A couple of weeks ago, we explained what Oregon’s “total THC” testing requirement is and why it matters from a contractual point of view. Currently, we additional discover this problem and talk about how it is affecting market players’ capacity to export and import hemp and hemp merchandise to the Beaver State.
Back in 2018, Oregon law makers passed Senate Bill 1544 (later codified in ORS 475B), which prohibits the exportation and importation of marijuana things in the state. “Marijuana items” signifies “marijuana, cannabinoid merchandise, cannabinoid concentrates and cannabinoid extracts”, and consists of “industrial hemp merchandise and commodities that include a lot more than .three % tetrahydrocannabinol” (emphasis added).
Despite the fact that the statutory language does not define “tetrahydrocannabinol,” it supplies that the testing requirements and processes addressed in the statute will have to comply with these adopted by the Oregon Well being Authority (“OHA”).
The OHA testing guidelines are codified in OAR 333-07-0010 et seq.. Pursuant to OAR 333-07-0200(three), the concentration of THC permitted will have to take into account each the quantity of Delta-9 THC in the solution and the quantity of tetrahydrocannabinolic acid (“THCA”) that if heated would convert THCA into THC.
As you know if you have been following our weblog for a although, the Oregon Division of Agriculture (“ODA”) updated its testing guidelines to align with these adopted by OHA. Particularly, the ODA testing guidelines offer that completed hemp merchandise or commodities, such as industrial hemp for human consumption, hemp things, usable hemp, and hemp cannabinoid merchandise, will have to be sampled, tested, and reported in a manner constant with the OHA’s marijuana sampling and testing guidelines. In addition, the ODA guidelines state that “[a] registrant may perhaps not sell an industrial hemp solution that consists of a lot more than .three % total THC to a customer….” (Emphasis added).
Accordingly, the importation and exportation by ODA registrants of hemp merchandise and commodities exceeding .three % total THC is prohibited below Oregon law. But, according to the language of ORS 475B, ODA registrants are not the only ones that are barred from importing or exporting these merchandise “any individual” will have to comply with this requirement.
This is problematic for numerous motives.
Initially, requiring the total THC concentration not to exceed .three % is damaging to growers due to the fact it drastically limits the kind of hemp strains they can cultivate. Limiting the strains with which growers may perhaps perform creates an undue burden on an currently difficult activity and areas cultivators in a worse financial position than these in states that only need a Delta-9 THC compliance testing – devoid of going into also significantly detail, it is less complicated to comply with a Delta-9 testing requirement.
Second, by prohibiting the exportation and importation of hemp and hemp merchandise containing a lot more than the .three % total THC, Oregon is minimizing the quantity of hemp small business possibilities inside the state. Oregon growers and producers whose merchandise exceed this THC limit, but satisfy the Delta-9 compliance testing, do not have the selection of promoting their merchandise to states that have adopted the much less stringent testing requirement. Also, out-of-state small business players whose merchandise meet the Delta-9 testing requirement are barred from getting into the Oregon marketplace.
Despite the fact that Oregon has not taken enforcement actions relating to the importation and exportation of hemp and hemp solution that include a lot more than .three % total THC, it is important for hemp and CBD stakeholders in the state but also about the nation to realize this problem and be cognizant of the reality that Oregon may perhaps not be, soon after all, the hemp-friendly state we all assumed it was.