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Several of the members of the Joint Committee on Implementing Measure 91 take testimony at a recent meeting.

(Jeff Mapes|The Oregonian)

The House-Senate marijuana committee on Monday unanimously approved a landmark bill aimed at regulating the upcoming commercial market for the drug.

The panel unanimously approved House Bill 3400 after weeks of infighting, primarily over how much power cities and counties should have to ban sales in their communities.

Key lawmakers last week agreed to a compromise granting more local control in largely rural counties where voters strongly opposed Measure 91, the marijuana legalization measure approved by voters last November.

While some legislators expressed frustration with how little the committee reached out to the public for input, others said they felt like they were at a historic turning point.

Sen. Ginny Burdick, D-Portland and the committee's co-chair, said she believes the legislation helps position Oregon to someday be one of the nation's foremost marijuana producers when and if federal controls are dropped.

Rep. Peter Buckley, D-Ashland, said he was frustrated that medical marijuana patients and others weren't given more opportunity to comment on the legislation. "It's been dysfunctional in many respects," he said of the committee process.

Measure 91 placed the production and sale of recreational marijuana under the control of the Oregon Liquor Control Commission and gave it broad regulatory control. HB 3400 grants the commission clear police powers to oversee and investigate the industry, and also gives a major role to the Oregon Health Authority.

The bill also puts new limits on medical marijuana growers -- needed, legislators said, to curb diversions to the black market.

Still to be determined is the question of when retail sales will start. HB 3400 leaves that to the OLCC, which says it won't license retailers to open until the latter half of 2016.

Legislators say they will soon debate separate legislation that would allow temporary sales to recreational users from medical marijuana dispensaries. Possession becomes legal on July 1, but it looks like a temporary sales program would not start before October -- and consumers may have to wait until OLCC-licensed retailers open more than a year from now.

Meanwhile, here are the major provisions in HB 3400:

PRODUCTION LIMITS: Medical marijuana growers will face new limits on how many plants they can grow. Existing growers will have higher limits, at least initially, than new growers. State regulators will limit production of recreational marijuana so it stays roughly even with demand.

Recreational marijuana growers must adopt a strict "seed to sale" tracking system to prevent diversions. Medical marijuana growers can enter the recreational market if they meet stricter rules.

PRODUCT REGULATIONS: Edibles and other processed marijuana products must disclose their potency and ingredients on labels. Packaging cannot be marketed toward children. Testing will be required to ensure products are not contaminated. Labs must be certified to make sure that people growing and processing marijuana "won't be able to shop around for a friendlier lab," said Sen. Ginny Burdick, D-Portland and the committee's co-chair.

Rep. Ann Lininger, D-Lake Oswego, the other co-chair, said the testing provisions look "prescient" in the wake of The Oregonian/OregonLive investigation showing that many of the medical marijuana products available for sale in Oregon are contaminated with pesticides.

TAXES: The committee has not yet passed a companion measure, House Bill 2041, that creates a new "point of sale" tax of an estimated 17 percent on marijuana products at retail. It replaces a per-ounce harvest tax contained in the legalization initiative approved by voters. HB 3400 allows localities to levy a local tax of as much as 3 percent.

LOCAL CONTROL: City or county governments in the 15 counties -- all east of the Cascades -- that cast at least a 55 percent vote against Measure 91 can ban medical or recreational sales. In the rest of the state, voters would have to approve any attempt to ban sales.

RESIDENCY REQUIREMENTS: Marijuana business owners must have lived in the state for at least two years to operate in Oregon. Investors don't face residency limits, but they must pass background checks and cannot be primary operators of a business. The residency requirements will end after four years unless renewed by the Legislature. Lawmakers said they wanted to keep the industry under as much local control as possible.

CRIME SENTENCES: The penalties for several marijuana crimes, including underage use, are reduced. Among other things, it gives violators more of an opportunity to have their crimes expunged from the record.

ADVERTISING: Measure 91 gave the OLCC the authority to regulate or even prohibit any marijuana advertising. The Legislature's legal counsel said that was unconstitutionally broad, and HB 3400 says that the OLCC can curb advertising that appeals to minors, promotes excessive or illegal use or otherwise presents a significant risk to public health or safety.

ENERGY AND WATER USE: A task force will look for ways to minimize water and energy efficiency in the production of marijuana.

MARIJUANA WORKERS: Workers in the industry will get whistleblower protection if they report illegal conduct and will have the right to organize.

-- Jeff Mapes

503-221-8209

@Jeffmapes