Earlier this month, the state of Oregon announced that beginning June 2, medical marijuana dispensaries may begin selling limited concentrates, edibles and topicals to recreational customers.

This announcement marks the next step in Oregon’s slow, measured march toward a complete commercial cannabis system for medical and recreational users.

Needless to say, this step will have major significance for consumers, growers, processors and purveyors of cannabis throughout Oregon. Let’s take a look at how we arrived at this juncture and what it will mean for Oregon’s cannabis community.

How we got here

In November 2014, Oregonians passed Measure 91, which legalized the possession and use of cannabis for all adults and provided a framework for its distribution, taxation and regulation. But it is no easy feat to create an entire industry, especially when you must transition from the black market while simultaneously creating new commercial and regulatory infrastructures.

As a result, while the law made cannabis legal as of July 1, 2015, the Oregon Liquor Control Commission, which was tasked with regulating recreational cannabis commerce, announced that recreational shops would not open for business until Fall 2016.

This interval, where cannabis would be legal but not legally obtainable for most people, created circumstances that would foster and feed the black market, a result antithetical to the goals of the legalization. So, organizations like the Oregon Cannabis Association came up with a solution. We petitioned the Legislature to allow medical dispensaries to sell limited cannabis products to recreational customers.

The Legislature responded, authorizing us to sell recreational customers up to seven grams of flower each day, along with seeds and clones. This Early Start program began on Oct. 1, 2015 and has been wildly successful.

Oregon businesses received a much-needed boost, Oregon consumers got access to cannabis, and there have been no major problems with the implementation of this program. The state also collected nearly $7 million in tax revenue in January and February 2016 alone. This is more than the state projected for all of 2016.

While this has been an important step forward, recreational customers remained unable to access concentrates, edibles or topicals. So we returned to the Legislature during the 2016 session and asked them to extend the early start to include these products.

They responded once again, passing the law set to take effect on June 2. We had some hiccups around implementation, and a few issues remain, but we expect the expanded Early Start program to be as successful as the first phase.

Where we are now

In addition to the seven grams of flower (along with seeds and clones) already authorized for recreational customers, the new law allows recreational customers to purchase the following each day:

1. One single serving, low-dose edible;
2. One concentrate in a pre-filled receptacle; and,
3. Unlimited quantities of topicals

The Oregon Health Authority has defined a single serving, low-dose edible as containing up to 15 mg of THC. Thus far they have not put a cap on CBD content.

The 15 mg is particularly interesting because the draft rules set to take effect in the fall prescribe a serving size of 5 mg for rec products and 10 mg for medical products, yet here’s the Oregon Health Authority saying that 15 mg constitutes a single, low dose. I look forward to seeing how the regulators reconcile this discrepancy.

The biggest issue regarding concentrates arises around the term “pre-filled receptacle.”  The Oregon Health Authority seems to be referring to vape pen cartridges here. But the term is vague and I think you could argue that wax prepackaged in silicone or even shatter prepackaged in an envelope would qualify as being in a pre-filled receptacle.

We have asked the Health Authority for more clarity on this issue. We continue to await a response.

What it all means

The most obvious impact of these new rules will be felt by Oregon’s recreational cannabis consumers, who will gain access to concentrates, edibles and topicals. Customers come to Pure Green every day looking for these products and we must turn them away, despite the fact that we have ample supply.

Many people who want to use cannabis simply do not want to smoke. These folks have been waiting patiently for the opportunity to purchase edibles. Now the time has come. Recreational customers will also get to enjoy the convenience of concentrates and the healing power of topicals.

This new program will be a boon to Oregon businesses as well. Processors will see their potential market expand by a factor of 10 overnight. Growers will need to produce more to keep up with processors’ increased demand. Ancilllary businesses will also reap the windfall as the market and the industry grow together.

At Pure Green, we expect to see a modest but significant increase in sales as new customers who have been waiting for concentrates, edibles and topicals come out of the woodwork. We think current customers will also choose some of these newly available products, in addition to or instead of their regular flower purchase.

I mentioned the untapped market of folks who want cannabis without combustion. These people will help boost edible sales. The typical concentrates customer is on the young side and we know that younger people often lack the resources to obtain a Oregon Medical Marijuana Program card. We think there is significant pent-up demand here as well.

We also expect to see a spike in topical sales, as these powerful and effective medicines essentially move from “prescription” to “over the counter.” Many people want to use topicals for minors aches and pains, but don’t have any issues significant enough to justify the time and expense of obtaining an Oregon Medical Marijuana Program card. Just as many people began to self-medicate with CBD flower when that became available, we think many will choose to see if cannabis topicals can replace their aspirin or Advil.

Where We Go From Here

While this expanded early start makes a number of new products available to recreational customers, it represents a milestone on the journey, rather than arrival at our destination.

The Oregon Liquor Control Commission has begun issuing licenses to growers for the new recreational system. This will be followed by licenses for processors, wholesalers and retailers, along with researchers and analytical laboratories. They have targeted Oct. 1, 2016 as the launch date for the new recreational program.

Once that program launches, both medical and recreational customers will be able to purchase the full spectrum cannabis products in one store. With a little luck, we will see a successful launch, followed by some more fine tuning in the next legislative session.

Oregon has taken a sensible approach to legalization. Lawmakers and regulators have engaged with the community and the industry to build a regulatory framework that should work for all stakeholders. We have also taken a sensible approach to implementation, moving deliberately through incremental steps in order to keep the process moving forward with minimal disruption.

Hopefully, as more states embrace legalization, Oregon will serve as a model for how to achieve that goal in the most effective, successful manner possible.