Written in collaboration with Demetre Janness, Cannabis Entrepreneur.
Last week the local paper, Willamette Week, broke a story about the OLCC workers union moving to strike. This has sparked significant discussions about the benefits it can bring to the liquor and cannabis industries. As the dedicated employees fight for fair wages, better working conditions, and improved job security, the entire industry stands to gain. By prioritizing the well-being of workers, the OLCC has the opportunity to enhance the quality and safety of liquor and cannabis products. Happy workers make for happy customers, and this strike serves as a powerful reminder of the importance of supporting those who contribute to the production and regulation of these substances. This collective action can ultimately lead to a more prosperous and sustainable future for both the workers and the industries they serve.
The OLCC is Oregon’s liquor and cannabis control organization run by self-appointed officials. This unchecked operation has been under investigation recently for major corruption in both criminal and state levels. Which brings up the question, does it have to be the OLCC who continues to run regulations? Can a hospitality group or specialized industry group do better? The OLCC, an authoritarian regulations group, whose entire existence is supported by catching people slipping up on the ever changing regulations and administering fines and restrictions, is floundering. Their self-centered operations practices have only restricted the consumers access to quality products, and terrorized small business owners increasingly over time.
With the dissolution of the OLCC, Oregon has an opportunity for the hospitality industry to join forces with the cannabis industry to create a new, health and quality driven, organization. With the help of Oregon Health Authority, people and products can thrive in this space. Consumers will greatly benefit from being more informed and assured that the quality of the product and experience is a priority. As the system currently stands, consumers are spoken for, but few actually agree with the regulations that are assigned.
When it comes to liquor, sourcing certain products and high turnover are two major barriers for bar/restaurant and hoteliers. Cannabis has a whole group of opportunities for growth and service. Because the plant overlaps medicinal and recreational properties, the consumer access experience has many avenues to be refined. Currently, marijuana as a substance is legal to possess, but illegal to consume in public. This is a major oversight for the consumer’s safety in Oregon. People need a safe place to go.
We have been speaking to industry folks about the idea of forming specialized regulations for each sector, or merging interests under a hospitality umbrella; noting that medical support should be considered in the same ways hospitality exists for “comfort.” It has emerged that OHA, Oregon Health Authority would be the preferred industry regulations partner. Here are some of the emerging insights regarding potential shifts and benefits to regulating for quality instead of authority.
Specialized regulatory body: Some argue that cannabis should be regulated by a dedicated agency or department specifically focused on the unique challenges and nuances of the cannabis industry. They believe that the OLCC's existing focus on alcohol regulation may not adequately address the distinct needs and complexities of the cannabis market. Some explore re-establishing resources from the Oregon Liquor Control Commission (OLCC) Back to the Oregon Health Authority (OHA). Others feel a specialized group dedicated to cannabis solely.
Streamlined regulations: Dissolving the OLCC's involvement in cannabis control could create an opportunity to streamline regulations. The current regulatory framework for cannabis is overly complex, burdensome, and inconsistent. Removing the OLCC's influence could potentially result in a simplified and more business-friendly regulatory environment.
Greater industry representation: Dissolving the OLCC’s involvement of its specialized cannabis regulatory board could provide better representation for industry stakeholders. An agency solely focused on cannabis would have a deeper understanding of the industry's needs, challenges, and potential for growth. This could lead to more inclusive decision-making and policies that support the industry's development.
Improved access to banking and federal support: The federal prohibition on cannabis has created significant challenges for businesses operating in the industry. Dissolving the OLCC's involvement in cannabis control might facilitate better access to banking services, federal funding, and research opportunities. This could help address some of the financial and operational limitations faced by cannabis businesses.
Federal prohibition and banking restrictions: The cannabis industry faces significant challenges in accessing traditional banking services due to the federal prohibition of cannabis, which classifies it as a Schedule I controlled substance. Financial institutions that operate under federal regulations are often hesitant to serve cannabis businesses due to the risk of federal penalties and legal implications. If the OLCC's involvement is dissolved, it may create an opportunity for a specialized cannabis regulatory agency to advocate for changes in federal banking regulations and encourage more financial institutions to serve the industry.
Federal funding opportunities: The OLCC's involvement in cannabis control may create limitations on the eligibility of cannabis businesses for certain federal funding programs. Dissolving the OLCC's role might allow for a reevaluation of eligibility criteria, potentially opening up federal funding opportunities for the industry. This could include research grants, development initiatives, or economic assistance programs that are currently restricted due to the federal stance on cannabis.
Research restrictions and collaboration: The federal status of cannabis as a Schedule I controlled substance imposes significant restrictions on research opportunities and collaborations with federal agencies and institutions. Dissolving the OLCC's involvement could potentially lead to a more flexible regulatory framework that allows for increased research into cannabis, including its medicinal properties, potential health risks, and therapeutic applications. It could foster partnerships with federal research institutions, academic organizations, and pharmaceutical companies to advance scientific understanding of cannabis.
Regulatory focus on public health: A specialized cannabis regulatory agency might have a stronger focus on public health concerns and harm reduction strategies. This emphasis on public health, rather than solely regulation and enforcement, could lead to a more favorable perception among federal authorities and agencies. This could potentially facilitate collaborations and engagement with federal health agencies for the development of evidence-based regulations, guidelines, and policies related to cannabis.
Innovation and market diversity: The OLCC's role in cannabis control has hindered innovation and limited market diversity. They argue that a separate regulatory body might be more open to allowing new product types, consumption methods, and marketing strategies. This flexibility could foster greater competition, encourage entrepreneurship, and drive advancements within the cannabis industry.
Transferring resources from the Oregon Liquor Control Commission (OLCC) to the Oregon Health Authority (OHA) for the purpose of better public health protection can be seen as a potential approach as well. Here are a few arguments in favor of allocating resources to the OHA:
Public health expertise: The OHA has a specific focus on public health matters, including disease prevention, health promotion, and healthcare services. Transferring resources to the OHA would grow their expertise and experience in cannabis while addressing public health issues, including those related to substance use and abuse.
Harm reduction approach: Rather than solely focusing on regulation and enforcement, the OHA often takes a harm reduction approach to public health issues. By reallocating resources, the OHA could prioritize strategies such as education, prevention, treatment, and support services. These efforts can help minimize the potential negative impacts of substance use and promote healthier behaviors.
Addressing broader health concerns: While the OLCC primarily focuses on regulating alcohol and cannabis, the OHA has a broader mandate to address various health concerns across the state. By reallocating resources, the OHA would have additional capacity to address a wider range of public health issues, such as mental health, infectious diseases, access to healthcare, and environmental health.
Integration of services: The OHA could potentially integrate substance use disorder services and prevention efforts with other healthcare services, creating a more comprehensive and coordinated approach to public health. This integration could lead to better collaboration between healthcare providers, community organizations, and other stakeholders involved in addressing substance use issues.
Resource optimization: The reallocation of resources from the OLCC to the OHA could lead to more efficient resource utilization. By consolidating resources within the OHA, there may be opportunities for streamlining administrative functions, reducing duplication of efforts, and optimizing the use of funding for public health initiatives.
It's important to note that this perspective assumes that the OHA is better positioned to allocate resources and address public health concerns compared to the OLCC.
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