(2) A marijuana producer must have a production license issued by the commission for the premises at which the marijuana is produced. To hold a production license issued under this section, a marijuana producer:

(a) Must apply for a license in the manner described in ORS 475B.040;

(b) Must provide proof that the applicant is 21 years of age or older; and

(c) Must meet the requirements of any rule adopted by the commission under subsections (3) and (4) of this section.

(3)(a) If the applicant is not the owner of the premises at which the marijuana is to be produced, the applicant shall submit to the commission signed informed consent from the owner of the premises to produce marijuana at the premises.

(b) The commission may adopt rules regarding the informed consent described in this subsection.

(4) The commission shall adopt rules that:

(a) Require a marijuana producer to annually renew a license issued under this section;

(b) Establish application, licensure and renewal of licensure fees for marijuana producers;

(c) Require marijuana produced by marijuana producers to be tested in accordance with ORS 475B.555;

(d) Assist the viability of marijuana producers that are independently owned and operated and that are limited in size and revenue with respect to other marijuana producers, by minimizing barriers to entry into the regulated system and by expanding, to the extent practicable, transportation options that will support their access to the retail market;

(e) Allow a marijuana producer registered under ORS 475B.136 to produce marijuana for medical purposes in the same manner that rules adopted under ORS 475B.010 to 475B.545 allow a marijuana producer to produce marijuana for nonmedical purposes, excepting those circumstances where differentiating between the production of marijuana for medical purposes and the production of marijuana for nonmedical purposes is necessary to protect the public health and safety;

(f) Require marijuana producers to submit, at the time of applying for or renewing a license under ORS 475B.040, a report describing the applicant’s or licensee’s electrical or water usage; and

(g) Require a marijuana producer to meet any public health and safety standards and industry best practices established by the commission by rule related to the production of marijuana or the propagation of immature marijuana plants and marijuana seeds.

(5) Fees adopted under subsection (4)(b) of this section:

(a) May not exceed, together with other fees collected under ORS 475B.010 to 475B.545, the cost of administering ORS 475B.010 to 475B.545;

(b) Shall be in the form of a schedule that imposes a greater fee for premises with more square footage or on which more marijuana plants are grown; and

(c) Shall be deposited in the Marijuana Control and Regulation Fund established under ORS 475B.296. [2015 c.1 §19; 2015 c.614 §12; 2016 c.24 §1; 2016 c.83 §7; 2017 c.183 §56; 2019 c.145 §1]

Note: Sections 1 and 2, chapter 419, Oregon Laws 2019, provide:

Sec. 1. (1) The Oregon Liquor Control Commission may, based on the supply of and demand for marijuana, as defined in ORS 475B.015, refuse to issue production licenses under ORS 475B.070 for an amount of time that the commission determines necessary.

(2) Subsection (1) of this section does not apply to the renewal of a production license under ORS 475B.070 or to the issuance or reissuance of a production license under ORS 475B.070 necessitated by a change in the location or ownership of a production facility or premises.

(3)(a) Except as provided in paragraph (b) of this subsection, the commission shall process an application for a production license under ORS 475B.070 if the application was received on or before June 15, 2018.

(b) An applicant that submitted an application described in paragraph (a) of this subsection that did not submit a land use compatibility statement required under ORS 475B.063 may submit the land use compatibility statement within 21 days of the effective date of this 2019 Act [June 17, 2019]. If the land use compatibility statement is timely submitted, the commission shall process the application. If a land use compatibility statement is not timely submitted, the commission shall inactivate the application.

(4) An applicant that submitted an application for a production license under ORS 475B.070 on or before June 15, 2018, may not change:

(a) The location for which an application was submitted; or

(b) Fifty-one percent or more of the ownership of the production facility or the premises for which the application for licensure was submitted.

(5) The commission shall inactivate an application for a production license under ORS 475B.070 that was received after June 15, 2018.

(6)(a) The commission shall adopt rules to establish timelines for the completion of applications for production licenses under ORS 475B.070, including rules to specify times by which an applicant must complete any necessary steps for licensing after the applicant’s application is assigned to a commission staff member for processing.

(b) The commission may adopt other rules as necessary to carry out this section, including rules that enable the commission to pause the processing of an application that has been assigned to a commission staff member in consideration of commission resources to process applications.

(7)(a) The commission shall study the effects of subsections (1) to (6) of this section on the marijuana industry.

(b) Not later than December 31 of each year, the commission shall submit a report to an interim committee of the Legislative Assembly related to economic development, in the manner provided in ORS 192.245, on the findings of the study described in this subsection. [2019 c.419 §1]

Sec. 2. Section 1 of this 2019 Act is repealed on January 2, 2022. [2019 c.419 §2]