PORTLAND, OR – Oregon’s regulated cannabis industry is navigating a period of significant legislative and legal upheaval this June, marked by new laws expanding business interactions, a pivotal court ruling impacting labor agreements, and looming regulations on cannabinoid products. These developments are poised to reshape operational dynamics for licensees across the state.
Expanding Business Interactions: Senate Bill 558 Takes Effect
A key legislative change comes with the signing of Senate Bill 558 by Governor Tina Kotek on May 28th. This new law ushers in expanded opportunities for interaction and transfer among licensed cannabis businesses, specifically excluding researchers and laboratories. Effective immediately, SB 558 permits licensed marijuana businesses to provide and receive samples from other licensees or permitted workers. These activities are strictly limited to events registered with the Oregon Liquor and Cannabis Commission (OLCC).
Prior regulations often constrained direct product exchange and sampling between businesses outside strict distribution channels. SB 558 aims to facilitate networking, product showcasing, and peer-to-peer evaluation within controlled environments. For instance, a cultivator could sample a new strain to a retailer at an authorized trade event, or a processor could provide samples of an extract to other licensees.
The scope of the bill also broadens transfer permissions at these registered events. Wholesalers are now explicitly allowed to sell or transfer items directly to marijuana retailers at such gatherings. Furthermore, producers gain the ability to provide seeds and immature plant samples directly to permitted workers, a measure likely intended to support propagation and cultivation knowledge sharing.
The implementation of SB 558 is expected to foster greater connectivity and efficiency within the supply chain, allowing for more dynamic interactions beyond standard delivery and storefront transactions, provided these occur under the watchful eye of the OLCC at officially registered events.
Labor Peace Agreement Requirement Struck Down by Federal Court
Simultaneously, a significant legal challenge has resulted in the removal of the Labor Peace Agreement requirement for Oregon cannabis businesses. This requirement originally stemmed from voter-approved Measure 119.
On May 20th, a federal District Court in Oregon issued a ruling that permanently enjoined the state law mandating these agreements. The court found that the requirement failed under the National Labor Relations Act – the federal law governing most private-sector labor relations – and also violated the First Amendment of the U.S. Constitution, which protects freedom of speech and association.
A Labor Peace Agreement is typically a pact between a union and an employer where the union agrees not to picket or engage in other disruptive actions, and the employer agrees to remain neutral during union organizing efforts and potentially allow union access to employees. The court’s decision determined that Oregon’s mandate for such agreements, regardless of the specific terms, overstepped the state’s authority by intruding into areas preempted by federal labor law and infringing upon constitutional rights.
The permanent injunction means that licensed cannabis businesses are no longer required by state law to enter into or maintain Labor Peace Agreements as a condition of their license, effectively removing a compliance hurdle and potential point of contention that had been in place since the passage of Measure 119.
Looming Deadline for Artificially Derived CBN Products
The industry also faces an approaching deadline regarding the sale of artificially derived CBN products. A prohibition on these products is set to take effect on July 1, 2025, unless manufacturers can demonstrate compliance with specific FDA safety standards.
Cannabinol (CBN) is a cannabinoid that can occur naturally as THC degrades, but it can also be synthesized or converted from other cannabinoids in a laboratory setting – often referred to as “artificially derived.” Concerns about the safety and consistency of products made with these manufactured cannabinoids have prompted regulatory action.
The upcoming prohibition places a significant burden on manufacturers of such products to meet rigorous federal standards typically applied to pharmaceuticals or dietary supplements. According to recent reports, the OLCC is reportedly unaware of any manufacturers currently meeting these specific FDA safety standards for their artificially derived CBN products. This suggests that a significant portion of the current market for these items could face an abrupt halt unless manufacturers can quickly achieve compliance or shift their product formulations before the July 1st deadline.
Leadership Change at the OLCC
Adding to the dynamic regulatory environment, the OLCC also has a new Executive Director. Leadership changes can sometimes signal shifts in enforcement priorities or administrative procedures, adding another layer of adaptation for businesses operating under the commission’s purview.
Collectively, these legislative and legal shifts – from enabling new business interactions and removing a labor requirement to imposing strict standards on certain cannabinoid products and welcoming new leadership – underscore a period of notable evolution within Oregon’s highly regulated cannabis sector as the state moves through June 2025 and beyond.
