CBD

We previously discussed the two-tier industrial hemp registration system Oregon adopted last year. In brief, the Oregon Department of Agriculture allows registration as either a grower (producer of industrial hemp), or a handler (processor of industrial hemp into commodities, products or agricultural hemp seed). Currently, only registered hemp handlers can process industrial hemp or sell industrial hemp products. However, a bill winding its way through the Oregon legislature could significantly upend the status quo for CBD concentrates and extracts.

Oregon’s hemp advocates should keep a close eye on Senate Bill 1015. When it comes to CBD concentrates and extracts, the bill would open up industrial hemp processing to Oregon Liquor Control Commission (OLCC) licensed recreational marijuana processors. The processed CBD concentrates and extracts could then be delivered to recreational marijuana retailers for sale in OLCC licensed dispensaries.

Of course, the bill places some restrictions on OLCC processors:

  • The recreational processor must be registered with OLCC for the express purpose of processing industrial hemp into CBD concentrates and extracts. Presumably, the OLCC would create a new registration process for this purpose;
  • The grower must provide the recreational processor with all test results on the hemp and the recreational processor must retain the test results in its records; and
  • The industrial hemp must still be tracked as outlined in ORS 475B.150.

The bill would also allow the processed CBD products to be delivered to an industrial hemp handler for resale provided that:

  • The CBD products were produced “independently” of any marijuana products. This might require separate processing facilities to prevent cross-contamination;
  • The products have been properly tested;
  • The products are tracked as required by ORS 475B.150; and
  • The THC concentration in the products are below a threshold to be set by the OLCC (probably .3 percent if the OLCC follows the Department of Agriculture’s lead).

The bill is now before the Joint Committee on Marijuana Regulation, which will hold a public meeting on Senate Bill 1015 today (May 9), at the Oregon Capitol Building. If you want to get involved in the future of Oregon’s hemp industry, arrive at Room HR B before 5:00pm. Also, take note that the Committee will be considering this classic “gut-and-stuff” amendment, so you can safely ignore the text of the bill as originally introduced.