A handful 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 concern and talk about how it is affecting business players’ capacity to export and import hemp and hemp solutions 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 products in the state. “Marijuana items” suggests “marijuana, cannabinoid solutions, cannabinoid concentrates and cannabinoid extracts”, and contains “industrial hemp solutions and commodities that include far more than .three % tetrahydrocannabinol” (emphasis added).
While 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 Overall health 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 though, the Oregon Division of Agriculture (“ODA”) updated its testing guidelines to align with these adopted by OHA. Especially, the ODA testing guidelines give that completed hemp solutions or commodities, such as industrial hemp for human consumption, hemp products, usable hemp, and hemp cannabinoid solutions, 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 far more than .three % total THC to a customer….” (Emphasis added).
Accordingly, the importation and exportation by ODA registrants of hemp solutions 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 solutions “any individual” will have to comply with this requirement.
This is problematic for numerous causes.
Very first, 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 operate creates an undue burden on an currently difficult activity and locations cultivators in a worse financial position than these in states that only demand a Delta-9 THC compliance testing – without having 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 solutions containing far more than the .three % total THC, Oregon is decreasing the quantity of hemp enterprise possibilities inside the state. Oregon growers and producers whose solutions exceed this THC limit, but satisfy the Delta-9 compliance testing, do not have the alternative of promoting their solutions to states that have adopted the much less stringent testing requirement. Also, out-of-state enterprise players whose solutions meet the Delta-9 testing requirement are barred from getting into the Oregon market place.
While Oregon has not taken enforcement actions relating to the importation and exportation of hemp and hemp solution that include far more than .three % total THC, it is essential for hemp and CBD stakeholders in the state but also about the nation to fully grasp this concern and be cognizant of the truth that Oregon may perhaps not be, soon after all, the hemp-friendly state we all assumed it was.