Let’s talk Oregon HB4016

HB4016 is Oregon’s second moratorium for producer license adding an additional two years to the previous moratorium on processing any new applications producer(grow) licenses . This extension comes amidst another glut and drop in flower prices around the state, so we have majority of people in the industry welcoming it; however, there are a few things worth keeping an eye out for.

For instance, an amendment was just added to give the OLCC the ability to limit the processing of all licensing as they see fit, not just for producer applications that were submitted after January 1st, 2022.

What does this mean for the market? Hopefully it will help curb the over production that we have in the state, but ultimately it means if you want to enter or expand in the Oregon market, you are going to have to purchase an active license from a person trying to exit said market.

We saw a sharp decline in the value of licenses this fall when the OLCC announced they were going to start processing the 400 some applications in the queue for processing, wholesale, and retail licenses and that the moratorium would be ending January 2nd for producer licenses. Over 250 applications have been submitted since January 2nd, 2022 for new producer licenses but those will not be processed. For all applications in the queue, once HB4016 is signed you will have 21 days to submit your LUCS for your location to the state or they will throw your application out! Yes! All applications that were entered prior to January 1st, 2022 and that are valid to be processed have to have a LUCS submitted within 21 days- so don’t hesitate! Many counties and cities take weeks to obtain a LUCS.
There are also changes on how the state will treat hemp and a property that grows illegal cannabis under the cover of being hemp. The state will use forfeiture and seize your land if you can not pay the fines assessed should you be caught doing this. This also applies to land owners that lease their property to individuals that partake in the illegal activities. This past year in Southern Oregon, we have seen people be assessed 6-digit fines, so this is a real concern and if you are leasing your land you need to make sure you know what is happening on your property.
Hold on as our “canna-coaster” continues as change is the only thing that is guaranteed!