PORTLAND, OR – As the Oregon Legislature nears the conclusion of its 2025 session next week, several key pieces of legislation impacting the state’s regulated cannabis industry are advancing, signaling potentially significant shifts in licensing, market dynamics, and advertising standards. Industry stakeholders are closely monitoring the final days of the session as bills such as SB162 and SB558 move through the legislative process.
These measures aim to refine existing regulations overseen by the Oregon Liquor and Cannabis Commission (OLCC), addressing aspects from the duration of business licenses to how cannabis samples can be shared and how products are marketed.
Extended License Terms Proposed
Central to the proposed changes under consideration in SB162 is the potential for extending the term of various OLCC-issued cannabis licenses. Currently, licenses for production, processing, retail, wholesale, and laboratory operations are issued with a one-year term, requiring annual renewal. SB162 potentially authorizes the OLCC to establish new license terms of up to five years for these license types.
This change, while still subject to future OLCC rulemaking to determine the specific implementation details and feasibility, could offer greater stability and predictability for businesses operating across the supply chain, from cultivation to final sale. Longer license terms could facilitate long-term business planning, investment, and operational consistency within the highly regulated market.
SB162 also addresses concerns related to the placement of cannabis retailers near educational facilities. It adds a grandfather clause to the existing preschool buffer rule. Under this provision, retailers licensed before January 1, 2025, would be permitted to remain at their current location even if a buffered school is subsequently discovered within the established 1000-foot prohibitive zone around their premises. This aims to protect existing businesses from potential forced relocation due to later identification of sensitive locations.
Loosening Restrictions: Samples and Transfers
Another substantial piece of legislation, SB558, focuses on significantly loosening restrictions surrounding cannabis sample-sharing and transfers between licensed entities and individuals. Current regulations have limited the ways in which businesses can exchange samples or transfer products for purposes such as market evaluation or inter-business transactions.
SB558 introduces several key changes designed to facilitate legitimate business interactions. It would permit licensed entities – specifically producers, processors, wholesalers, and retailers – to transfer cannabis trade samples to other licensees or to worker permit holders. Crucially, these transfers would be authorized specifically at OLCC-registered trade shows or temporary events, creating formal avenues for product showcasing and evaluation within industry gatherings.
Furthermore, SB558 would explicitly allow the transfer or sale of cannabis items between licensees at these registered events. This provision is particularly relevant for business-to-business transactions, such as wholesalers selling to licensed retailers, providing a dedicated platform for such exchanges outside of traditional dispensary settings.
The bill also includes provisions related to transfers between producers and internal operations. Under SB558, producer licensees would be allowed to transfer usable marijuana to other licensed producers, potentially streamlining certain aspects of cultivation and processing partnerships. Additionally, producers would be permitted to provide their employees with immature plant and seed samples, provided these samples do not exceed existing personal possession limits established by state law.
Shifting Advertising and Packaging Rules
Beyond licensing and transfers, the proposed legislative package also includes adjustments to rules governing the advertisement and packaging of marijuana items. These changes aim to clarify the standards used to determine what constitutes prohibited marketing or packaging that could unduly influence minors.
The current standard prohibits language or imagery deemed “appealing to minors.” The proposed change in the legislation would shift this standard to language or imagery “likely to cause minors to unlawfully possess or consume” marijuana items. This subtle but significant change appears to raise the threshold for prohibition, requiring a more direct link between the advertisement or packaging and the likelihood of illegal activity by minors, as opposed to simply being aesthetically appealing to them.
As the 2025 legislative session heads towards its conclusion next week, the fate of SB162, SB558, and other related measures remains a critical point of focus for Oregon’s established cannabis industry. The successful passage of these bills could reshape operational norms, market opportunities, and regulatory enforcement for years to come.
