Oregon governor signs bill to deny new cultivation licenses to curb glut

Oregon Gov. Kate Brown signed a bill into law that enables state regulators to deny new cultivation licenses in efforts to curb a cannabis glut that has led to price crashes and illicit market sales in the state.

Senate Bill 218 specifically gives the Oregon Liquor Control Commission authority to refuse to issue grower licenses for as much time “that the commission determines necessary” based on supply and demand.

The new law could greatly benefit cannabis businesses that have experienced sharp price drops and increasing competition from bigger players.

The law also is designed to reduce diversions to the illicit market that sparked federal prosecutors to threaten a crackdown.