Oregon's House Committee on Economic Development, Small Business, and Trade convened on April 23, 2025, to discuss significant developments in the state's cannabis industry, focusing on regulatory challenges and market dynamics. A key highlight was the ongoing confusion surrounding the classification of hemp and marijuana, which are derived from the same plant but differ based on THC content. This distinction has implications for regulation and taxation, as hemp remains unregulated by the Oregon Liquor Control Commission (OLCC) and is not subject to the same taxes as marijuana.

The committee emphasized the importance of maintaining a well-regulated market to combat illegal cannabis operations. Since the legalization of recreational marijuana through Ballot Measure 91, Oregon has implemented a 17% state tax and up to 3% local tax on cannabis sales. However, the emergence of a thriving illegal market poses challenges to these efforts. The committee discussed the establishment of a reference lab to ensure the integrity of cannabis testing, addressing concerns that some private labs may inflate THC levels to attract business.

Members expressed the need for transparency and accountability within the testing process, highlighting the competitive pressures that can lead to unethical practices among labs. The reference lab aims to provide a baseline for testing standards, ensuring that consumers receive safe and accurately labeled products.

In addition to regulatory discussions, the committee acknowledged the complexities of cannabis cultivation, including the ability of growers to manipulate THC levels through advanced agricultural techniques. This sophistication in cultivation raises questions about market incentives and the potential for mislabeling products.

As Oregon continues to navigate the evolving landscape of cannabis regulation, the committee's discussions underscore the importance of robust oversight to protect consumers and support legitimate businesses. The establishment of the reference lab and ongoing legislative efforts reflect a commitment to addressing the challenges posed by both the legal and illegal cannabis markets in the state.