As we not too long ago wrote, 2020 was a outstanding yr for the Oregon hashish trade for a number of causes together with COVID-19 and raging wildfires. This submit follows up on the “State of the State” and is a sister poste to our California Cannabis: What to Watch for in 2021.
OLCC Enforcement: Though the OLCC started to shift towards a much less punitive strategy to the enforcement of rule violations in 2020, no less than for a couple of guidelines, licensees shouldn’t count on a sudden turnaround for a lot of violations. The principles give the OLCC and its Case Presenters who prosecute rule violations a substantial amount of discretion by way of enforcement and settlement. So, the end in one case might not imply a lot in one other case. This uneven utility of the foundations continues to create vital dangers for licensees, who might discover themselves litigating in opposition to a very aggressive Case Presenter who interprets the foundations strictly and narrowly. That mentioned, penalties and settlements for sure sorts of violations (e.g. gross sales to medical sufferers over the restrict) have coalesced into fairly predictable patterns judging by the stipulated settlements the OLCC has entered prior to now a number of months. One factor we will likely be watching is how the brand new VOC program impacts the workload of investigators and Case Presenters and whether or not the diminished workload will imply elevated scrutiny of licensees and the way it might have an effect on the OLCC’s willingness to settle issues.
OLCC Rule Modifications: The principles will proceed to evolve. In December 2020, the OLCC banned sure components from hashish vaping merchandise (the information launch is here) and the OLCC met to contemplate the adoption of guidelines designed to streamline marijuana licensing (the draft guidelines are here). One difficulty we will likely be watching intently is how and when the OLCC adjustments guidelines it adopted when COVID-19 first started rampaging by way of the state such because the easing of supply and curbside pickup rules and the rise to the quantity of flower obtainable to OMMP card holders. Whereas we don’t count on that to alter any time quickly given the prevalence of COVID-19 in Oregon, that is one thing to keep watch over.
Marijuana Litigation: Because the marijuana trade has matured in Oregon, so too has the litigation. Litigation within the early years tended to contain jolted traders (see hemp!) alleging fraud or waste associated to their funding within the “Inexperienced Rush.” As in 2020, we count on marijuana litigation in 2021 to contain partnership disputes, minority-interest buyouts, and litigation involving the purchase-and-sale of licensed manufacturing, retail, and processing corporations and their property.
Hemp Litigation: Hemp litigation in 2021 Oregon seems rather a lot like marijuana litigation did a couple of years in the past. Hemp manufacturing companies are failing left and proper due to the mixture of the FDAs foot-dragging on CBD, the precipitous decline in costs, and unscrupulous operators who took benefit of traders that poured cash into hemp with little to no expertise. For potential plaintiff-investors, an enormous query is whether or not there may be any cash on the market to be recovered and, if there may be any hemp, how and when to transform that into money to scale back losses.