Oregon’s burgeoning cannabis industry is navigating a significant period of regulatory transformation, with several key legislative and policy changes set to take effect in the coming months. These updates, stemming from new laws, court rulings, and agency transitions, will impact licensees across the state, affecting everything from product sampling to labor relations and permissible ingredients.
New Flexibility for Sampling and Events via Senate Bill 558
One of the most anticipated changes arises from Senate Bill 558, a measure signed into law by Governor Tina Kotek on May 28, 2025. This legislation introduces greater flexibility for licensees participating in events and sharing products within the industry.
Under the new law, licensees (with the exception of researchers and laboratories) will be permitted to both provide and receive marijuana item samples from other licensees or permitted workers while at events registered with the Oregon Liquor and Cannabis Commission (OLCC). This provision is designed to facilitate business-to-business interaction and product awareness within a controlled environment.
Furthermore, SB 558 authorizes wholesalers to sell or transfer marijuana items directly to retailers at these OLCC-registered events, streamlining distribution pathways. Producers are also granted permission to provide seeds and immature plants to permitted workers, fostering genetic and cultivation knowledge sharing.
To ensure accountability, the bill sets minimum sample amounts and specifically authorizes the OLCC to adopt rules governing the tracking of these samples. This regulatory oversight aims to prevent diversion and maintain the integrity of the legal market.
The implementation timeline for SB 558 is phased. The core provisions of the law are set to take effect 91 days after June 29th, specifically on September 28, 2025. However, the specific provisions related to trade samples shared at OLCC-registered events will become active later, beginning on January 1, 2026.
Restrictions Tighten on Artificially Derived CBN
A significant change impacting product formulation is the new regulation concerning products containing artificially derived Cannabinol (CBN). Effective July 1, 2025, products that include CBN produced through artificial means will no longer be permitted for sale within Oregon’s regulated market.
Manufacturers whose products contain artificially derived CBN must meet stringent standards to continue sales after this date. They are required to demonstrate that the ingredients used have achieved a “Generally Recognized as Safe” (GRAS) determination from a qualified expert panel or have successfully undergone the U.S. Food and Drug Administration’s (FDA) New Dietary Ingredient Notification process. This regulatory shift underscores a move towards greater scrutiny of synthetic or semi-synthetic cannabinoids and their presence in consumer products.
Labor Peace Agreement Requirement Struck Down
Another notable development affects labor relations within the industry. The requirement for licensees to enter into a Labor Peace Agreement (LPA), originally stemming from Ballot Measure 119 (BM 119), has been eliminated.
This change follows an Oregon District Court ruling issued on May 20th. The court found that Ballot Measure 119, as it pertained to the LPA requirement, failed under the purview of federal law, specifically the National Labor Relations Act (NLRA), and also violated the First Amendment. The removal of the LPA requirement alters the landscape for union organizing and labor relations within licensed cannabis businesses across the state.
Leadership Transition at the OLCC
Amidst these regulatory shifts, the Oregon Liquor and Cannabis Commission itself is undergoing a leadership change. OLCC Executive Director Craig Prins has retired from his position.
Taking the helm is Tara Wasiak, who assumes the role of Executive Director effective July 1, 2025. This transition occurs at a critical juncture, as the agency will be responsible for implementing and enforcing the new provisions outlined in Senate Bill 558 and the regulations concerning CBN, in addition to its ongoing oversight duties.
Outlook for the Oregon Market
The combined effect of these legislative updates, regulatory changes, and leadership transition signals a dynamic period for the Oregon cannabis sector. While SB 558 aims to foster industry interaction and streamline certain business activities, the new CBN rule imposes stricter requirements on product composition. The removal of the LPA mandate alters labor considerations, and the new leadership at the OLCC will oversee the implementation of this evolving regulatory framework. Licensees are urged to review the specifics of each change to ensure full compliance by their respective effective dates.
