (d),
(e) or (f) of this section;
(B) More than eight pounds of usable [ marijuana] cannabis in a public place; or
(C) More than one-quarter ounce of cannabinoid extract that was not purchased from a
[marijuana] cannabis retailer that holds a license issued under ORS 475C.097.
(d) A Class B felony, if:
(A) The amount possessed is more than 32 times the applicable maximum amount specified in
subsection (1)(a), (c), (d), (e) or (f) of this section; or
(B) The violation is a [ marijuana] cannabis offense involving reckless unlawful conduct under
ORS 475C.353 (5) or a [marijuana] cannabis offense involving knowing unlawful conduct under ORS
475C.353 (6).
SECTION 115.
ORS 475C.341 is amended to read:
475C.341. (1) Except for licensees and licensee representatives acting in accordance with ORS
475C.005 to 475C.525 and any rule adopted under ORS 475C.005 to 475C.525, it is unlawful for any
person under 21 years of age to possess, knowingly or intentionally:
(a) An amount of plants in the genus Cannabis within the plant family Cannabaceae in excess
of the amount allowed under ORS 475C.305 (1).
(b) More than two ounces of usable [ marijuana] cannabis in a public place.
(c) More than eight ounces of usable [ marijuana] cannabis.
(d) More than 16 ounces of cannabinoid products in solid form or cannabinoid concentrates.
(e) More than 72 ounces of cannabinoid products in liquid form.
(f) More than one ounce of cannabinoid extracts.
(g) A cannabinoid extract that was not purchased from a [marijuana] cannabis retailer that
holds a license under ORS 475C.097.
(2) Except as provided in subsections (3) and (4) of this section, unlawful possession of a
[marijuana] cannabis item by a person under 21 years of age is a Class A misdemeanor.
(3) Unlawful possession of a [ marijuana] cannabis item by a person under 21 years of age is a
Class C felony, if the amount possessed is:
(a) More than 16 times the applicable maximum amount specified in subsection (1)(a), (c), (d), (e)
or (f) of this section;
(b) More than eight pounds of usable [ marijuana] cannabis in a public place; or
(c) More than one-quarter ounce of cannabinoid extract that was not purchased from a
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[marijuana] cannabis retailer that holds a license issued under ORS 475C.097.
(4) Unlawful possession of a [ marijuana] cannabis item by a person under 21 years of age is a
Class B felony, if:
(a) The amount possessed is more than 32 times the applicable maximum amount specified in
subsection (1)(a), (c), (d), (e) or (f) of this section; or
(b) The violation is a [ marijuana] cannabis offense involving reckless unlawful conduct under
ORS 475C.353 (5) or a [marijuana] cannabis offense involving knowing unlawful conduct under ORS
475C.353 (6).
SECTION 116.
ORS 475C.345 is amended to read:
475C.345. (1) Except for licensees and licensee representatives acting in accordance with ORS
475C.005 to 475C.525 and any rule adopted under ORS 475C.005 to 475C.525, and except for a person
acting within the scope of and in compliance with ORS 475C.305, it is unlawful for any person to
deliver a [ marijuana] cannabis item.
(2) Except as provided in subsection (3) of this section, unlawful delivery of a [ marijuana]
cannabis item is a Class A misdemeanor.
(3) Unlawful delivery of a [ marijuana] cannabis item is:
(a) A Class B misdemeanor, if a person 21 years of age or older unlawfully delivers usable
[marijuana] cannabis, for no consideration, to a person 21 years of age or older, and the total
amount of usable [ marijuana] cannabis delivered is not more than twice the amount described in
ORS 475C.305 (7).
(b) A Class C felony, if:
(A) The delivery involves:
(i) More than 16 times the applicable maximum amount specified in ORS 475C.337 (1)(a), (c), (d),
(e) or (f);
(ii) More than eight pounds of usable [ marijuana] cannabis in a public place; or
(iii) More than one-quarter ounce of cannabinoid extract that was not purchased from a
[marijuana] cannabis retailer that holds a license issued under ORS 475C.097.
(B) The [ marijuana] cannabis item is delivered to a person under 21 years of age, unless the
person delivering the [ marijuana] cannabis item is under 24 years of age at the time of the delivery
and delivers not more than one ounce of usable [ marijuana] cannabis, for no consideration, to a
person who is 16 years of age or older.
SECTION 117.
ORS 475C.349 is amended to read:
475C.349. (1) Except for licensees and licensee representatives acting in accordance with ORS
475C.005 to 475C.525 and any rule adopted under ORS 475C.005 to 475C.525, and except for a person
acting within the scope of and in compliance with ORS 475C.305, it is unlawful for any person to
manufacture a [ marijuana] cannabis item.
(2) Except as provided in subsection (3) of this section, unlawful manufacture of a [ marijuana]
cannabis item is a Class A misdemeanor.
(3) Unlawful manufacture of a [ marijuana] cannabis item is:
(a) A Class B misdemeanor, if a person 21 years of age or older unlawfully manufactures
homegrown [ marijuana] cannabis at a household and the total number of homegrown plants in the
genus Cannabis within the plant family Cannabaceae at the household exceeds four plants but does
not exceed eight plants.
(b) A Class C felony, if:
(A) A person unlawfully manufactures [marijuana] cannabis and the total number of plants in
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the genus Cannabis within the plant family Cannabaceae exceeds 12 plants; or
(B) A person unlawfully manufactures a cannabinoid product or a cannabinoid concentrate and
the total amount of cannabinoid products or the total amount of cannabinoid concentrates exceeds
twice the applicable maximum amount specified in ORS 475C.337 (1)(d), (e) or (f).
(c) A Class B felony, if:
(A) A person unlawfully manufactures a cannabinoid extract;
(B) The violation involves the manufacture of more than 100 [marijuana] cannabis plants,
whether mature or immature; or
(C) The violation is a [ marijuana] cannabis offense involving reckless unlawful conduct under
ORS 475C.353 (5) or a [marijuana] cannabis offense involving knowing unlawful conduct under ORS
475C.353 (6).
SECTION 118.
ORS 475C.353 is amended to read:
475C.353. (1) Except as provided in subsections (3), (5) and (6) of this section, a felony under
ORS 475C.337 or 475C.341 shall be classified as crime category 1 of the sentencing guidelines grid
of the Oregon Criminal Justice Commission.
(2) Except as provided in subsections (3), (5) and (6) of this section, a felony under ORS 475C.345
or 475C.349 shall be classified as crime category 4 of the sentencing guidelines grid of the Oregon
Criminal Justice Commission.
(3) Subject to subsection (4) of this section, a felony under ORS 475C.337, 475C.341, 475C.345 or
475C.349 shall be classified as crime category 8 of the sentencing guidelines grid of the Oregon
Criminal Justice Commission if the violation is a commercial [ marijuana] cannabis offense. A vio-
lation is a commercial [ marijuana] cannabis offense for purposes of this subsection if the violation
was accompanied by at least three of the following factors:
(a) The offender delivered a [ marijuana] cannabis item for consideration;
(b) The offender was in possession of $300 or more in cash;
(c) The offender was unlawfully in possession of a firearm or other weapon as described in ORS
166.270 (2), the offender used, attempted to use or threatened to use a deadly weapon or dangerous
weapon, as those terms are defined in ORS 161.015, or the offender was in possession of a firearm
or other deadly weapon or dangerous weapon for the purpose of using the deadly weapon or dan-
gerous weapon;
(d) The offender was in possession of materials being used for the packaging of [ marijuana]
cannabis items, such as scales, wrapping or foil, other than a material used to contain the
[marijuana] cannabis item that is the subject of the violation;
(e) The offender was in possession of [ marijuana] cannabis item transaction records or customer
lists;
(f) The offender was in possession of stolen property;
(g) The offender was in possession of manufacturing paraphernalia specifically designed for
producing [ marijuana] cannabis, such as recipes, precursor chemicals, laboratory equipment, light-
ing equipment, ventilating equipment or power generation equipment;
(h) The offender modified structures by painting, wiring, plumbing or lighting the structures to
facilitate the offense;
(i) The offender used public lands to manufacture the [ marijuana] cannabis item; or
(j) The offender constructed fortifications or took security measures that had the potential to
injure persons.
(4) To prove that a violation is a commercial [ marijuana] cannabis offense for purposes of sub-
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section (3) of this section, the state must plead in the accusatory instrument at least three of the
factors described in subsection (3) of this section. The state has the burden of proving each factor
beyond a reasonable doubt.
(5) A violation of ORS 475C.337 (3)(d), 475C.341 (4), 475C.349 (3)(c)(B) or 475C.349 (3)(c)(C) shall
be classified as a crime category 6 of the sentencing guidelines grid of the Oregon Criminal Justice
Commission if the violation constitutes a [ marijuana] cannabis offense involving reckless unlawful
conduct. A violation of ORS 475C.337 (3)(d), 475C.341 (4), 475C.349 (3)(c)(B) or 475C.349 (3)(c)(C) is
a [ marijuana] cannabis offense involving reckless unlawful conduct if the person is aware of and
consciously disregards a substantial and justifiable risk that the violation is accompanied by:
(a) Any of the following factors:
(A) Abusing or threatening to abuse the law or legal process;
(B) Destroying, concealing, removing, confiscating or possessing an actual or purported passport
or immigration document, or other actual or purported government identification document, of an-
other person;
(C) Threatening to report another person to a government agency for the purpose of the other
person’s arrest or deportation;
(D) Threatening to collect an unlawful debt;
(E) Instilling in another person a fear that the person will withhold from the other person the
necessities of life, including but not limited to lodging, food and clothing; or
(F) Withholding wages earned without lawful justification;
(b) The issuance of a citation to a person under ORS 654.071 for a violation of any state occu-
pational safety or health law, regulation, rule or order, including any safety and health standards
for agricultural labor housing and related facilities under the Oregon Safe Employment Act; or
(c) Any of the following factors related to the environment:
(A) Discharging, placing or causing to be placed any wastes, as defined in ORS 468B.005, into
the waters of this state or in a location where the wastes are likely to escape or be carried into the
waters of this state;
(B) The unlawful use, storage, disposal, treatment or transport of hazardous waste, as defined
in ORS 466.005;
(C) The unlawful possession, use or application of a pesticide, as defined in ORS 634.006; or
(D) The use of surface water or ground water in violation of ORS chapter 537.
(6) A violation of ORS 475C.337 (3)(d), 475C.341 (4), 475C.349 (3)(c)(B) or 475C.349 (3)(c)(C) shall
be classified as a crime category 8 of the sentencing guidelines grid of the Oregon Criminal Justice
Commission if the violation constitutes a [ marijuana] cannabis offense involving knowing unlawful
conduct. A violation of ORS 475C.337 (3)(d), 475C.341 (4), 475C.349 (3)(c)(B) or 475C.349 (3)(c)(C) is
a [ marijuana] cannabis offense involving knowing unlawful conduct if the person acts with knowl-
edge, or with a conscious purpose to avoid knowledge, that the violation is accompanied by:
(a) Any of the following factors:
(A) Abusing or threatening to abuse the law or legal process;
(B) Destroying, concealing, removing, confiscating or possessing an actual or purported passport
or immigration document, or other actual or purported government identification document, of an-
other person;
(C) Threatening to report another person to a government agency for the purpose the other
person’s arrest or deportation;
(D) Threatening to collect an unlawful debt;
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(E) Instilling in another person a fear that the person will withhold from the other person the
necessities of life, including but not limited to lodging, food and clothing; or
(F) Withholding wages earned without lawful justification;
(b) The issuance of a citation to a person under ORS 654.071 for a violation of any state occu-
pational safety or health law, regulation, rule or order, including any safety and health standards
for agricultural labor housing and related facilities under the Oregon Safe Employment Act; or
(c) Any of the following factors related to the environment:
(A) Discharging, placing or causing to be placed any wastes, as defined in ORS 468B.005, into
the waters of this state or in a location where the wastes are likely to escape or be carried into the
waters of this state;
(B) The unlawful use, storage, disposal, treatment or transport of hazardous waste, as defined
in ORS 466.005;
(C) The unlawful possession, use or application of a pesticide, as defined in ORS 634.006; or
(D) The use of surface water or ground water in violation of ORS chapter 537.
SECTION 119.
ORS 475C.365 is amended to read:
475C.365. (1) As used in this section:
(a) “Crime of violence” has the meaning given that term in ORS 475.908.
(b)(A) “Ingest” means to consume or otherwise deliver a cannabinoid into the body of a person.
(B) “Ingest” does not include the inhalation of smoke, aerosols or vapors created by smoking,
aerosolizing or vaporizing a [ marijuana] cannabis item.
(2)(a) A person commits the offense of causing another person to ingest [ marijuana] cannabis
if the person knowingly or intentionally causes the other person to ingest a [ marijuana] cannabis
item without the consent of the other person.
(b) Causing another person to ingest [ marijuana] cannabis is a Class B felony.
(c) A violation of this subsection shall be classified as a person felony and crime category 8 of
the sentencing guidelines grid of the Oregon Criminal Justice Commission.
(3)(a) Notwithstanding subsection (2) of this section, causing another person to ingest
[marijuana] cannabis is a Class A felony if the person, with the intent of committing or facilitating
a crime of violence against the other person, knowingly or intentionally causes the other person to
ingest a [marijuana] cannabis item without the consent of the other person.
(b) A violation of this subsection shall be classified as a person felony and crime category 9 of
the sentencing guidelines grid of the Oregon Criminal Justice Commission.
SECTION 120.
ORS 475C.369 is amended to read:
475C.369. (1) Except as authorized under ORS 475C.005 to 475C.525, 475C.540 to 475C.586,
475C.600 to 475C.648 and 475C.770 to 475C.919 and rules adopted under ORS 475C.005 to 475C.525,
475C.540 to 475C.586, 475C.600 to 475C.648 and 475C.770 to 475C.919, it is unlawful for a person to
intentionally administer a [ marijuana] cannabis item to the body of another person who is under
18 years of age by inhalation, ingestion or any other means.
(2) Intentionally administering a [ marijuana] cannabis item to the body of a person who is under
18 years of age is a Class A felony.
(3) A violation of this section shall be classified as a person felony and crime category 9 of the
sentencing guidelines grid of the Oregon Criminal Justice Commission.
(4) It is an affirmative defense to a charge of intentionally administering a [ marijuana] cannabis
item to the body of a person who is under 18 years of age if:
(a) The person administering the [ marijuana] cannabis item was less than three years older than
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the other person at the time of the administration, and the other person consented to the adminis-
tration; or
(b) The [ marijuana] cannabis item was administered for a medical purpose with the consent of
the person under 18 years of age, and the person under 18 years of age was a registry identification
cardholder as defined in ORS 475C.777 at the time of the administration.
SECTION 121.
ORS 475C.373 is amended to read:
475C.373. (1) As used in this section, [ “marijuana paraphernalia” ] “cannabis paraphernalia”
means an object that is marketed to be used for, or that is designed for, planting, propagating, cul-
tivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, pre-
paring, testing, analyzing, packaging, repackaging, storing, containing, concealing, injecting,
ingesting, inhaling or otherwise introducing into the human body a [ marijuana] cannabis item.
[“Marijuana paraphernalia” ] “Cannabis paraphernalia” does not include hypodermic syringes or
needles.
(2) It is unlawful for a person to sell or deliver, to possess with intent to sell or deliver or to
manufacture with intent to sell or deliver [ marijuana] cannabis paraphernalia to a person who is
under 21 years of age, knowing that the [ marijuana] cannabis paraphernalia will be used for the
purpose for which it was marketed or designed.
(3) Violation of this section is a Class B violation.
(4) Subject to the provisions of ORS chapter 131A, and notwithstanding the violation classifica-
tion specified in subsection (3) of this section, the Oregon Liquor and Cannabis Commission may
purchase, possess, seize or dispose of [ marijuana] cannabis paraphernalia as is necessary for the
commission to ensure compliance with and enforce this section and any rule adopted under this
section.
(5) In determining whether an object is [ marijuana] cannabis paraphernalia under this section
or drug paraphernalia under ORS 475.525, a trier of fact in an administrative or judicial proceeding
must consider, in addition to any other relevant factor, the following:
(a) Any oral or written instruction provided with the object related to the object’s use;
(b) Any descriptive material packaged with the object that explains or depicts the object’s use;
(c) Any national or local advertising related to the object’s use;
(d) Any proffered expert testimony related to the object’s use;
(e) The manner in which the object is displayed for sale, if applicable; and
(f) Any other proffered evidence substantiating the object’s intended use.
SECTION 122.
ORS 475C.377 is amended to read:
475C.377. (1) It is unlawful for any person to engage in the use of [ marijuana] cannabis items
in a public place.
(2) A violation of subsection (1) of this section is a Class B violation.
SECTION 123.
ORS 475C.379 is amended to read:
475C.379. (1) A person commits the crime of unlawful production of [ marijuana] cannabis if the
person produces [ marijuana] cannabis or industrial hemp:
(a) At a location that is not confirmed by the Oregon Health Authority, the Oregon Liquor and
Cannabis Commission or the State Department of Agriculture to be the location of an industrial
hemp operation registered or licensed under ORS 571.281, a premises for which a license was issued
under ORS 475C.085 or a [ marijuana] cannabis grow site registered under ORS 475C.792; and
(b) In an amount that is not allowed by state law.
(2) Unlawful production of [marijuana] cannabis is a Class A misdemeanor.
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(3) [ Marijuana] Cannabis or industrial hemp that is unlawfully produced, as described in sub-
section (1) of this section, is considered contraband and may be destroyed by a law enforcement
agency.
SECTION 124.
ORS 475C.389 is amended to read:
475C.389. (1) As used in this section, “cannabis-related overdose” means an acute condition, in-
cluding mania, hysteria, extreme physical illness, coma or death, resulting from the consumption or
use of cannabis, or another substance with which cannabis was combined, that a person would rea-
sonably believe requires medical attention.
(2)(a) A person who contacts emergency medical services or a law enforcement agency to obtain
medical assistance for another person because of a cannabis-related overdose is immune from arrest
or prosecution for violating ORS 475C.337, 475C.341 or 475C.373 if the evidence of the offense was
obtained because the person contacted emergency medical services or a law enforcement agency.
(b) A person who is in need of medical assistance because of a cannabis-related overdose is im-
mune from arrest or prosecution for violating ORS 475C.337, 475C.341 or 475C.373 if the evidence
of the offense was obtained because any person contacted emergency medical services or a law
enforcement agency to obtain medical assistance for the person.
(3) A person may not be arrested for violating, or found to be in violation of, the conditions of
the person’s pretrial release, probation, post-prison supervision or parole if the violation involves:
(a) The possession or use of a [ marijuana] cannabis item or frequenting a place where
[marijuana] cannabis items are used; and
(b)(A) The evidence of the violation was obtained because the person contacted emergency
medical services or a law enforcement agency to obtain medical assistance for another person who
needed medical assistance due to a cannabis-related overdose; or
(B) The evidence of the violation was obtained because the person was in need of medical as-
sistance due to a cannabis-related overdose and any person contacted emergency medical services
or a law enforcement agency to obtain medical assistance for the person.
(4)(a) A person may not be arrested on an outstanding warrant for violating ORS 475C.337,
475C.341 or 475C.373, or on an outstanding warrant for a violation, other than commission of a new
crime, of the conditions of the person’s probation, post-prison supervision or parole for conduct that
would constitute a violation of ORS 475C.337, 475C.341 or 475C.373, if the person was located be-
cause:
(A) The person contacted emergency medical services or a law enforcement agency to obtain
medical assistance for another person who needed medical assistance due to a cannabis-related
overdose; or
(B) The person was in need of medical assistance due to a cannabis-related overdose and any
person contacted emergency medical services or a law enforcement agency to obtain medical as-
sistance for the person.
(b) This subsection does not apply to outstanding federal warrants or outstanding warrants is-
sued from other states.
(5) The immunity from arrest and prosecution described in this section is not grounds for the
suppression of evidence relating to a criminal offense other than the offenses described in ORS
475C.337, 475C.341 and 475C.373.
SECTION 125.
ORS 475C.397 is amended to read:
475C.397. (1) Notwithstanding ORS 137.225, a person with a qualifying [ marijuana] cannabis
conviction may apply to the court in which the judgment of conviction was entered for entry of an
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order setting aside the conviction as provided in this section.
(2)(a) The person may file a motion under this section at any time following entry of judgment
of conviction for a qualifying [ marijuana] cannabis conviction.
(b) A person filing a motion under this section is not required to pay the filing fee established
under ORS 21.135 or any other fee, or file a set of fingerprints.
(c) No background check or identification by the Department of State Police is required to set
aside a conviction under this section.
(3)(a) At the time of filing the motion, the person shall serve a copy of the motion upon the of-
fice of the prosecuting attorney of the jurisdiction in which the judgment of conviction was entered.
(b) The prosecuting attorney, within 30 days after the filing of the motion under paragraph (a)
of this subsection, may file an objection to granting the motion only on the basis that the person’s
conviction is not a qualifying [ marijuana] cannabis conviction.
(c) If no objection from the prosecuting attorney is received by the court within 30 days after
the filing of the motion, the court shall grant the motion and enter an order as described in sub-
section (5) of this section.
(4) If the court receives an objection from the prosecuting attorney, the court shall hold a
hearing to determine whether the conviction sought to be set aside is a qualifying [ marijuana]
cannabis conviction. The person has the burden of establishing, by a preponderance of the evidence,
that the conviction is a qualifying [ marijuana] cannabis conviction. If the court determines that the
conviction is a qualifying [ marijuana] cannabis conviction, the court shall grant the motion and
enter an order as provided in subsection (5) of this section.
(5) Upon granting a motion to set aside a qualifying [ marijuana] cannabis conviction under this
section, the court shall enter an appropriate order. Upon the entry of the order, the person for
purposes of the law shall be deemed not to have been previously convicted and the court shall issue
an order sealing the record of conviction and other official records in the case, including the records
of arrest, citation or charge.
(6) The clerk of the court shall forward a certified copy of the order to such agencies as directed
by the court. A certified copy must be sent to the Department of Corrections when the person has
been in the custody of the Department of Corrections. Upon entry of the order, the conviction, ar-
rest, citation, charge or other proceeding shall be deemed not to have occurred, and the person may
answer accordingly any questions relating to its occurrence.
(7) As used in this section:
(a) “Prosecuting attorney” means a district attorney or a city attorney with a prosecutorial
function.
(b) “Qualifying [ marijuana] cannabis conviction” means a conviction for a [ marijuana] cannabis
offense:
(A) Based on conduct described in ORS 475C.305 or possession of less than one ounce of the
dried leaves, stems or flowers of [ marijuana] cannabis;
(B) Committed prior to July 1, 2015; and
(C) For which the person has completed and fully complied with or performed the sentence of
the court.
SECTION 126.
ORS 475C.409 is amended to read:
475C.409. If the owner of a building or premises knowingly has used the building or premises for,
or allowed the building or premises to be occupied for, the production, processing, sale or use of
[marijuana] cannabis items contrary to the provisions of ORS 475C.005 to 475C.525, 475C.540 to
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475C.586, 475C.600 to 475C.648 or 475C.770 to 475C.919, or contrary to the provisions of any other
state law or local ordinance regulating the production, processing, sale or use of [ marijuana]
cannabis items, the building or premises is subject to a lien for, and may be sold to pay all fines
and costs, including but not limited to any costs of cleanup and removal of [ marijuana] cannabis,
assessed against the occupants of the building or premises for, any violation of ORS 475C.005 to
475C.525, 475C.540 to 475C.586, 475C.600 to 475C.648 or 475C.770 to 475C.919, or any other state law
or local ordinance regulating the production, processing, sale or use of [ marijuana] cannabis items.
The lien may be enforced immediately by civil action in a court that has jurisdiction over the area
in which the building or premises is located, by the district attorney of the county in which the
building or premises is located.
SECTION 127.
ORS 475C.417 is amended to read:
475C.417. (1) When a law enforcement officer arrests a person for violating ORS 475C.005 to
475C.525, the law enforcement officer may take into possession all [ marijuana] cannabis items and
other property that the arrested person has in possession, or that is on the premises, that apparently
is being used in violation of ORS 475C.005 to 475C.525.
(2) If a person arrested as described in this section is convicted, and the court finds that the
[marijuana] cannabis items and other property have been used in violation of ORS 475C.005 to
475C.525:
(a) The [ marijuana] cannabis items must be forfeited to an appropriate state or local law
enforcement agency and must be delivered by the court or law enforcement officer, at the direction
of the court, to the law enforcement agency; and
(b) Subject to any other applicable law, the other property must be forfeited to the Oregon Li-
quor and Cannabis Commission, and must be delivered by the court or law enforcement officer, at
the direction of the court, to the commission.
(3) The commission is authorized to destroy or otherwise dispose of any property the commission
receives under subsection (2)(b) of this section, provided that if the commission elects to sell the
property, including furniture, furnishings, and equipment and facilities for the storing, serving or
using of [ marijuana] cannabis items, the clear proceeds of the sale must be credited to the State
Treasury and deposited in the Common School Fund.
SECTION 128. ORS 475C.421 is amended to read:
475C.421. The county courts, district attorneys and municipal authorities, immediately upon the
conviction of a licensee of a violation of ORS 475C.005 to 475C.525, or of a violation of any other
law of this state or ordinance of a city or county located in this state an element of which is the
possession, delivery or manufacture of a [ marijuana] cannabis item, shall notify the Oregon Liquor
and Cannabis Commission of the conviction.
SECTION 129. ORS 475C.441 is amended to read:
475C.441. (1) As used in this section, “cannabis,” “designated primary caregiver,” “immature
[marijuana] cannabis plant,” [ “marijuana,” ] “medical cannabinoid product” and “registry identifica-
tion cardholder” have the meanings given those terms in ORS 475C.777.
(2) A city or county may not adopt an ordinance, by referral or otherwise, that prohibits or
otherwise limits:
(a) The privileges described in ORS 475C.305; or
(b) The right of a registry identification cardholder and the designated primary caregiver of a
registry identification cardholder to:
(A) Possess the seeds of [marijuana] cannabis, immature [ marijuana] cannabis plants or medical
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cannabinoid products as described in ORS 475C.770 to 475C.919;
(B) Jointly possess up to six mature [ marijuana] cannabis plants and up to 12 immature
[marijuana] cannabis plants under ORS 475C.806 (1); or
(C) Jointly possess up to 24 ounces of usable [ marijuana] cannabis under ORS 475C.809 (1).
SECTION 130.
ORS 475C.445 is amended to read:
475C.445. ORS 475C.433 does not prevent any person residing in the county or city from having,
for personal use, a [ marijuana] cannabis item purchased from a [ marijuana] cannabis retailer li-
censed under ORS 475C.097.
SECTION 131. ORS 475C.449 is amended to read:
475C.449. (1) For purposes of this section, “reasonable regulations” includes:
(a) Reasonable conditions on the manner in which a [marijuana] cannabis producer that holds
a license issued under ORS 475C.065 may produce [ marijuana] cannabis or in which a researcher
of cannabis that holds a certificate issued under ORS 475C.289 may produce [ marijuana] cannabis
or propagate immature [ marijuana] cannabis plants;
(b) Reasonable conditions on the manner in which a [ marijuana] cannabis processor that holds
a license issued under ORS 475C.085 may process [ marijuana] cannabis or in which a researcher
of cannabis that holds a certificate issued under ORS 475C.289 may process [ marijuana] cannabis;
(c) Reasonable conditions on the manner in which a [ marijuana] cannabis wholesaler that holds
a license issued under ORS 475C.093 may sell [ marijuana] cannabis at wholesale;
(d) Reasonable conditions on the manner in which a [ marijuana] cannabis retailer that holds a
license issued under ORS 475C.097 may sell [ marijuana] cannabis items;
(e) Reasonable limitations on the hours during which a premises for which a license has been
issued under ORS 475C.005 to 475C.525 may operate;
(f) Reasonable requirements related to the public’s access to a premises for which a license or
certificate has been issued under ORS 475C.005 to 475C.525; and
(g) Reasonable limitations on where a premises for which a license or certificate may be issued
under ORS 475C.005 to 475C.525 may be located.
(2) Notwithstanding ORS 30.935, 215.253 (1) or 633.738, the governing body of a city or county
may adopt ordinances that impose reasonable regulations on the operation of businesses located at
premises for which a license or certificate has been issued under ORS 475C.005 to 475C.525 if the
premises are located in the area subject to the jurisdiction of the city or county, except that the
governing body of a city or county may not:
(a) Adopt an ordinance that prohibits a premises for which a license has been issued under ORS
475C.097 from being located within a distance that is greater than 1,000 feet of another premises for
which a license has been issued under ORS 475C.097.
(b) Adopt an ordinance that imposes a setback requirement for an agricultural building used to
produce [ marijuana] cannabis located on a premises for which a license has been issued under ORS
475C.065 if the agricultural building:
(A) Was constructed on or before July 1, 2015, in compliance with all applicable land use and
building code requirements at the time of construction;
(B) Is located at an address where a [ marijuana] cannabis grow site first registered with the
Oregon Health Authority under ORS 475C.792 on or before January 1, 2015;
(C) Was used to produce [ marijuana] cannabis pursuant to the provisions of ORS 475C.770 to
475C.919 on or before January 1, 2015; and
(D) Has four opaque walls and a roof.
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SECTION 132.
ORS 475C.453 is amended to read:
475C.453. (1)(a) Except as expressly authorized by this section, the authority to impose a tax or
fee on the production, processing or sale of [ marijuana] cannabis items in this state is vested solely
in the Legislative Assembly.
(b) Except as expressly authorized by this section, a county, city or other municipal corporation
or district may not adopt or enact ordinances imposing a tax or fee on the production, processing
or sale of [ marijuana] cannabis items in this state.
(2) Subject to subsection (4) of this section, the governing body of a city or county may adopt
an ordinance to be referred to the electors of the city or county as described in subsection (3) of
this section that imposes a tax or a fee on the sale of [ marijuana] cannabis items that are sold in
the area subject to the jurisdiction of the city or the unincorporated area subject to the jurisdiction
of a county by a [marijuana] cannabis retailer that holds a license issued under ORS 475C.097.
(3) If the governing body of a city or county adopts an ordinance under this section, the gov-
erning body shall refer the measure of the ordinance to the electors of the city or county for ap-
proval at the next statewide general election.
(4) An ordinance adopted under this section may not impose a tax or fee:
(a) In excess of three percent; or
(b) On a registry identification cardholder or on a designated primary caregiver who is pur-
chasing a [ marijuana] cannabis item for a registry identification cardholder.
SECTION 133.
ORS 475C.457 is amended to read:
475C.457. (1) The governing body of a city or county may repeal an ordinance that prohibits the
establishment of any one or more of the following in the area subject to the jurisdiction of the city
or in the unincorporated area subject to the jurisdiction of the county:
(a) [ Marijuana] Cannabis processing sites registered under ORS 475C.815;
(b) Medical [ marijuana] cannabis dispensaries registered under ORS 475C.833;
(c) [ Marijuana] Cannabis producers that hold a license issued under ORS 475C.065;
(d) [ Marijuana] Cannabis processors that hold a license issued under ORS 475C.085;
(e) [ Marijuana] Cannabis wholesalers that hold a license issued under ORS 475C.093;
(f) [ Marijuana] Cannabis retailers that hold a license issued under ORS 475C.097;
(g) [ Marijuana] Cannabis producers that hold a license issued under ORS 475C.065 and that the
Oregon Liquor and Cannabis Commission has designated as an exclusively medical licensee under
ORS475C.121;
(h) [Marijuana] Cannabis processors that hold a license issued under ORS 475C.085 and that the
commission has designated as an exclusively medical licensee under ORS 475C.125;
(i) [ Marijuana] Cannabis wholesalers that hold a license issued under ORS 475C.093 and that
the commission has designated as an exclusively medical licensee under ORS 475C.129;
(j) [ Marijuana] Cannabis retailers that hold a license issued under ORS 475C.097 and that the
commission has designated as an exclusively medical licensee under ORS 475C.133; or
(k) Any combination of the entities described in this subsection.
(2) If the governing body of a city or county repeals an ordinance under this section, the gov-
erning body must provide the text of the ordinance:
(a) To the Oregon Health Authority, in a form and manner prescribed by the authority, if the
ordinance concerns a medical [ marijuana] cannabis dispensary registered under ORS 475C.833 or a
[marijuana] cannabis processing site registered under ORS 475C.815; or
(b)(A) To the commission, in a form and manner prescribed by the commission, if the ordinance
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concerns a premises for which a license has been issued under ORS 475C.005 to 475C.525; and
(B) To the Oregon Department of Administrative Services, in a form and manner prescribed by
the department, within 30 days of enactment of the repeal of the ordinance, if the ordinance con-
cerns a premises for which issuance of a license is required under ORS 475C.065, 475C.085, 475C.093
or 475C.097.
SECTION 134.
ORS 475C.459 is amended to read:
475C.459. (1) As used in this section:
(a) “Cleanup” means the removal, disposal and remediation, by an owner or an agent of an
owner, of waste from a site in conformance with applicable law.
(b) “Cleanup costs” means reasonable costs that are associated with or attributable to cleanup.
(c) “Law enforcement agency” has the meaning given that term in ORS 181A.010.
(d)(A) “Owner” means a person who owns the real property where a site is located.
(B) “Owner” does not include a person who, without participating in the management of the site,
holds indicia of ownership primarily to protect a security interest in the real property.
(e) “Site” means the location where the unlawful manufacture of a [ marijuana] cannabis item,
as described in ORS 475C.349, or the unlawful production of [ marijuana] cannabis, as described in
ORS 475C.379, occurred or is alleged to have occurred.
(f) “Waste” means:
(A) [Marijuana] Cannabis flowers, [ marijuana] cannabis leaves, [ marijuana] cannabis plants
and any parts of [ marijuana] cannabis plants;
(B) Any items or materials used for an irrigation system if used to facilitate the unlawful man-
ufacture of [ marijuana] cannabis items or unlawful production of [ marijuana] cannabis, unless:
(i) The site where the items or materials are located was leased to a third party that was re-
sponsible for the unlawful manufacture of [ marijuana] cannabis items or unlawful production of
[marijuana] cannabis;
(ii) The items or materials are the property of the owner; and
(iii) The owner elects to retain ownership and properly store the items or materials;
(C) Greenhouses, hoop houses and other structures used to facilitate the unlawful manufacture
of [ marijuana] cannabis items or unlawful production of [ marijuana] cannabis, unless:
(i) The site where the greenhouses, hoop houses or other structures are located was leased to
a third party that was responsible for the unlawful manufacture of [ marijuana] cannabis items or
unlawful production of [ marijuana] cannabis;
(ii) The greenhouses, hoop houses or other structures are the property of the owner and are
agricultural buildings, as defined in ORS 455.315, that are allowed on the real property; and
(iii) The owner elects to retain ownership and properly care for the greenhouses, hoop houses
or other structures; and
(D) Any material or substance designated as chemical by the Environmental Quality Commission
under ORS 475.425 used to facilitate the unlawful manufacture of [ marijuana] cannabis items or
unlawful production of [ marijuana] cannabis, unless:
(i) The site where the material or substance is located was leased to a third party that was re-
sponsible for the unlawful manufacture of [ marijuana] cannabis items or unlawful production of
[marijuana] cannabis;
(ii) The material or substance is the property of the owner; and
(iii) The owner elects to retain ownership and properly store the material or substance.
(2) Upon receiving written notification from a law enforcement agency that a site contains
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waste, the owner shall promptly undertake any cleanup of the site. The owner may contract with
a third party for all or part of the cleanup.
(3) It is a public nuisance, which may be abated pursuant to subsection (4) of this section, if the
owner of a site described in subsection (2) of this section fails to complete cleanup of the site within
30 days of the date on which the owner receives the notification described in subsection (2) of this
section.
(4) In order to abate a public nuisance described in subsection (3) of this section, the city or
county that has jurisdiction over the real property where a site described in subsection (2) of this
section is located may maintain civil proceedings in courts of this state against the owner described
in subsection (3) of this section to:
(a) Enforce the requirements of subsection (2) of this section;
(b) Authorize the city or county to conduct cleanup and subject the real property where the site
is located to a lien for cleanup costs; and
(c) Enjoin any further violation of ORS 475C.349 or 475C.379.
(5) A court may allow the prevailing party reasonable attorney fees and expenses in a proceed-
ing described in subsection (4) of this section.
(6)(a) The remedies described in subsection (4) of this section are in addition to any other rem-
edies available to the governing body of a city or county that has jurisdiction over the real property
where a site is located.
(b) Nothing in this section requires the governing body of a city or county to avail itself of a
remedy allowed by this section or by any other law.
(7)(a) The governing body of a city or county described in subsection (4) of this section may, at
its discretion, file a claim of lien on real property where a site described in subsection (2) of this
section is located. The governing body of the city or county shall file written notice of claim of lien
with the recording officer of each county in which the real property where a site described in sub-
section (2) of this section is located. All cleanup costs incurred by the city or county under sub-
section (4)(b) of this section shall constitute the lien. The lien must contain the name of the owner
of the real property to which the lien is attached and a description of the real property sufficient
to accurately identify the real property. The lien shall attach and become enforceable on the day
of the filing described in this subsection.
(b) A lien described in this subsection shall be foreclosed in the manner provided in ORS chapter
88.
(c) A lien described in this subsection shall have priority over any claim of the state under ORS
166.715 to 166.735 or any local government forfeiture ordinance or regulation.
(8) Nothing in this section shall affect the right of the governing body of a city or county to
bring an action against any person to recover all costs and damages for which the person is liable
under this section.
SECTION 135.
ORS 475C.469 is amended to read:
475C.469. The State Department of Agriculture may possess, test and dispose of [ marijuana]
cannabis items.
SECTION 136. ORS 475C.473 is amended to read:
475C.473. (1) The Oregon Liquor and Cannabis Commission, the State Department of Agriculture
and the Oregon Health Authority may not refuse to perform any duty under ORS 475C.005 to
475C.525 or 475C.540 to 475C.586 on the basis that manufacturing, distributing, dispensing, possess-
ing or using [ marijuana] cannabis is prohibited by federal law.
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(2) The commission may not revoke or refuse to issue or renew a license, certificate or permit
under ORS 475C.005 to 475C.525 or 475C.548 on the basis that manufacturing, distributing, dispens-
ing, possessing or using [ marijuana] cannabis is prohibited by federal law.
SECTION 137.
ORS 475C.477 is amended to read:
475C.477. A person may not sue the Oregon Liquor and Cannabis Commission or a member of
the commission, the State Department of Agriculture or the Oregon Health Authority, or any em-
ployee of the commission, department or authority, for performing or omitting to perform any duty,
function or power of the commission, department or authority set forth in ORS 475C.005 to 475C.525
or 475C.540 to 475C.586 or in any other law of this state requiring the commission, department or
authority to perform a duty, function or power related to [ marijuana] cannabis items.
SECTION 138. ORS 475C.481 is amended to read:
475C.481. Subject to any applicable provision of ORS chapter 131A or 183, any state officer,
board, commission, corporation, institution, department or other state body, and any local officer,
board, commission, institution, department or other local government body, that is authorized by the
statutory laws of this state to perform a duty, function or power with respect to a [ marijuana]
cannabis item, may purchase, possess, seize or dispose of the [ marijuana] cannabis item as the state
officer, board, commission, corporation, institution, department or other state body, or the local of-
ficer, board, commission, institution, department or other local government body, considers neces-
sary to ensure compliance with and enforce the applicable statutory law or any rule adopted under
the applicable statutory law.
SECTION 139. Section 2, chapter 464, Oregon Laws 2019, is amended to read:
Sec. 2. (1) The Governor may enter into an agreement with another state for the purposes of:
(a) Cross-jurisdictional coordination and enforcement of [ marijuana-related] cannabis-related
businesses authorized to conduct business in either this state or the other state; and
(b) Cross-jurisdictional delivery of [ marijuana] cannabis items between this state and the other
state.
(2) An agreement entered into under this section:
(a) Must ensure enforceable public health and safety standards, and include a system to regulate
and track the interstate delivery of [ marijuana] cannabis items;
(b) Must ensure that any [ marijuana] cannabis items delivered into this state, prior to sale to
a consumer, are:
(A) Tested in accordance with ORS 475B.550 to 475B.590 [renumbered 475C.540 to 475C.586] and
any rules adopted pursuant to ORS 475B.550 to 475B.590 [renumbered 475C.540 to 475C.586]; and
(B) Packaged and labeled in accordance with ORS 475B.600 to 475B.655 [renumbered 475C.600
to 475C.648] and any rules adopted pursuant to ORS 475B.600 to 475B.655 [renumbered 475C.600 to
475C.648]; and
(c) May authorize one or more agencies of this state to provide policy recommendations and
assist in the implementation and enforcement of the terms of the agreement.
(3) Notwithstanding ORS 475B.227 [renumbered 475C.229] and in accordance with an agreement
described in this section:
(a) A [ marijuana] cannabis producer, [ marijuana] cannabis processor, [ marijuana] cannabis
wholesaler or [ marijuana] cannabis researcher certified under ORS 475B.286 [renumbered 475C.289]
may deliver [ marijuana] cannabis items to a person located in, and authorized to receive
[marijuana] cannabis items by, the other state.
(b) A [ marijuana] cannabis processor, [ marijuana] cannabis wholesaler, [ marijuana] cannabis
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retailer or [ marijuana] cannabis researcher certified under ORS 475B.286 [renumbered 475C.289]
may receive [ marijuana] cannabis items from a person located in, and authorized to export
[marijuana] cannabis items by, the other state.
SECTION 140.
Section 3, chapter 464, Oregon Laws 2019, is amended to read:
Sec. 3. (1) Section 2, chapter 464, Oregon Laws 2019, becomes operative on the earlier of the
date on which:
(a) Federal law is amended to allow for the interstate transfer of [ marijuana] cannabis items
between authorized [ marijuana-related] cannabis-related businesses; or
(b) The United States Department of Justice issues an opinion or memorandum allowing or tol-
erating the interstate transfer of [ marijuana] cannabis items between authorized
[marijuana-related] cannabis-related businesses.
(2) The Oregon Liquor and Cannabis Commission shall notify the interim committees of the
Legislative Assembly related to the judiciary and the Legislative Counsel upon the occurrence of
an event described in subsection (1) of this section.
SECTION 141. ORS 475C.489 is amended to read:
475C.489. (1) [ Marijuana] Cannabis is:
(a) A crop for the purposes of “farm use” as defined in ORS 215.203;
(b) A crop for purposes of a “farm” and “farming practice,” both as defined in ORS 30.930;
(c) A product of farm use as described in ORS 308A.062; and
(d) The product of an agricultural activity for purposes of ORS 568.909.
(2) Notwithstanding ORS chapters 195, 196, 197, 197A, 215 and 227, the following are not per-
mitted uses on land designated for exclusive farm use:
(a) A new dwelling used in conjunction with a [ marijuana] cannabis crop;
(b) A farm stand, as described in ORS 215.213 (1)(r) or 215.283 (1)(o), used in conjunction with
a [ marijuana] cannabis crop; and
(c) A commercial activity, as described in ORS 215.213 (2)(c) or 215.283 (2)(a), carried on in
conjunction with a [ marijuana] cannabis crop.
(3) A county may allow the production of [marijuana] cannabis as a farm use on land zoned for
farm or forest use in the same manner as the production of [ marijuana] cannabis is allowed in ex-
clusive farm use zones under this section and ORS 215.213, 215.283 and 475C.053.
(4) This section applies to:
(a) [Marijuana] Cannabis producers that hold a license issued under ORS 475C.065;
(b) Persons registered under ORS 475C.792 and designated to produce [ marijuana] cannabis by
one or more persons who hold valid registry identification cards issued under ORS 475C.783; and
(c) For the purpose of producing [ marijuana] cannabis or propagating immature [ marijuana]
cannabis plants, researchers of cannabis that hold a certificate issued under ORS 475C.289.
SECTION 142.
ORS 475C.493 is amended to read:
475C.493. (1) Notwithstanding the authority granted to the State Department of Agriculture un-
der ORS chapters 571, 618 and 633 and ORS 632.275 to 632.290, 632.450 to 632.490, 632.516 to 632.625,
632.705 to 632.815, 632.835 to 632.849 and 632.900 to 632.985, the department may not exercise au-
thority over [ marijuana] cannabis items or a licensee, except that ORS 618.121 to 618.161, 618.991,
618.995, 633.311 to 633.479, 633.992 and 633.994 apply to [ marijuana] cannabis items or to a licensee.
(2) In exercising its authority under ORS chapter 616, the department may not:
(a) Establish standards for [marijuana] cannabis as a food additive, as defined in ORS 616.205;
(b) Consider [ marijuana] cannabis to be an adulterant, unless the concentration of a
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cannabinoid in a cannabinoid product, cannabinoid concentrate or cannabinoid extract exceeds ac-
ceptable levels established by the Oregon Health Authority by rule; or
(c) Apply ORS 616.256, 616.265, 616.270 or 616.275 to cannabinoid edibles or enforce ORS 616.256,
616.265, 616.270 or 616.275 with respect to cannabinoid edibles.
(3) Subsection (2)(b) of this section does not prohibit the department from considering artificially
derived cannabinoids to be adulterants.
SECTION 143.
ORS 475C.497 is amended to read:
475C.497. Except for ORS 475C.489 and 475C.493, ORS 475C.005 to 475C.525:
(1) Do not apply to the extent a person acts within the scope of and in compliance with the
Oregon Medical [ Marijuana] Cannabis Act; and
(2) Do not amend or affect duties, functions and powers of the Oregon Health Authority under
the Oregon Medical [ Marijuana] Cannabis Act.
SECTION 144.
ORS 475C.501 is amended to read:
475C.501. Any room, house, building, boat, structure or place of any kind where [ marijuana]
cannabis items are sold, manufactured, bartered or given away in violation of the laws of this state,
or where persons are permitted to resort for the purpose of using [ marijuana] cannabis items in
violation of the laws of this state, or any place where [ marijuana] cannabis items are kept for sale,
barter or gift in violation of the laws of this state, and all [ marijuana] cannabis items or property
subject to confiscation under ORS 475C.417 kept and used in such a place, are a common nuisance.
A person who maintains or assists in maintaining the common nuisance or knowingly suffers or
permits the nuisance to exist in any place of which the person is the owner, manager or lessor, is
guilty of a violation of ORS 475C.005 to 475C.525.
SECTION 145.
ORS 475C.505 is amended to read:
475C.505. A contract is not unenforceable on the basis that manufacturing, distributing, dis-
pensing, possessing or using [ marijuana] cannabis is prohibited by federal law.
SECTION 146. ORS 475C.513 is amended to read:
475C.513. (1) Notwithstanding ORS 475C.205 or any other provision prohibiting the transporta-
tion of [ marijuana] cannabis items to or from a location for which a license has not been issued
under ORS 475C.005 to 475C.525 or prohibiting the possession of [ marijuana] cannabis items at a
location for which a license has not been issued under ORS 475C.005 to 475C.525, a licensee may
transport [ marijuana] cannabis items to and exhibit [ marijuana] cannabis items at a trade show,
the Oregon State Fair or a similar event if:
(a) The [ marijuana] cannabis items are tracked using the system developed and maintained un-
der ORS 475C.177;
(b) All of the [ marijuana] cannabis items are returned to a premises for which a license has
been issued under ORS 475C.005 to 475C.525 immediately after the conclusion of the event; and
(c) The licensee complies with any other requirement imposed by the Oregon Liquor and
Cannabis Commission by rule or order for the purpose of ensuring the security of the [ marijuana]
cannabis items, for the purpose of preventing minors from having access to the [ marijuana]
cannabis items or for any other purpose deemed relevant by the commission.
(2) The commission shall adopt rules to implement this section.
SECTION 147.
ORS 475C.521 is amended to read:
475C.521. (1) The Governor, or the Governor’s designee, may enter into an agreement with the
governing body of a federally recognized Indian tribe located in this state for the purpose of cross-
jurisdictional coordination and enforcement of [ marijuana-related] cannabis-related businesses li-
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censed to conduct business on tribal trust land by the governing body of the federally recognized
Indiantribe.
(2) An agreement entered into under this section:
(a) May provide for the cross-jurisdictional coordination and enforcement of [ marijuana]
cannabis producers, [ marijuana] cannabis processors, [marijuana] cannabis wholesalers,
[marijuana] cannabis retailers and [ marijuana] cannabis testing laboratories licensed by the gov-
erning body of the federally recognized Indian tribe.
(b) May require the governing body of the federally recognized Indian tribe to establish the same
or similar requirements on [ marijuana] cannabis producers, [ marijuana] cannabis processors,
[marijuana] cannabis wholesalers, [ marijuana] cannabis retailers and [ marijuana] cannabis testing
laboratories that are consistent with the policies set forth in:
(A) ORS 475C.005 to 475C.525;
(B) ORS 475C.540 to 475C.586; and
(C) ORS 475C.600 to 475C.648.
(c) Must ensure enforceable public health and safety standards and include a system to regulate
and track the purchase, sale, production, processing, transportation and delivery of [ marijuana]
cannabis items for [ marijuana] cannabis producers, [ marijuana] cannabis processors, [ marijuana]
cannabis wholesalers, [ marijuana] cannabis retailers and [ marijuana] cannabis testing laboratories
that are licensed by the governing body of the federally recognized Indian tribe.
(d) May authorize an agency of this state to assist in the implementation and enforcement of the
terms of the agreement.
SECTION 148.
ORS 475C.523 is amended to read:
475C.523. (1) The State Department of Agriculture, in consultation with the Oregon Health Au-
thority and the Oregon Liquor and Cannabis Commission, shall establish a cannabis reference lab-
oratory to provide regulatory and technical support in the enforcement of ORS 475C.005 to 475C.525,
475C.540 to 475C.586, 475C.600 to 475C.648, 475C.770 to 475C.919 and 571.260 to 571.348.
(2)(a) The cannabis reference laboratory established under subsection (1) of this section must
be able to verify current analytical methods, and develop new analytical methods, for testing
[marijuana] cannabis items, industrial hemp and industrial hemp commodities or products as de-
scribed in ORS 475C.544, 571.281, 571.330 or 571.333 and confirm test results from laboratories li-
censed under ORS 475C.548 or accredited under ORS 475C.560 at the request of the authority,
commission or department.
(b) At the request of the authority, commission or department, the cannabis reference laboratory
must be able to provide ongoing laboratory quality control samples to laboratories licensed under
ORS 475C.548 or accredited under ORS 475C.560.
(c) The cannabis reference laboratory is not required to be licensed under ORS 475C.548 or ac-
credited under ORS 475C.560.
(3) The authority, commission and department may independently require a [ marijuana]
cannabis item, industrial hemp or an industrial hemp commodity or product to be tested by the
cannabis reference laboratory if the authority, commission or department has reason to believe that
the [ marijuana] cannabis item, industrial hemp or industrial hemp commodity or product is not in
compliance with ORS 475C.544, 571.281, 571.330 or 571.333, regardless of whether the [ marijuana]
cannabis item, industrial hemp or industrial hemp commodity or product has undergone testing de-
scribed in ORS 475C.544, 571.281, 571.330 or 571.333 at a laboratory licensed under ORS 475C.548
or accredited under ORS 475C.560.
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(4) If a test conducted by the cannabis reference laboratory of a [ marijuana] cannabis item, in-
dustrial hemp or industrial hemp commodity or product yields results different than the results of
a test conducted by a laboratory licensed under ORS 475C.548 on the [ marijuana] cannabis item,
industrial hemp or industrial hemp commodity or product, the authority, commission or department
may invalidate the results of the test conducted at the laboratory licensed under ORS 475C.548.
(5) A law enforcement agency may request that the cannabis reference laboratory conduct
testing to assist the law enforcement agency in investigations related to cannabis.
(6) The department may charge a fee to the authority, the commission or a law enforcement
agency in an amount reasonable to reimburse the department for the costs incurred in conducting
testing at the cannabis reference laboratory at the request of the authority, commission or law
enforcement agency.
(7) The authority, the commission and the department, in consultation with one another, may
adopt rules to carry out this section.
SECTION 149.
ORS 475C.529 is amended to read:
475C.529. (1) As used in this section, [ “marijuana” ] “cannabis” and [ “marijuana item” ]
“cannabis item” have the meanings given those terms in ORS 475C.009.
(2) On or before February 1 of each odd-numbered year, the Oregon Liquor and Cannabis Com-
mission shall report to the Legislative Assembly in the manner required by ORS 192.245, the ap-
proximate amount of [ marijuana] cannabis produced by [ marijuana] cannabis producers that hold
a license issued under ORS 475C.065 and the approximate amount of [ marijuana] cannabis items
sold by [ marijuana] cannabis retailers that hold a license issued under ORS 475C.097, and whether
the supply of [ marijuana] cannabis in this state is commensurate with the demand for [ marijuana]
cannabis items in this state.
SECTION 150. ORS 475C.531 is amended to read:
475C.531. (1) The Illegal [ Marijuana] Cannabis Market Enforcement Grant Program is estab-
lished to assist cities and counties with the costs incurred by local law enforcement agencies and
community-based organizations in addressing unlawful [ marijuana] cannabis cultivation or distrib-
ution operations.
(2) The Oregon Criminal Justice Commission shall administer the grant program described in
subsection (1) of this section and shall award the grants described in this section.
(3) The commission shall adopt rules to administer the grant program. Rules adopted under this
section must include:
(a) A methodology for reviewing and approving grant applications and awarding grants; and
(b) A process for evaluating the efficacy of local law enforcement programs and services funded
by the grant program.
(4) Moneys distributed to grant recipients under this section must be spent on costs associated
with addressing and prosecuting unlawful [ marijuana] cannabis cultivation or distribution oper-
ations.
(5) The commission shall prioritize the following when awarding grants under this section:
(a) Providing financial assistance to local law enforcement agencies and district attorneys in
rural areas of this state to address unlawful [ marijuana] cannabis cultivation or distribution oper-
ations;
(b) Supporting local law enforcement agencies and district attorneys in investigating and pros-
ecuting large-scale unlawful [ marijuana] cannabis cultivation or distribution operations;
(c) Providing financial assistance to local law enforcement agencies and district attorneys in the
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investigation and prosecution of organized crime involved in unlawful [ marijuana] cannabis culti-
vation or distribution operations;
(d) Providing financial assistance to local law enforcement agencies and district attorneys in the
investigation and prosecution of unlawful [ marijuana] cannabis cultivation or distribution oper-
ations that divert [ marijuana] cannabis outside of this state; and
(e) Providing financial assistance to local law enforcement agencies and community-based or-
ganizations in order to address the ongoing humanitarian crisis associated with unlawful
[marijuana] cannabis cultivation or distribution operations and to facilitate connections to any
necessary assistance and services for individuals impacted by the humanitarian crisis, including but
not limited to language translation services and housing and legal assistance.
SECTION 151.
ORS 475C.533 is amended to read:
475C.533. (1) Not later than January 1 of each year, the Oregon Criminal Justice Commission
shall submit a report in the manner provided in ORS 192.245 on the status and effectiveness of the
Illegal [ Marijuana] Cannabis Market Enforcement Grant Program established under ORS 475C.531
to the interim committees of the Legislative Assembly related to the judiciary.
(2) Not later than January 1 of each year, the commission shall submit a report in the manner
provided in ORS 192.245 on recommendations for changes to the funding of the Illegal [ Marijuana]
Cannabis Market Enforcement Grant Program to the interim committees of the Legislative Assem-
bly related to the judiciary. In making the recommendations described in this subsection, the com-
mission shall consider the best available information and projections regarding unlawful
[marijuana] cannabis cultivation and distribution operations in this state and any human trafficking
related to those operations.
SECTION 152. ORS 475C.535 is amended to read:
475C.535. The Illegal [ Marijuana] Cannabis Market Enforcement Grant Program Fund is estab-
lished in the State Treasury separate and distinct from the General Fund. Moneys in the Illegal
[Marijuana] Cannabis Market Enforcement Grant Program Fund are continuously appropriated to
the Oregon Criminal Justice Commission for the purposes of carrying out the provisions of ORS
475C.531. Interest earned by the fund shall be credited to the fund.
SECTION 153. ORS 475C.540 is amended to read:
475C.540. As used in ORS 475C.540 to 475C.586:
(1) “Adult use cannabinoid” includes, but is not limited to, tetrahydrocannabinols,
tetrahydrocannabinolic acids that are artificially or naturally derived, delta-8-tetrahydrocannabinol,
delta-9-tetrahydrocannabinol, the optical isomers of delta-8-tetrahydrocannabinol or
delta-9-tetrahydrocannabinol and any artificially derived cannabinoid that is reasonably determined
to have an intoxicating effect.
(2) “Artificially derived cannabinoid” has the meaning given that term in ORS 475C.009.
(3) “Cannabinoid” means any of the chemical compounds that are the active constituents of
[marijuana] cannabis.
(4) “Cannabinoid concentrate or extract” means a substance obtained by separating
cannabinoids from [ marijuana] cannabis by a mechanical, chemical or other process.
(5) “Cannabinoid edible” means food or potable liquid into which a cannabinoid concentrate or
extract or the dried leaves or flowers of [ marijuana] cannabis have been incorporated.
(6)(a) “Cannabinoid product” means a cannabinoid edible or any other product intended for hu-
man consumption or use, including a product intended to be applied to a person’s skin or hair, that
contains cannabinoids or the dried leaves or flowers of [ marijuana] cannabis.
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(b) “Cannabinoid product” does not include:
(A) Usable [marijuana] cannabis by itself;
(B) A cannabinoid concentrate or extract by itself; or
(C) Industrial hemp.
(7)(a) “Cannabis” means the plant Cannabis family Cannabaceae, any part of the plant
Cannabis family Cannabaceae and the seeds of the plant Cannabis family Cannabaceae.
(b) “Cannabis” does not include:
(A) Industrial hemp; or
(B) Prescription drugs, as that term is defined in ORS 689.005, including those containing
one or more cannabinoids, that are approved by the United States Food and Drug Adminis-
tration and dispensed by a pharmacy, as defined in ORS 689.005.
(8) “Cannabis item” means cannabis, usable cannabis, a cannabinoid product or a
cannabinoid concentrate or extract.
[(7)] (9) “Industrial hemp” has the meaning given that term in ORS 571.269.
[(8)] (10) “Industrial hemp-derived vapor item” means an industrial hemp concentrate or indus-
trial hemp extract, as those terms are defined in ORS 571.269, whether alone or combined with other
substances, that is intended for use in an inhalant delivery system.
[(9)] (11) “Inhalant delivery system” has the meaning given that term in ORS 431A.175.
[(10)(a) “Marijuana” means the plant Cannabis family Cannabaceae, any part of the plant
Cannabis family Cannabaceae and the seeds of the plant Cannabis family Cannabaceae. ]
[(b) “Marijuana” does not include: ]
[(A) Industrial hemp; or ]
[(B) Prescription drugs, as that term is defined in ORS 689.005, including those containing one or
more cannabinoids, that are approved by the United States Food and Drug Administration and dis-
pensed by a pharmacy, as defined in ORS 689.005. ]
[(11) “Marijuana item” means marijuana, usable marijuana, a cannabinoid product or a
cannabinoid concentrate or extract. ]
(12) “Processing” means:
(a) The compounding or conversion of [marijuana] cannabis into cannabinoid products or
cannabinoid concentrates or extracts.
(b) The compounding or conversion of industrial hemp into industrial hemp concentrates or in-
dustrial hemp extracts.
(13) “Producing” means:
(a) Planting, cultivating, growing, trimming or harvesting [marijuana] cannabis; or
(b) Drying [ marijuana] cannabis leaves and flowers.
(14)(a) “Usable [ marijuana] cannabis” means the dried leaves and flowers of [ marijuana]
cannabis.
(b) “Usable [ marijuana] cannabis” does not include:
(A) The seeds, stalks and roots of [ marijuana] cannabis; or
(B) Waste material that is a by-product of producing or processing [ marijuana] cannabis.
SECTION 154.
ORS 475C.544 is amended to read:
475C.544. (1) As is necessary to protect the public health and safety, and in consultation with
the Oregon Liquor and Cannabis Commission and the State Department of Agriculture, the Oregon
Health Authority shall adopt rules:
(a) Establishing standards for testing [ marijuana] cannabis items and industrial hemp-derived
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vapor items.
(b) Identifying appropriate tests for [ marijuana] cannabis items and industrial hemp-derived va-
por items, depending on the type of [ marijuana] cannabis item or industrial hemp-derived vapor item
and the manner in which the [ marijuana] cannabis item or industrial hemp-derived vapor item was
produced or processed, that are necessary to protect the public health and safety, including, but not
limited to, tests for:
(A) Microbiological contaminants;
(B) Pesticides;
(C) Other contaminants;
(D) Solvents or residual solvents; and
(E) Adult use cannabinoid and cannabidiol concentration.
(c) Establishing procedures for determining batch sizes and for sampling usable [ marijuana]
cannabis, cannabinoid products, cannabinoid concentrates or extracts and industrial hemp-derived
vapor items.
(d) Establishing different minimum standards for different varieties of usable [ marijuana]
cannabis and different types of cannabinoid products and cannabinoid concentrates and extracts
and, as appropriate, industrial hemp-derived vapor items.
(2) In addition to the testing requirements established under subsection (1) of this section, the
authority or the commission may require cannabinoid edibles to be tested in accordance with any
applicable law of this state, or any applicable rule adopted under a law of this state, related to the
production and processing of food products or commodities.
(3) In adopting rules under ORS 475C.770 to 475C.919, the authority may require:
(a) A person responsible for a [ marijuana] cannabis grow site under ORS 475C.792 to test usable
[marijuana] cannabis before transferring the usable [ marijuana] cannabis to a registrant other than
an individual who holds a registry identification card under ORS 475C.783; and
(b) A person processing [ marijuana] cannabis to test cannabinoid products or cannabinoid con-
centrates or extracts before transferring the cannabinoid products or cannabinoid concentrates or
extracts to a registrant other than an individual who holds a registry identification card under ORS
475C.783.
(4) In adopting rules under ORS 475C.005 to 475C.525, the commission may require:
(a) A [marijuana] cannabis producer that holds a license under ORS 475C.065 or a [ marijuana]
cannabis wholesaler that holds a license under ORS 475C.093 to test usable [ marijuana] cannabis
before selling or transferring the usable [ marijuana] cannabis; and
(b) A [ marijuana] cannabis processor that holds a license under ORS 475C.085 or a
[marijuana] cannabis wholesaler that holds a license under ORS 475C.093 to test cannabinoid pro-
ducts or cannabinoid concentrates or extracts before selling or transferring the cannabinoid pro-
ducts or cannabinoid concentrates or extracts.
(5) The authority and the commission may conduct testing of [ marijuana] cannabis items or in-
dustrial hemp-derived vapor items for the purpose of determining whether a person subject to testing
under subsection (3) of this section or a licensee subject to testing under subsection (4) of this sec-
tion is in compliance with this section.
(6) In adopting rules to implement this section, the authority and commission may not require
a [ marijuana] cannabis item or industrial hemp-derived vapor item to undergo the same test more
than once unless:
(a) The [ marijuana] cannabis item or industrial hemp-derived vapor item is processed into a
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different type of [ marijuana] cannabis item or industrial hemp-derived vapor item or the condition
of the [ marijuana] cannabis item or industrial hemp-derived vapor item has fundamentally changed;
(b) The authority or the commission has reason to believe that the [ marijuana] cannabis item
or industrial hemp-derived vapor item is not in compliance with rules adopted under this section;
or
(c) The test to which the [ marijuana] cannabis item or industrial hemp-derived vapor item is
subject more than once is a test described in subsection (5) of this section.
(7) The testing of [ marijuana] cannabis items and industrial hemp-derived vapor items as re-
quired by this section must be conducted by a laboratory licensed by the commission under ORS
475C.548 and accredited by the authority under ORS 475C.560.
(8) In adopting rules under subsection (1) of this section, the authority:
(a) Shall consider the cost of a potential testing procedure and how that cost will affect the cost
to the ultimate consumer of the [ marijuana] cannabis item or industrial hemp-derived vapor item;
and
(b) May not adopt rules that are more restrictive than is reasonably necessary to protect the
public health and safety.
SECTION 155.
ORS 475C.548 is amended to read:
475C.548. (1) A laboratory that conducts testing of [ marijuana] cannabis items or industrial
hemp-derived vapor items as required by ORS 475C.544 must have a license to operate at the
premises at which the [ marijuana] cannabis items or industrial hemp-derived vapor items are tested.
(2) For purposes of this section, the Oregon Liquor and Cannabis Commission shall adopt rules
establishing:
(a) Qualifications to be licensed under this section, including that an applicant for licensure
under this section must be accredited by the Oregon Health Authority as described in ORS 475C.560;
(b) Processes for applying for and renewing a license under this section, which may be the same
as the application process established under ORS 475C.033;
(c) Fees for applying for, receiving and renewing a license under this section; and
(d) Procedures for:
(A) Tracking usable [ marijuana] cannabis, cannabinoid products, cannabinoid concentrates or
extracts or industrial hemp-derived vapor items to be tested;
(B) Documenting and reporting test results; and
(C) Disposing of samples of usable [ marijuana] cannabis, cannabinoid products, cannabinoid
concentrates or extracts or industrial hemp-derived vapor items that have been tested.
(3) A license issued under this section:
(a) Must be renewed annually.
(b) Is subject to the conditions provided in ORS 475C.049 for licenses issued under ORS 475C.005
to 475C.525.
(4) The commission may inspect premises licensed under this section to ensure compliance with
ORS 475C.540 to 475C.586 and rules adopted under ORS 475C.540 to 475C.586.
(5) Subject to the applicable provisions of ORS chapter 183, the commission may refuse to issue
or renew, or may suspend or revoke, a license issued under this section for violation of:
(a) A provision of ORS 475C.540 to 475C.586 or a rule adopted under a provision of ORS
475C.540 to 475C.586; or
(b) A provision of ORS 475C.005 to 475C.525 or a rule adopted under a provision of ORS
475C.005 to 475C.525.
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(6) Fees adopted under subsection (2)(c) of this section must be reasonably calculated to pay the
expenses incurred by the commission under ORS 475C.540 to 475C.586.
(7) Fee moneys collected under this section shall be deposited in the [ Marijuana] Cannabis
Control and Regulation Fund established under ORS 475C.297 and are continuously appropriated to
the commission for the purpose of carrying out the duties, functions and powers of the commission
under ORS 475C.540 to 475C.586.
SECTION 156.
ORS 475C.560 is amended to read:
475C.560. (1) A laboratory that conducts testing of [ marijuana] cannabis items or industrial
hemp-derived vapor items as required by ORS 475C.544 must be accredited under ORS 438.605 to
438.620 and meet other qualifications as established by the Oregon Health Authority under this
section.
(2) In addition to other qualifications required pursuant to ORS 438.605 to 438.620, the authority
shall require an applicant for accreditation under ORS 438.605 to 438.620 for purposes related to the
testing of [ marijuana] cannabis items or industrial hemp-derived vapor items to:
(a) Complete an application;
(b) Undergo an onsite inspection; and
(c) Meet other applicable requirements, specifications and guidelines for testing [ marijuana]
cannabis items or industrial hemp-derived vapor items, as determined to be appropriate by the au-
thority by rule.
(3) The authority may inspect premises licensed under ORS 475C.548 to ensure compliance with
ORS 475C.540 to 475C.586 and rules adopted under ORS 475C.540 to 475C.586.
(4) Subject to the applicable provisions of ORS chapter 183, the authority may refuse to issue
or renew, or may suspend or revoke, a laboratory’s accreditation granted under this section and
ORS 438.605 to 438.620 for violation of:
(a) A provision of ORS 475C.540 to 475C.586 or a rule adopted under a provision of ORS
475C.540 to 475C.586; or
(b) A provision of ORS 475C.005 to 475C.525 or a rule adopted under a provision of ORS
475C.005 to 475C.525.
(5) In establishing fees under ORS 438.620 for laboratories that test [ marijuana] cannabis items
or industrial hemp-derived vapor items, the authority shall establish fees that are reasonably calcu-
lated to pay the expenses incurred by the authority under this section and ORS 438.605 to 438.620
in accrediting laboratories that test [ marijuana] cannabis items or industrial hemp-derived vapor
items.
SECTION 157.
ORS 475C.564 is amended to read:
475C.564. ORS 475C.540 to 475C.586 do not apply to:
(1) A person responsible for a [ marijuana] cannabis grow site under ORS 475C.792 if the person
is transferring usable [ marijuana] cannabis or an immature [ marijuana] cannabis plant, as defined
in ORS 475C.009, to:
(a) A person who holds a registry identification card under ORS 475C.783 and who designated
the person responsible for the [ marijuana] cannabis grow site to grow [ marijuana] cannabis for the
person who holds a registry identification card; or
(b) A person who has been designated as the primary caregiver under ORS 475C.789 of a person
who holds a registry identification card under ORS 475C.783 and who designated the person re-
sponsible for the [ marijuana] cannabis grow site to grow [ marijuana] cannabis for the person who
holds a registry identification card; or
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(2) A person who has been designated as the primary caregiver under ORS 475C.789 of a person
who holds a registry identification card under ORS 475C.783 if the person is transferring a
[marijuana] cannabis item to the person who holds a registry identification card.
SECTION 158.
ORS 475C.586 is amended to read:
475C.586. A person who holds a license under ORS 475C.548, and an employee of or other person
who performs work for a person who holds a license under ORS 475C.548, are exempt from the
criminal laws of this state for possession, delivery or manufacture of [ marijuana] cannabis, aiding
and abetting another in the possession, delivery or manufacture of [ marijuana] cannabis , or any
other criminal offense in which possession, delivery or manufacture of [ marijuana] cannabis is an
element, while performing activities related to testing as described in ORS 475C.540 to 475C.586.
SECTION 159.
ORS 475C.590 is amended to read:
475C.590. (1) The Oregon Liquor and Cannabis Commission shall establish an advisory commit-
tee to advise the commission, the Oregon Health Authority and the State Department of Agriculture
on establishing and maintaining standards for testing the potency of [ marijuana] cannabis and
[marijuana] cannabis items, as those terms are defined in ORS 475C.009. The members of the com-
mittee must include members who are:
(a) Representatives of the commission, the authority and the department;
(b) Stakeholders in the [marijuana] cannabis industry; and
(c) Individuals who have expertise in the potency testing of [ marijuana] cannabis and
[marijuana] cannabis items.
(2) The commission may adopt rules to carry out this section.
SECTION 160.
ORS 475C.600 is amended to read:
475C.600. As used in ORS 475C.600 to 475C.648:
(1) “Adult use cannabinoid” includes, but is not limited to, tetrahydrocannabinols,
tetrahydrocannabinolic acids that are artificially or naturally derived, delta-8-tetrahydrocannabinol,
delta-9-tetrahydrocannabinol, the optical isomers of delta-8-tetrahydrocannabinol or
delta-9-tetrahydrocannabinol and any artificially derived cannabinoid that is reasonably determined
to have an intoxicating effect.
(2) “Artificially derived cannabinoid” has the meaning given that term in ORS 475C.009.
(3) “Cannabinoid” means any of the chemical compounds that are the active constituents of
[marijuana] cannabis.
(4) “Cannabinoid concentrate or extract” means a substance obtained by separating
cannabinoids from [ marijuana] cannabis by a mechanical, chemical or other process.
(5) “Cannabinoid edible” means food or potable liquid into which a cannabinoid concentrate or
extract or the dried leaves or flowers of [ marijuana] cannabis have been incorporated.
(6)(a) “Cannabinoid product” means a cannabinoid edible or any other product intended for hu-
man consumption or use, including a product intended to be applied to a person’s skin or hair, that
contains cannabinoids or the dried leaves or flowers of [ marijuana] cannabis.
(b) “Cannabinoid product” does not include:
(A) Usable [marijuana] cannabis by itself;
(B) A cannabinoid concentrate or extract by itself; or
(C) Industrial hemp.
(7)(a) “Cannabis” means the plant Cannabis family Cannabaceae, any part of the plant
Cannabis family Cannabaceae and the seeds of the plant Cannabis family Cannabaceae.
(b) “Cannabis” does not include:
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(A) Industrial hemp; or
(B) Prescription drugs, as that term is defined in ORS 689.005, including those containing
one or more cannabinoids, that are approved by the United States Food and Drug Adminis-
tration and dispensed by a pharmacy, as defined in ORS 689.005.
(8) “Cannabis item” means cannabis, usable cannabis, a cannabinoid product or a
cannabinoid concentrate or extract.
[(7)] (9) “Industrial hemp” has the meaning given that term in ORS 571.269.
[(8)] (10) “Industrial hemp-derived vapor item” means an industrial hemp concentrate or indus-
trial hemp extract, as those terms are defined in ORS 571.269, whether alone or combined with other
substances, that is intended for use in an inhalant delivery system.
[(9)] (11) “Inhalant delivery system” has the meaning given that term in ORS 431A.175.
[(10)(a) “Marijuana” means the plant Cannabis family Cannabaceae, any part of the plant
Cannabis family Cannabaceae and the seeds of the plant Cannabis family Cannabaceae. ]
[(b) “Marijuana” does not include: ]
[(A) Industrial hemp; or ]
[(B) Prescription drugs, as that term is defined in ORS 689.005, including those containing one or
more cannabinoids, that are approved by the United States Food and Drug Administration and dis-
pensed by a pharmacy, as defined in ORS 689.005. ]
[(11) “Marijuana item” means marijuana, usable marijuana, a cannabinoid product or a
cannabinoid concentrate or extract. ]
(12) “Processing” means:
(a) The compounding or conversion of [marijuana] cannabis into cannabinoid products or
cannabinoid concentrates or extracts.
(b) The compounding or conversion of industrial hemp into industrial hemp concentrates or in-
dustrial hemp extracts.
(13) “Producing” means:
(a) Planting, cultivating, growing, trimming or harvesting [marijuana] cannabis; or
(b) Drying [ marijuana] cannabis leaves and flowers.
(14) “Total delta-9-THC” has the meaning given that term in ORS 475C.009.
(15)(a) “Usable [marijuana] cannabis” means the dried leaves and flowers of [ marijuana]
cannabis.
(b) “Usable [ marijuana] cannabis” does not include:
(A) The seeds, stalks and roots of [ marijuana] cannabis; or
(B) Waste material that is a by-product of producing or processing [ marijuana] cannabis.
SECTION 161.
ORS 475C.604 is amended to read:
475C.604. (1) As is necessary to protect the public health and safety, and in consultation with
the Oregon Health Authority and the State Department of Agriculture, the Oregon Liquor and
Cannabis Commission shall adopt rules establishing standards for the labeling of [ marijuana]
cannabis items and inhalant delivery systems that contain industrial hemp-derived vapor items, in-
cluding but not limited to:
(a) Ensuring that usable [ marijuana] cannabis, cannabinoid concentrates and extracts,
cannabinoid edibles, other cannabinoid products and inhalant delivery systems that contain indus-
trial hemp-derived vapor items have labeling that communicates:
(A) Health and safety warnings;
(B) If applicable, activation time;
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(C) Potency;
(D) For cannabinoid products and cannabinoid concentrates and extracts, serving size and the
number of servings included in a cannabinoid product or cannabinoid concentrate or extract pack-
age; and
(E) Content of the [ marijuana] cannabis item or inhalant delivery system that contains an in-
dustrial hemp-derived vapor item; and
(b) Labeling that is in accordance with applicable state food labeling requirements for the same
type of food product or potable liquid when the food product or potable liquid does not contain
[marijuana] cannabis or cannabinoids.
(2) In adopting rules under ORS 475C.770 to 475C.919, the authority shall require all usable
[marijuana] cannabis, cannabinoid products and cannabinoid concentrates and extracts transferred
by a medical [ marijuana] cannabis dispensary registered under ORS 475C.833 to be labeled in ac-
cordance with subsection (1) of this section and rules adopted under subsection (1) of this section.
(3) In adopting rules under ORS 475C.005 to 475C.525, the commission shall require all usable
[marijuana] cannabis, cannabinoid products and cannabinoid concentrates and extracts sold or
transferred by a [ marijuana] cannabis retailer that holds a license issued under ORS 475C.097 to
be labeled in accordance with subsection (1) of this section and rules adopted under subsection (1)
of this section.
(4) In adopting rules under subsection (1) of this section, the commission:
(a) May establish different labeling standards for different varieties of usable [ marijuana]
cannabis, for different types of cannabinoid products and cannabinoid concentrates and extracts and
for inhalant delivery systems that contain industrial hemp-derived vapor items;
(b) May establish different minimum labeling standards for persons registered under ORS
475C.770 to 475C.919 and persons licensed under ORS 475C.005 to 475C.525;
(c) Shall consider the cost of a potential requirement and how that cost will affect the cost to
the ultimate consumer of the [ marijuana] cannabis item or inhalant delivery system that contains
an industrial hemp-derived vapor item; and
(d) May not adopt rules that are more restrictive than is reasonably necessary to protect the
public health and safety.
SECTION 162.
ORS 475C.608 is amended to read:
475C.608. (1) As used in this section:
(a) “Licensee” has the meaning given that term in ORS 475C.009.
(b) “Registrant” means a person registered under ORS 475C.770 to 475C.919.
(2) The Oregon Liquor and Cannabis Commission may by rule require a licensee or person re-
sponsible for the labeling of an inhalant delivery system that contains an industrial hemp-derived
vapor item, and the Oregon Health Authority may by rule require a registrant, to submit a label
intended for use on a [ marijuana] cannabis item or an inhalant delivery system that contains an
industrial hemp-derived vapor item for preapproval by the commission before the licensee, person
or registrant may sell or transfer a [ marijuana] cannabis item or an inhalant delivery system that
contains an industrial hemp-derived vapor item bearing the label. The commission shall determine
whether a label submitted under this section complies with ORS 475C.604 and any rule adopted un-
der ORS 475C.604.
(3) The commission may impose a fee for submitting a label for preapproval under this section
that is reasonably calculated to not exceed the cost of administering this section.
SECTION 163.
ORS 475C.612 is amended to read:
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475C.612. (1) As is necessary to protect the public health and safety, and in consultation with
the Oregon Health Authority and the State Department of Agriculture, the Oregon Liquor and
Cannabis Commission shall adopt rules establishing standards for the packaging of [ marijuana]
cannabis items, including but not limited to:
(a) Ensuring that cannabinoid concentrates and extracts, cannabinoid edibles and other
cannabinoid products are:
(A) Packaged in child-resistant safety packaging; and
(B) Not marketed in a manner that:
(i) Is untruthful or misleading;
(ii) Is attractive to minors; or
(iii) Otherwise creates a significant risk of harm to public health and safety;
(b) Ensuring that usable [marijuana] cannabis, including usable [ marijuana] cannabis that is
pre-rolled, is not marketed in a manner that:
(A) Is untruthful and misleading;
(B) Is attractive to minors; or
(C) Otherwise creates a significant risk of harm to public health and safety; and
(c) Ensuring that cannabinoid edibles and other cannabinoid products are not packaged in a
manner that is attractive to minors.
(2) In adopting rules under ORS 475C.770 to 475C.919, the authority shall require all usable
[marijuana] cannabis, cannabinoid products and cannabinoid concentrates and extracts transferred
by a medical [ marijuana] cannabis dispensary registered under ORS 475C.833 to be packaged in
accordance with subsection (1) of this section and rules adopted under subsection (1) of this section.
(3) In adopting rules under ORS 475C.005 to 475C.525, the commission shall require all usable
[marijuana] cannabis, cannabinoid products and cannabinoid concentrates and extracts sold or
transferred by a [ marijuana] cannabis retailer that holds a license under ORS 475C.097 to be
packaged in accordance with subsection (1) of this section and rules adopted under subsection (1)
of this section.
(4) In adopting rules under subsection (1) of this section, the commission:
(a) May establish different packaging standards for different varieties of usable [ marijuana]
cannabis and for different types of cannabinoid products and cannabinoid concentrates and extracts;
(b) May establish different minimum packaging standards for persons registered under ORS
475C.770 to 475C.919 and persons licensed under ORS 475C.005 to 475C.525;
(c) May consider the effect on the environment of requiring certain packaging;
(d) Shall consider the cost of a potential requirement and how that cost will affect the cost to
the ultimate consumer of the [ marijuana] cannabis item; and
(e) May not adopt rules that are more restrictive than is reasonably necessary to protect the
public health and safety.
SECTION 164.
ORS 475C.616 is amended to read:
475C.616. (1) As used in this section:
(a) “Licensee” has the meaning given that term in ORS 475C.009.
(b) “Registrant” means a person registered under ORS 475C.770 to 475C.919.
(2) The Oregon Liquor and Cannabis Commission may by rule require a licensee, and the Oregon
Health Authority may by rule require a registrant, to submit packaging intended for a [ marijuana]
cannabis item for preapproval by the commission before the licensee or registrant may sell or
transfer a [ marijuana] cannabis item packaged in the packaging. The commission shall determine
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whether packaging submitted under this section complies with ORS 475C.612 and any rule adopted
under ORS 475C.612.
(3) The commission may impose a fee for submitting packaging for preapproval under this sec-
tion that is reasonably calculated to not exceed the cost of administering this section.
SECTION 165.
ORS 475C.620 is amended to read:
475C.620. (1) The Oregon Liquor and Cannabis Commission, in consultation with the Oregon
Health Authority and the State Department of Agriculture, shall adopt rules establishing:
(a) The maximum concentration of total delta-9-THC that is permitted in a single serving of a
cannabinoid product or cannabinoid concentrate or extract;
(b) The maximum concentration of adult use cannabinoid, any other cannabinoid or artificially
derived cannabinoid that is permitted in a single serving of a cannabinoid product or a cannabinoid
concentrate or extract; and
(c) The number of servings that are permitted in a package of cannabinoid product or
cannabinoid concentrate or extract.
(2)(a) In adopting rules under subsection (1)(a) or (b) of this section, the commission shall pre-
scribe the different levels of concentration of total delta-9-THC, artificially derived cannabinoids,
adult use cannabinoids or any other cannabinoid that is permitted in a single serving of a
cannabinoid product or cannabinoid concentrate or extract for:
(A) Consumers who hold a valid registry identification card issued under ORS 475C.783; and
(B) Consumers who do not hold a valid registry identification card issued under ORS 475C.783.
(b) In prescribing the levels of concentration of total delta-9-THC, artificially derived
cannabinoids, adult use cannabinoids or any other cannabinoid that is permitted in a single serving
of a cannabinoid product or cannabinoid concentrate or extract for consumers who hold a valid
registry identification card issued under ORS 475C.783, the commission shall consider the appropri-
ate level of concentration necessary to mitigate the symptoms or effects of a debilitating medical
condition, as defined in ORS 475C.777.
(3) In adopting rules under ORS 475C.770 to 475C.919, the authority shall adopt by rule re-
quirements established by the commission by rule to require all usable [ marijuana] cannabis,
cannabinoid products and cannabinoid concentrates and extracts transferred by a medical
[marijuana] cannabis dispensary registered under ORS 475C.833 to meet the concentration stan-
dards and servings per package standards adopted by rule pursuant to this section.
(4)(a) In adopting rules under ORS 475C.005 to 475C.525, the commission shall require all usable
[marijuana] cannabis, cannabinoid products and cannabinoid concentrates and extracts sold or
transferred by a [ marijuana] cannabis retailer that holds a license under ORS 475C.097 to meet the
concentration standards and servings per package standards adopted by rule pursuant to this sec-
tion.
(b) The rules adopted by the commission under this subsection must allow for a concentration
of up to 100 milligrams of adult use cannabinoid per package of cannabinoid edibles.
SECTION 166.
ORS 475C.624 is amended to read:
475C.624. (1) ORS 475C.600 to 475C.648 do not apply to:
(a) A person responsible for a [marijuana] cannabis grow site under ORS 475C.792 if the person
is transferring usable [ marijuana] cannabis or an immature [ marijuana] cannabis plant, as defined
in ORS 475C.009, to:
(A) A person who holds a registry identification card under ORS 475C.783 and who designated
the person responsible for the [ marijuana] cannabis grow site to grow [ marijuana] cannabis for the
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person who holds a registry identification card; or
(B) A person who has been designated as the primary caregiver under ORS 475C.789 of a person
who holds a registry identification card under ORS 475C.783, and who designated the person re-
sponsible for the [ marijuana] cannabis grow site to grow [ marijuana] cannabis for the person who
holds a registry identification card; or
(b) A person who has been designated as the primary caregiver under ORS 475C.789 of a person
who holds a registry identification card under ORS 475C.783 if the person is transferring a
[marijuana] cannabis item to the person who holds a registry identification card.
(2) The labeling and packaging requirements and standards of ORS 475C.600 to 475C.648 do not
apply to a [ marijuana] cannabis processor registered under ORS 475C.141 when the [ marijuana]
cannabis processor receives [ marijuana] cannabis and usable [ marijuana] cannabis from, and for
a fee processes that [ marijuana] cannabis and usable [ marijuana] cannabis into cannabinoid pro-
ducts, cannabinoid concentrates and cannabinoid extracts for, a registry identification cardholder
or the designated primary caregiver of a registry identification cardholder.
SECTION 167.
ORS 475C.632 is amended to read:
475C.632. To ensure compliance with ORS 475C.600 to 475C.648 and any rule adopted under ORS
475C.600 to 475C.648, the Oregon Health Authority may inspect the premises of:
(1) A medical [ marijuana] cannabis dispensary registered under ORS 475C.833; and
(2) A person that processes [ marijuana] cannabis to test cannabinoid products or cannabinoid
concentrates or extracts for the purpose of transferring the cannabinoid products or cannabinoid
concentrates or extracts to a medical [marijuana] cannabis dispensary registered under ORS
475C.833.
SECTION 168.
ORS 475C.644 is amended to read:
475C.644. (1) In addition to any other liability or penalty provided by law, the Oregon Liquor
and Cannabis Commission may impose for each violation of a provision of ORS 475C.600 to 475C.648,
or a rule adopted under a provision of ORS 475C.600 to 475C.648, a civil penalty that does not ex-
ceed $500 for each day that the violation occurs.
(2) The commission shall impose civil penalties under this section in the manner provided by
ORS 183.745.
(3) Moneys collected under this section shall be deposited in the [ Marijuana] Cannabis Control
and Regulation Fund established under ORS 475C.297 and are continuously appropriated to the
commission for the purpose of carrying out the duties, functions and powers of the authority under
ORS 475C.600 to 475C.648.
SECTION 169. ORS 475C.670 is amended to read:
475C.670. As used in ORS 475C.670 to 475C.734:
(1) “Cannabis flowers,” “cannabis items,” “cannabis leaves,” “cannabis processor,”
“cannabis producer,” “cannabis retailer,” “cannabinoid concentrate,” “cannabinoid edible,”
“cannabinoid extract,” “cannabinoid product,” “consumer,” [ “immature marijuana plant,” ] “imma-
ture cannabis plant” [ “marijuana flowers,” “marijuana items,” “marijuana leaves,” “marijuana
processor,” “marijuana producer,” “marijuana retailer” ] and “usable [ marijuana] cannabis” have the
meanings given those terms in ORS 475C.009.
(2) “Retail sale” means any transfer, exchange, gift or barter of a [ marijuana] cannabis item by
any person to a consumer.
(3) “Retail sales price” means the price paid for a [ marijuana] cannabis item, excluding tax, to
a [ marijuana] cannabis retailer by or on behalf of a consumer of the [ marijuana] cannabis item.
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SECTION 170.
ORS 475C.674 is amended to read:
475C.674. (1) A tax is hereby imposed upon the retail sale of [ marijuana] cannabis items in this
state. The tax imposed by this section is a direct tax on the consumer, for which payment upon re-
tail sale is required. The tax shall be collected at the point of sale of a [ marijuana] cannabis item
by a [ marijuana] cannabis retailer at the time at which the retail sale occurs.
(2) The tax imposed under this section shall be imposed at the rate of:
(a) 17 percent of the retail sales price of usable [marijuana] cannabis;
(b) 17 percent of the retail sales price of immature [ marijuana] cannabis plants;
(c) 17 percent of the retail sales price of a cannabinoid edible;
(d) 17 percent of the retail sales price of a cannabinoid concentrate;
(e) 17 percent of the retail sales price of a cannabinoid extract;
(f) 17 percent of the retail sales price of a cannabinoid product that is intended to be used by
applying the cannabinoid product to the skin or hair; and
(g) 17 percent of the retail sales price of cannabinoid products other than those described in
paragraph (f) of this subsection.
(3) If the tax imposed under this section does not equal an amount calculable to a whole cent,
the tax shall be equal to the next higher whole cent.
(4) Except as otherwise provided by the Department of Revenue by rule, the amount of the tax
shall be separately stated on an invoice, receipt or other similar document that the [ marijuana]
cannabis retailer provides to the consumer at the time at which the retail sale occurs.
(5) A person may not knowingly sell, purchase, install, transfer or possess electronic devices or
software programs for the purposes of:
(a) Hiding or removing records of retail sales of [ marijuana] cannabis items; or
(b) Falsifying records of retail sales of [ marijuana] cannabis items.
(6)(a) A [ marijuana] cannabis retailer may not discount a [ marijuana] cannabis item or offer a
[marijuana] cannabis item for free if the retail sale of the [ marijuana] cannabis item is made in
conjunction with the retail sale of any other item.
(b) Paragraph (a) of this subsection does not affect any provision of ORS 475C.005 to 475C.525
or any rule adopted by the Oregon Liquor and Cannabis Commission pursuant to ORS 475C.005 to
475C.525 that is related to the retail sale of [marijuana] cannabis items.
SECTION 171.
ORS 475C.678 is amended to read:
475C.678. (1) As used in this section, “designated primary caregiver,” “registry identification
card” and “registry identification cardholder” have the meanings given those terms in ORS
475C.777.
(2) Notwithstanding ORS 475C.674:
(a) A tax is not imposed upon the retail sale of [ marijuana] cannabis items in this state to a
registry identification cardholder or to a designated primary caregiver who is purchasing a
[marijuana] cannabis item for a registry identification cardholder; and
(b) A [ marijuana] cannabis retailer may not collect the tax imposed under ORS 475C.674 from
a consumer if, at the time at which the retail sale of the [ marijuana] cannabis item occurs, the
consumer provides proof to the [ marijuana] cannabis retailer that the consumer:
(A) Holds a valid registry identification card under ORS 475C.783; or
(B) Holds a valid identification card under ORS 475C.783 (5)(b) and is purchasing the
[marijuana] cannabis item for a registry identification cardholder.
(3) The Department of Revenue:
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(a) Shall adopt rules establishing procedures by which a [ marijuana] cannabis retailer shall
document that a consumer holds a valid registry identification card issued under ORS 475C.783 or
a valid identification card issued under ORS 475C.783 (5)(b); and
(b) May adopt rules establishing procedures by which the department may verify that a
[marijuana] cannabis retailer collects the tax imposed under ORS 475C.674 from consumers of
[marijuana] cannabis items who are not registry identification cardholders or designated primary
caregivers.
SECTION 172.
Section 44, chapter 525, Oregon Laws 2021, is amended to read:
Sec. 44. ORS 475B.707 [renumbered 475C.678] applies to retail sales of [ marijuana] cannabis
items occurring on or after January 1, 2016, and before January 1, 2028.
SECTION 173. ORS 475C.682 is amended to read:
475C.682. (1) Except as otherwise provided in ORS 475C.670 to 475C.734, the tax imposed upon
the consumer under ORS 475C.674 shall be collected at the point of sale and remitted by each
[marijuana] cannabis retailer that engages in the retail sale of [ marijuana] cannabis items. The tax
is considered a tax upon the [ marijuana] cannabis retailer that is required to collect the tax, and
the [ marijuana] cannabis retailer is considered a taxpayer.
(2) The [ marijuana] cannabis retailer shall file a return to the Department of Revenue on or
before the last day of January, April, July and October of each year for the previous calendar
quarter.
(3) The [ marijuana] cannabis retailer shall pay the tax to the department in the form and
manner prescribed by the department, but not later than with each quarterly return, without regard
to an extension granted under subsection (5) of this section.
(4) [ Marijuana] Cannabis retailers shall file the returns required under this section regardless
of whether any tax is owed.
(5) For good cause, the department may extend the time for filing a return under this section.
The extension may be granted at any time if a written request is filed with the department during
or prior to the period for which the extension may be granted. The department may not grant an
extension of more than 30 days.
(6) Interest shall be added at the rate established under ORS 305.220 from the time the return
was originally required to be filed to the time of payment.
(7) If a [ marijuana] cannabis retailer fails to file a return or pay the tax as required by this
section, the department shall:
(a) Impose a penalty in the manner provided in ORS 314.400; and
(b) If the department has issued to the [marijuana] cannabis retailer a distraint warrant or no-
tice of determination and assessment under ORS 475C.688, provide written notification to the
Oregon Liquor and Cannabis Commission of the issuance of the distraint warrant or notice of de-
termination and assessment.
(8) Except as provided in subsections (9) and (10) of this section, the period prescribed for the
department to allow or make a refund of any overpayment of tax paid under ORS 475C.670 to
475C.734 is as provided in ORS 314.415.
(9)(a) The department shall first apply any overpayment of tax by a [ marijuana] cannabis
retailer to any [ marijuana] cannabis tax that is owed by the [ marijuana] cannabis retailer.
(b) If after any offset against any delinquent amount the overpayment of tax remains greater
than $1,000, the remaining refund shall be applied as a credit against the next subsequent calendar
quarter as an estimated payment.
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(10) The department may not make a refund of, or credit, any overpayment of tax under ORS
475C.670 to 475C.734 that was credited to the account of a [ marijuana] cannabis retailer under
subsection (9)(b) of this section if the return for that tax period is not filed within three years after
the due date of that return.
SECTION 174.
ORS 475C.688 is amended to read:
475C.688. (1) Every person who collects any amount under ORS 475C.682 shall hold the same in
trust for the State of Oregon and for the payment thereof to the Department of Revenue in the
manner and at the time provided in ORS 475C.682.
(2) At any time a [ marijuana] cannabis retailer fails to remit any amount collected, the de-
partment may enforce collection by the issuance of a distraint warrant for the collection of the de-
linquent amount and all penalties, interest and collection charges accrued thereon. The warrant
shall be issued, recorded and proceeded upon in the same manner and shall have the same force and
effect as is prescribed with respect to warrants for the collection of delinquent income taxes.
(3)(a) In the case of a [ marijuana] cannabis retailer that is assessed pursuant to the provisions
of ORS 305.265 (12) and 314.407 (1), the department may issue a notice of liability to any officer,
employee or member of the [ marijuana] cannabis retailer within three years from the time of as-
sessment. Within 30 days from the date the notice of liability is mailed to the officer, employee or
member, the officer, employee or member shall pay the assessment, plus penalties and interest, or
advise the department in writing of objections to the liability and, if desired, request a conference.
A conference shall be governed by the provisions of ORS 305.265 pertaining to a conference re-
quested from a notice of deficiency.
(b) After a conference or, if no conference is requested, a determination of the issues considering
the written objections, the department shall mail the officer, employee or member a conference let-
ter affirming, canceling or adjusting the notice of liability. Within 90 days from the date the con-
ference letter is mailed to the officer, employee or member, the officer, employee or member shall
pay the assessment, plus penalties and interest, or appeal to the tax court in the manner provided
for an appeal from a notice of assessment.
(c) If the department does not receive payment or written objection to the notice of liability
within 30 days after the notice of liability was mailed, the notice of liability becomes final. In that
event, the officer, employee or member may appeal the notice of liability to the tax court within 90
days after it became final in the manner provided for an appeal from a notice of assessment.
(4)(a) In the case of a failure to file a return on the due date, governed by the provisions of ORS
305.265 (10) and 314.400, the department, in addition to any action described in the provisions of
ORS 305.265 (10) and 314.400, may send notices of determination and assessment to any officer, em-
ployee or member any time within three years after the assessment. The time of assessment against
the officer, employee or member is 30 days after the date the notice of determination and assessment
is mailed. Within 30 days from the date the notice of determination and assessment is mailed to the
officer, employee or member, the officer, employee or member shall pay the assessment, plus penal-
ties and interest, or advise the department in writing of objections to the assessment and, if desired,
request a conference. A conference shall be governed by the provisions of ORS 305.265 pertaining
to a conference requested from a notice of deficiency.
(b) After a conference or, if no conference is requested, a determination of the issues considering
the written objections, the department shall mail the officer, employee or member a conference let-
ter affirming, canceling or adjusting the notice of determination and assessment. Within 90 days
from the date the conference letter is mailed to the officer, employee or member, the officer, em-
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ployee or member shall pay the assessment, plus penalties and interest, or appeal in the manner
provided for an appeal from a notice of assessment.
(c) If the department does not receive payment or written objection to the notice of determi-
nation and assessment within 30 days after the notice of determination and assessment was mailed,
the notice of determination and assessment becomes final. In that event, the officer, employee or
member may appeal the notice of determination and assessment to the tax court within 90 days after
it became final in the manner provided for an appeal from a notice of assessment.
(5)(a) More than one officer or employee of a corporation may be held jointly and severally lia-
ble for payment of taxes.
(b) Notwithstanding the confidentiality provisions of ORS 475C.722, if more than one officer or
employee of a corporation may be held jointly and severally liable for payment of taxes, the de-
partment may require any or all of the officers, members or employees who may be held liable to
appear before the department for a joint determination of liability. The department shall notify each
officer, member or employee of the time and place set for the determination of liability.
(c) Each person notified of a joint determination under this subsection shall appear and present
such information as is necessary to establish that person’s liability or nonliability for payment of
taxes to the department. If a person who was notified fails to appear, the department shall make its
determination on the basis of all the information and evidence presented. The department’s deter-
mination is binding on all persons notified and required to appear under this subsection.
(d)(A) If an appeal is taken to the Oregon Tax Court pursuant to ORS 475C.722 by any person
determined to be liable for unpaid taxes under this subsection, each person required to appear be-
fore the department under this subsection shall be impleaded by the plaintiff. The department may
implead any officer, employee or member who may be held jointly and severally liable for the pay-
ment of taxes. Each person impleaded under this paragraph shall be made a party to the action be-
fore the tax court and shall make available to the tax court the information that was presented
before the department, as well as other information that may be presented to the court.
(B) The court may determine that one or more persons impleaded under this paragraph are lia-
ble for unpaid taxes without regard to any earlier determination by the department that an
impleaded person was not liable for unpaid taxes.
(C) If a person required to appear before the court under this subsection fails or refuses to ap-
pear or bring such information in part or in whole, or is outside the jurisdiction of the tax court,
the court shall make its determination on the basis of all the evidence introduced. Notwithstanding
ORS 475C.722, the evidence constitutes a public record and shall be available to the parties and the
court. The determination of the tax court is binding on all persons made parties to the action under
this subsection.
(e) This section may not be construed to preclude a determination by the department or the
Oregon Tax Court that more than one officer, employee or member are jointly and severally liable
for unpaid taxes.
SECTION 175.
ORS 475C.692 is amended to read:
475C.692. (1) A [ marijuana] cannabis retailer shall keep receipts, invoices and other pertinent
records related to retail sales of [ marijuana] cannabis items in the form required by the Department
of Revenue. Each record shall be preserved for five years from the time to which the record relates,
or for as long as the [ marijuana] cannabis retailer retains the [ marijuana] cannabis items to which
the record relates, whichever is later. During the retention period and at any time prior to the de-
struction of records, the department may give written notice to the [ marijuana] cannabis retailer
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not to destroy records described in the notice without written permission of the department.
Notwithstanding any other provision of law, the department shall preserve reports and returns filed
with the department for at least five years.
(2) The department or its authorized representative, upon oral or written demand, may make
examinations of the books, papers, records and equipment of persons making retail sales of
[marijuana] cannabis items and any other investigations as the department deems necessary to
carry out the provisions of ORS 475C.670 to 475C.734.
SECTION 176.
ORS 475C.706 is amended to read:
475C.706. (1)(a) When an amount represented by a [ marijuana] cannabis retailer at retail to a
consumer as constituting the tax imposed under ORS 475C.670 to 475C.734 is computed upon an
amount that is not taxable or is in excess of the taxable amount and is actually paid by the con-
sumer to the [ marijuana] cannabis retailer, the excess tax paid shall be returned by the
[marijuana] cannabis retailer to the consumer upon written notification by the Department of Re-
venue or the consumer.
(b) The written notification must contain information necessary to determine the validity of the
consumer’s claim.
(2) If the [ marijuana] cannabis retailer does not return the excess tax within 60 days after
mailing of the written notification required under subsection (1) of this section, the consumer may
appeal to the department for a refund of the amount of the excess tax, in the manner and within the
time allowed under rules adopted by the department.
(3) If excess tax is returned to the consumer by the department, the department may issue a
notice of deficiency for the excess tax to the [ marijuana] cannabis retailer in the manner provided
under ORS 305.265.
SECTION 177. ORS 475C.710 is amended to read:
475C.710. For the purpose of compensating [ marijuana] cannabis retailers for expenses incurred
in collecting the tax imposed under ORS 475C.674, each [ marijuana] cannabis retailer is permitted
to deduct and retain two percent of the amount of taxes that are collected by the [ marijuana]
cannabis retailer from all retail sales of [ marijuana] cannabis items conducted by the [ marijuana]
cannabis retailer.
SECTION 178. ORS 475C.718 is amended to read:
475C.718. (1) The Department of Revenue may enter into an agreement with the governing body
of a federally recognized Indian tribe that is qualified as described in this section for the purpose
of making rebate payments for an estimate of the tax on [ marijuana] cannabis items imposed under
ORS 475C.674 as described in this section.
(2) The governing body of a federally recognized Indian tribe is qualified to enter into an
agreement under this section if the governing body has entered into an agreement with the Gover-
nor, or the Governor’s designee, pursuant to ORS 475C.521.
(3) The department shall provide rebates under this section for:
(a) Usable [marijuana] cannabis sold by a [ marijuana] cannabis retailer that holds a license
issued under ORS 475C.097 that is produced by a [ marijuana] cannabis producer that is located on
tribal trust land and licensed by the governing body of a federally recognized Indian tribe that has
entered into an agreement with the Governor, or the Governor’s designee, pursuant to ORS
475C.521, provided that the licensing of the [ marijuana] cannabis producer comports with the
agreement; and
(b) Cannabinoid concentrates, cannabinoid extracts or cannabinoid products sold by a
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[marijuana] cannabis retailer that holds a license issued under ORS 475C.097 that are processed by
a [ marijuana] cannabis processor that is located on tribal trust land and licensed by the governing
body of a federally recognized Indian tribe that has entered into an agreement with the Governor,
orthe Governor’s designee, pursuant to ORS 475C.521, provided that the licensing of the
[marijuana] cannabis processor comports with the agreement.
(4) Payments made by the department to a federally recognized Indian tribe should represent the
department’s estimate of the amount of revenue generated under ORS 475C.674 attributable to
[marijuana] cannabis items:
(a) Produced by a [ marijuana] cannabis producer that is located on tribal trust land and li-
censed by the governing body of a federally recognized Indian tribe that has entered into an
agreement with the Governor, or the Governor’s designee, pursuant to ORS 475C.521, provided that
the licensing of the [ marijuana] cannabis producer comports with the agreement; or
(b) Processed by a [ marijuana] cannabis processor that is located on tribal trust land and li-
censed by the governing body of a federally recognized Indian tribe that has entered into an
agreement with the Governor, or the Governor’s designee, pursuant to ORS 475C.521, provided that
the licensing of the [ marijuana] cannabis processor comports with the agreement.
(5) There is continuously appropriated from the suspense account established under ORS
475C.734 the amounts necessary to make rebates pursuant to an agreement entered into under this
section.
SECTION 179.
ORS 475C.726 is amended to read:
475C.726. (1) As used in this section, “U.S. City Average Consumer Price Index” means the U.S.
City Average Consumer Price Index for All Urban Consumers (All Items) as published by the Bureau
of Labor Statistics of the United States Department of Labor.
(2) There is established the Oregon [ Marijuana] Cannabis Account, separate and distinct from
the General Fund. The account consists of moneys transferred to the account under ORS 475C.734.
(3)(a) The Department of Revenue shall certify quarterly the amount of moneys available in the
Oregon [ Marijuana] Cannabis Account.
(b)(A) Before making other transfers of moneys required by this section, the department shall
transfer quarterly to the Drug Treatment and Recovery Services Fund all moneys in the Oregon
[Marijuana] Cannabis Account in excess of $11,250,000.
(B) The department shall annually adjust the limitation in subparagraph (A) of this paragraph.
The department shall multiply $11,250,000 by the percentage, if any, by which the monthly averaged
U.S. City Average Consumer Price Index for the 12 consecutive months ending August 31 of the
prior calendar year exceeds the monthly index for the fourth quarter of the calendar year 2020, and
shall add that product to $11,250,000. Any increase in the limitation shall apply beginning with
transfers made in July of each year, based upon receipts in the second calendar quarter of each
year.
(c) Subject to subsection (4) of this section, and after making the transfer of moneys required
by paragraph (b) of this subsection, the department shall transfer quarterly 20 percent of the moneys
in the Oregon [ Marijuana] Cannabis Account as follows:
(A) Ten percent of the moneys in the account must be transferred to the cities of this state in
the following shares:
(i) Seventy-five percent of the 10 percent must be transferred in shares that reflect the popu-
lation of each city of this state that is not exempt from this paragraph pursuant to subsection (4)(a)
of this section compared to the population of all cities of this state that are not exempt from this
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paragraph pursuant to subsection (4)(a) of this section, as determined by Portland State University
under ORS 190.510 to 190.610, on the date immediately preceding the date of the transfer; and
(ii) Twenty-five percent of the 10 percent must be transferred in shares that reflect the number
of licenses held pursuant to ORS 475C.065, 475C.085, 475C.093 and 475C.097 on the last business day
of the calendar quarter preceding the date of the transfer for premises located in each city compared
to the number of licenses held pursuant to ORS 475C.065, 475C.085, 475C.093 and 475C.097 on the
last business day of that calendar quarter for all premises in this state located in cities; and
(B) Ten percent of the moneys in the account must be transferred to counties in the following
shares:
(i) Fifty percent of the 10 percent must be transferred in shares that reflect the total commer-
cially available area of all grow canopies associated with [ marijuana] cannabis producer licenses
held pursuant to ORS 475C.065 on the last business day of the calendar quarter preceding the date
of the transfer for all premises located in each county compared to the total commercially available
area of all grow canopies associated with [ marijuana] cannabis producer licenses held pursuant to
ORS 475C.065 on the last business day of that calendar quarter for all premises located in this state;
and
(ii) Fifty percent of the 10 percent must be transferred in shares that reflect the number of li-
censes held pursuant to ORS 475C.085, 475C.093 and 475C.097 on the last business day of the cal-
endar quarter preceding the date of the transfer for premises located in each county compared to
the number of licenses held pursuant to ORS 475C.085, 475C.093 and 475C.097 on the last business
day of that calendar quarter for all premises in this state.
(d) After making the transfer of moneys required by paragraph (b) of this subsection, 80 percent
of the remaining moneys in the Oregon [ Marijuana] Cannabis Account must be used as follows:
(A) Forty percent of the moneys in the account must be used solely for purposes for which
moneys in the State School Fund established under ORS 327.008 may be used;
(B) Twenty percent of the moneys in the account must be used solely for mental health treat-
ment or for alcohol and drug abuse prevention, early intervention and treatment;
(C) Fifteen percent of the moneys in the account must be used solely for purposes for which
moneys in the State Police Account established under ORS 181A.020 may be used; and
(D) Five percent of the moneys in the account must be used solely for purposes related to al-
cohol and drug abuse prevention, early intervention and treatment services.
(4)(a) A city that has an ordinance prohibiting the establishment of a premises for which issu-
ance of a license under ORS 475C.065, 475C.085, 475C.093 or 475C.097 is required is not eligible to
receive transfers of moneys under subsection (3)(c)(A) of this section.
(b) A county that has an ordinance prohibiting the establishment of a premises for which issu-
ance of a license under ORS 475C.065 is required is not eligible to receive transfers of moneys under
subsection (3)(c)(B)(i) of this section.
(c) A county that has an ordinance prohibiting the establishment of a premises for which issu-
ance of a license under ORS 475C.085, 475C.093 or 475C.097 is required is not eligible to receive
transfers of moneys under subsection (3)(c)(B)(ii) of this section.
(d)(A) Paragraphs (b) and (c) of this subsection do not apply to a county ordinance adopted on
or after January 1, 2018, that prohibits the establishment of a premises for which a license under
ORS 475C.065, 475C.085, 475C.093 or 475C.097 is required but allows in the unincorporated area of
the county the continued operation of an existing premises for which a license under ORS 475C.065,
475C.085, 475C.093 or 475C.097 is required.
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(B) A county that adopts an ordinance described in subparagraph (A) of this paragraph shall
certify the adoption of the ordinance under subsection (6) of this section.
(5)(a) A city or county that is ineligible under subsection (4) of this section to receive a transfer
of moneys from the Oregon [ Marijuana] Cannabis Account during a given quarter but has received
a transfer of moneys for that quarter shall return the amount transferred to the Department of Re-
venue, with interest as described under paragraph (f) of this subsection. An ineligible city or county
may voluntarily transfer the moneys to the Department of Revenue immediately upon receipt of the
ineligible transfer.
(b) If the Director of the Oregon Department of Administrative Services determines that a city
or county received a transfer of moneys under subsection (3)(c) of this section but was ineligible to
receive that transfer under subsection (4) of this section, the director shall provide notice to the
ineligible city or county and order the city or county to return the amount received to the Depart-
ment of Revenue, with interest as described under paragraph (f) of this subsection. A city or county
may appeal the order within 30 days of the date of the order under the procedures for a contested
case under ORS chapter 183.
(c) As soon as the order under paragraph (b) of this subsection becomes final, the director shall
notify the Department of Revenue and the ineligible city or county. Upon notification, the Depart-
ment of Revenue immediately shall proceed to collect the amount stated in the notice.
(d) The Department of Revenue shall have the benefit of all laws of the state pertaining to the
collection of income and excise taxes and may proceed to collect the amounts described in the no-
tice under paragraph (c) of this subsection. An assessment of tax is not necessary and the collection
described in this subsection is not precluded by any statute of limitations.
(e) If a city or county is subject to an order to return moneys from an ineligible transfer, the
city or county shall be denied any further relief in connection with the ineligible transfer on or after
the date that the order becomes final.
(f) Interest under this section shall accrue at the rate established in ORS 305.220 beginning on
the date the ineligible transfer was made.
(g) Both the moneys and the interest collected from or returned by an ineligible city or county
shall be redistributed to the cities or counties that were eligible to receive a transfer under sub-
section (3)(c) of this section on the date the ineligible transfer was made.
(6)(a) Not later than July 1 of each year, each city and county in this state shall certify with
the Oregon Department of Administrative Services whether the city or county has an ordinance
prohibiting the establishment of a premises for which issuance of a license under ORS 475C.065,
475C.085, 475C.093 or 475C.097 is required and whether the county has an ordinance described in
subsection (4)(d) of this section. The certification shall be made concurrently with the certifications
under ORS 221.770, in a form and manner prescribed by the Oregon Department of Administrative
Services.
(b) If a city fails to comply with this subsection, the city is not eligible to receive transfers of
moneys under subsection (3)(c)(A) of this section. If a county fails to comply with this subsection,
the county is not eligible to receive transfers of moneys under subsection (3)(c)(B) of this section.
(c) A city or county that repeals an ordinance as provided in ORS 475C.457 shall file an updated
certification with the Oregon Department of Administrative Services in a form and manner pre-
scribed by the department, noting the effective date of the change. A city or county that repeals an
ordinance as provided in ORS 475C.457 is eligible to receive quarterly transfers of moneys under
this section for quarters where the repeal is effective for the entire quarter and the updated certi-
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fication was filed at least 30 days before the date of transfer.
SECTION 180.
ORS 475C.728 is amended to read:
475C.728. Notwithstanding ORS 475C.726, before making any other distribution from the Oregon
[Marijuana] Cannabis Account established under ORS 475C.726, the Department of Revenue shall
first distribute quarterly from the account the following:
(1) $875,000 to the Oregon Liquor and Cannabis Commission for deposit in the [ Marijuana]
Cannabis Control and Regulation Fund established under ORS 475C.297; and
(2) $750,000 to the Oregon Criminal Justice Commission for deposit into the Illegal [ Marijuana]
Cannabis Market Enforcement Grant Program Fund established under ORS 475C.535 for the pur-
poses of paying the costs incurred by the commission in carrying out the provisions of ORS
475C.531.
SECTION 181. ORS 475C.730 is amended to read:
475C.730. (1) Prior to adopting an ordinance described in ORS 475C.726 (4)(d), a county shall
convene a cannabis advisory panel to provide recommendations to the county commission regarding
the county’s regulation of [ marijuana] cannabis and use of moneys transferred to the county under
ORS 475C.726 (4). The county commission shall appoint the following members to the county
cannabis advisory panel:
(a) A person who holds a license issued under ORS 475C.065 for a premises located in the
county;
(b) A person who holds a license issued under ORS 475C.097 for a premises located in the
county;
(c) A designee of the county sheriff;
(d) A designee of the county commission;
(e) A member of the public;
(f) A watermaster, as described in ORS 540.020, who is appointed for a water district in, par-
tially in or near the county; and
(g) A representative of the county who is knowledgeable about economic development in the
county.
(2) A county cannabis advisory panel shall provide recommendations to the county commission
on at least the following:
(a) The use of moneys transferred to the county under ORS 475C.726;
(b) Increases in public safety measures related to [ marijuana] cannabis use and [ marijuana]
cannabis entities in the county; and
(c) Issues presented by the production, processing, wholesaling and distribution of [ marijuana]
cannabis in the unincorporated area subject to the jurisdiction of the county.
(3)(a) A county cannabis advisory panel shall meet at least quarterly during the time in which
the county receives transfers of moneys under ORS 475C.726, beginning not later than the date on
which an ordinance described under ORS 475C.726 (4)(d) is proposed by the county.
(b) A county that adopts an ordinance described in ORS 475C.726 (4)(d) and that does not ap-
point a county cannabis advisory panel under this section is not eligible to receive transfers of
moneys under ORS 475C.726.
SECTION 182.
ORS 475C.734 is amended to read:
475C.734. (1) All moneys received by the Department of Revenue under ORS 475C.670 to
475C.734 shall be deposited in the State Treasury and credited to a suspense account established
under ORS 293.445. The department may pay expenses for the administration and enforcement of
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ORS 475C.670 to 475C.734 out of moneys received from the tax imposed under ORS 475C.674.
Amounts necessary to pay administrative and enforcement expenses are continuously appropriated
to the department from the suspense account.
(2) After the payment of administrative and enforcement expenses and refunds or credits arising
from erroneous overpayments, the department shall credit the balance of the moneys received by the
department under this section to the Oregon [ Marijuana] Cannabis Account established under ORS
475C.726.
SECTION 183.
ORS 475C.738 is amended to read:
475C.738. As used in ORS 475C.738 to 475C.758:
(1) “Cannabis” has the meaning given that term in ORS 475.005.
(2) “Cannabis derived product” means cannabinoid products, cannabinoid concentrates
and cannabinoid extracts, all as defined in ORS 475C.009.
[(1)] (3) “Deliver” has the meaning given that term in ORS 475.005.
[(2)] (4) “Financial institution” means:
(a) A financial institution as defined in ORS 706.008.
(b) A trust company as defined in ORS 706.008.
(c) A money transmission business licensed under ORS 717.200 to 717.320, 717.900 and 717.905.
(d) An affiliate of an entity described in paragraph (a), (b) or (c) of this subsection.
(e) An employee or agent of an entity described in paragraph (a), (b) or (c) of this subsection.
[(3)] (5) “Manufacture” has the meaning given that term in ORS 475.005.
[(4) “Marijuana” has the meaning given that term in ORS 475.005. ]
[(5) “Marijuana-derived product” means cannabinoid products, cannabinoid concentrates and
cannabinoid extracts, all as defined in ORS 475C.009. ]
SECTION 184.
ORS 475C.742, as amended by section 33, chapter 16, Oregon Laws 2024, is
amended to read:
475C.742. A financial institution that provides financial services customarily provided by finan-
cial institutions pursuant to powers granted by ORS 717.200 to 717.320, 717.900 and 717.905, the
Bank Act or by ORS chapter 723 to a [ marijuana] cannabis processing site registered under ORS
475C.815, a medical [ marijuana] cannabis dispensary registered under ORS 475C.833, a [ marijuana]
cannabis producer that holds a license under ORS 475C.065, a [ marijuana] cannabis processor that
holds a license under ORS 475C.085, a [ marijuana] cannabis wholesaler that holds a license under
ORS 475C.093, a [ marijuana] cannabis retailer that holds a license under ORS 475C.097, a labora-
tory that holds a license under ORS 475C.548 or a person to whom a permit or temporary permit
has been issued under ORS 475C.273 is exempt from any criminal law of this state an element of
which may be proven by substantiating that a person provides financial services customarily pro-
vided by financial institutions pursuant to powers granted by ORS 717.200 to 717.320, 717.900 and
717.905, the Bank Act or ORS chapter 723 to a person who possesses, delivers or manufactures
[marijuana] cannabis or [ marijuana] cannabis derived products.
SECTION 185. ORS 475C.770 is amended to read:
475C.770. The people of the State of Oregon find that:
(1) Patients and doctors have found [marijuana] cannabis to be an effective treatment for suf-
fering caused by debilitating medical conditions and, therefore, [ marijuana] cannabis must be
treated like other medicines;
(2) Oregonians suffering from debilitating medical conditions should be allowed to use
[marijuana] cannabis without fear of civil or criminal penalties when a doctor advises that using
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[marijuana] cannabis may provide a medical benefit and when other reasonable restrictions are met
regarding that use;
(3) ORS 475C.770 to 475C.919 are intended to allow Oregonians with debilitating medical condi-
tions who may benefit from the medical use of [ marijuana] cannabis to be able to freely discuss with
doctors the possible risks and benefits associated with the medical use of [ marijuana] cannabis and
to have the benefit of professional medical advice; and
(4) ORS 475C.770 to 475C.919 are intended to protect patients and doctors from criminal and
civil penalties and are not intended to change current civil and criminal laws governing the use of
[marijuana] cannabis for nonmedical purposes.
SECTION 186.
ORS 475C.773 is amended to read:
475C.773. ORS 475C.770 to 475C.919 shall be known as the Oregon Medical [ Marijuana]
Cannabis Act.
SECTION 187. ORS 475C.777, as amended by section 105, chapter 73, Oregon Laws 2024, is
amended to read:
475C.777. As used in ORS 475C.770 to 475C.919:
(1) “Attending provider” means one of the following health care providers who has primary re-
sponsibility for the care and treatment of a person diagnosed with a debilitating medical condition:
(a) A physician licensed under ORS chapter 677;
(b) A physician associate licensed under ORS 677.505 to 677.525;
(c) A nurse practitioner licensed under ORS 678.375 to 678.390;
(d) A clinical nurse specialist licensed under ORS 678.370 and 678.372;
(e) A certified registered nurse anesthetist as defined in ORS 678.010; or
(f) A naturopathic physician licensed under ORS chapter 685.
(2) “Cannabinoid” means any of the chemical compounds that are the active constituents of
[marijuana] cannabis.
(3) “Cannabinoid concentrate” means a substance obtained by separating cannabinoids from
[marijuana] cannabis by:
(a) A mechanical extraction process;
(b) A chemical extraction process using a nonhydrocarbon-based solvent, such as vegetable
glycerin, vegetable oils, animal fats, isopropyl alcohol or ethanol;
(c) A chemical extraction process using the hydrocarbon-based solvent carbon dioxide, provided
that the process does not involve the use of high heat or pressure; or
(d) Any other process identified by the Oregon Health Authority, in consultation with the
Oregon Liquor and Cannabis Commission, by rule.
(4) “Cannabinoid edible” means food or potable liquid into which a cannabinoid concentrate,
cannabinoid extract or dried leaves or flowers of [ marijuana] cannabis have been incorporated.
(5) “Cannabinoid extract” means a substance obtained by separating cannabinoids from
[marijuana] cannabis by:
(a) A chemical extraction process using a hydrocarbon-based solvent, such as butane, hexane
or propane;
(b) A chemical extraction process using the hydrocarbon-based solvent carbon dioxide, if the
process uses high heat or pressure; or
(c) Any other process identified by the Oregon Health Authority, in consultation with the
Oregon Liquor and Cannabis Commission, by rule.
(6)(a) “Cannabis” means the plant Cannabis family Cannabaceae, any part of the plant
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Cannabis family Cannabaceae and the seeds of the plant Cannabis family Cannabaceae.
(b) “Cannabis” does not include:
(A) Industrial hemp, as defined in ORS 571.269; or
(B) Prescription drugs, as that term is defined in ORS 689.005, including those containing
one or more cannabinoids, that are approved by the United States Food and Drug Adminis-
tration and dispensed by a pharmacy, as defined in ORS 689.005.
(7) “Cannabis grow site” means a location registered under ORS 475C.792 where cannabis
is produced for use by a registry identification cardholder.
(8) “Cannabis processing site” means a cannabis processing site registered under ORS
475C.815 or a site for which an applicant has submitted an application for registration under
ORS 475C.815.
[(6)] (9) “Debilitating medical condition” means:
(a) Cancer, glaucoma, a degenerative or pervasive neurological condition, positive status for
human immunodeficiency virus or acquired immune deficiency syndrome, or a side effect related to
the treatment of those medical conditions;
(b) A medical condition or treatment for a medical condition that produces, for a specific pa-
tient, one or more of the following:
(A) Cachexia;
(B) Severe pain;
(C) Severe nausea;
(D) Seizures, including seizures caused by epilepsy; or
(E) Persistent muscle spasms, including spasms caused by multiple sclerosis;
(c) Post-traumatic stress disorder; or
(d) Any other medical condition or side effect related to the treatment of a medical condition
adopted by the Oregon Health Authority by rule or approved by the authority pursuant to a petition
filed under ORS 475C.913.
[(7)(a)] (10)(a) “Delivery” has the meaning given that term in ORS 475.005.
(b) “Delivery” does not include transfer of [ marijuana] cannabis by a registry identification
cardholder to another registry identification cardholder if no consideration is paid for the transfer.
[(8)(a)] (11)(a) “Designated primary caregiver” means an individual:
(A) Who is 18 years of age or older;
(B) Who has significant responsibility for managing the well-being of a person who has been
diagnosed with a debilitating medical condition; and
(C) Who is designated as the person responsible for managing the well-being of a person who
has been diagnosed with a debilitating medical condition on that person’s application for a registry
identification card or in other written notification submitted to the authority.
(b) “Designated primary caregiver” does not include a person’s attending provider.
[(9)] (12) “High heat” means a temperature exceeding 180 degrees.
[(10)] (13) “Immature [ marijuana] cannabis plant” means a [ marijuana] cannabis plant that is
not flowering.
[(11)(a) “Marijuana” means the plant Cannabis family Cannabaceae, any part of the plant
Cannabis family Cannabaceae and the seeds of the plant Cannabis family Cannabaceae. ]
[(b) “Marijuana” does not include: ]
[(A) Industrial hemp, as defined in ORS 571.269; or ]
[(B) Prescription drugs, as that term is defined in ORS 689.005, including those containing one or
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more cannabinoids, that are approved by the United States Food and Drug Administration and dis-
pensed by a pharmacy, as defined in ORS 689.005. ]
[(12) “Marijuana grow site” means a location registered under ORS 475C.792 where marijuana is
produced for use by a registry identification cardholder. ]
[(13) “Marijuana processing site” means a marijuana processing site registered under ORS
475C.815 or a site for which an applicant has submitted an application for registration under ORS
475C.815.]
(14) “Mature [ marijuana] cannabis plant” means a [ marijuana] cannabis plant that is not an
immature [marijuana] cannabis plant.
(15)(a) “Medical cannabinoid product” means a cannabinoid edible and any other product in-
tended for human consumption or use, including a product intended to be applied to a person’s skin
or hair, that contains cannabinoids or dried leaves or flowers of [ marijuana] cannabis.
(b) “Medical cannabinoid product” does not include:
(A) Usable [marijuana] cannabis by itself;
(B) A cannabinoid concentrate by itself;
(C) A cannabinoid extract by itself; or
(D) Industrial hemp, as defined in ORS 571.269.
(16) “Medical [marijuana] cannabis dispensary” means a medical [ marijuana] cannabis
dispensary registered under ORS 475C.833 or a site for which an applicant has submitted an appli-
cation for registration under ORS 475C.833.
(17) “Medical use of [ marijuana] cannabis” means the production, processing, possession, deliv-
ery or administration of [ marijuana] cannabis, or use of paraphernalia used to administer
[marijuana] cannabis, to mitigate the symptoms or effects of a debilitating medical condition.
(18) “Person designated to produce [ marijuana] cannabis by a registry identification
cardholder” means a person designated to produce [ marijuana] cannabis by a registry identification
cardholder under ORS 475C.792 who produces [ marijuana] cannabis for a registry identification
cardholder at an address other than the address where the registry identification cardholder resides
or at an address where more than 12 mature [marijuana] cannabis plants are produced.
(19) “Process” means the compounding or conversion of [ marijuana] cannabis into medical
cannabinoid products, cannabinoid concentrates or cannabinoid extracts.
(20) “Production” means:
(a) Planting, cultivating, growing, trimming or harvesting [marijuana] cannabis; or
(b) Drying [ marijuana] cannabis leaves or flowers.
(21) “Registry identification card” means a document issued by the Oregon Health Authority
under ORS 475C.783 that identifies a person authorized to engage in the medical use of
[marijuana] cannabis and, if the person has a designated primary caregiver under ORS 475C.789, the
person’s designated primary caregiver.
(22) “Registry identification cardholder” means a person to whom a registry identification card
has been issued under ORS 475C.783.
(23)(a) “Usable [ marijuana] cannabis” means the dried leaves and flowers of [ marijuana]
cannabis.
(b) “Usable [ marijuana] cannabis” does not include:
(A) The seeds, stalks and roots of [ marijuana] cannabis; or
(B) Waste material that is a by-product of producing [ marijuana] cannabis.
(24) “Written documentation” means a statement signed by the attending provider of a person
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diagnosed with a debilitating medical condition or copies of the person’s relevant medical records.
SECTION 188.
ORS 475C.780 is amended to read:
475C.780. Nothing in ORS 475C.770 to 475C.919 requires:
(1) A government medical assistance program or private health insurer to reimburse a person
for costs associated with the medical use of [ marijuana] cannabis; or
(2) An employer to accommodate the medical use of [ marijuana] cannabis in the workplace.
SECTION 189.
ORS 475C.783 is amended to read:
475C.783. (1) The Oregon Health Authority shall establish a program for the issuance of registry
identification cards to applicants who meet the requirements of this section.
(2) The authority shall issue a registry identification card to an applicant who is 18 years of age
or older if the applicant pays a fee in an amount established by the authority by rule and submits
to the authority an application containing the following information:
(a) Written documentation from the applicant’s attending provider stating that the attending
provider has diagnosed the applicant as having a debilitating medical condition and that the medical
use of [ marijuana] cannabis may mitigate the symptoms or effects of the applicant’s debilitating
medical condition;
(b) The name, address and date of birth of the applicant;
(c) The name, address and telephone number of the applicant’s attending provider;
(d) Proof of residency, submitted in a form required by the authority by rule;
(e) The name and address of the applicant’s designated primary caregiver, if the applicant is
designating a primary caregiver under ORS 475C.789; and
(f) The information described in ORS 475C.792 (2), if the applicant is applying to produce
[marijuana] cannabis or designate another person under ORS 475C.792 to produce [ marijuana]
cannabis.
(3)(a) The authority shall issue a registry identification card to an applicant who is under 18
years of age if:
(A) The applicant pays the fee and submits the application described in subsection (2) of this
section; and
(B) The custodial parent or legal guardian who is responsible for the health care decisions of
the applicant signs and submits to the authority a written statement that:
(i) The applicant’s attending provider has explained to the applicant and to the custodial parent
or legal guardian the possible risks and benefits of the medical use of [ marijuana] cannabis;
(ii) The custodial parent or legal guardian consents to the medical use of [ marijuana] cannabis
by the applicant;
(iii) The custodial parent or legal guardian agrees to serve as the applicant’s designated primary
caregiver; and
(iv) The custodial parent or legal guardian agrees to control the acquisition, dosage and fre-
quency of the medical use of [ marijuana] cannabis by the applicant.
(b) An applicant who is under 18 years of age may not apply to produce [ marijuana] cannabis
under subsection (2)(f) of this section.
(4) The authority shall:
(a) On the date on which the authority receives an application described in subsection (2) of this
section, issue a receipt to the applicant verifying that the authority received an application under
subsection (2) or (3) of this section; and
(b) Approve or deny an application received under subsection (2) or (3) of this section within
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30 days after receiving the application.
(5)(a) If the authority approves an application, the authority shall issue a serially numbered
registry identification card to the applicant within five days after approving the application. The
registry identification card must include the following information:
(A) The registry identification cardholder’s name, address and date of birth;
(B) The issuance date and expiration date of the registry identification card;
(C) If the registry identification cardholder designated a primary caregiver under ORS 475C.789,
the name and address of the registry identification cardholder’s designated primary caregiver; and
(D) Any other information required by the authority by rule.
(b) If the registry identification cardholder designated a primary caregiver under ORS 475C.789,
the authority shall issue an identification card to the designated primary caregiver. The identifica-
tion card must contain the information required by paragraph (a) of this subsection.
(6) A registry identification cardholder shall:
(a) In a form and manner prescribed by the authority, notify the authority of any change con-
cerning the registry identification cardholder’s:
(A) Name, address or attending provider;
(B) Designated primary caregiver, including the designation of a primary caregiver made at a
time other than at the time of applying for or renewing a registry identification card; or
(C) Person responsible for a [ marijuana] cannabis grow site, including the designation of a
person responsible for a [ marijuana] cannabis grow site made at a time other than at the time of
applying for or renewing a registry identification card.
(b) Annually renew the registry identification card by paying a fee in an amount established by
the authority by rule and submitting to the authority an application that contains the following in-
formation:
(A) Updated written documentation from the registry identification cardholder’s attending pro-
vider stating that the registry identification cardholder still has a debilitating medical condition and
that the medical use of [ marijuana] cannabis may mitigate the symptoms or effects of the registry
identification cardholder’s debilitating medical condition;
(B) The information described in subsection (2)(b) to (f) of this section; and
(C) If the registry identification cardholder is under 18 years of age, a statement signed by the
custodial parent or legal guardian of the registry identification cardholder that meets the require-
ments of subsection (3) of this section.
(7) The authority shall:
(a) On the date on which the authority receives an application described in subsection (2) of this
section, issue a receipt to the applicant verifying that the authority received an application under
subsection (6)(b) of this section; and
(b) Approve or deny an application received under subsection (6)(b) of this section within 30
days after receiving the application.
(8)(a) If the registry identification cardholder’s attending provider determines that the registry
identification cardholder no longer has a debilitating medical condition, or determines that the
medical use of [ marijuana] cannabis is contraindicated for the registry identification cardholder’s
debilitating medical condition, the registry identification cardholder shall return the registry iden-
tification card to the authority within 30 calendar days after receiving notice of the determination.
(b) If, because of circumstances beyond the control of the registry identification cardholder, a
registry identification cardholder is unable to obtain a second medical opinion about the registry
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identification cardholder’s continuing eligibility for the medical use of [ marijuana] cannabis before
having to return the registry identification card to the authority, the authority may grant the reg-
istry identification cardholder additional time to obtain a second medical opinion.
(9)(a) The authority may deny an application for a registry identification card or an application
to renew a registry identification card, or may suspend or revoke a registry identification card, if:
(A) The applicant or registry identification cardholder does not provide the information required
by this section;
(B) The authority determines that the applicant or registry identification cardholder provided
false information; or
(C) The authority determines that the applicant or registry identification cardholder violated a
provision of ORS 475C.770 to 475C.919 or a rule adopted under ORS 475C.770 to 475C.919.
(b) If a registry identification card is revoked, any associated identification card issued under
subsection (5)(b) of this section, or [ marijuana] cannabis grow site registration card issued under
ORS 475C.792 (6), shall also be revoked.
(c) A person whose application is denied, or whose registry identification card is revoked, under
this subsection may not reapply for a registry identification card for six months from the date of the
denial or revocation unless otherwise authorized by the authority.
(10)(a) The authority may deny a designation of a primary caregiver made under ORS 475C.789,
or suspend or revoke an associated identification card issued under subsection (5)(b) of this section,
if the authority determines that the designee or the registry identification cardholder violated a
provision of ORS 475C.770 to 475C.919 or a rule adopted under ORS 475C.770 to 475C.919.
(b) A person whose designation has been denied, or whose identification card has been revoked,
under this subsection may not be designated as a primary caregiver under ORS 475C.789 for six
months from the date of the denial or revocation unless otherwise authorized by the authority.
(11)(a) Notwithstanding subsection (2) or (6)(b) of this section, if an applicant for a registry
identification card, or a registry identification cardholder applying for renewal of a registry iden-
tification card, submits to the authority proof of having served in the Armed Forces of the United
States, the authority:
(A) May not impose a fee that is greater than $20 for the issuance or renewal of the registry
identification card; and
(B) Must waive the fee for the issuance or renewal of the registry identification card if the ap-
plicant submits proof of having a United States Department of Veterans Affairs total disability rat-
ing of at least 50 percent as a result of an injury or illness that the veteran incurred, or that was
aggravated, during active military service and who received a discharge or release under other than
dishonorable conditions.
(b) Notwithstanding subsection (6)(b)(A) of this section, the requirement that a registry identifi-
cation cardholder include in the application to renew a registry identification card updated written
documentation from the cardholder’s attending provider regarding the cardholder’s continuing de-
bilitating medical condition does not apply to a service-disabled veteran who:
(A) Has been assigned a total and permanent disability rating for compensation that rates the
veteran as unable to secure or follow a substantially gainful occupation as a result of service-
connected disabilities as described in 38 C.F.R. 4.16; or
(B) Has a United States Department of Veterans Affairs total disability rating of 100 percent
as a result of an injury or illness that the veteran incurred, or that was aggravated, during active
military service and who received a discharge or release under other than dishonorable conditions.
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(12) For any purpose described in ORS 475C.770 to 475C.919, including exemption from criminal
liability under ORS 475C.883, a receipt issued by the authority verifying that an application has
been submitted to the authority under subsection (2), (3) or (6)(b) of this section has the same legal
effect as a registry identification card for 30 days following the date on which the receipt was issued
to the applicant.
SECTION 190.
ORS 475C.786 is amended to read:
475C.786. A designated primary caregiver may assist the designating registry identification
cardholder with any matter related to the medical use of [ marijuana] cannabis, including:
(1) The production of [ marijuana] cannabis at the address provided by the registry identification
cardholder to the Oregon Health Authority pursuant to ORS 475C.783 (2)(f); and
(2) The processing of [ marijuana] cannabis into cannabinoid concentrates or medical
cannabinoid products.
SECTION 191. ORS 475C.792 is amended to read:
475C.792. (1)(a) The Oregon Health Authority shall establish by rule a [ marijuana] cannabis
grow site registration system to track and regulate the production of [ marijuana] cannabis by a
registry identification cardholder or a person designated by the registry identification cardholder to
produce [ marijuana] cannabis for the registry identification cardholder.
(b) Except as provided in paragraph (c) of this subsection, a person may not produce
[marijuana] cannabis unless the person is registered under this section.
(c) Paragraph (b) of this subsection does not apply to the production of [ marijuana] cannabis
as provided in ORS 475C.005 to 475C.525 or as otherwise provided for by the statutory laws of this
state.
(2) Rules adopted under this section must require an applicant for a registry identification card,
or a registry identification cardholder who produces [ marijuana] cannabis or who designates an-
other person to produce [ marijuana] cannabis, to submit an application to the authority containing
the following information at the time of making an application under ORS 475C.783 (2), renewing a
registry identification card under ORS 475C.783 (6)(b), or notifying the authority of a change under
ORS 475C.783 (6)(a):
(a) The name of the person responsible for the [ marijuana] cannabis grow site;
(b) Proof that the person is 21 years of age or older;
(c) If the registry identification cardholder or the person responsible for the [marijuana]
cannabis grow site is not the owner of the premises of the [ marijuana] cannabis grow site, signed
informed consent from the owner of the premises to register the premises as a [ marijuana] cannabis
grow site;
(d) The address of the [ marijuana] cannabis grow site; and
(e) Any other information that the authority considers necessary to track the production of
[marijuana] cannabis under ORS 475C.770 to 475C.919.
(3)(a) The authority shall conduct a criminal records check under ORS 181A.195 of any person
whose name is submitted under this section as the person responsible for a [ marijuana] cannabis
grow site.
(b) A person convicted of a Class A or Class B felony under ORS 475.752 to 475.920 for the
manufacture or delivery of a controlled substance in Schedule I or Schedule II may not act as or
be designated a person responsible for a [ marijuana] cannabis grow site for two years from the date
of conviction.
(c) A person convicted more than once of a Class A or Class B felony under ORS 475.752 to
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475.920 for the manufacture or delivery of a controlled substance in Schedule I or Schedule II may
not act as or be designated a person responsible for a [ marijuana] cannabis grow site.
(4) Subject to subsection (11) of this section, the authority shall issue a [ marijuana] cannabis
grow site registration card if the requirements of subsections (2) and (3) of this section are met.
(5) A person who holds a [ marijuana] cannabis grow site registration card under this section
must display the card at the [ marijuana] cannabis grow site at all times.
(6) A [ marijuana] cannabis grow site registration card must be obtained and posted for each
registry identification cardholder for whom [ marijuana] cannabis is being produced at a
[marijuana] cannabis grow site.
(7)(a) All seeds, immature [ marijuana] cannabis plants, mature [ marijuana] cannabis plants and
usable [ marijuana] cannabis associated with the production of [ marijuana] cannabis for a registry
identification cardholder by a person responsible for a [ marijuana] cannabis grow site are the
property of the registry identification cardholder.
(b) All seeds, immature [ marijuana] cannabis plants, mature [ marijuana] cannabis plants and
usable [ marijuana] cannabis associated with the production of [ marijuana] cannabis for a registry
identification cardholder by a person responsible for a [ marijuana] cannabis grow site must be
transferred to the registry identification cardholder upon the request of the registry identification
cardholder.
(c) All usable [ marijuana] cannabis associated with the production of [ marijuana] cannabis for
a registry identification cardholder by a person responsible for a [ marijuana] cannabis grow site
must be transferred to a [ marijuana] cannabis processing site upon the request of the registry
identification cardholder. For purposes of this paragraph, a request to transfer usable [ marijuana]
cannabis constitutes an assignment of the right to possess the usable [ marijuana] cannabis.
(d) All seeds, immature [ marijuana] cannabis plants and usable [marijuana] cannabis associated
with the production of [ marijuana] cannabis for a registry identification cardholder by a person
responsible for a [ marijuana] cannabis grow site must be transferred to a medical [ marijuana]
cannabis dispensary upon request of the registry identification cardholder. For purposes of this
paragraph, a request to transfer seeds, immature [ marijuana] cannabis plants or usable
[marijuana] cannabis constitutes an assignment of the right to possess the seeds, immature
[marijuana] cannabis plants or usable [ marijuana] cannabis.
(e) Information related to transfers made under this subsection must be submitted to the au-
thority in the manner required by ORS 475C.795.
(8) A registry identification cardholder, or the designated caregiver of a registry identification
cardholder, may reimburse a person responsible for a [ marijuana] cannabis grow site for all costs
associated with the production of [ marijuana] cannabis for the registry identification cardholder.
(9) The authority may inspect:
(a) The [marijuana] cannabis grow site of a person designated to produce [ marijuana] cannabis
by a registry identification cardholder to ensure compliance with this section and ORS 475C.795 and
475C.806 and any rule adopted under this section and ORS 475C.795 and 475C.806; and
(b) The records of the [ marijuana] cannabis grow site of a person designated to produce
[marijuana] cannabis by a registry identification cardholder to ensure compliance with this section
and ORS 475C.795 and any rule adopted under this section and ORS 475C.795.
(10) The authority may refuse to register a registry identification cardholder or a designee under
this section or may suspend or revoke the registration of a person responsible for a [ marijuana]
cannabis grow site if the authority determines that the applicant or the person responsible for a
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[marijuana] cannabis grow site violated a provision of ORS 475C.770 to 475C.919, a rule adopted
under ORS 475C.770 to 475C.919 or an ordinance adopted pursuant to ORS 475C.827.
(11) The authority may require a person responsible for a [ marijuana] cannabis grow site, prior
to issuing a [ marijuana] cannabis grow site registration card under subsection (4) of this section,
to pay a fee reasonably calculated to pay costs incurred under this section and ORS 475C.795 and
475C.856.
SECTION 192.
Section 8, chapter 103, Oregon Laws 2018, is amended to read:
Sec. 8. The fact that a [ marijuana] cannabis grow site registered under ORS 475B.810
[renumbered 475C.792] is subject to the provisions of ORS 475B.895 [renumbered 475C.871] does not,
by itself, mean that the [ marijuana] cannabis grow site is a commercial operation for purposes of
state law.
SECTION 193. ORS 475C.794 is amended to read:
475C.794. (1) For purposes of ORS 475C.770 to 475C.919, if a [ marijuana] cannabis grow site has
a physical United States Postal Service address, an application filed for a [ marijuana] cannabis
grow site registration card under ORS 475C.792 must include the physical address. If the grow site
does not have a physical United States Postal Service address, the application must include:
(a) An assessor’s map number with a map showing the exact location of the grow site;
(b) The name of the city or, if outside of a city, the name of the county in which the grow site
is located;
(c) The zip code for the location; and
(d) One or more of the following for the location:
(A) Longitude and latitude coordinates;
(B) Township coordinates;
(C) Global positioning system coordinates; or
(D) The tax lot number.
(2) For purposes of ORS 475C.792, the Oregon Health Authority shall accept the forms of evi-
dence described in subsection (1) of this section for the purpose of establishing the address where
a [ marijuana] cannabis grow site is located.
SECTION 194.
ORS 475C.795 is amended to read:
475C.795. (1) A person designated to produce [ marijuana] cannabis by a registry identification
cardholder must submit to the Oregon Health Authority, in a form and manner established by the
authority by rule, the following information related to the production of [ marijuana] cannabis:
(a) The number of mature [ marijuana] cannabis plants and immature [ marijuana] cannabis
plants, the amount of [ marijuana] cannabis leaves and flowers being dried, and the amount of usable
[marijuana] cannabis, in the person’s possession;
(b) The number of mature [ marijuana] cannabis plants and immature [ marijuana] cannabis
plants, and the amount of usable [ marijuana] cannabis, that the person transfers to each registry
identification cardholder for whom the person produces [ marijuana] cannabis;
(c) The amount of usable [ marijuana] cannabis that the person transfers to each [ marijuana]
cannabis processing site; and
(d) The number of immature [ marijuana] cannabis plants, and the amount of usable
[marijuana] cannabis, that the person transfers to each medical [ marijuana] cannabis dispensary.
(2) The authority shall by rule require a person designated to produce [ marijuana] cannabis by
a registry identification cardholder to submit the information described in subsection (1) of this
section once each month. The authority may not employ any method other than that described in
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this section to obtain information related to the production of [ marijuana] cannabis from a person
designated to produce [ marijuana] cannabis by a registry identification cardholder.
(3) In addition to submitting the information as required by subsection (1) of this section, a
person designated to produce [ marijuana] cannabis by a registry identification cardholder must keep
a record of the information described in subsection (1) of this section for two years after the date
on which the person submits the information to the authority.
SECTION 195.
ORS 475C.797 is amended to read:
475C.797. (1) Notwithstanding ORS 475C.795 (2), a person designated to produce [ marijuana]
cannabis by a registry identification cardholder may delegate the person’s duty to submit to the
Oregon Health Authority the information described in ORS 475C.795 to another person designated
to produce [ marijuana] cannabis by a registry identification cardholder if the [ marijuana] cannabis
grow sites for which the persons are required to submit the information are located at the same
address.
(2) A person to whom the duty described in subsection (1) of this section is delegated must in-
form the authority of the delegation in a form and manner prescribed by the authority.
(3) In adopting rules prescribing the form and manner in which information is submitted to the
authority under ORS 475C.795, the authority shall adopt rules that lessen the administrative burden
on persons to whom the duty described in subsection (1) of this section is delegated.
SECTION 196. ORS 475C.798 is amended to read:
475C.798. Notwithstanding ORS 475C.792 (7), a person responsible for a [ marijuana] cannabis
grow site may enter into an agreement with a registry identification cardholder under which the
registry identification cardholder assigns, to the person responsible for the [ marijuana] cannabis
grow site, a portion of the right to possess the seeds, immature [ marijuana] cannabis plants and
usable [ marijuana] cannabis that are the property of the registry identification cardholder.
SECTION 197. ORS 475C.800 is amended to read:
475C.800. (1) Subject to subsection (2) of this section, a [ marijuana] cannabis grow site may
transfer up to 20 pounds of usable [ marijuana] cannabis per year to a person that holds a license
issued under ORS 475C.085 or 475C.093, provided that:
(a) The transfer is tracked using the system developed and maintained under ORS 475C.177;
(b) More than 12 mature [ marijuana] cannabis plants are produced at the [ marijuana] cannabis
grow site;
(c) The usable [ marijuana] cannabis has been assigned to the person responsible for the
[marijuana] cannabis grow site pursuant to ORS 475C.798;
(d) The usable [ marijuana] cannabis has been tested in accordance with the provisions of ORS
475C.540 to 475C.586; and
(e) The [marijuana] cannabis grow site first registered with the Oregon Health Authority under
ORS 475C.792 on or before August 2, 2017.
(2) If the Oregon Liquor and Cannabis Commission determines that the supply of [ marijuana]
cannabis items offered for sale by [ marijuana] cannabis retailers that hold a license issued under
ORS 475C.097 is exceeding consumer demand for the [ marijuana] cannabis items, and if the com-
mission determines that the market for [ marijuana] cannabis items in this state will not self-correct
for the excess, the commission may issue an order that temporarily reduces the amount of usable
[marijuana] cannabis that may be transferred pursuant to this section or that temporarily suspends
the ability to transfer usable [ marijuana] cannabis pursuant to this section.
SECTION 198.
ORS 475C.803 is amended to read:
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475C.803. ORS 475C.871 does not authorize the Oregon Health Authority or the Oregon Liquor
and Cannabis Commission to require a [ marijuana] cannabis grow site to use a security system or
any component of a security system, such as video surveillance, an alarm system, sensors or physical
barriers.
SECTION 199.
ORS 475C.806 is amended to read:
475C.806. (1)(a) A registry identification cardholder and the designated primary caregiver of the
registry identification cardholder may jointly possess:
(A) Six or fewer mature [ marijuana] cannabis plants; and
(B) Twelve or fewer immature [ marijuana] cannabis plants.
(b)(A) Unless an address is the [ marijuana] cannabis grow site of a person designated to
produce [ marijuana] cannabis by a registry identification cardholder, the address where a registry
identification cardholder or the primary caregiver of a registry identification cardholder produces
[marijuana] cannabis may be used to produce not more than:
(i) Six or fewer mature [ marijuana] cannabis plants per registry identification cardholder, up
to 12 mature [ marijuana] cannabis plants; and
(ii) Twelve or fewer immature [ marijuana] cannabis plants per registry identification
cardholder, up to 24 immature [ marijuana] cannabis plants.
(B) Except as provided in subparagraph (C) of this paragraph, an address that is subject to this
paragraph may not be used to produce plants in the genus Cannabis within the plant family
Cannabaceae pursuant to ORS 475C.305.
(C) Subject to subparagraph (D) of this paragraph, an address that is subject to this paragraph
may be used to produce plants in the genus Cannabis within the plant family Cannabaceae pursuant
to ORS 475C.305 if a person other than a registry identification cardholder who is using the address
to produce [ marijuana] cannabis plants pursuant to ORS 475C.770 to 475C.919 resides at the ad-
dress.
(D) An address that is subject to this paragraph may not be used to produce more than 12 total
mature [ marijuana] cannabis plants.
(2)(a) A person may be designated to produce [ marijuana] cannabis under ORS 475C.792 by no
more than eight registry identification cardholders.
(b) A person responsible for a [ marijuana] cannabis grow site may produce for a registry iden-
tification cardholder who designates the person to produce [ marijuana] cannabis no more than:
(A) Six mature [ marijuana] cannabis plants;
(B) 12 immature [ marijuana] cannabis plants that are 24 inches or more in height; and
(C) The amount, established by the Oregon Health Authority by rule, of immature [ marijuana]
cannabis plants that are less than 24 inches in height.
(3) If the address of a person responsible for a [ marijuana] cannabis grow site registered under
ORS 475C.792 is located within city limits in an area zoned for residential use:
(a) Except as provided in paragraph (b) of this subsection, no more than the following amounts
of [ marijuana] cannabis plants may be produced at the address:
(A) 12 mature [ marijuana] cannabis plants;
(B) 24 immature [ marijuana] cannabis plants that are 24 inches or more in height; and
(C) The amount, established by the authority by rule, of immature [ marijuana] cannabis plants
that are less than 24 inches in height; or
(b) Subject to subsection (5) of this section, if each person responsible for a [ marijuana]
cannabis grow site located at the address first registered with the authority under ORS 475C.792
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before January 1, 2015, no more than the following amounts of [ marijuana] cannabis plants may be
produced at the address:
(A) The amount of mature [ marijuana] cannabis plants located at that address on December 31,
2014, in excess of 12 mature [ marijuana] cannabis plants, not to exceed 24 mature [ marijuana]
cannabis plants;
(B) 48 immature [ marijuana] cannabis plants that are 24 inches or more in height; and
(C) The amount, established by the authority by rule, of immature [ marijuana] cannabis plants
that are less than 24 inches in height.
(4) If the address of a person responsible for a [ marijuana] cannabis grow site registered under
ORS 475C.792 is located in an area other than an area described in subsection (3) of this section:
(a) Except as provided in paragraph (b) of this subsection, no more than the following amounts
of [ marijuana] cannabis plants may be produced at the address:
(A) 48 mature [ marijuana] cannabis plants;
(B) 96 immature [ marijuana] cannabis plants that are 24 inches or more in height; and
(C) The amount, established by the authority by rule, of immature [ marijuana] cannabis plants
that are less than 24 inches in height; or
(b) Subject to subsections (5) and (6) of this section, if each person responsible for a
[marijuana] cannabis grow site located at the address first registered with the authority under ORS
475C.792 before January 1, 2015, no more than the following amounts of [ marijuana] cannabis plants
may be produced at the address:
(A) The amount of mature [ marijuana] cannabis plants located at that address on December 31,
2014, in excess of 48 mature [ marijuana] cannabis plants, not to exceed 96 mature [ marijuana]
cannabis plants;
(B) 192 immature [ marijuana] cannabis plants that are 24 inches or more in height; and
(C) The amount, established by the authority by rule, of immature [ marijuana] cannabis plants
that are less than 24 inches in height.
(5)(a) If the authority suspends or revokes the registration of a person responsible for a
[marijuana] cannabis grow site that is located at an address described in subsection (3)(b) of this
section, no more than the following amounts of [ marijuana] cannabis plants may subsequently be
produced at any address described in subsection (3) of this section at which the person responsible
for the [ marijuana] cannabis grow site produces [ marijuana] cannabis:
(A) 12 mature [ marijuana] cannabis plants;
(B) 24 immature [ marijuana] cannabis plants that are 24 inches or more in height; and
(C) The amount, established by the authority by rule, of immature [ marijuana] cannabis plants
that are less than 24 inches in height.
(b) If the authority suspends or revokes the registration of a person responsible for a
[marijuana] cannabis grow site that is located at an address described in subsection (4)(b) of this
section, no more than the following amounts of [ marijuana] cannabis plants may subsequently be
produced at any address described in subsection (4) of this section at which the person responsible
for the [ marijuana] cannabis grow site produces [ marijuana] cannabis:
(A) 48 mature [ marijuana] cannabis plants;
(B) 96 immature [ marijuana] cannabis plants that are 24 inches or more in height; and
(C) The amount, established by the authority by rule, of immature [ marijuana] cannabis plants
that are less than 24 inches in height.
(6) If a registry identification cardholder who designated a person to produce [ marijuana]
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cannabis for the registry identification cardholder pursuant to ORS 475C.792 terminates the desig-
nation, the person responsible for the [ marijuana] cannabis grow site whose designation has been
terminated may not be designated to produce [ marijuana] cannabis by another registry identifica-
tion cardholder, except that the person may be designated by another registry identification
cardholder if no more than 48 mature [ marijuana] cannabis plants and no more than 96 immature
[marijuana] cannabis plants that are 24 or more inches in height are produced at the address for
the [ marijuana] cannabis grow site at which the person produces [ marijuana] cannabis.
(7) Subject to the limits described in subsections (2) to (6) of this section, if multiple persons
responsible for a [ marijuana] cannabis grow site under ORS 475C.792 are located at the same ad-
dress, the persons designated to produce [ marijuana] cannabis by registry identification cardholders
who are located at that address may collectively produce [ marijuana] cannabis plants for any
number of registry identification cardholders who designate the persons to produce [ marijuana]
cannabis.
(8) If a law enforcement officer determines that there is a number of [ marijuana] cannabis
plants at an address in excess of the quantities specified in this section, or that an address is being
used to produce a number of [ marijuana] cannabis plants in excess of the quantities specified in
subsection (1)(b) of this section, the law enforcement officer may confiscate only the excess number
of [ marijuana] cannabis plants.
SECTION 200.
ORS 475C.809 is amended to read:
475C.809. (1) Except as provided in subsection (2) of this section, a registry identification
cardholder and the designated primary caregiver of the registry identification cardholder may jointly
possess no more than 24 ounces of usable [marijuana] cannabis.
(2) Subject to subsection (3) of this section, a person designated to produce [ marijuana] cannabis
by a registry identification cardholder may possess the amount of usable [ marijuana] cannabis that
the person harvests from the person’s mature [ marijuana] cannabis plants, provided that the person
may not possess usable [ marijuana] cannabis in excess of the amount of usable [ marijuana]
cannabis in the person’s possession as reported to the Oregon Health Authority under ORS
475C.795.
(3) A person designated to produce [marijuana] cannabis by a registry identification cardholder
may not possess usable [ marijuana] cannabis in excess of:
(a) For a [ marijuana] cannabis grow site located outdoors, 12 pounds of usable [ marijuana]
cannabis per mature [ marijuana] cannabis plant; or
(b) For a [ marijuana] cannabis grow site located indoors, six pounds of usable [ marijuana]
cannabis per mature [ marijuana] cannabis plant.
SECTION 201.
ORS 475C.812 is amended to read:
475C.812. A person to whom a registry identification card has been issued under ORS 475C.783
(5)(a), an identification card has been issued under ORS 475C.783 (5)(b), or a [ marijuana] cannabis
grow site registration card has been issued under ORS 475C.792, may not possess [ marijuana]
cannabis, usable [ marijuana] cannabis, medical cannabinoid products, cannabinoid concentrates or
cannabinoid extracts in a location other than the address on file with the Oregon Health Authority
unless the person is carrying the card.
SECTION 202. ORS 475C.815 is amended to read:
475C.815. (1)(a) The Oregon Health Authority shall establish by rule a [ marijuana] cannabis
processing site registration system to track and regulate the processing of [ marijuana] cannabis by
a person responsible for a [ marijuana] cannabis processing site.
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(b) Except as provided in paragraph (c) of this subsection, a person may not process
[marijuana] cannabis unless the person is registered under this section.
(c) Paragraph (b) of this subsection does not apply to the processing of [ marijuana] cannabis
as provided in ORS 475C.005 to 475C.525 or as otherwise provided for by the statutory laws of this
state.
(2) The registration system established under subsection (1) of this section must require an ap-
plicant for a [ marijuana] cannabis processing site to submit an application to the authority that
includes:
(a) The name of the individual who owns the [ marijuana] cannabis processing site or, if a
business entity owns the [marijuana] cannabis processing site, the name of each individual who has
a financial interest in the [ marijuana] cannabis processing site;
(b) The name of the individual or individuals responsible for the [ marijuana] cannabis process-
ing site, if different from the name of the individual who owns the [ marijuana] cannabis processing
site;
(c) The address of the [ marijuana] cannabis processing site;
(d) Proof that each individual responsible for the [ marijuana] cannabis processing site is 21
years of age or older;
(e) Documentation, as required by the authority by rule, that demonstrates the [ marijuana]
cannabis processing site meets the requirements of subsection (3) of this section; and
(f) Any other information that the authority considers necessary.
(3) To qualify for registration under this section, a [marijuana] cannabis processing site:
(a) May not be located in an area that is zoned for residential use if the [ marijuana] cannabis
processing site processes cannabinoid extracts;
(b) Must be registered as a business, or have filed an application to register as a business, with
the office of the Secretary of State; and
(c) Must meet the requirements of any rule adopted by the authority under subsection (10) of
this section.
(4)(a) The authority shall conduct a criminal records check under ORS 181A.195 for each indi-
vidual named in an application under subsection (2) of this section.
(b) An individual convicted for the manufacture or delivery of a controlled substance in Sched-
ule I or Schedule II may not own or be responsible for a [ marijuana] cannabis processing site for
two years from the date the individual is convicted.
(c) An individual convicted more than once for the manufacture or delivery of a controlled
substance in Schedule I or Schedule II may not own or be responsible for a [ marijuana] cannabis
processing site.
(5) If a person submits the application required under subsection (2) of this section, if the
[marijuana] cannabis processing site identified in the application meets the requirements of this
section and any rules adopted under this section and if each individual named in the application
passes the criminal records check required under subsection (4) of this section, the authority shall
register the [ marijuana] cannabis processing site and issue proof of registration. Proof of registra-
tion must be displayed on the premises of the [ marijuana] cannabis processing site at all times.
(6) A [ marijuana] cannabis processing site that is registered under this section is not required
to register with the State Board of Pharmacy under ORS 475.125.
(7) The individual or individuals responsible for a [ marijuana] cannabis processing site shall
maintain documentation of each transfer of usable [ marijuana] cannabis, medical cannabinoid pro-
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ducts, cannabinoid concentrates and cannabinoid extracts.
(8) The authority may inspect:
(a) The premises of a proposed [marijuana] cannabis processing site or a registered
[marijuana] cannabis processing site to ensure compliance with this section and ORS 475C.821 and
475C.824 and any rules adopted under this section and ORS 475C.821 and 475C.824; and
(b) The records of a registered [ marijuana] cannabis processing site to ensure compliance with
subsection (7) of this section.
(9) Subject to the provisions of ORS chapter 183, the authority may refuse to register an appli-
cant under this section or may suspend or revoke the registration of a [ marijuana] cannabis pro-
cessing site if the authority determines that the applicant, the owner of the [ marijuana] cannabis
processing site, a person responsible for the [ marijuana] cannabis processing site, or an employee
of the [ marijuana] cannabis processing site, violated a provision of ORS 475C.770 to 475C.919, a rule
adopted under ORS 475C.770 to 475C.919 or an ordinance adopted pursuant to ORS 475C.897.
(10) The authority shall adopt rules to implement this section, including rules that:
(a) Require a registered [marijuana] cannabis processing site to annually renew the registration
for that site;
(b) Establish fees for registering, and renewing the registration of, a [ marijuana] cannabis pro-
cessing site;
(c) Require that medical cannabinoid products, cannabinoid concentrates and cannabinoid ex-
tracts transferred by a [ marijuana] cannabis processing site be tested to ensure the public health
and safety; and
(d) Impose any other standard on the operation of a [ marijuana] cannabis processing site to
ensure the public health and safety.
SECTION 203.
ORS 475C.821 is amended to read:
475C.821. (1) The Oregon Health Authority shall require by rule a [ marijuana] cannabis pro-
cessing site to submit to the authority for inclusion in the database developed and maintained pur-
suant to ORS 475C.856 the following information:
(a) The amount of usable [ marijuana] cannabis transferred to the [ marijuana] cannabis pro-
cessing site;
(b) The amount and type of medical cannabinoid products transferred by the [ marijuana]
cannabis processing site;
(c) The amount and type of cannabinoid concentrates transferred by the [ marijuana] cannabis
processing site; and
(d) The amount and type of cannabinoid extracts transferred by the [ marijuana] cannabis pro-
cessing site.
(2) The authority by rule may require a [ marijuana] cannabis processing site to submit to the
authority for inclusion in the database developed and maintained pursuant to ORS 475C.856 infor-
mation that is in addition to the information described in subsection (1) of this section as the au-
thority considers necessary to fulfill the authority’s duties under ORS 475C.815 (1). The authority
may not employ any method other than that described in this section to obtain information from a
[marijuana] cannabis processing site.
SECTION 204. ORS 475C.824 is amended to read:
475C.824. (1) A [ marijuana] cannabis processing site must meet any public health and safety
standards established by the Oregon Health Authority by rule related to:
(a) Cannabinoid edibles, if the [ marijuana] cannabis processing site processes [ marijuana]
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cannabis into cannabinoid edibles;
(b) Cannabinoid concentrates, if the [ marijuana] cannabis processing site processes [ marijuana]
cannabis into cannabinoid concentrates;
(c) Cannabinoid extracts, if the [ marijuana] cannabis processing site processes [ marijuana]
cannabis into cannabinoid extracts; or
(d) Any other type of medical cannabinoid product identified by the authority by rule, if the
[marijuana] cannabis processing site processes [ marijuana] cannabis into that type of medical
cannabinoid product.
(2) The authority shall adopt rules to implement this section.
SECTION 205.
ORS 475C.827 is amended to read:
475C.827. (1)(a) Except as provided in paragraph (b) of this subsection, a [ marijuana] cannabis
processing site may not transfer medical cannabinoid products, cannabinoid concentrates or
cannabinoid extracts to a person other than another [ marijuana] cannabis processing site or a
medical [ marijuana] cannabis dispensary.
(b) A [ marijuana] cannabis processing site may transfer a medical cannabinoid product,
cannabinoid concentrate or cannabinoid extract to a registry identification cardholder, or the des-
ignated primary caregiver of a registry identification cardholder, provided that the registry iden-
tification cardholder or designated primary caregiver provides the [ marijuana] cannabis processing
site with the [ marijuana] cannabis to be processed into the medical cannabinoid product,
cannabinoid concentrate or cannabinoid extract and the [ marijuana] cannabis processing site re-
ceives no compensation for the transfer.
(c) A registry identification cardholder, or the designated primary caregiver of a registry iden-
tification cardholder, may reimburse a [ marijuana] cannabis processing site for all costs associated
with the processing of [ marijuana] cannabis for the registry identification cardholder.
(2) A person other than a [ marijuana] cannabis processing site may not transfer medical
cannabinoid products, cannabinoid concentrates or cannabinoid extracts to a medical [ marijuana]
cannabis dispensary.
SECTION 206. ORS 475C.833 is amended to read:
475C.833. (1)(a) The Oregon Health Authority shall establish by rule a medical [ marijuana]
cannabis dispensary registration system for the purpose of tracking and regulating the transfer of:
(A) Usable [ marijuana] cannabis, immature [ marijuana] cannabis plants and seeds from registry
identification cardholders, designated primary caregivers and persons responsible for [ marijuana]
cannabis grow sites to medical [ marijuana] cannabis dispensaries;
(B) Medical cannabinoid products, cannabinoid concentrates and cannabinoid extracts from
persons responsible for [ marijuana] cannabis processing sites to medical [ marijuana] cannabis
dispensaries; and
(C) Usable [ marijuana] cannabis, immature [ marijuana] cannabis plants, seeds, medical
cannabinoid products, cannabinoid concentrates and cannabinoid extracts from medical [ marijuana]
cannabis dispensaries to registry identification cardholders and designated primary caregivers.
(b) A person may not operate an establishment for the purpose of providing the services de-
scribed in paragraph (a) of this subsection unless the person is registered under this section.
(2) The registration system established under subsection (1) of this section must require an ap-
plicant for a medical [ marijuana] cannabis dispensary to submit an application to the authority that
includes:
(a) The name of the individual who owns the medical [ marijuana] cannabis dispensary or, if a
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business entity owns the medical [marijuana] cannabis dispensary, the name of each individual who
has a financial interest in the medical [ marijuana] cannabis dispensary;
(b) The name of the individual or individuals responsible for the medical [ marijuana] cannabis
dispensary, if different from the name of the individual who owns the medical [ marijuana] cannabis
dispensary;
(c) The address of the medical [ marijuana] cannabis dispensary;
(d) Proof that each individual responsible for the medical [ marijuana] cannabis dispensary is 21
years of age or older;
(e) Documentation, as required by the authority by rule, that demonstrates the medical
[marijuana] cannabis dispensary meets the requirements of subsection (3) of this section; and
(f) Any other information that the authority considers necessary.
(3) To qualify for registration under this section, a medical [marijuana] cannabis dispensary:
(a) May not be located in an area that is zoned for residential use;
(b) May not be located at the same address as a [marijuana] cannabis grow site;
(c) Must be registered as a business, or have filed an application to register as a business, with
the office of the Secretary of State;
(d) Except as provided under ORS 475C.840, may not be located within 1,000 feet of:
(A) A building where a public prekindergarten or kindergarten program is provided by a school
district or an education service district;
(B) A public elementary or secondary school for which attendance is compulsory under ORS
339.020; or
(C) A private or parochial elementary or secondary school, teaching children as described in
ORS 339.030 (1)(a);
(e) Must not be located within 1,000 feet of another medical [ marijuana] cannabis dispensary;
and
(f) Must meet the requirements of any rule adopted by the authority under subsection (10) of this
section.
(4)(a) The authority shall conduct a criminal records check under ORS 181A.195 for each indi-
vidual named in an application submitted under subsection (2) of this section.
(b) An individual convicted for the manufacture or delivery of a controlled substance in Sched-
ule I or Schedule II may not own or be responsible for a medical [ marijuana] cannabis dispensary
for two years from the date the individual is convicted.
(c) An individual convicted more than once for the manufacture or delivery of a controlled
substance in Schedule I or Schedule II may not own or be responsible for a medical [ marijuana]
cannabis dispensary.
(5) If a person submits the application required under subsection (2) of this section, if the med-
ical [ marijuana] cannabis dispensary identified in the application meets the requirements of this
section and any rules adopted under this section and if each individual named in the application
passes the criminal records check required under subsection (4) of this section, the authority shall
register the medical [ marijuana] cannabis dispensary and issue proof of registration. Proof of reg-
istration must be displayed on the premises of the medical [ marijuana] cannabis dispensary at all
times.
(6) A medical [ marijuana] cannabis dispensary that is registered under this section is not re-
quired to register with the State Board of Pharmacy under ORS 475.125.
(7) The individual or individuals responsible for a medical [ marijuana] cannabis dispensary shall
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maintain documentation of each transfer of usable [ marijuana] cannabis, medical cannabinoid pro-
ducts, cannabinoid concentrates, cannabinoid extracts, immature [ marijuana] cannabis plants and
seeds.
(8) The authority may inspect:
(a) The premises of a proposed medical [marijuana] cannabis dispensary or a registered medical
[marijuana] cannabis dispensary to ensure compliance with this section and ORS 475C.843 and any
rules adopted under this section or ORS 475C.843; and
(b) The records of a registered medical [ marijuana] cannabis dispensary to ensure compliance
with subsection (7) of this section.
(9) Subject to the provisions of ORS chapter 183, the authority may refuse to register an appli-
cant under this section or may suspend or revoke the registration of a medical [ marijuana] cannabis
dispensary if the authority determines that the applicant, the owner of the medical [ marijuana]
cannabis dispensary, a person responsible for the medical [ marijuana] cannabis dispensary, or an
employee of the medical [ marijuana] cannabis dispensary, violated a provision of ORS 475C.770 to
475C.919, a rule adopted under ORS 475C.770 to 475C.919 or an ordinance adopted pursuant to ORS
475C.897.
(10) The authority shall adopt rules to implement this section, including rules that:
(a) Require a registered medical [ marijuana] cannabis dispensary to annually renew the regis-
tration for that dispensary;
(b) Establish fees for registering, and renewing the registration of, a medical [ marijuana]
cannabis dispensary;
(c) Require that each medical [ marijuana] cannabis dispensary install and maintain a minimum
security system that includes video surveillance, an alarm system and a safe;
(d) Require that usable [ marijuana] cannabis, medical cannabinoid products, cannabinoid con-
centrates, cannabinoid extracts and immature [ marijuana] cannabis plants transferred by a medical
[marijuana] cannabis dispensary be tested to ensure the public health and safety; and
(e) Impose any other standard on the operation of a medical [ marijuana] cannabis dispensary
to ensure the public health and safety.
SECTION 207.
ORS 475C.840 is amended to read:
475C.840. Notwithstanding ORS 475C.833 (3)(d), a medical [ marijuana] cannabis dispensary may
be located within 1,000 feet of a building described in ORS 475C.833 (3)(d) if:
(1)(a) The medical [ marijuana] cannabis dispensary is not located within 500 feet of:
(A) A building where a public prekindergarten or kindergarten program is provided by a school
district or an education service district;
(B) A public elementary or secondary school for which attendance is compulsory under ORS
339.020; or
(C) A private or parochial elementary or secondary school, teaching children as described in
ORS 339.030 (1)(a); and
(b) The Oregon Health Authority determines that there is a physical or geographic barrier ca-
pable of preventing children from traversing to the premises of the medical [ marijuana] cannabis
dispensary; or
(2) The medical [ marijuana] cannabis dispensary was established before August 1, 2017, in ac-
cordance with a city or county ordinance adopted under section 29, chapter 83, Oregon Laws 2016.
SECTION 208. ORS 475C.843 is amended to read:
475C.843. (1) The Oregon Health Authority shall require by rule a medical [ marijuana] cannabis
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dispensary to submit to the authority for inclusion in the database developed and maintained pur-
suant to ORS 475C.856 the following information:
(a) The amount of usable [ marijuana] cannabis transferred to and by the medical [ marijuana]
cannabis dispensary;
(b) The amount and type of medical cannabinoid products transferred to and by the medical
[marijuana] cannabis dispensary;
(c) The amount and type of cannabinoid concentrates transferred to and by the medical
[marijuana] cannabis dispensary;
(d) The amount and type of cannabinoid extracts transferred to and by the medical [ marijuana]
cannabis dispensary; and
(e) The quantity of immature [ marijuana] cannabis plants transferred to and by the medical
[marijuana] cannabis dispensary.
(2) The authority by rule may require a medical [ marijuana] cannabis dispensary to submit to
the authority for inclusion in the database developed and maintained pursuant to ORS 475C.856 in-
formation that is in addition to the information described in subsection (1) of this section as the
authority considers necessary to fulfill the authority’s duties under ORS 475C.833 (1). The authority
may not employ any method other than that described in this section to obtain information from a
medical [ marijuana] cannabis dispensary.
SECTION 209.
ORS 475C.847 is amended to read:
475C.847. If a building described in ORS 475C.833 (3)(d) that has not previously been attended
by children is established within 1,000 feet of a medical [ marijuana] cannabis dispensary, the med-
ical [ marijuana] cannabis dispensary may remain at its current location unless the Oregon Health
Authority revokes the registration of the medical [ marijuana] cannabis dispensary.
SECTION 210. ORS 475C.850 is amended to read:
475C.850. (1) In addition to the powers granted nonprofit corporations under ORS 65.077 and
65.081, a medical [ marijuana] cannabis dispensary that is owned by a nonprofit corporation organ-
ized under ORS chapter 65 may receive by gift, devise or bequest:
(a) Usable [ marijuana] cannabis, immature [marijuana] cannabis plants and seeds from registry
identification cardholders, designated primary caregivers, persons responsible for [ marijuana]
cannabis grow sites, persons who hold a license under ORS 475C.065 and persons who hold a cer-
tificate under ORS 475C.289; and
(b) Medical cannabinoid products, cannabinoid concentrates and cannabinoid extracts from per-
sons responsible for [ marijuana] cannabis processing sites, persons who hold a license under ORS
475C.085 and persons who hold a certificate under ORS 475C.289.
(2) If a registry identification cardholder’s annual income is at or below the federal poverty
guidelines, a medical [ marijuana] cannabis dispensary that is owned by a nonprofit corporation or-
ganized under ORS chapter 65 shall dispense usable [ marijuana] cannabis, immature [ marijuana]
cannabis plants, seeds, medical cannabinoid products, cannabinoid concentrates and cannabinoid
extracts to that registry identification cardholder or the designated primary caregiver of that reg-
istry identification cardholder free of charge or at a discounted price.
(3) The Oregon Health Authority shall adopt rules necessary to implement this section.
SECTION 211.
ORS 475C.853 is amended to read:
475C.853. (1) The Oregon Health Authority shall maintain a telephone hotline for the following
persons to inquire if an address is the location of a [ marijuana] cannabis grow site, [ marijuana]
cannabis processing site or medical [ marijuana] cannabis dispensary or is the proposed location
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of a [ marijuana] cannabis grow site, [ marijuana] cannabis processing site or medical [ marijuana]
cannabis dispensary:
(a) A person designated by a city or a county;
(b) A person designated by the Water Resources Department;
(c) A person designated by the watermaster of any water district; and
(d) A person designated by the State Department of Agriculture.
(2) The authority may disclose the address of a [ marijuana] cannabis grow site for purposes of
this section notwithstanding ORS 475C.859.
SECTION 212.
ORS 475C.856 is amended to read:
475C.856. (1) The Oregon Health Authority shall develop and maintain a database of information
related to the production of [ marijuana] cannabis by persons designated to produce [ marijuana]
cannabis by a registry identification cardholder, the processing of [ marijuana] cannabis by a
[marijuana] cannabis processing site under ORS 475C.815 and the transfer of usable [ marijuana]
cannabis, medical cannabinoid products, cannabinoid concentrates and cannabinoid extracts by
medical [ marijuana] cannabis dispensaries under ORS 475C.833. At a minimum, the database must
include the information submitted to the authority under ORS 475C.795, 475C.821 and 475C.843.
(2)(a) Subject to paragraph (c) of this subsection, the authority may provide information that is
stored in the database developed and maintained under this section to a law enforcement agency.
(b) Subject to paragraph (c) of this subsection, the authority may provide information that is
stored in the database developed and maintained under this section to the regulatory agencies of a
city or county.
(c) The authority may not disclose:
(A) Any personally identifiable information related to a registry identification cardholder or a
designated primary caregiver that is stored in the database developed and maintained under this
section.
(B) Any information related to the amount and type of usable [ marijuana] cannabis, medical
cannabinoid products, cannabinoid concentrates and cannabinoid extracts transferred to or by per-
sons designated to produce [ marijuana] cannabis by a registry identification cardholder,
[marijuana] cannabis processing sites or medical [ marijuana] cannabis dispensaries.
(3) Nothing in this section prevents a law enforcement agency from lawfully obtaining informa-
tion that is stored in the database developed and maintained under this section by subpoena.
SECTION 213.
ORS 475C.859 is amended to read:
475C.859. (1)(a) The Oregon Health Authority shall establish and maintain a list of:
(A) The names of persons to whom a registry identification card has been issued under ORS
475C.783;
(B) The names of persons designated as primary caregivers under ORS 475C.789; and
(C) The addresses of [marijuana] cannabis grow sites registered under ORS 475C.792.
(b) Except as provided in subsection (2) of this section, the list is confidential and not subject
to public disclosure under ORS 192.311 to 192.478.
(c) The authority shall develop a system by which authorized employees of state and local law
enforcement agencies may verify that:
(A) A person lawfully possesses a registry identification card;
(B) A person is the designated primary caregiver of a lawful possessor of a registry identifica-
tion card; or
(C) A location is a registered [ marijuana] cannabis grow site.
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(2) Names, addresses and other identifying information from the list established and maintained
pursuant to subsection (1) of this section may be released to:
(a) Authorized employees of the authority as necessary to perform official duties of the author-
ity.
(b) Authorized employees of state or local law enforcement agencies who provide to the au-
thority adequate identification, but only as necessary to verify that:
(A) A person lawfully possesses a registry identification card;
(B) A person is the designated primary caregiver of a lawful possessor of a registry identifica-
tion card; or
(C) A location is a registered [ marijuana] cannabis grow site.
(3) Authorized employees of state or local law enforcement agencies who obtain identifying in-
formation as authorized by this section may not release or use the information for any purpose other
than to verify that:
(a) A person lawfully possesses a registry identification card;
(b) A person is the designated primary caregiver of a lawful possessor of a registry identification
card; or
(c) A location is a registered [ marijuana] cannabis grow site.
(4) In addition to releasing information to authorized employees of state or local law enforce-
ment agencies for purposes of verifying information under subsection (2)(b) of this section, the au-
thority may release to authorized employees of state or local law enforcement agencies the minimum
amount of information necessary to enable an employee to determine whether an individual or lo-
cation is in compliance with a provision of ORS 475C.770 to 475C.919 or a rule adopted under ORS
475C.770 to 475C.919.
(5) If the authority determines, after conducting an investigation or receiving a complaint of an
alleged violation of a provision of ORS 475C.770 to 475C.919 or a rule adopted under ORS 475C.770
to 475C.919, that a violation of a provision of ORS 475C.770 to 475C.919 or a rule adopted under
ORS 475C.770 to 475C.919 has occurred, the authority may provide information obtained by the au-
thority, except for information related to a registry identification cardholder’s debilitating condition,
to authorized employees of state or local law enforcement agencies, or to another state or local
government agency with jurisdiction over the matter.
SECTION 214.
ORS 475C.862 is amended to read:
475C.862. (1) Any personally identifiable information, as defined in ORS 432.005, other than a
name of an individual or an address submitted with an application under ORS 475C.815 or 475C.833,
that the Oregon Health Authority collects and maintains for purposes of registering a [ marijuana]
cannabis grow site under ORS 475C.792, a [ marijuana] cannabis processing site under ORS
475C.815, or a medical [ marijuana] cannabis dispensary under ORS 475C.833, is confidential and not
subject to public disclosure under ORS 192.311 to 192.478, except that the authority may provide
personally identifiable information to a person registered under ORS 475C.770 to 475C.919 if the
registrant requests the information and the information is related to a designation made under ORS
475C.770 to 475C.919.
(2) Any personally identifiable information, as defined in ORS 432.005, submitted to the authority
under ORS 475C.795, 475C.821 or 475C.843 or pursuant to ORS 475C.856 is confidential and not
subject to public disclosure under ORS 192.311 to 192.478.
(3) Any record that the authority keeps or maintains for purposes related to the installation or
maintenance of a security system by a medical [ marijuana] cannabis dispensary pursuant to rules
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adopted under ORS 475C.833 (10) is confidential and not subject to public disclosure under ORS
192.311 to 192.478.
SECTION 215.
ORS 475C.865 is amended to read:
475C.865. Notwithstanding ORS 475C.862, if the Oregon Health Authority suspends or revokes
the registration of the [ marijuana] cannabis grow site of a person designated to produce
[marijuana] cannabis by a registry identification cardholder, a [ marijuana] cannabis processing site
or a medical [ marijuana] cannabis dispensary, or otherwise takes disciplinary action against the
[marijuana] cannabis grow site of a person designated to produce [ marijuana] cannabis by a regis-
try identification cardholder, a [ marijuana] cannabis processing site or a medical [ marijuana]
cannabis dispensary, the authority shall provide that information to a law enforcement agency.
SECTION 216. ORS 475C.868 is amended to read:
475C.868. (1) Except as provided in subsection (5) of this section, the Oregon Health Authority
shall establish, maintain and operate an electronic system for the keeping of information received
by the authority under ORS 475C.783 and 475C.792 or information included on a registry identifica-
tion card issued under ORS 475C.783 or on a [ marijuana] cannabis grow site registration card is-
sued under ORS 475C.792.
(2) The authority may contract with a state agency or private entity to ensure the effective es-
tablishment, maintenance or operation of the electronic system.
(3) Except as provided in subsection (4) of this section, information kept in the electronic system
is confidential and not subject to public disclosure under ORS 192.311 to 192.478. Except as provided
in subsection (4) of this section, the authority may not disclose the information for any reason.
(4) Except as provided in subsection (5) of this section, the authority shall establish the elec-
tronic system in a manner that allows the Oregon Liquor and Cannabis Commission and the De-
partment of Revenue to remotely access the electronic system. Information disclosed to the
commission and the department under this subsection remains confidential and not subject to public
disclosure under ORS 192.311 to 192.478. The commission and the department may not disclose the
information for any reason.
(5) The authority is not required to keep in the database, and the commission and the depart-
ment may not access, the following types of information:
(a) Information related to the debilitating condition of a registry identification cardholder; or
(b) The contact information or address of a registry identification cardholder or a designated
primary caregiver, unless the contact information or address are the same as the contact informa-
tion or address of a [ marijuana] cannabis grow site.
(6) The electronic system must be immediately accessible by the commission and the department
at all times.
SECTION 217.
ORS 475C.871 is amended to read:
475C.871. (1) The Oregon Health Authority shall enter into an agreement with the Oregon Li-
quor and Cannabis Commission under which the commission shall use the system developed and
maintained under ORS 475C.177 to track:
(a) The propagation of immature [ marijuana] cannabis plants and the production of
[marijuana] cannabis by [ marijuana] cannabis grow sites;
(b) The processing of [ marijuana] cannabis into medical cannabinoid products, cannabinoid
concentrates and cannabinoid extracts that are transferred to a medical [ marijuana] cannabis
dispensary;
(c) The transfer of usable [ marijuana] cannabis, immature [ marijuana] cannabis plants, medical
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cannabinoid products, cannabinoid concentrates and cannabinoid extracts by a [ marijuana] cannabis
grow site or a medical [ marijuana] cannabis dispensary to a registry identification cardholder or
the designated primary caregiver of a registry identification cardholder; and
(d) The transfer of usable [marijuana] cannabis, immature [ marijuana] cannabis plants, medical
cannabinoid products, cannabinoid concentrates and cannabinoid extracts between [ marijuana]
cannabis grow sites, [ marijuana] cannabis processing sites and medical [ marijuana] cannabis
dispensaries.
(2) [ Marijuana] Cannabis grow sites, [ marijuana] cannabis processing sites and medical
[marijuana] cannabis dispensaries are subject to tracking under this section.
(3) On and after the date on which a [ marijuana] cannabis grow site becomes subject to track-
ing under this section, the person is exempt from the requirements of ORS 475C.795 and the pro-
visions of ORS 475C.792 that relate to ORS 475C.795.
(4) On and after the date on which a [ marijuana] cannabis processing site becomes subject to
tracking under this section, the [ marijuana] cannabis processing site is exempt from the require-
ments of ORS 475C.821 and the provisions of ORS 475C.815 that relate to ORS 475C.821.
(5) On and after the date on which a medical [ marijuana] cannabis dispensary becomes subject
to tracking under this section, the medical [ marijuana] cannabis dispensary is exempt from the re-
quirements of ORS 475C.843 and the provisions of ORS 475C.833 that relate to ORS 475C.843.
(6) The commission may conduct inspections and investigations of alleged violations of ORS
475C.770 to 475C.919 about which the commission obtains knowledge as a result of performing the
commission’s duties under this section. Notwithstanding ORS 475C.301, the commission may use
regulatory specialists, as defined in ORS 471.001, to conduct the inspections and investigations, in-
cluding inspections and investigations of [ marijuana] cannabis grow sites located at a primary res-
idence.
(7) Notwithstanding ORS 475C.726, before making any other distribution from the Oregon
[Marijuana] Cannabis Account established under ORS 475C.726, the Department of Revenue shall
first distribute moneys quarterly from the account to the commission for deposit in the [ Marijuana]
Cannabis Control and Regulation Fund established under ORS 475C.297 for purposes of paying ad-
ministrative, inspection and investigatory costs incurred by the commission under this section, pro-
vided that the amount of distributed moneys does not exceed $1.25 million per quarter. For purposes
of estimating the amount of moneys necessary to pay costs incurred under this section, the com-
mission shall establish a formulary based on expected costs for each [ marijuana] cannabis grow site,
[marijuana] cannabis processing site or medical [ marijuana] cannabis dispensary that is tracked
under this section. The commission shall provide to the Department of Revenue and the Legislative
Fiscal Officer before each quarter the estimated amount of moneys necessary to pay costs expected
to be incurred under this section and the formulary.
(8) When imposing a fee on a person responsible for a [ marijuana] cannabis grow site,
[marijuana] cannabis processing site or medical [ marijuana] cannabis dispensary under ORS
475C.792, 475C.815 or 475C.833, the authority shall impose an additional fee that is reasonably cal-
culated to pay costs incurred under this section other than costs paid pursuant to subsection (7) of
this section. As part of the agreement entered into under subsection (1) of this section, the authority
shall transfer fee moneys collected pursuant to this subsection to the commission for deposit in the
[Marijuana] Cannabis Control and Regulation Fund established under ORS 475C.297. Moneys col-
lected pursuant to this subsection and deposited in the [ Marijuana] Cannabis Control and Regu-
lation Fund are continuously appropriated to the commission for purposes of this section.
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(9) The authority and the commission may adopt rules as necessary to administer this section.
(10) This section does not apply to a [marijuana] cannabis grow site located at an address
where:
(a) A registry identification cardholder produces [ marijuana] cannabis and no more than 12
mature [ marijuana] cannabis plants and 24 immature [ marijuana] cannabis plants are produced; or
(b)(A) No more than two persons are registered under ORS 475C.792 to produce [ marijuana]
cannabis; and
(B) The address is used to produce [ marijuana] cannabis for no more than two registry iden-
tification cardholders.
SECTION 218.
ORS 475C.874 is amended to read:
475C.874. (1) A person responsible for a [ marijuana] cannabis processing site, or a person re-
sponsible for a medical [ marijuana] cannabis dispensary, may designate that responsibility to an-
other person.
(2) If a designation is made under this section, the designee must submit to the Oregon Health
Authority proof that the designee meets the requirements and restrictions set forth in:
(a) For [ marijuana] cannabis processing sites, ORS 475C.815 (2)(d) and (4); or
(b) For medical [ marijuana] cannabis dispensaries, ORS 475C.833 (2)(d) and (4).
(3) The authority may prescribe the form and manner of submitting proof under subsection (2)
of this section.
SECTION 219. ORS 475C.877 is amended to read:
475C.877. (1) A person responsible for a [ marijuana] cannabis processing site, or a person re-
sponsible for a medical [ marijuana] cannabis dispensary, may assign that responsibility to another
person.
(2) If an assignment is made under this section, the assignee must submit to the Oregon Health
Authority proof that the assignee meets the requirements and restrictions set forth in:
(a) For [ marijuana] cannabis processing sites, ORS 475C.815 (2)(d) and (4); or
(b) For medical [ marijuana] cannabis dispensaries, ORS 475C.833 (2)(d) and (4).
(3) The authority may prescribe the form and manner of submitting proof under subsection (2)
of this section.
SECTION 220. ORS 475C.880 is amended to read:
475C.880. (1) In the event that a [ marijuana] cannabis processing site or a medical [ marijuana]
cannabis dispensary is foreclosed or otherwise ceases operations as described in ORS chapter 79,
a secured party, as defined in ORS 79.0102, may continue operations at the [ marijuana] cannabis
processing site or medical [ marijuana] cannabis dispensary upon submitting to the Oregon Health
Authority proof that the secured party or, if the secured party is a business entity, any individual
who has a financial interest in the secured party, meets the requirements and restrictions set forth
in:
(a) For [ marijuana] cannabis processing sites, ORS 475C.815 (2)(d) and (4); or
(b) For medical [ marijuana] cannabis dispensaries, ORS 475C.833 (2)(d) and (4).
(2) The authority may prescribe the form and manner of submitting proof under subsection (1)
of this section.
SECTION 221. ORS 475C.883 is amended to read:
475C.883. Except as provided in ORS 475C.886, a person engaged in or assisting in the medical
use of [ marijuana] cannabis is exempt from the criminal laws of this state for possession, delivery
or manufacture of [ marijuana] cannabis, aiding and abetting another in the possession, delivery or
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manufacture of [ marijuana] cannabis, or any other criminal offense in which possession, delivery
or manufacture of [ marijuana] cannabis is an element if:
(1) The person holds a registry identification card.
(2) The person has applied for a registry identification card under ORS 475C.783 and the person
has proof of written documentation described in ORS 475C.783 (2)(a) and proof of the date on which
the person submitted the application to the Oregon Health Authority. An exemption under this
subsection applies only until the authority approves or denies the application.
(3) The person is designated as a primary caregiver under ORS 475C.789.
(4) The person is responsible for or is employed by a [marijuana] cannabis grow site registered
under ORS 475C.792.
(5) The person owns, is responsible for, or is employed by, a [ marijuana] cannabis processing
site.
(6) The person owns, is responsible for, or is employed by, a medical [ marijuana] cannabis
dispensary.
SECTION 222.
ORS 475C.886 is amended to read:
475C.886. A person is not exempt from the criminal laws of this state for possession, delivery
or manufacture of [ marijuana] cannabis, aiding and abetting another in the possession, delivery or
manufacture of [ marijuana] cannabis, or any other criminal offense in which possession, delivery
or manufacture of [marijuana] cannabis is an element, and the person may not assert the affirmative
defense established in ORS 475C.889, if the person, in connection with conduct constituting an ele-
ment of the offense:
(1) Drives under the influence of [ marijuana] cannabis as provided in ORS 813.010;
(2) Engages in the medical use of [ marijuana] cannabis in a public place, as defined in ORS
161.015, in public view or in a correctional facility, as defined in ORS 162.135 (2), or a youth cor-
rection facility, as defined in ORS 162.135 (6); or
(3) Delivers [ marijuana] cannabis to any individual who the person knows is not in possession
of a registry identification card or to any individual or entity that the person knows has not been
designated to receive [marijuana] cannabis or assigned a possessory interest in [ marijuana]
cannabis by an individual in possession of a registry identification card.
SECTION 223.
ORS 475C.889 is amended to read:
475C.889. (1) Except as provided in ORS 475C.886, a person has an affirmative defense to a
criminal charge of possession, delivery or manufacture of [ marijuana] cannabis, or any other crim-
inal offense in which possession, delivery or manufacture of [ marijuana] cannabis is an element, if
the person charged with the offense:
(a) Was diagnosed with a debilitating medical condition within 12 months of the date on which
the person was arrested and was advised by the person’s attending provider that the medical use
of [ marijuana] cannabis may mitigate the symptoms or effects of that debilitating medical condition;
(b) Is engaged in the medical use of [ marijuana] cannabis; and
(c) Possesses, delivers or manufactures [ marijuana] cannabis only in quantities permitted under
ORS 475C.806.
(2) A person does not need to lawfully possess a registry identification card to assert the affir-
mative defense established in this section.
(3) A person engaged in the medical use of [ marijuana] cannabis who claims that [ marijuana]
cannabis provides medically necessary benefits and who is charged with a crime pertaining to the
use of [ marijuana] cannabis is not precluded from presenting a defense of choice of evils, as set
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forth in ORS 161.200, or from presenting evidence supporting the necessity of [marijuana] cannabis
for treatment of a specific disease or medical condition, provided that:
(a) The person possesses, delivers or manufactures [ marijuana] cannabis only as permitted un-
der ORS 475C.806 (1); and
(b) The person has taken a substantial step toward complying with the provisions of ORS
475C.770 to 475C.919.
(4) A defendant proposing to use the affirmative defense established in this section in a criminal
action shall, not less than five days before the trial of the cause, file and serve upon the district
attorney a written notice of the intention to assert the affirmative defense. The notice must specif-
ically state the reasons why the defendant is entitled to assert the affirmative defense and the fac-
tual basis for the affirmative defense. If the defendant fails to file and serve the notice, the defendant
is not permitted to assert the affirmative defense at the trial of the cause unless the court orders,
for good cause, otherwise.
SECTION 224.
ORS 475C.891, as amended by section 106, chapter 73, Oregon Laws 2024, is
amended to read:
475C.891. The Oregon Board of Naturopathic Medicine, Oregon Medical Board and Oregon State
Board of Nursing may not impose a civil penalty or take other disciplinary action against an at-
tending provider for:
(1) Advising a person diagnosed as having a debilitating medical condition by the attending
provider or another physician licensed under ORS chapter 677, physician associate licensed under
ORS 677.505 to 677.525, nurse practitioner licensed under ORS 678.375 to 678.390, clinical nurse
specialist licensed under ORS 678.370 and 678.372, certified registered nurse anesthetist as defined
in ORS 678.010 or naturopathic physician licensed under ORS chapter 685 about the risks and ben-
efits associated with the medical use of [ marijuana] cannabis or that the medical use of
[marijuana] cannabis may mitigate the symptoms or effects of the person’s debilitating medical
condition, provided that the advice is based on the attending provider’s personal assessment of the
person’s medical history and current medical condition; or
(2) Providing the written documentation necessary for issuance or renewal of a registry iden-
tification card under ORS 475C.783, provided that the written documentation is based on the at-
tending provider’s personal assessment of the person’s medical history and current medical condition
and the attending provider has discussed with the person the potential risks and benefits associated
with the medical use of [ marijuana] cannabis.
SECTION 225. ORS 475C.892 is amended to read:
475C.892. (1) A professional licensing board may not impose a civil penalty or take other disci-
plinary action against a licensee based on the licensee’s medical use of [ marijuana] cannabis under
the provisions of ORS 475C.770 to 475C.919 or actions taken by the licensee pursuant to the
licensee’s designation as a primary caregiver under ORS 475C.789.
(2)(a) A licensed health care professional may administer medical [ marijuana] cannabis to a
person who possesses a registry identification card and resides in a licensed health care facility if
the administration of pharmaceuticals is within the scope of practice of the licensed health care
professional. Administration of medical [ marijuana] cannabis under this subsection may not take
place in a public place as defined in ORS 161.015 or in the presence of a person under 18 years of
age. If the medical [ marijuana] cannabis administered under this subsection is smoked, adequate
ventilation must be provided.
(b) Nothing in this subsection requires:
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(A) A licensed health care professional to administer medical [ marijuana] cannabis; or
(B) A licensed health care facility to make accommodations for the administration of medical
[marijuana] cannabis.
SECTION 226.
ORS 475C.894 is amended to read:
475C.894. (1) Registration under ORS 475C.770 to 475C.919 or possession of proof of registration
under ORS 475C.770 to 475C.919 does not constitute probable cause to search the person or property
of the registrant or otherwise subject the person or property of the registrant to inspection by a
government agency. However, the Oregon Health Authority may inspect the [ marijuana] cannabis
grow site of a person designated to produce [ marijuana] cannabis by a registry identification
cardholder, a [ marijuana] cannabis processing site registered under ORS 475C.815, or a medical
[marijuana] cannabis dispensary registered under ORS 475C.833, at any reasonable time to deter-
mine whether the person responsible for the [ marijuana] cannabis grow site, the person responsible
for the [ marijuana] cannabis processing site, or the person responsible for the medical [ marijuana]
cannabis dispensary, is in compliance with ORS 475C.770 to 475C.919 and rules adopted under ORS
475C.770 to 475C.919.
(2) Any property interest possessed, owned or used in connection with the medical use of
[marijuana] cannabis or acts incidental to the medical use of [ marijuana] cannabis that has been
seized by state or local law enforcement officers may not be harmed, neglected, injured or destroyed
while in the possession of a law enforcement agency, except that a law enforcement agency has no
responsibility to maintain live [ marijuana] cannabis plants lawfully seized. Such property interest
may not be forfeited under any provision of law providing for the forfeiture of property, except
pursuant to a sentence imposed after conviction of a criminal offense. [ Marijuana] Cannabis and
equipment or paraphernalia used to produce, process or administer [ marijuana] cannabis that was
seized by a law enforcement officer shall be returned immediately if the district attorney in whose
county the property was seized, or the district attorney’s designee, determines that the person from
whom the [ marijuana] cannabis, equipment or paraphernalia was seized is entitled to the pro-
tections provided by ORS 475C.770 to 475C.919. The determination may be evidenced by a decision
not to prosecute, the dismissal of charges or acquittal.
SECTION 227. ORS 475C.897 is amended to read:
475C.897. (1) For purposes of this section, “reasonable regulations” includes:
(a) Reasonable limitations on the hours during which the [marijuana] cannabis grow site of a
person designated to produce [ marijuana] cannabis by a registry identification cardholder, a
[marijuana] cannabis processing site or a medical [ marijuana] cannabis dispensary may operate;
(b) Reasonable conditions on the manner in which the [ marijuana] cannabis grow site of a per-
son designated to produce [marijuana] cannabis by a registry identification cardholder, a
[marijuana] cannabis processing site or a medical [ marijuana] cannabis dispensary may transfer
usable [ marijuana] cannabis, medical cannabinoid products, cannabinoid concentrates, cannabinoid
extracts, immature [ marijuana] cannabis plants and seeds;
(c) Reasonable requirements related to the public’s access to the [ marijuana] cannabis grow site
of a person designated to produce [ marijuana] cannabis by a registry identification cardholder, a
[marijuana] cannabis processing site or a medical [ marijuana] cannabis dispensary; and
(d) Reasonable limitations on where the [ marijuana] cannabis grow site of a person designated
to produce [ marijuana] cannabis by a registry identification cardholder, a [ marijuana] cannabis
processing site or a medical [ marijuana] cannabis dispensary may be located.
(2) Notwithstanding ORS 30.935, 215.253 (1) or 633.738, the governing body of a city or county
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may adopt ordinances that impose reasonable regulations on the operation of [ marijuana] cannabis
grow sites of persons designated to produce [ marijuana] cannabis by registry identification
cardholders, [ marijuana] cannabis processing sites and medical [ marijuana] cannabis dispensaries
that are located in the area subject to the jurisdiction of the city or county.
SECTION 228.
ORS 475C.903 is amended to read:
475C.903. Subject to any applicable provision of ORS chapter 183, the Oregon Health Authority,
the State Department of Agriculture and the Oregon Liquor and Cannabis Commission may possess,
seize or dispose of [ marijuana] cannabis, usable [ marijuana] cannabis, medical cannabinoid pro-
ducts, cannabinoid concentrates and cannabinoid extracts as is necessary for the authority to ensure
compliance with and enforce the provisions of ORS 475C.770 to 475C.919 and any rule adopted under
ORS 475C.770 to 475C.919.
SECTION 229. ORS 475C.910 is amended to read:
475C.910. The provisions of ORS 475C.770 to 475C.919 do not protect a person from a criminal
cause of action based on possession, delivery or manufacture of [ marijuana] cannabis that is not
described in ORS 475C.770 to 475C.919.
SECTION 230. ORS 475C.916 is amended to read:
475C.916. A nurse licensed under ORS 678.040 to 678.101 may discuss the medical use of
[marijuana] cannabis with a person with whom the nurse has a patient-provider relationship.
SECTION 231. ORS 475C.930 is amended to read:
475C.930. (1) The Oregon Cannabis Commission is established within the Oregon Health Au-
thority. The commission consists of:
(a) The Public Health Officer or the Public Health Officer’s designee; and
(b) Eight members appointed by the Governor as follows:
(A) A registry identification cardholder, as defined in ORS 475C.777;
(B) A person designated to produce [ marijuana] cannabis by a registry identification cardholder,
as defined in ORS 475C.777;
(C) An attending provider, as defined in ORS 475C.777;
(D) A person representing the Oregon Health Authority;
(E) A person representing the Oregon Liquor and Cannabis Commission;
(F) A local health officer, as described in ORS 431.418;
(G) A law enforcement officer; and
(H) A person knowledgeable about research proposal grant protocols.
(2) The term of office of each member of the commission is four years, but a member serves at
the pleasure of the Governor. Before the expiration of the term of a member, the Governor shall
appoint a successor whose term begins on January 1 of the following year. A member is eligible for
reappointment. If there is a vacancy for any cause, the Governor shall make an appointment to be-
come immediately effective for the unexpired term.
(3) The appointment of each member of the commission is subject to confirmation by the Senate
in the manner prescribed in ORS 171.562 and 171.565.
(4) Members of the commission are not entitled to compensation, but may be reimbursed for
actual and necessary travel and other expenses incurred by them in the performance of their official
duties in the manner and amounts provided for in ORS 292.495.
SECTION 232.
ORS 475C.939 is amended to read:
475C.939. In addition to any other duty prescribed by law, the Oregon Cannabis Commission
shall:
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(1) Provide advice to the Oregon Health Authority with respect to the administration of ORS
475C.770 to 475C.919;
(2) Provide advice to the Oregon Liquor and Cannabis Commission with respect to the adminis-
tration of ORS 475C.005 to 475C.525, insofar as those statutes pertain to registry identification
cardholders and designated primary caregivers, as those terms are defined in ORS 475C.777;
(3) Develop a long-term strategic plan for ensuring that cannabis will remain a therapeutic op-
tion for persons with debilitating medical conditions as defined in ORS 475C.777;
(4) Develop a long-term strategic plan for ensuring that cannabis will remain affordable for
persons with debilitating medical conditions as defined in ORS 475C.777; and
(5) Monitor and study federal laws, regulations and policies regarding [ marijuana] cannabis.
SECTION 233.
ORS 475C.945 is amended to read:
475C.945. If a city or county enacts or has enacted an ordinance prohibiting or allowing
[marijuana] cannabis processing sites registered under ORS 475C.815 or medical [ marijuana]
cannabis dispensaries registered under ORS 475C.833, the governing body of the city or the county
may amend the ordinance, without referring the amendment to the electors of the city or county
under ORS 475C.950, to prohibit or allow the premises of a licensee, as those terms are defined in
ORS 475C.009, that has been designated an exclusively medical licensee under ORS 475C.121,
475C.125, 475C.129 or 475C.133.
SECTION 234.
ORS 475C.950 is amended to read:
475C.950. (1) The governing body of a city or county may adopt ordinances to be referred to the
electors of the city or county as described in subsection (2) of this section that prohibit or allow the
establishment of any one or more of the following in the area subject to the jurisdiction of the city
or in the unincorporated area subject to the jurisdiction of the county:
(a) [ Marijuana] Cannabis processing sites registered under ORS 475C.815;
(b) Medical [ marijuana] cannabis dispensaries registered under ORS 475C.833;
(c) [ Marijuana] Cannabis producers that hold a license issued under ORS 475C.065;
(d) [ Marijuana] Cannabis processors that hold a license issued under ORS 475C.085;
(e) [ Marijuana] Cannabis wholesalers that hold a license issued under ORS 475C.093;
(f) [ Marijuana] Cannabis retailers that hold a license issued under ORS 475C.097;
(g) [ Marijuana] Cannabis producers that hold a license issued under ORS 475C.065 and that the
Oregon Liquor and Cannabis Commission has designated as an exclusively medical licensee under
ORS475C.121;
(h) [Marijuana] Cannabis processors that hold a license issued under ORS 475C.085 and that the
commission has designated as an exclusively medical licensee under ORS 475C.125;
(i) [ Marijuana] Cannabis wholesalers that hold a license issued under ORS 475C.093 and that
the commission has designated as an exclusively medical licensee under ORS 475C.129;
(j) [ Marijuana] Cannabis retailers that hold a license issued under ORS 475C.097 and that the
commission has designated as an exclusively medical licensee under ORS 475C.133; or
(k) Any combination of the entities described in this subsection.
(2) If the governing body of a city or county adopts an ordinance under this section, the gov-
erning body shall submit the measure of the ordinance to the electors of the city or county for ap-
proval at the next statewide general election.
(3) If the governing body of a city or county adopts an ordinance under this section, the gov-
erning body must provide the text of the ordinance:
(a) To the Oregon Health Authority, in a form and manner prescribed by the authority, if the
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ordinance concerns a medical [ marijuana] cannabis dispensary registered under ORS 475C.833 or a
[marijuana] cannabis processing site registered under ORS 475C.815; or
(b) To the commission, if the ordinance concerns a premises for which a license has been issued
under ORS 475C.005 to 475C.525.
(4)(a) Upon receiving notice of a prohibition under subsection (3) of this section, the authority
shall discontinue registering those entities to which the prohibition applies until the date of the next
statewide general election.
(b) Upon receiving notice of a prohibition under subsection (3) of this section, the commission
shall discontinue licensing those premises to which the prohibition applies until the date of the next
statewide general election.
(5)(a) If an allowance is approved at the next statewide general election under subsection (2)
of this section, and the allowance concerns an entity described in subsection (1)(a) or (b) of this
section, the authority shall begin registering the entity to which the allowance applies on the first
business day of the January immediately following the date of the statewide general election.
(b) If an allowance is approved at the next statewide general election under subsection (2) of
this section, and the allowance concerns an entity described in subsection (1)(c) to (j) of this section,
the commission shall begin licensing the premises to which the allowance applies on the first busi-
ness day of the January immediately following the date of the next statewide general election.
(6) If the electors of a city or county approve an ordinance prohibiting or allowing an entity
described in subsection (1)(a), (b) or (g) to (j) of this section, the governing body of the city or county
may amend the ordinance, without referring the amendment to the electors of the city or county,
to prohibit or allow any other entity described in subsection (1)(a), (b) or (g) to (j) of this section.
(7) Notwithstanding any other provisions of law, a city or county that adopts an ordinance under
this section that prohibits the establishment of an entity described in subsection (1) of this section
may not impose a tax or fee on the production, processing or sale of [ marijuana] cannabis or any
product into which [ marijuana] cannabis has been incorporated.
(8) Notwithstanding subsection (1) of this section, a medical [ marijuana] cannabis dispensary is
not subject to an ordinance adopted under this section if the medical [ marijuana] cannabis
dispensary:
(a) Is registered under ORS 475C.833 on or before the date on which the governing body adopts
the ordinance; and
(b) Has successfully completed a city or county land use application process.
(9) Notwithstanding subsection (1) of this section, a [marijuana] cannabis processing site is not
subject to an ordinance adopted under this section if the [ marijuana] cannabis processing site:
(a) Is registered under ORS 475C.815 on or before the date on which the governing body adopts
the ordinance; and
(b) Has successfully completed a city or county land use application process.
SECTION 235.
ORS 537.387 is amended to read:
537.387. (1) At a location described in subsection (2) of this section, a person may not:
(a) Use, store or divert any waters under ORS 537.130;
(b) Use or attempt to use any ground water under ORS 537.535;
(c) Construct or attempt to construct any well or other means of developing and securing ground
water under ORS 537.535;
(d) Collect or use precipitation water from an artificial impervious surface as described in ORS
537.141; or
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(e) Use ground water as described in ORS 537.545 (1)(b) or (f).
(2) A person may not engage in or undertake an action described in subsection (1) of this section
at a location where plants in the plant Cannabis family Cannabaceae are grown, if:
(a) The location described in this section is not licensed or registered under ORS 475C.065,
475C.792 or 571.281; and
(b) The number of plants described in this section is greater than the number of [ marijuana]
cannabis plants or industrial hemp plants allowed under ORS 475C.005 to 475C.525, 475C.770 to
475C.919 or 571.260 to 571.348.
SECTION 236.
ORS 571.306, as amended by section 8, chapter 16, Oregon Laws 2024, is
amended to read:
571.306. (1) A person licensed under ORS 571.281 or a laboratory licensed under ORS 475C.548
may, within the boundaries of this state, transport or receive industrial hemp or an industrial hemp
commodity that contains no more tetrahydrocannabinol than allowed by the State Department of
Agriculture by rule if the industrial hemp or industrial hemp used in the industrial hemp commodity
originated from a crop that was found to not contain an average tetrahydrocannabinol concentration
exceeding the concentration specified by the department by rule.
(2) A person licensed under ORS 475C.085, 475C.093 or 475C.097 may, within the boundaries of
this state, receive from a person licensed under ORS 571.281 industrial hemp or an industrial hemp
commodity or product that contains no more tetrahydrocannabinol than allowed by the Oregon Li-
quor and Cannabis Commission by rule if the industrial hemp or industrial hemp used in the indus-
trial hemp commodity or product originated from a crop that was found to not contain an average
tetrahydrocannabinol concentration exceeding the concentration specified by the department by
rule.
(3) Industrial hemp or an industrial hemp commodity or product transported or received as de-
scribed in this section may not be considered a [ “marijuana item.” ] “cannabis item.”
SECTION 237. ORS 571.330 is amended to read:
571.330. (1)(a) A laboratory licensed by the Oregon Liquor and Cannabis Commission under ORS
475C.548 and accredited by the Oregon Health Authority pursuant to ORS 475C.560 may test in-
dustrial hemp and industrial hemp commodities and products whether or not the industrial hemp or
industrial hemp commodities or products were produced or processed by a licensee.
(b) An accredited independent testing laboratory that has been approved by the authority or the
State Department of Agriculture may test industrial hemp and industrial hemp commodities and
products whether or not the industrial hemp or industrial hemp commodities or products were
produced or processed by a licensee.
(2) A person may not sell or transfer an industrial hemp commodity or product that is intended
for human consumption and that was produced, processed or manufactured in this state unless the
commodity or product is tested by a laboratory described in subsection (1) of this section to ensure
that the commodity or product meets the requirements adopted by the Oregon Health Authority
under ORS 475C.544 (1)(a) and (b) for testing [ marijuana] cannabis items and industrial hemp-
derived vapor items and ORS 475C.544 (2) for testing cannabinoid edibles.
(3) Industrial hemp commodities or products that are intended for use in an inhalant delivery
system, as defined in ORS 431A.175, must meet the requirements of ORS 475C.540 to 475C.586 and
475C.600 to 475C.648 that apply to industrial hemp-derived vapor items as defined in ORS 475C.540
and 475C.600.
(4) For purposes of this section, the department shall adopt rules:
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(a) Establishing protocols for the testing of industrial hemp commodities and products; and
(b) Establishing procedures for determining batch sizes and for sampling industrial hemp com-
modities and products.
(5) This section does not apply to:
(a) Agricultural hemp seed;
(b) Seeds of the plant genus Cannabis within the plant family Cannabaceae that are incapable
of germination;
(c) Products derived from seeds described in paragraph (b) of this subsection; or
(d) Other parts of industrial hemp that the department identifies by rule as exempt.
SECTION 238.
ORS 571.336 is amended to read:
571.336. (1) As used in this section, [ “licensee,” “marijuana,” “marijuana item” and “marijuana
processor” ] “cannabis,” “cannabis item,” “cannabis processor” and “licensee” have the
meanings given those terms in ORS 475C.009.
(2) A grower licensed under ORS 571.281 may deliver industrial hemp, and a handler licensed
under ORS 571.281 may deliver industrial hemp concentrates and industrial hemp extracts, to a
[marijuana] cannabis processor that holds a license issued under ORS 475C.085, if:
(a) The grower or handler and the [ marijuana] cannabis processor are registered with the
Oregon Liquor and Cannabis Commission, in a form and manner prescribed by the commission, for
the purpose of processing industrial hemp, industrial hemp concentrates and industrial hemp ex-
tracts;
(b) The [ marijuana] cannabis processor is provided with the results of any test conducted on
the industrial hemp, industrial hemp concentrate or industrial hemp extract pursuant to ORS 571.260
to 571.348 as a condition of the [ marijuana] cannabis processor’s receiving the industrial hemp, in-
dustrial hemp concentrate or industrial hemp extract;
(c) The [ marijuana] cannabis processor keeps the results of any test that the [ marijuana]
cannabis processor receives pursuant to paragraph (b) of this subsection in a form and manner
prescribed by the commission;
(d) The industrial hemp, industrial hemp concentrate or industrial hemp extract is tracked using
the system developed and maintained under ORS 475C.177 when the industrial hemp, industrial hemp
concentrate or industrial hemp extract is delivered to the premises of the [ marijuana] cannabis
processor; and
(e) The grower or handler and the [ marijuana] cannabis processor meet any other requirement
established by the commission by rule.
(3) Industrial hemp, industrial hemp concentrates and industrial hemp extracts may be processed
by a [ marijuana] cannabis processor registered under this section into any industrial hemp com-
modity or product or used by a [ marijuana] cannabis processor registered under this section to
supplement the processing of any [ marijuana] cannabis item.
(4) An industrial hemp concentrate, industrial hemp extract, industrial hemp commodity or
product or [ marijuana] cannabis item processed pursuant to this section may be delivered by a
[marijuana] cannabis processor registered under this section to a licensee as described in ORS
475C.205, provided that the industrial hemp concentrate, industrial hemp extract, industrial hemp
commodity or product or [marijuana] cannabis item meets any applicable requirement for
[marijuana] cannabis items set forth in ORS 475C.005 to 475C.525, 475C.540 to 475C.586 and
475C.600 to 475C.648 and rules adopted under ORS 475C.005 to 475C.525, 475C.540 to 475C.586 and
475C.600 to 475C.648.
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(5) The commission may impose an annual fee reasonably calculated to not exceed the cost of
administering this section on growers registered under this section, handlers registered under this
section and [ marijuana] cannabis processors registered under this section. Fees collected under this
section shall be deposited in the [ Marijuana] Cannabis Control and Regulation Fund established
under ORS 475C.297. Moneys deposited in the fund pursuant to this subsection are continuously
appropriated to the commission for the purpose of administering this section.
SECTION 239.
ORS 571.337 is amended to read:
571.337. (1) As used in this section:
(a) “Processor” means a person licensed under ORS 475C.085.
(b) “Retailer” means a person licensed under ORS 475C.097.
(c) “Wholesaler” means a person licensed under ORS 475C.093.
(2) A processor, retailer or wholesaler may purchase, receive, transfer, sell or transport indus-
trial hemp, or an industrial hemp commodity or product that contains cannabinoids and is intended
for human consumption, only if:
(a) The processor, retailer or wholesaler received the hemp, commodity or product from a
grower or handler licensed under ORS 571.281 or a processor;
(b) The grower, handler or processor under paragraph (a) of this subsection is registered with
the Oregon Liquor and Cannabis Commission as provided under ORS 571.336; and
(c) The hemp, commodity or product meets the requirements for [ marijuana] cannabis items
under ORS 475C.005 to 475C.525, 475C.540 to 475C.586 and 475C.600 to 475C.648 and rules adopted
by the commission.
(3) A grower, handler or processor registered as described under ORS 571.336 (2)(a) shall enter
the hemp, commodity or product that contains cannabinoids, is intended for human consumption and
is intended for transfer, sale or transport to a processor, retailer or wholesaler licensed under ORS
475C.005 to 475C.525 into the tracking system described in ORS 475C.177 before the hemp, com-
modity or product is transferred to a laboratory described in ORS 571.330 (1) for testing of a type
described under ORS 475C.544. The commission shall continue to track the hemp, commodity or
product entered into the system under this subsection when the hemp, commodity or product is
transferred, sold or transported to a premises licensed under ORS 475C.005 to 475C.525, or to other
areas under the control of the premises licensee.
(4) A processor may transfer, sell or transport an industrial hemp commodity or product to a
person that is not a processor, retailer or wholesaler if the industrial hemp commodity or product:
(a) Is tested as described in ORS 475C.544 and otherwise meets the requirements for
[marijuana] cannabis items under ORS 475C.005 to 475C.525, 475C.540 to 475C.586 and 475C.600 to
475C.648 and rules adopted by the commission;
(b) Is entered into the tracking system described in ORS 475C.177;
(c) Prior to the transfer, sale or transport, is held by the processor for the duration and in the
manner required by the commission by rule; and
(d) Meets any other requirements established by the commission by rule.
(5) The State Department of Agriculture shall adopt rules regarding the activities of growers
and handlers under this section.
(6)(a) The commission shall adopt rules regarding the activities of processors, retailers, whole-
salers and laboratories under this section.
(b) The commission may adopt rules to carry out subsection (4) of this section.
SECTION 240.
ORS 571.339 is amended to read:
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571.339. (1) For purposes of this section, “consumer” means a person that purchases, acquires,
owns, holds or uses an industrial hemp commodity or product other than for the purpose of resale.
(2) A person may not sell, transfer or deliver to a consumer an industrial hemp commodity or
product that contains cannabinoids and is intended for human consumption unless:
(a) The industrial hemp commodity or product has been tested in accordance with ORS 571.330
and any rules adopted pursuant to ORS 571.330;
(b) If the hemp commodity or product is intended for human consumption by ingestion, the hemp
commodity or product was processed in a facility licensed by the State Department of Agriculture
under ORS 616.695 to 616.755 or in a facility in another state or jurisdiction that meets requirements
substantially similar to requirements established under ORS 616.695 to 616.755;
(c) The person obtains and maintains documentation of the results of the testing;
(d) If the industrial hemp commodity or product is sold to a person under 21 years of age or any
representations are made to the consumer about the concentration of delta-8-tetrahydrocannabinol,
the results of the testing required under this subsection demonstrate the concentration of
delta-8-tetrahydrocannabinol;
(e) The industrial hemp commodity or product does not contain more than 0.3 percent
tetrahydrocannabinol or the concentration of tetrahydrocannabinol allowed under federal law,
whichever is greater; and
(f) The industrial hemp commodity or product does not exceed the concentration of adult use
cannabinoids established by the Oregon Liquor and Cannabis Commission, in conjunction with the
Oregon Health Authority and State Department of Agriculture, by rule.
(3) The testing required under subsection (2) of this section may be conducted only by:
(a) A laboratory licensed by the commission under ORS 475C.548 and accredited by the author-
ity under ORS 475C.560; or
(b) If the industrial hemp commodity or product was processed outside of this state, a laboratory
accredited to the same or more stringent standards as a laboratory described in paragraph (a) of this
subsection.
(4) A person may not sell or deliver an adult use cannabis item to a person under 21 years of
age.
(5) This section does not apply to the retail sale of industrial hemp commodities or products by
a [ marijuana] cannabis retailer, as defined in ORS 475C.009, that holds a license issued under ORS
475C.097.
SECTION 241.
ORS 571.423 is amended to read:
571.423. The Oregon Hemp Commission may:
(1) Conduct scientific research to discover and develop the commercial value of hemp and hemp
products.
(2) Disseminate reliable information founded upon the research conducted under ORS 571.400 to
571.501 that shows the value of hemp and hemp products for any purpose for which hemp and hemp
products may be found useful and profitable.
(3) Study federal and state legislation with respect to tariffs, duties, reciprocal trade agreements,
import quotas and other matters concerning the effect of the legislation on the hemp industry, and
represent and protect the interests of the hemp industry with respect to any legislation, proposed
legislation or executive action that may affect the hemp industry.
(4) Act jointly and in cooperation with the federal government, or any federal agency, in the
administration of any program of the federal government or federal agency that the commission de-
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termines is beneficial to the hemp industry in this state, and expend funds in connection with the
administration of a program described in this subsection, provided that the program is compatible
with the powers conferred on the commission by ORS 571.400 to 571.501.
(5) Enter into contracts for advertising hemp and for developing new markets through advertis-
ing.
(6) Develop plans or projects for promotion and advertising research, consumer information and
industry information, and create programs that will lead to the development of new markets, mar-
keting strategies, increased efficiency and activities to enhance the image of the hemp industry.
(7) Appoint all subordinate officers and employees of the commission and establish their duties
and compensation.
(8) Levy the assessments described in ORS 571.447.
(9) Borrow money in amounts that do not exceed estimated revenues from assessments for the
year.
(10) Enter into contracts for carrying out the duties of the commission, in addition to those
duties described in subsection (5) of this section.
(11) Subject to ORS 30.260 to 30.300, sue and be sued in the name of the commission.
(12) Request that the Attorney General prosecute in the name of the State of Oregon suits and
actions for the collection of assessments levied by the commission.
(13) Participate in federal and state hearings or other proceedings concerning regulation of the
manufacture, distribution, sale or use of pesticides as defined in ORS 634.006 or other chemicals that
are of use or potential use to producers. This subsection does not authorize the commission to
regulate the use of pesticides.
(14) To the extent consistent with the duties of the commission, participate in and cooperate
with local, state, national and international private organizations or governmental agencies that
engage in work similar to that of the commission.
(15) Provide mechanisms for maintaining and expanding existing markets and developing new
domestic and international markets for hemp, including but not limited to:
(a) Public relations programs;
(b) Media relations programs;
(c) Paid print and electronic advertising;
(d) Point of sale promotion and coupon programs; and
(e) Activities that prevent, modify or eliminate trade barriers that obstruct the free flow of hemp
to market.
(16) Conduct and fund research, in addition to that described in subsection (1) of this section,
to:
(a) Enhance the commercial value of hemp and hemp products;
(b) Discover the benefits to public health, the environment or the economy of consuming or
otherwise using hemp;
(c) Develop better and more efficient production, harvesting, irrigation, processing, transporta-
tion, handling, marketing and uses of hemp;
(d) Control or eradicate hazards to hemp, including but not limited to hazards from diseases,
pests and weeds, while supporting coexistence between hemp and other agricultural crops, including
[marijuana] cannabis;
(e) Develop viable alternatives for the rotation of crops;
(f) Determine new or potential demand for hemp and develop appropriate market development
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strategies for capturing that demand; and
(g) Measure the effectiveness of marketing, advertising or promotional programs.
(17) Gather, publicize and disseminate information that shows the importance of the consumption
and other uses of hemp to public health, the environment, the economy and the proper nutrition of
children and adults.
(18) Further the purposes of this section by funding scholarships for or providing financial as-
sistance to persons or entities interested in hemp.
(19) Adopt rules as necessary to carry out the duties, functions and powers conferred on the
commission by this section.
SECTION 242.
ORS 659A.403 is amended to read:
659A.403. (1) Except as provided in subsection (2) of this section, all persons within the juris-
diction of this state are entitled to the full and equal accommodations, advantages, facilities and
privileges of any place of public accommodation, without any distinction, discrimination or re-
striction on account of race, color, religion, sex, sexual orientation, gender identity, national origin,
marital status or age if the individual is of age, as described in this section, or older.
(2) Subsection (1) of this section does not prohibit:
(a) The enforcement of laws governing the consumption of alcoholic beverages by minors and
the frequenting by minors of places of public accommodation where alcoholic beverages are served;
(b) The enforcement of laws governing the use of [ marijuana] cannabis items, as defined in ORS
475C.009, by persons under 21 years of age and the frequenting by persons under 21 years of age
of places of public accommodation where [ marijuana] cannabis items are sold; or
(c) The offering of special rates or services to persons 50 years of age or older.
(3) It is an unlawful practice for any person to deny full and equal accommodations, advantages,
facilities and privileges of any place of public accommodation in violation of this section.
SECTION 243.
ORS 659A.409 is amended to read:
659A.409. Except as provided by laws governing the consumption of alcoholic beverages by mi-
nors, the use of [ marijuana] cannabis items, as defined in ORS 475C.009, by persons under 21 years
of age, the frequenting by minors of places of public accommodation where alcoholic beverages are
served and the frequenting by persons under 21 years of age of places of public accommodation
where [ marijuana] cannabis items are sold, and except for special rates or services offered to per-
sons 50 years of age or older, it is an unlawful practice for any person acting on behalf of any place
of public accommodation as defined in ORS 659A.400 to publish, circulate, issue or display, or cause
to be published, circulated, issued or displayed, any communication, notice, advertisement or sign
of any kind to the effect that any of the accommodations, advantages, facilities, services or privi-
leges of the place of public accommodation will be refused, withheld from or denied to, or that any
discrimination will be made against, any person on account of race, color, religion, sex, sexual ori-
entation, gender identity, national origin, marital status or age if the individual is of age, as de-
scribed in this section, or older.
SECTION 244. ORS 689.557 is amended to read:
689.557. (1) The State Board of Pharmacy shall establish by rule instructions for the disposal
of a [ marijuana] cannabis item as defined in ORS 475C.009 left behind by individuals visiting retail
drug outlets.
(2) At a minimum, the instructions established under subsection (1) of this section must:
(a) Require an employee or supervisor of the retail drug outlet to notify law enforcement upon
discovering the [ marijuana] cannabis item at the site; and
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(b) Include procedures for destroying the [ marijuana] cannabis item so that it can no longer be
used for human consumption.
(3) A person acting under and in accordance with this section is exempt from the criminal laws
of this state for any criminal offense in which possession of [ marijuana] cannabis or a [ marijuana]
cannabis item as defined in ORS 475C.009 is an element.
SECTION 245.
ORS 811.482 is amended to read:
811.482. (1) As used in this section:
(a) “Cannabis item” has the meaning given that term in ORS 475C.009.
[(a)] (b) “Consumes” includes the inhalation of smoke from a [ marijuana] cannabis item by a
driver or passenger of a motor vehicle.
[(b) “Marijuana item” has the meaning given that term in ORS 475C.009. ]
(2) A person commits the offense of use of [ marijuana] cannabis in a motor vehicle if the person
consumes in any manner a [ marijuana] cannabis item while in a motor vehicle when the motor ve-
hicle is upon a highway.
(3) This section does not apply to passengers in a motor vehicle that is operated by a common
carrier and used primarily to carry passengers for hire.
(4) Use of [ marijuana] cannabis in a motor vehicle is a Class B traffic violation.
SECTION 246.
Section 1, chapter 16, Oregon Laws 2024, is amended to read:
Sec. 1. (1) As used in this section:
(a) “Cannabis” has the meaning given that term in ORS 475C.009.
[(a)] (b) “Industrial hemp” has the meaning given that term in ORS 571.269.
[(b) “Marijuana” has the meaning given that term in ORS 475C.009. ]
(2) The Oregon Liquor and Cannabis Commission shall, with the assistance of the State De-
partment of Agriculture, create and continually update a map of the following:
(a) Premises for which a license has been issued under ORS 475C.065; and
(b) The locations of industrial hemp operations licensed under ORS 571.281.
(3) The commission shall make the map described in subsection (2) of this section available to
law enforcement agencies in this state and public employees and officials who are responsible for
the enforcement of state and local laws regulating industrial hemp or [marijuana] cannabis.
SECTION 247.
Section 2, chapter 16, Oregon Laws 2024, is amended to read:
Sec. 2. (1) As used in this section:
(a) “Cannabis” has the meaning given that term in ORS 475C.009.
[(a)] (b) “Industrial hemp” has the meaning given that term in ORS 571.269.
[(b) “Marijuana” has the meaning given that term in ORS 475C.009. ]
(2) The Oregon Liquor and Cannabis Commission, in consultation with the State Department of
Agriculture, shall develop by rule a methodology to distinguish whether a cannabis plant is
[marijuana] cannabis or industrial hemp for purposes of sections 1, 4, 5 and 6 [ of this 2024 Act ],
chapter 16, Oregon Laws 2024 . The methodology must include testing criteria and cannabinoid
concentrations above which immature or mature cannabis plants are presumptively considered to
be [marijuana] cannabis.
(3) The department may order a person licensed under ORS 571.281 to destroy any cannabis
plants located at an industrial hemp operation for which the person is responsible if the cannabis
plants are presumptively considered to be [ marijuana] cannabis under the methodology developed
pursuant to subsection (2) of this section.
SECTION 248.
Section 11, chapter 16, Oregon Laws 2024, is amended to read:
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Sec. 11. (1) As used in this section and sections 12 and 13 [ of this 2024 Act ], chapter 16,
Oregon Laws 2024 , “cannabinoid” means any of the chemical compounds that are the active con-
stituents derived from industrial hemp.
(2)(a) The Oregon Liquor and Cannabis Commission, in consultation with the State Department
of Agriculture, shall establish a registration program for industrial hemp products that contain
cannabinoids and are intended for human or animal consumption or use. An industrial hemp product
described in this paragraph is not subject to the requirements of this section unless the industrial
hemp product is in its final form and ready for sale, transfer or delivery to a consumer in this state.
(b) A person that is located within or outside this state and that, as determined by the com-
mission by rule, is responsible for the manufacture, packaging or distribution of an industrial hemp
product described in paragraph (a) of this subsection shall, prior to selling, transferring or delivering
the industrial hemp product directly to a consumer in this state or selling, transferring or delivering
the industrial hemp product to a retailer in this state for the purpose of sale to a consumer in this
state:
(A) Annually submit the information described in subsection (3) of this section to the commission
in a manner specified by the commission by rule;
(B) Include on the industrial hemp product a label that contains the information described in
subsection (4) of this section; and
(C) Pay an annual registration fee established by the commission by rule.
(3) A person described in subsection (2) of this section shall submit to the commission the fol-
lowing information about an industrial hemp product that contains cannabinoids and is intended for
human or animal consumption or use:
(a) The name and type of the product;
(b) The name and physical address of the manufacturer of the product;
(c) The mailing address of the manufacturer of the product;
(d) A certificate of analysis for a batch of the product;
(e) A copy of the label for the product;
(f) A statement about whether the product is an adult use cannabis item; and
(g) Any other information required by the commission by rule.
(4) A person described in subsection (2) of this section shall label an industrial hemp product
that contains cannabinoids and is intended for human or animal consumption or use with a label
that contains the following information:
(a) The name and type of the product;
(b) The name and physical address of the manufacturer of the product;
(c) The ingredients of the product;
(d) The net weight or volume of the product;
(e) The serving size and number of servings contained in a package of the product;
(f) The potency of the product and a list of the cannabinoid contents of the product;
(g) The address of a publicly accessible website that contains the certificate of analysis for the
product;
(h) Health and safety warnings required by law or rule;
(i) If the product is an adult use cannabis item, the following language:
(A) “For use only by adults 21 and older.”; and
(B) “Keep out of reach of children.”;
(j) If the product is a food product, any other information required by law or rule for food pro-
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ducts; and
(k) Any other information required by the commission by rule.
(5) In adopting rules under subsection (4) of this section, the commission:
(a) May establish different labeling standards for different types of industrial hemp products that
contain cannabinoids and are intended for human or animal consumption or use, and may consider
existing product quality requirements or standards applicable to different types of products; and
(b) May not adopt rules that are more restrictive than is reasonably necessary to protect the
public health and safety.
(6) If an industrial hemp product is intended only for human consumption or use, the person
described in subsection (2) of this section shall comply with the requirements of ORS 571.337 and
571.339.
(7)(a) The fee collected under this section may not exceed the cost of administering ORS 571.309
and sections 2, 4 and 11 to 14 [ of this 2024 Act ], chapter 16, Oregon Laws 2024 .
(b) Fees collected under this section shall be deposited in the [ Marijuana] Cannabis Control and
Regulation Fund established under ORS 475C.297.
(8) A person is not required to submit to the commission the information described in subsection
(3) of this section for an industrial hemp product that contains cannabinoids and is intended for
human or animal consumption or use if another person has submitted the information for the product
and the product continues to be consistent with the previously submitted information.
(9) The commission may refuse to register an industrial hemp product that contains
cannabinoids and is intended for human or animal consumption or use if, based on the information
described in subsection (3) or (4) of this section, the sale of the product to a consumer is prohibited
by section 12 [ of this 2024 Act ], chapter 16, Oregon Laws 2024, or by the commission by rule.
(10) This section does not apply to an industrial hemp product that:
(a) Does not contain cannabinoids;
(b) Is intended only for topical use;
(c) Is an industrial hemp grain or fiber product that does not contain added cannabinoids;
(d) Is a commercial feed product for animals registered under ORS 633.006 to 633.089; or
(e) Is transported through this state en route to a final destination in another state.
SECTION 249.
Section 19, chapter 16, Oregon Laws 2024, is amended to read:
Sec. 19. (1) The Oregon Liquor and Cannabis Commission may not accept an application for a
new license under ORS 475C.065, 475C.085, 475C.093 or 475C.097 unless:
(a) For a production license under ORS 475C.065, there is not more than one active license per
7,500 residents in this state who are 21 years of age or older.
(b) For a processor license under ORS 475C.085, there is not more than one active license per
12,500 residents in this state who are 21 years of age or older.
(c) For a wholesale license under ORS 475C.093, there is not more than one active license per
12,500 residents in this state who are 21 years of age or older.
(d) For a retail license under ORS 475C.097, there is not more than one active license per 7,500
residents in this state who are 21 years of age or older.
(2) Subsection (1) of this section does not apply to:
(a) An application for renewal of a license described in subsection (1) of this section;
(b) An application for reissuance of a license described in subsection (1) of this section neces-
sitated by a change in the location or ownership of a production, processing, wholesale or retail
facility or premises;
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(c) An application for a change in size of a mature [ marijuana] cannabis plant grow canopy; or
(d) The sale or purchase of a license described in subsection (1) of this section issued prior to
the operative date specified in section 22 [ of this 2024 Act ], chapter 16, Oregon Laws 2024 .
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