REPORT TO THE CITY COUNCIL FROM THE CITY MANAGER August 3, 2015

REPORT TO THE CITY COUNCIL FROM THE CITY MANAGER August 3, 2015 Subject: Update n the State s Marijuana Laws. Backgrund. The electrs passed State Measure 91 in 2014. Huse Bill 3400 was passed n June 30, 2015. It changes parts f Measure 91 and affects bth medical marijuana and recreatinal (cmmercial) marijuana. It appears that there are fur types f legalized and licensed activities in the marijuana realm: Marijuana Prducers (grwers), and Marijuana Prcessrs (preparing edibles, skin and hair prducts, cncentrates, and extracts), and Marijuana whlesalers (cmmercial nly), and Marijuana retail (cmmercial retail and medical marijuana dispensaries). The Oregn Health Authrity (OHA) regulates medical marijuana while the Oregn Liqur Cntrl Cmmissin (OLCC) regulates cmmercial (recreatinal) marijuana. There are cnflicts and cnfusin within the rules and legislatin abut medical and cmmercial marijuana. Current legislative bill abut marijuana have re-written earlier laws and plicies. The State agencies are adding t the Oregn Administrative Rules. The current legislative bills abut marijuana are: Law Descriptin Type f marijuana HB 3400 Omnibus bill that amended the Oregn Cmmercial, Medical. Medical Marijuana Act and the Measure 91 HB 2041 Revised the state tax structure fr cmmercial marijuana. Cmmercial, Medical fr retail sales in dispensaries. SB 460 Authrized early sales f cmmercial marijuana by medical marijuana dispensaries. Cmmercial, Medical fr retail sales in dispensaries. SB 844 Establishes Task Frce n Researching the Medical and Public Health Prperties f Cannabis including recmmendatins fr legislatin, n develpment f medical cannabis industry fr patient needs. Medical. I briefly list the majr tpics f each bill that apply, r may apply, t the City. I relied heavily n the League f Oregn Cities publicatin titled 2015 Marijuana Legislatin: What Lcal Gvernments Need t Knw. It is the first attachment. As we read and discuss the recent changes t laws and administrative regulatins, the fllwing questins will develp: Page1

1. Des the City Cuncil wish t place time, place and manner regulatins n cmmercial (recreatinal) marijuana? 2. Des the City Cuncil wish t prhibit any r all f the fllwing marijuana businesses: Medical marijuana prcessrs. Medical marijuana dispensaries. Cmmercial marijuana prcessrs. Cmmercial marijuana prducers. Cmmercial marijuana whlesalers. Cmmercial marijuana retailers. 3. Des the City Cuncil wish t refer a tax n cmmercial (recreatinal) marijuana t the vters? 4. Des the City Cuncil wish t prhibit Early Sales f cmmercial (recreatinal) marijuana in medical marijuana dispensaries? Licenses and taxes. HB 3400 establishes licensure qualificatins fr marijuana prducers, marijuana prcessrs, marijuana whlesalers and marijuana retailers. Prvides fr time, place and manner f regulatin f licensees by lcal gvernments f cmmercial marijuana. Authrizes gverning bdy f lcal gvernments t refer t electrs rdinance under which 3 percent tax may be impsed n sale f cmmercial marijuana items. Becmes perative January 1, 2016. Land Use. HB 3400 makes changes t Oregn Medical Marijuana Act. Prvides fr time, place and manner f regulatin f registrants by lcal gvernments. Land Use and taxes. HB 3400 authrizes lcal gvernments, under certain cnditins and prcesses, t adpt rdinances prhibiting establishment f marijuana businesses registered with authrity (Oregn Health Authrity) r licensed by cmmissin (Oregn Liqur Cntrl Cmmissin). Specifies that lcal gvernment that adpts any such rdinance may nt impse any tax n sale f marijuana items. Effective n passage Taxes. HB 2041 established a 17% tax n cmmercial marijuana cllected at the pint f sale. The tax impsed under this sectin shall be impsed at the rate f: (a) 17 percent f the retail sales price f marijuana leaves; (b) 17 percent f the retail sales price f marijuana flwers; Page2

(c) 17 percent f the retail sales price f immature marijuana plants; (d) 17 percent f the retail sales price f a cannabinid edible; (e) 17 percent f the retail sales price f a cannabinid cncentrate; (f) 17 percent f the retail sales price f a cannabinid extract; (g) 17 percent f the retail sales price f a cannabinid prduct that is intended t be used by applying the cannabinid prduct t the skin r hair; and (h) 17 percent f the retail sales price f cannabinid prducts ther than thse described in the abve paragraph. (HB 2014 Sectin 2) HB 2041 describes the methd f distributin f thse taxes. After 2017, the distributin is based upn the number f OLCC licenses issued and the number based in the City. Additinally if the City prhibits the establishment f a premises fr which a license is issued by the OLCC (Measure 91) r prhibits the establishment f an entity authrized by the Oregn Medical Marijuana Act, that City is nt eligible t receive marijuana tax distributin. (HB 2041, Sectin 14) Sale f cmmercial marijuana at medical marijuana dispensaries. SB 460 authrizes Early Sales. This measure allws dispensaries t sell the fllwing t a persn 21 years r lder: 1/4 unce f dried marijuana leaves and flwers per persn per day 4 marijuana plants that are nt flwering Marijuana seeds Starting January 4, 2016, sales f cmmercial marijuana frm medical marijuana dispensaries will be subject t a 25 percent sales tax (HB 2041 21a) Cmmercial sales frm medical marijuana dispensaries are allwed thrugh December 31, 2016 Cities can ban Early Sales by adpting an rdinance prhibiting the early sale f cmmercial marijuana frm medical marijuana dispensaries within its jurisdictin. N vter referral is required. The City adpted, n Octber 20, 2014, Ordinance 2014-05, an Ordinance f The City Of Sheridan Establishing A Tax On The Sale Of Marijuana And Marijuana-Infused Prducts in the City Of Sheridan. The City adpted, n April 20, 2015,Ordinance 2015-02, an Ordinance Amending The Sheridan Municipal Cde, T Allw Medical Marijuana Dispensaries as a Permitted Use in the Cmmercial Zne (Sectin 16.235.020), and the Industrial Zne (Sectin 16.250.020), and as a Cnditinal Use in the Mixed Residential Zne (R-3) (Sectin 16.220.030). Discussin. Licenses and taxes. It appears that HB 3400 allws cities t regulate a licensee fr a reasnable time, place and manner, which is similar t the land use decisin the City made n the placement and hurs f medical marijuana facilities. Page3

If a City permits all categries f marijuana licensees t perate, and the electrs agree, the City may impse a 3% tax n the cmmercial marijuana. Land Use (regarding medical marijuana). Ordinance 2015-02, dated April 20, 2015, amended the Sheridan Municipal Cde t permit medical marijuana dispensaries in varius znes. Land Use and taxes. The City can ban sme marijuana activities. What Cities Can Ban (HB 3400A 133(2), 134(1)) There are 7 types f marijuana activities regulated under HB 3400A. Cities can ban any f the fllwing 6 marijuana activities: Medical marijuana prcessrs (preparing edibles, skin and hair prducts, cncentrates, and extracts) Medical marijuana dispensaries Cmmercial marijuana prcessrs (preparing edibles, skin and hair prducts, cncentrates, and extracts) Cmmercial marijuana prducers (grwers) Cmmercial marijuana whlesalers Cmmercial marijuana retailers Cities cannt ban medical marijuana grw sites. Hwever, the law places limits n the number f plants and the amunt f marijuana that can be lcated at any ne medical marijuana grw site (HB 3400A 82, 82a). Early Sales. Cities can ban Early Sales by adpting an rdinance prhibiting the early sale f cmmercial marijuana frm medical marijuana dispensaries within its jurisdictin. N vter referral is required. Early Sales can begin n Octber 1, 2015 unless the City adpts an rdinance prhibiting early sales f cmmercial recreatin frm a medical marijuana dispensary within the jurisdictin. Page4

Questins that need t be answered in the cming mnths. 1. Des the City Cuncil wish t place time, place and manner regulatins n cmmercial (recreatinal) marijuana? 2. Des the City Cuncil wish t prhibit any r all f the fllwing marijuana businesses: Medical marijuana prcessrs. Medical marijuana dispensaries. Cmmercial marijuana prcessrs. Cmmercial marijuana prducers. Cmmercial marijuana whlesalers. Cmmercial marijuana retailers. 3. Des the City Cuncil wish t refer a tax n cmmercial (recreatinal) marijuana t the vters? 4. Des the City Cuncil wish t prhibit Early Sales f cmmercial (recreatinal) marijuana in medical marijuana dispensaries? Recmmendatin. NA Francis D. Sheridan Francis D. Sheridan City Manager Attachments: 1. 2015 Marijuana Legislatin: What Lcal Gvernments Need t Knw, League f Oregn Cities, May 2015, (6 pages). 2. Summary f Huse Bill 3400, dwnladed frm https://legiscan.cm (1 page). 3. FAQ Recreatinal Marijuana, published by Oregn Liqur Cntrl Cmmissin, May 2015 (6 pages), (dwnladed n July 24, 2015 frm http://www.regn.gv/lcc/marijuana/pages/frequently-asked-questins.aspx). Page5

2015 Marijuana Legislatin: What Lcal Gvernments Need t Knw Bills HB 3400: Omnibus bill that amended the Oregn Medical Marijuana Act and the Measure 91 HB 2041: Revised the state tax structure fr cmmercial marijuana SB 460: Authrized early sales f cmmercial marijuana by medical marijuana dispensaries SB 844: Miscellaneus prvisins Hme Rule Hme rule is the pwer f a lcal gvernment t set up its wn system f gvernance and gives that lcal gvernment the authrity t adpt rdinances withut having t btain permissin frm the state. City gvernments in Oregn derive hme rule authrity thrugh the vters adptin f a hme rule charter as prvided fr in the Oregn Cnstitutin. A hme rule charter perates like a state cnstitutin in that it vests all gvernment pwer in the gverning bdy f a municipality, except as expressly stated in that charter, r preempted by state r federal law. Where the Legislature s intent t preempt lcal gvernments is nt express and where the lcal and state law can perate cncurrently, there is n preemptin. As a result, generally a negative inference that can be drawn frm a statute is insufficient t preempt a lcal gvernment s hme rule authrity. Althugh this dcument summarizes the prvisins f HB 3400A, cities may be able t impse regulatins in additin t thse authrized under HB 3400A under their hme rule authrity. Lcal Gvernment Ban (effective June 30, 2015) What Cities Can Ban (HB 3400A 133(2), 134(1)) There are 7 types f marijuana activities regulated under HB 3400A. Cities can ban any f the fllwing 6 marijuana activities: Medical marijuana prcessrs (preparing edibles, skin and hair prducts, cncentrates, and extracts) Medical marijuana dispensaries Cmmercial marijuana prcessrs (preparing edibles, skin and hair prducts, cncentrates, and extracts) Cmmercial marijuana prducers (grwers) Cmmercial marijuana whlesalers Cmmercial marijuana retailers Cities cannt ban medical marijuana grw sites. Hwever, the law places limits n the number f plants and the amunt f marijuana that can be lcated at any ne medical marijuana grw site (HB 3400A 82, 82a): Page6

Hw Cities Can Ban General Rule: 12 mature plants per grw site in residential znes; 48 mature plants per grw site in all ther znes Grandfathering: If all grwers at the site had registered with the state by January 1, 2015, the grw site is limited t the number f plants at the grw site as f December 31, 2015, nt t exceed 24 mature plants per grw site in residential znes and 96 mature plants per grw site in ther znes Usable marijuana: A grwer may pssess the amunt f usable marijuana harvested frm the plants nt t exceed 12 punds per plant fr utdr grw sites and 6 punds per plant fr indr grw sites. Under HB 3400A, there are tw avenues fr cities t ban marijuana activities, but ne f thse avenues is available nly t certain cities and nly during a limited time perid. Optin 1: Vter Referral (HB 3400A 134) All cities have the ptin f banning any f the marijuana activities listed abve thrugh the fllwing vter referral prcess: The city cuncil adpts an rdinance that prhibits any f the 6 marijuana activities listed abve. The city cuncil prvides the text f the rdinance t the Oregn Health Authrity (if prhibiting medical marijuana activities) and/r the Oregn Liqur Cntrl Cmmissin (if prhibiting cmmercial marijuana activities). The OHA and OLCC will stp registering and licensing the prhibited activities until the next statewide general electin. The city cuncil refers the rdinance t the vters at a statewide general electin (Nvember electins in even-numbered years). Optin 2: Ban Adpted by the City Cuncil (HB 3400A 133) A city cuncil can adpt a ban n any f the 6 marijuana activities listed abve by enacting an rdinance nly if the fllwing cnditins are met: The city is lcated in Baker, Crk, Gilliam, Grant, Harney, Jeffersn, Klamath, Lake, Malheur, Mrrw, Sherman, Umatilla, Unin, Wallwa, r Wheeler Cunty; 1 AND The city cuncil adpts the rdinance by December 24, 2015 (180 days after the effective date f the legislatin) Page7 1 HB 3400A allws a city cuncil ban fr cities lcated in cunties that vted against Measure 91 by 55 percent r mre.

The city cuncil must prvide the text f the rdinance t the Oregn Health Authrity (if prhibiting medical marijuana activities) and/r the Oregn Liqur Cntrl Cmmissin (if prhibiting cmmercial marijuana activities). The OHA and OLCC will stp registering and licensing the prhibited activities. Effect n Existing Medical Marijuana Prcessrs & Dispensaries (HB 3400 133(6), (7), 134(6), (7), 135) Dispensaries registered with the state by the time the city adpts a prhibitin rdinance, r that had applied t be registered by July 1, 2015, are nt subject t the prhibitin if they have successfully cmpleted a city r cunty land use applicatin prcess. Medical marijuana prcessrs registered with the state by the time the city adpts the prhibitin rdinance are nt subject t the prhibitin if they have successfully cmpleted a city r cunty land use applicatin prcess. Tax Implicatins (HB 3400A 133(5), 134(5); HB 2041 14(4)) Lcal Tax: A city that adpts an rdinance prhibiting marijuana activities in its jurisdictin may nt impse a lcal tax n marijuana. (HB 3400A 133(5), 134(5)) State Tax: A city that adpts an rdinance prhibiting marijuana activities is nt eligible t receive state marijuana tax revenues frm the 17 percent state tax impsed n cmmercial sales f marijuana. (HB 2041 14(4)) Cllectively, cities will receive 10% f the state marijuana tax revenues, distributed as fllws t cities that d nt prhibit marijuana activities (HB 2041 14(2)): Befre July 1, 2017, distributed prprtinately based n ppulatin After July 1, 2017, distributed based n the number f licensees in the city, with 50 percent distributed based n the number f prducer, prcessr, and whlesale licensees and 50 percent distributed based n the number f retail licensees What Cities Can Tax Lcal Gvernment Tax (HB 3400A 34a) (perative January 1, 2016) Under HB 3400A, cities may impse up t a 3 percent tax n sales made by thse with cmmercial retail licenses. Hw Cities Can Impse a Tax Cities may adpt an rdinance impsing the tax, but it must be referred t the vters at the next statewide general electin (meaning a Nvember electin in an even-numbered year). Hwever, cities may nt impse a lcal tax if they have prhibited marijuana activities thrugh a lcal ban. Page8

Time, Place, and Manner Restrictins (medical prvisins perative March 1, 2016; cmmercial prvisins perative January 1, 2016) 2 State Law Restrictins Medical and Cmmercial Marijuana Prcessrs: Cannt lcate in residential znes if prcessing marijuana extracts. (HB 3400 14(2)(c), 85(3)(a)) Medical Marijuana Dispensaries and Cmmercial Retail Stres Cannt lcate in residential znes (HB 3400 16, 86) Cannt lcate within 1000 feet f certain public and private schls, unless the schl is established after the marijuana facility (HB 3400 16, 17, 86, 86a) Medical marijuana dispensaries cannt lcate within 1000 feet f anther dispensary (HB 3400A 86) Medical marijuana dispensaries cannt lcate at a grw site (HB 3400A 86) Cmpliance with Zning Requirements (HB 3400A 34(4)): Befre issuing any license, the OLCC must request a statement frm the city that the requested license is fr a lcatin where the prpsed use f the land is a permitted r cnditinal use. If the prpsed use is prhibited in the zne, the OLCC may nt issue a license. A city has 21 days t act n the OLCC s request, but when that 21 days starts t run varies: If the use is allwed as an utright permitted use, 21 days frm receipt f the request. If the use is a cnditinal use, 21 days frm the final lcal permit apprval. What Cities Can Regulate (HB 3400A 33, 89) Althugh the League believes that the Legislature has nt freclsed ther regulatry ptins, HB 3400A expressly prvides that cities may impse reasnable regulatins n the fllwing: The hurs f peratin f retail licensees and medical marijuana grw sites, prcessing sites, and dispensaries The lcatin f all 4 types f cmmercial licensees, as well as medical marijuana grw sites, prcessing sites, and dispensaries, except that a city may nt impse mre than a 1,000 ft buffer between retail licensees The manner f peratin f all 4 types f cmmercial licensees, as well as medical marijuana prcessrs and dispensaries Page9 2 Althugh these prvisins d nt take effect immediately, sme f these prvisins are already part f existing state law. Cities shuld cnsult their city attrney when enacting time, place, and manner restrictins.

The public s access t the premises f all 4 types f cmmercial licenses, as well as medical marijuana grw sites, prcessing sites, and dispensaries The law als prvides that time, place, and manner regulatins impsed n cmmercial licensees must be cnsistent with city and cunty cmprehensive plans, zning rdinances, and public health and safety laws, which wuld be true f any rdinance impsed by a city. Early Sales (SB 460) (awaiting the Gvernr s signature effective n passage) Hw Early Sales Wrk (SB 460 2, 3) Starting Octber 1, 2015, medical marijuana dispensaries may sell the fllwing amunts f cmmercial marijuana t a persn wh is 21 r lder: 1/4 unce f dried marijuana leaves and flwers per persn per day 4 marijuana plants that are nt flwering Marijuana seeds Starting January 4, 2016, sales f cmmercial marijuana frm medical marijuana dispensaries will be subject t a 25 percent sales tax (HB 2041 21a) Cmmercial sales frm medical marijuana dispensaries are allwed thrugh December 31, 2016 Hw Cities Can Ban Early Sales (SB 460 2(3)) A city can adpt an rdinance prhibiting the early sale f cmmercial marijuana frm medical marijuana dispensaries within its jurisdictin. N vter referral is required. Page10

Timeline June 30, 2015 HB 3400A becmes effective. Hwever, many prvisins f the law d nt g int effect immediately. July 1, 2015 Persnal pssessin f limited amunts f cmmercial marijuana is allwed fr thse 21 r lder. Octber 1, 2015 Sales f cmmercial marijuana frm medical marijuana dispensaries begin, unless a city has enacted an rdinance prhibiting early sales pursuant t SB 460 2(3). December 24, 2015 City cuncils that are eligible t adpt a prhibitin n marijuana activities withut a vter referral must have adpted the prhibitin by this date. January 1, 2016 Mst amendments t Measure 91 g int effect. In additin, after this date, medical marijuana grwers may apply fr an OLCC license t grw cmmercial marijuana at the same site. January 4, 2016 The OLCC must apprve r deny cmmercial license applicatins as sn as practicable after this date. (HB 3400A 171). In additin, medical marijuana dispensaries engaging in early sales f cmmercial marijuana must begin cllecting a 25 percent state tax n thse sales. March 1, 2016 Mst amendments t the OMMA g int effect. Nvember 8, 2016 Next statewide general electin. Cities may refer measures n prhibitin f marijuana activities and measures n lcal taxes at this electin. December 31, 2016 Early sales f cmmercial marijuana frm medical marijuana dispensaries end. Page11

Summary f Huse Bill 3400 Makes changes t Ballt Measure 91 (2014). Directs Oregn Health Authrity t develp and maintain database f infrmatin related t prducing and prcessing f marijuana by persns respnsible fr marijuana grw sites under Oregn Medical Marijuana Prgram.] Requires persn respnsible fr marijuana grw site under prgram t submit t authrity certain infrmatin related t prducing and prcessing marijuana.] Specifies number f mature marijuana plants that may be prduced at single address.] Makes ther changes t Oregn Medical Marijuana Act, including changes t harmnize Oregn Medical Marijuana Act with chapter 1, Oregn Laws 2015.] Becmes perative January 1, 2016.] Establishes licensure qualificatins fr marijuana prducers, marijuana prcessrs, marijuana whlesalers and marijuana retailers. Directs Oregn Liqur Cntrl Cmmissin t adpt certain rules related t licensure. Prvides cmmissin with additinal enfrcement pwers ver licensees, including use f seed t sale tracking system. Directs cmmissin t establish canpy sizes fr marijuana prducers. Establishes that cannabinid edibles are subject t laws f this state related t prcessing fd. Requires individuals wh perfrm certain type f wrk fr r n behalf f marijuana retailers t btain valid permit frm cmmissin. Prvides fr time, place and manner f regulatin f licensees by lcal gvernments. Authrizes gverning bdy f lcal gvernments t refer t electrs rdinance under which 3 percent tax may be impsed n sale f marijuana items. Becmes perative January 1, 2016. Makes changes t Oregn Medical Marijuana Act. Limits amunt f plants that may be grwn at address where marijuana grw sites are lcated. Requires registratin f marijuana prcessing sites. Requires marijuana grw sites, marijuana prcessing sites and medical marijuana dispensaries t submit infrmatin t Oregn Health Authrity related t amunt f marijuana held and transferred. Prvides fr time, place and manner f regulatin f registrants by lcal gvernments. Becmes perative March 1, 2016. Aligns prvisins f Ballt Measure 91 (2014) with prvisins f Oregn Medical Marijuana Act. Prvides fr unifrm testing f marijuana items transferred by medical marijuana dispensaries and sld by marijuana retailers. Directs authrity t adpt rules related t testing marijuana. Directs authrity t accredit labratries. Directs cmmissin t license labratries. Becmes perative January 1, 2016. Prvides fr unifrm packaging, labeling and dsage f marijuana items transferred by medical marijuana dispensaries and sld by marijuana retailers. Directs authrity t adpt rules related t labeling marijuana items and establishing dsage units fr marijuana items. Directs cmmissin t adpt rules related t packaging f marijuana items. Becmes perative January 1, 2016. Prvides fr certificatin f private and public researchers f cannabis by cmmissin. Becmes perative Nvember 15, 2015. Reduces crime classificatins related t manufacture, delivery and pssessin f marijuana. Effective n passage. Prvides fr cannabis educatin prgram. Effective n passage. Authrizes lcal gvernments, under certain cnditins and prcesses, t adpt rdinances prhibiting establishment f marijuana businesses registered with authrity r licensed by cmmissin. Specifies that lcal gvernment that adpts any such rdinance may nt impse any tax n sale f marijuana items. Effective n passage. Declares emergency, effective n passage. Page12

FAQs Recreatinal Marijuana Recreatinal Marijuana in General Q: What is the purpse f legalizing recreatinal marijuana? A: As stated in Measure 91, the purpse f the Act is t: Eliminate the prblems caused by the prhibitin and uncntrlled manufacture, delivery, and pssessin f marijuana within this state; Prtect the safety, welfare, health, and peace f the peple f this state by priritizing the state s limited law enfrcement resurces in the mst effective, cnsistent, and ratinal way; Permit persns licensed, cntrlled, regulated, and taxed by this state t legally manufacture and sell marijuana t persns 21 years f age and lder, subject t the prvisins f this Act; Ensure that the State Department f Agriculture issues industrial hemp licenses and agricultural hemp seed prductin permits in accrdance with existing state law; Establish a cmprehensive regulatry framewrk cncerning marijuana under existing state law. Q: What des Measure 91 d? A: Measure 91 allws Oregnians t grw limited amunts f marijuana n their prperty and t pssess limited amunts f recreatinal marijuana fr persnal use beginning July 1, 2015 under Oregn law. The measure als gives OLCC authrity t tax, license and regulate recreatinal marijuana grwn, sld, r prcessed fr cmmercial purpses. The OLCC des nt regulate the hme grw/persnal pssessin prvisins f the law. The OLCC will begin accepting applicatins fr grwers, whlesalers, prcessrs and retail utlets n January 4, 2016 Q. When will Measure 91 g int effect? A. The hme grw/persnal pssessin prvisins f the measure start n July 1, 2015. Hwever, the OLCC wn t begin accepting license applicatins frm thse wh want t cmmercially grw, prcess, whlesale r perate retail marijuana utlets until January 4, 2016. The ability t buy marijuana at a retail utlet is nt expected t start until the fall f 2016. Q. Wh will implement the initiative? A. The initiative designates the Oregn Liqur Cntrl Cmmissin as the state agency that will regulate the cmmercial grwing and selling f recreatinal marijuana. It als gives the OLCC authrity t tax, license and regulate cmmercial recreatinal marijuana peratins. The OLCC has n authrity t regulate r enfrce the hme grw/persnal pssessin prvisins f the law. Q: Hw can I get a jb with OLCC in the new marijuana prgram? A: OLCC psts jb pprtunities n the www.oregnjbs.rg website. Interested applicants can fill ut a Jb Interest Card t receive email alerts abut jb penings at OLCC. Yu can als sign up fr email alerts abut OLCC jb pprtunities thrugh ur website. FAQs: Recreatinal Marijuana (05/2015) Page13

Q: Can Measure 91 be changed? A: Yes. Since the measure is a statutry ne instead f cnstitutinal, any f its prvisins can be changed by the Oregn Legislature, which is currently in sessin and will be until July 11, 2015. The measure cannt be changed by the OLCC s rule making prcess. Q: Where can I get mre infrmatin? A: As updates ccur and infrmatin is available, we will share that infrmatin with yu n this website. T keep up t date, click here Q: What if I have additinal questins? A: Please send additinal questins t marijuana@regn.gv Medical Marijuana Q. What impact des Measure 91 have n the current Medical Marijuana Prgram? A. Nne. Measure 91 states that the Act may nt be cnstrued t amend r affect in any way the Oregn Medical Marijuana Act. Q. Shuld I get a new OMMP card r renew my existing Card? A. Only yu as an individual can answer that questin. The OLCC cannt advise yu n this matter. Q: What is the difference between recreatinal marijuana and medical marijuana? A: Medical marijuana is fr patients with qualifying medical cnditins. Recreatinal marijuana, whether grwn at a residence r btained frm a licensed retail utlet, is fr persnal use fr adults 21 years f age r lder. Fr mre infrmatin n medical marijuana see www.mmj.regn.gv Persnal Use Q: When can I smke/use recreatinal marijuana? A: Starting July 1, 2015, Measure 91 allws Oregnians t grw up t fur plants n their prperty, pssess up t eight unces f usable marijuana in their hmes and up t ne unce n their persn. Recreatinal marijuana cannt be sld r smked in public. Until then, current marijuana laws in Oregn remain in place. Measure 91 requires OLCC t begin accepting license applicatins by January 4, 2016 fr cmmercial grwers, prcessrs, whlesalers and retailers. Q: Where and when can I buy marijuana? A: Marijuana will be available fr purchase thrugh retail stres licensed by the OLCC smetime in the third quarter f 2016. Q: Where and when can I buy edibles and extracts? A: The OLCC has made the decisin t take extra time t make sure that it gets the availability f edibles and extracts right. They will eventually be available at retail utlets licensed by the OLCC, but prbably nt at the same time that the stres are expected t pen in the third quarter f 2016. FAQs: Recreatinal Marijuana (05/2015) Page14

Q: Hw much marijuana can I have? A: Beginning July 1, 2015, recreatinal marijuana users can pssess up t eight unces f useable marijuana and fur plants per residence in Oregn. An individual can carry up t ne unce in public, but using marijuana in public is prhibited. Q: What is meant by useable marijuana? A: Useable marijuana refers t dried marijuana flwers r leaves. In ther wrds, marijuana that is ready t smke. Q: Can I grw marijuana at hme and when? A: Yes, with limits. The act allws hme grw f up t fur plants per residence beginning July 1, 2015, regardless f hw many peple live in the residence. Fur adults in ne residence des nt mean 16 plants. The limit is fur per residence. Q: Where can I btain marijuana seeds r starts after July 1, 2015? A: The OLCC can prvide n guidance n that issue. Q. Can a landlrd tell tenants nt t grw recreatinal marijuana r smke it rental units? A. Measure 91 des nt affect existing landlrd/tenant laws. Q: What if an emplyer requires drug testing? A: Measure 91 des nt affect existing emplyment law. Emplyers wh require drug testing can cntinue t d s. Q: Can I smke marijuana in a bar/restaurant? A: N. Marijuana cannt be smked r used in a public place. Q: What is the definitin f a public place? A: Measure 91 defines a public place as a place t which the general public has access and includes, but is nt limited t, hallways, lbbies, and ther parts f apartment huses and htels nt cnstituting rms r apartments designed fr actual residence, and highways, streets, schls, places f amusement, parks, playgrunds and premises used in cnnectin with public passenger transprtatin. Q: Wh can smke recreatinal marijuana? What is the minimum age? A: As f July 1, 2015, anyne 21 years f age and ld and cnsume recreatinal marijuana in Oregn. Marijuana use r pssessin f recreatinal marijuana by anyne under 21 years f age is illegal. That includes hme cnsumptin. Q: Wh will enfrce recreatinal marijuana laws? A: Enfrcement f the hme grw/persnal pssessin prvisins f Measure 91 will be at the discretin f lcal jurisdictins, the state plice and pssibly ther law enfrcement agencies. The OLCC is respnsible fr enfrcement actins against businesses that the OLCC licenses t grw, prcess, whlesale and sell recreatinal marijuana and related prducts. Q: Hw much will recreatinal marijuana cst? A: The retail price f recreatinal marijuana will be determined thrugh a cmpetitive marketplace. FAQs: Recreatinal Marijuana (05/2015) Page15

Q: Can Oregn recreatinal marijuana be taken t the state f Washingtn where it is als legal? A: N. Taking marijuana acrss state lines is a federal ffense. Q: Hw will children be prtected frm recreatinal marijuana & marijuana prducts? A: Measure 91 prhibits the sale f recreatinal marijuana t anyne under the age f 21. The act als gives OLCC authrity t regulate r prhibit advertising. In writing the rules necessary t implement the new law, the OLCC may als regulate packages and labels t ensure public safety and prevent appeal t minrs. Q: Can I get a DUII while under the influence f marijuana? A: Yes. Current laws fr DUII have nt changed. Driving under the influence f intxicants (DUII) refers t perating a mtr vehicle while intxicated r drugged, including impairment frm the use f marijuana. In additin, Measure 91 requires OLCC t examine, research and present a reprt t the Legislature n driving under the influence f marijuana. The OLCC will d this in cnjunctin with the Department f Justice Criminal Investigatin Divisin and Oregn State Plice. Q: Can I lse my jb fr using marijuana? A: Passage f measure 91 des nt change existing emplyment law in Oregn. Q: Where will marijuana stres be lcated? A: Measure 91 des nt address siting requirements. Lcatin f cmmercial recreatinal marijuana businesses will be determined by legislative actin, lcal actin r thrugh the OLCC rule making prcess. T keep up t date, click here Q: Wh cllects the tax n recreatinal marijuana? A: Under the prvisins f Measure 91, the OLCC is required t cllect the tax n recreatinal marijuana at the grwer level. Q: Hw is Washingtn state s recreatinal marijuana law different than Oregn s? A: See Oregn/Washingtn/Clrad Cmparisn Licensing Q: What licenses will be available? A: The measure lists fur types f recreatinal marijuana licenses: Prducer, Prcessr, Whlesaler, and Retail. A prducer is als knwn as the grwer. A prcessr is a business that will transfrm the raw marijuana int anther prduct r extract. Prcessrs are als respnsible fr packaging and labeling f recreatinal marijuana. A whlesaler is a business that buys in bulk and sells t resellers rather than t cnsumers. A retailer is a business that sells directly t cnsumers. Q: When will the OLCC begin accepting license applicatins? A: The measure requires OLCC t begin accepting license applicatins fr recreatinal marijuana by January 4, 2016. Q. Hw will OLCC decide t grant r deny license applicatins? A. Undetermined at this pint. The OLCC is in the prcess f writing the rules necessary t implement Measure 91. The agency has appinted an advisry cmmittee that will write the rules and send its recmmendatins t the Cmmissin smetime this fall fr apprval. Page16

Q. If I want t apply fr a recreatinal marijuana license, what shuld I d nw? A. Be patient. The OLCC wn t be accepting applicatins until January 4, 2016. In the meantime, t keep up t date n prcess, click here Q: Hw much are the licensing fees? A: Measure 91 establishes an annual license fee f $1,000 plus a nn refundable applicatin fee f $250 per license applicatin. Q: Hw many licenses can I have? A: A licensee may hld multiple licenses and multiple license types. Q: Can an ut f state resident hld an Oregn recreatinal marijuana license? A: Measure 91 des nt specifically address this questin. Hwever, the issue f residency may be addressed by either the Oregn Legislature r by the OLCC thrugh the rule making prcess. Q: Wh will be eligible fr a marijuana license? A: Anyne ver 21 years f age and lder will be eligible fr a recreatinal marijuana license if they meet certain cnditins utlined in sectin 29 f Measure 91. Under thse cnditins, the OLCC may refuse a license if it believes the applicant: Is in the habit f using alchlic beverages, habit frming drugs, marijuana, r cntrlled substances t excess. Has made false statements t the cmmissin. Is incmpetent r physically unable t carry n the management f the establishment prpsed t be licensed. Has been cnvicted f vilating a general r lcal law f this state r anther state, r f vilating a federal law, if the cnvictin is substantially related t the fitness and ability f the applicant t lawfully carry ut activities under the license. Has maintained an insanitary establishment. Is nt f gd repute and mral character. Did nt have a gd recrd f cmpliance with sectins 3 t 70 f this Act r any rule f the cmmissin adpted pursuant theret. Is nt the legitimate wner f the business prpsed t be licensed, r ther persns have wnership interests in the business which have nt been disclsed. Is nt pssessed f r has nt demnstrated financial respnsibility sufficient t adequately meet the requirements f the business prpsed t be licensed. Is unable t understand the laws f Oregn relating t marijuana r the rules f the cmmissin. Q: What if my city/cunty wants t g dry? A: Measure 91 states that lcal gvernments may nt prhibit licenses in their jurisdictin except with a vte at a general electin. Measure 91 allws lcal gvernments t adpt reasnable time, place and manner restrictins t regulate public nuisance. Q: What kinds f testing will OLCC require? A: Undetermined at this pint. Under Measure 91, the OLCC has the authrity t set testing requirements, but this is a plicy questin that will be determined during the rule making prcess, including legislative and public input. FAQs: Recreatinal Marijuana (05/2015) Page17

Retail Stres Q: When will marijuana stres be pen? A: Undetermined at this pint, but the mst likely time is during the third quarter f 2016. Q: Will the OLCC distribute marijuana ut f a central warehuse? A: N. Measure 91 clearly states that the OLCC has n authrity t purchase, wn, sell r pssess any marijuana items. The OLCC s primary respnsibility is t cllect taxes and t license and regulate prducers, prcessrs, whlesalers, and retailers. Q: Will there be a quta fr hw many retail utlets will be allwed? A: The measure des nt specifically address the number f retail utlets allwed. Specifics fr licensing retail utlets will be part f the rule making prcess that is currently underway. Q: What will OLCC be ding t get ready fr marijuana related businesses? A: The OLCC has held listening sessins thrughut the state t gain a better understanding f what Oregnians expect in the implementatin f Measure 91. In additin t getting legislative apprval f the marijuana budget fr 2015 17 and preparing t hire staff fr the prgram, the OLCC has als selected a vendr t build the nline applicatin prcess and finding a secnd vendr fr the traceability (seed t sale) system t track recreatinal marijuana. The OLCC has appinted an advisry cmmittee t help write the rules necessary t implement Measure 91 and several subgrups t address specific issues. The gal is have the rules adpted by Octber r Nvember f this year, after which the agency will hld seminars arund the state t familiarize peple with the applicatin prcess in advance f accepting applicatins n January 4, 2016. Taxes Q: Hw much are the taxes? A: Measure 91 prvides fr an excise tax that is paid by the prducer (grwer) f $35 per unce fr flwers, $10 per unce fr leaves, $5 per immature plant. Q: Hw much mney will marijuana bring in taxes? A: In its 2015 17 requested budget fr the marijuana prgram, the OLCC estimated revenue fr the tw year perid t $18.4 millin. That revenue wuld cme frm applicatin and licensing fees and the sale f recreatinal marijuana. Q: Where will the tax mney g? A: Measure 91 prvides distributin f revenue after csts t the fllwing: 40 percent t Cmmn Schl Fund 20 percent t Mental Health Alchlism and Drug Services 15 percent t State Plice 10 percent t Cities fr enfrcement f the measure 10 percent t Cunties fr enfrcement f the measure 5 percent t Oregn Health Authrity fr alchl and drug abuse preventin FAQs: Recreatinal Marijuana (05/2015) Page18