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A committee that's been meeting in Salem since September moved closer Monday to establishing new rules and regulations to govern Oregon's medical marijuana program. But the group is likely to have to meet at least one more time to complete the job.

(Beth Nakamura/The Oregonian)

SALEM -- Oregon officials on Monday moved forward with a series of proposed security requirements for the medical marijuana retail industry.

The requirements, crafted by state policy makers, police and marijuana advocates, are designed to provide oversight of an industry that’s long operated without interference by the state.

The security rules, which draw on elements of Colorado’s medical marijuana dispensary rules, generated a spirited debate among officials on the 13-member panel, which was appointed by moderator Tom Burns, who oversees Oregon’s pharmaceutical drug program.

Earlier this year, the Oregon Legislature approved House Bill 3460 which creates a registry of medical marijuana retail establishments. A committee has been meeting since late September to craft rules that would govern the industry. The committee is expected to meet again before its December deadline. The state will begin accepting applications from prospective dispensary operators March 3, 2014.

Amy Margolis, a Portland criminal defense attorney who sits on the panel, said she worries about the proposed requirement that dispensaries maintain 30 days of archived video surveillance. Bars and pharmacies don't have to follow such a rule, she said.

Rob Bovett, the Lincoln County District Attorney, argued for keeping the rule, saying security for medical marijuana establishments must be rigorous to satisfy federal law enforcement authorities. The federal government in August stated it would not challenge marijuana legalization laws in Washington and Colorado, but said it would continue to pay attention to its eight marijuana-related enforcement priorities, which include targeting black market trafficking.

“We are not operating in the same environment as a bar or even a pharmacy is," he said. "We have something acknowledged to be a federal crime and remains a federal crime. I worry about us designing a regulatory environment that doesn’t meet the eight points of light and we set ourselves up for basically inviting the federal government in here.”

Other proposed security rules include:

Dispensary operators must submit to the state a floor plan and alarm system plans. They must install commercial-grade locks. They must ensure marijuana is stored in a locked area at all times. Electronic records must be encrypted and backed up. All video recordings must be stored securely. Establishments must have written security policies and training for all employees. Entry points must have an alarm system installed by an alarm company and must feature a panic button.

Shannon O’Fallon, an Oregon Department of Justice attorney who advises the state’s medical marijuana program, said the rules allow for “provisional registration.” She said some prospective owners may want to get state approval before investing in state-mandated security systems.

“This would allow provisional registration that would allow you an amount of time to get the security system installed and then you could be open for business,” she said.

The rules also require establishment owners to install video surveillance equipped with a backup system and a feature that alerts employees to interruption or failure. The equipment and recording must be kept in a locked area accessible only by the owner of the facility, authorized employees and the Oregon Health Authority.

State inspectors may demand to see video recordings to determine whether establishments are complying with the law.

Other highlights:

-- People who want to open a medical marijuana establishment must undergo an annual criminal background check.

-- The annual fee to maintain the business registration is $4,000.

-- Marijuana consumption isn't allowed anywhere on the premises.

Nole Bullock, a dispensary operator, strongly opposed the rule banning marijuana consumption in a dispensary. He said some people may not be able to consume marijuana in their homes.

“These establishments do provide a service to the community we are here to serve,” he said. “I emphatically implore we soften the language.”

The committee didn't finalize rules for testing marijuana for mold, mildew and pesticide. Burns has said repeatedly that he wants to wrap up the committee's work by next month so he can begin the process of finalizing the rules and implementing the program.

The committee debated how to test for mold and mildew, and whether a visual test, as opposed to a lab one, is sufficient.

-- Noelle Crombie