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Oregon Lights Up: Marijuana Legalized

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Momentum for the pro-marijuana-legalization movement continues. In the keystone election of 2014, residents of Oregon voted 54.4% (with 612,989 votes) to 45.6% (with 513,664 votes) to pass Measure 91, which legalizes the sale of marijuana for recreational use (among adults, ages 21 and older) and establishes a statewide system of regulation to oversee the now legalized marijuana market. Oregon becomes the third state to legalize recreational marijuana sale and use, along with Colorado and Washington.

Under the new state statute, adults are legally permitted to possess up to 8 "dried" ounces of marijuana and up to four plants (in their homes). Measure 91 also tasks the Oregon Liquor Control Commission with regulation of marijuana sales statewide.

The law authorizes applications for one-year, renewable licenses to produce, process or sell marijuana, as of Jan. 4, 2016. License fees are set at $1,000, not including a $250 processing fee. Similar to liquor laws in many states, licenses could be refused if the commission deems there are "sufficient licensed premises in the locality" or the license is "not demanded by public interest or convenience."

Stores must have "defined boundaries" (no mobile businesses).

Under the new measure, an individual can hold a retail, production (cultivation), processing (for extracts and other products) and wholesale license at the same time. So unlike in Washington, where supply shortages bottlenecked sales, Oregon's Measure allows a single business to grow, process and store marijuana if the owner holds separate licenses for these activities.

Also unlike Washington, Oregon's statute sets taxes on amounts, rather than based on a percentage of sales/prices–a practice which will help stabilize revenue-projections (since taxes will not fluctuate with pot prices). Oregon's plan has set taxes at $35 per oz. on flowers, $10 per oz. on leaves and $5 per immature marijuana plant, with rates adjusted each biennium based on cost-of-living determinations.

Like Colorado and Washington, Oregon's measure does not prohibit municipalities from banning recreational pot sales within their borders (which would be done by a ballot question that would need voter approval).

Other details of Measure 91:

  • Individuals 21 and older can give up to an ounce of marijuana (as well as larger amounts of marijuana products, such as liquid form) as a gift to other adults (age 21 or older).
  • "Adults could purchase up to an ounce of marijuana, 16 ounces of marijuana products in solid form, or 72 ounces of marijuana products in liquid form from properly registered businesses," according to the Marijuana Policy Project.

The legalization of recreational marijuana sales in Oregon is a huge boon to the momentum of the pro-marijuana legalization movement. With four states now legally selling marijuana (Tuesday, Alaska also joined Colorado and Washington in legalizing recreational marijuana), the path is being forged for other states to follow.

“Voters in Oregon and Alaska have wisely rejected the failed policies of prohibition, and now they’ll reap the benefits of a legal, taxed, and regulated market for marijuana,” said National Cannabis Industry Association (NCIS) executive director Aaron Smith in a press release. “That means safe products, responsible and transparent business practices, increased tax revenues and job creation, and smarter priorities for law enforcement."

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