Recreational Marijuana
Lauren Sommers
Local Government Law Group lauren@speerhoyt.com
541-485-5151

Control, Regulation, and Taxation of
Marijuana and Industrial Hemp Act

Limitations
Measure 91 does not:
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
Amend or affect state or federal employment law;
Amend or affect state or federal landlord-tenant law;

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Prohibit a federal grant recipient or party to a federal contract from prohibiting the manufacture, use, delivery or possession of marijuana to the extent necessary to satisfy conditions of the grant or contract;
Require violations of federal law;
Create an exemption from federal law; or
Amend or affect the Oregon Medical Marijuana Act.

Exemptions

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Homegrown marijuana (not to exceed 4 plants and 8 oz of useable marijuana at any given time).
Homemade marijuana products (not to exceed 16 oz in solid form and 72 oz in liquid form at a given time).
Delivery of not more than one ounce of homegrown marijuana, not more than 16 oz solid homemade marijuana products and 72 oz liquid homemade marijuana products at a given time by a person over 21 to another person over 21 for noncommercial purposes.

Recreational restrictions do not apply to medical card holders. The Oregon
Health Authority retains jurisdiction over medical dispensaries.

OLCC to Regulate Recreational
Marijuana
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OLCC rules due on or before
January 1, 2016.
OLCC to accept license applications on or before January
4, 2016.
No licensure of mobile premises
(no pot trucks).

Types of Licenses
 Producer License
(Growers)
 Processor License
 Wholesale License

Retail License
An individual or entity can hold one or more of these licenses. Licenses are issued for one year.

Tax
 $35 per ounce on flowers
 $10 per ounce on leaves
 $5 per immature plant
 The tax is only imposed on the marijuana producers at the time of the first sale by the producer.
 The tax will increase each year by an adjusted cost of living index.

State has the exclusive right to tax
Section 42: No county or city of this state shall impose any fee or tax, including occupation taxes, privilege taxes and inspection fees, in connection with the purchase, sale, production, processing, transportation, and delivery of marijuana items.

Common School Fund –
40%
Mental Health, Alcoholism and Drug Services Account
– 20%
State Police – 15%
Cities – 10%
Counties – 10%
Oregon Health Authority for Alcohol and Drug Abuse
Prevention Programs – 5%
Tax Breakdown
Common School
Fund
Mental Health,
Alcoholism and
Drug Services
State Police
Cities
Counties
Oregon Health
Authority Alcohol and Drug Abuse
Prevention

City Revenue Sharing


Before July 1, 2017
 Revenue dedicated to cities will be distributed proportionally by population
After July 1, 2017
 50% of revenue dedicated to cities will be distributed proportionally based on the number of producer, processor and wholesaler licenses in the city
 50% of revenue dedicated to cities will be distributed proportionally based on the number of retail licenses in the city

Prohibitions
 No use of marijuana in a public place
 No homegrown marijuana in public view
 No homemade extracts

No import/export out of state
 No provision of marijuana to a visibly intoxicated person
 No possession of marijuana in a correctional facility
 No marijuana as a prize

Marijuana Laws Supersede and
Repeal Inconsistent Charters and Ordinances
Sections 3 to 70 of this Act, designed to operate uniformly throughout the state, shall be paramount and superior to and shall fully replace and supersede any and all municipal charter enactments or local ordinances inconsistent with it. Such charters and ordinances are hereby repealed.

City Regulations
Cities may adopt reasonable time, place, and manner regulations of the nuisance aspects of establishments that sell marijuana to consumers if the city makes specific findings that the establishment would cause adverse effects to occur.
The authority to impose regulations is in addition to authority granted to cities under state statutes, the Oregon
Constitution and the city’s charter.

Citizens may file an initiative petition to prohibit licensed premises in the City.
A yes vote would not prohibit the possession of marijuana for personal use in the city.