Hear up friends. The Oregon Liquor and Cannabis Commission (OLCC) plans to fall the hammer on corrupt actors within the regulated Oregon market. Or so the Commission announced in a stern news free up on Friday, July 29 (the “Open”). The Open is titled “Commissioners conception to tighten ‘change of ownership’ option.” For valid pause, it is miles subtitled “Faulty actors won’t in finding a straightforward off-ramp to promote their commerce.” Sounds moderately excessive.
We’ve been expecting this free as a lot as fall. Over the past twelve months or so, we’ve watched OLCC case presenters grab more aggressive positions in settlement talks following any perceive of proposed license cancellation. The Commission will likely be giving stronger scrutiny on the present time to so-known as “give up to promote” transactions, in particular where the seller will preserve any kind of monetary interest within the purchaser licensee after closing (video display: “monetary interest” on this context is construed more broadly than in traditional outdated licensing).
For anybody unfamiliar with how “give up to promote” transactions work, the OLCC historically has allowed a licensee charged with excessive offenses to “promote” their license interest to an unrelated third occasion– if certain criteria are met. The mechanics are straightforward. The OLCC and the field occasion enter a stipulated settlement agreement, where the field occasion affords up its appropriate to an administrative listening to and accepts certain time closing dates to search out a replacement licensee (a purchaser). If a purchaser is stumbled on, attorneys love me can even very effectively be known as upon to draft up an asset steal agreement and related sale paperwork. And if the purchaser’s software program is a hit, the “corrupt actor” will get paid on their arrangement out the door.
I’ll be to discover how commerce feels about this policy change. On the one hand, the Oregon market is struggling mightily. Flower costs are wretched due to the manufacturing overcapacity and declining retail sales. Inflation is taking a toll on the entirety from wages to investment, and the classic struggles around taxation, banking, and heaps others. proceed unabated. All of this makes for an especially aggressive ambiance. As such, a extra culling of licenses would lend a hand the non-corrupt actors.
On the opposite hand, you possess commerce distrust around regulatory flex. Licensees handiest honest lately enjoyed enforcement reform beneficial properties on the legislative stage, as effectively as administrative packages love “fix it or heed” and Verification of Compliance (VOC). These adjustments possess been borne of commerce complaints that licensees “need to be treated love agencies to be regulated, not criminals to be caught.” In a broader sense, many licensees will not welcome OLCC bearing down.
Our overall advice–clearly, as always–is to discover the principles. Whereas you don’t are attempting to terminate that, the OLCC market isn’t the finest ambiance for your commerce (and neither is medical marijuana; and neither is hemp). Whereas you discover the principles, you genuinely don’t need to terror about OLCC compliance packages and pronouncements. Same deal in case you’re genuinely big– as a minimal on this author’s conception. However that’s a account for one other day.
Whereas you watch your self within the OLCC crosshairs, give us a name. We’ve been doing these items without end.
For the time being, are trying the related blog posts below:
- Oregon Cannabis: What to Attain If You Get an OLCC See of Proposed License Cancellation or Completely different “Charging Doc”
- Oregon Cannabis: Why Obtained’t OLCC Treat Settlement Negotiations as Inadmissible?
- Oregon Cannabis: Fresh Principles (Segment 4) – Repeat Violators Beware!
- Oregon Cannabis: Fresh Principles, Segment 5 – License Cancellation Criteria
- Oregon Marijuana: OLCC to Adopt “Repair it or Mark” Device for Some Rule Violations
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