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Senator Submits Proposal to Fast Track Oregon’s Recreational Marijuana Program

Apr 10, 2015 • 1:45 PM EDT
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3 MIN READ  •  By Michael Berger
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During the 2014 midterm elections, Oregon voters approved legislation that legalized recreational marijuana. There has been a mixed reaction from lawmakers and county authorities on this legislation, which has resulted in a delay of its implementation.

Republican Senate Minority Leader Ted Ferrioli recently submitted a proposal that would speed up the implementation of Oregon’s recreational marijuana program. Under his proposal, recreational sales will begin when the possession of marijuana becomes legal on July 1st.

Many people were surprised by Ferrioli’s proposal because his district largely voted against marijuana legalization. Ferrioli’s proposal has attracted a lot of interest, primarily from marijuana advocates, but faces a number of hurdles that would prevent it from becoming a reality.

Senator Ginny Burdick, co-chair of the Legislature’s marijuana committee, said, “The concept is good, but practically speaking there are obvious issues.”

What are the issues?

Democratic Representative Ann Lininger, co-chair of the marijuana committee with Senator Burdick, is also of the opinion that there are a number of issues with Ferrioli’s proposal.

Lininger stated that his proposal would interfere with the work being done by the Oregon Liquor Control Commission (OLCC) which is focused on having a careful roll-out of recreational marijuana. One of the OLCC’s main goals is to avoid problems that other states faced when they rolled out recreational marijuana.

The OLCC has not yet developed rules on issues which include regulating the dosages and packaging of edible marijuana products and setting up a system for taxation.

Lininger also is concerned about disrupting the market. She believes that the sudden increase in sales at medical marijuana dispensaries could have a negative impact.

Also, since Ferrioli’s proposal modifies Measure 91, the legislation passed in the midterm elections, it would need a majority vote in the Senate and House of Representatives. The governor would also have to sign off on the proposal.

Role reversal

Ferrioli’s eastern Oregon district largely voted against marijuana legalization, and he’s previously noted that many of the communities he represents would prefer not to have marijuana sales outlets at all.

On Wednesday, Ferrioli said that he has become more concerned that the state needs to provide an alternative to the black market once marijuana becomes legal on July 1. Ferrioli noted that the Department of Justice told states that they need to curb the black market if they decide to legalize marijuana.

Ferrioli also said that his confidence in the OLCC’s ability to administer this program is diminishing. Under Ferrioli’s proposal, recreational marijuana sales would eventually migrate to OLCC-licensed facilities once the agency finished its work.

Senator Ginny Burdick said the committee will hold a hearing on Ferrioli’s proposal but did not say when it would be scheduled. She does not think the state will be able to accomplish what must be done. The Chairman of the OLCC, Rob Patridge, said that he expects retail sales to start in late 2016.

Outlook

Oregon would not be the first state to have a lag between the time when marijuana possession became legal and commencement of retail sales. Adults in Washington and Colorado were allowed to possess marijuana a few weeks after voters approved legalization in November 2012. Retail sales did not begin until January 2014 in Colorado and until July 2014 in Washington.

Ferrioli’s role reversal is interesting and concerning. The skeptic in me believes that he wants to see the program fail because it would make states and the federal government think twice about recreational marijuana. One thing that I have noticed about implementing a legal marijuana program is that you need a plan and you must stick to that plan. You are more likely to be successful if you have a plan; Ferrioli’s proposal does not follow a plan. 

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Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

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