Ballot Measure 74 changes state law by directing the Oregon Health Authority (OHA), formerly part of the Department of Human Services, to establish an OHA regulated medical marijuana supply system as an additional component to the Oregon Medical Marijuana Act. The supply system will be funded through program fees; no General Fund revenue may be used and additional revenue, if any, would fund other OHA programs.

Under current law, registry identification cardholders must grow their own medical marijuana or have it grown for them by their caregiver or a third-party grower. Under the current system, any grower may provide up to 4 people each 6 mature marijuana plants, and 18 starts or seedlings, and 24 ounces (1.5 pounds) of usable marijuana.

In addition to currently allowed grow sites, the proposed measure would authorize licensed dispensaries to dispense medical marijuana to cardholders. Licensed producers may provide medical marijuana to licensed dispensaries, which may be dispensed in the supply system. Dispensaries and producers may be reimbursed for their costs. Producers may transfer medical marijuana for no consideration to cardholders or person responsible for medical marijuana grow sites.

Supply system revenue, if any, must be used for the costs of the system, the existing medical marijuana registry system, research, assistance to low-income and needy cardholders and other OHA programs as determined by OHA.

The measure requires a criminal records check and prohibits licensing persons convicted within 5 years of certain violent felonies, certain felony theft offenses, and manufacture or delivery of drugs. Dispensary personnel, producers and employees must be at least 21 years old and Oregon residents.

The measure subjects dispensaries and producers to regulation and inspection by OHA and requires financial reporting.

The OHA must adopt rules that govern dispensary locations and security plans, inspections of dispensaries and producers, and that establish civil penalties for violations. This gives broad authority to OHA and does not require the involvement of law enforcement or other agencies.

The measure directs OHA to issue one-year renewable license to producers and dispensaries. Producers and dispensaries will pay fees including a 10% fee on all income. Initially, the licensing fee is $1,000 for producers and $2,000 for dispensaries.

Each dispensary and producer may possess 24 mature marijuana plants, 72 starts or seedlings, and 96 ounces (6 pounds) of usable marijuana. While these amounts are allowed for current grow sites, they may be changed for producers or dispensaries by OHA by administrative rule. The measure exempts dispensaries and producers from certain Oregon marijuana-related criminal laws.

The measure directs OHA to create a program assisting low-income and needy cardholders to obtain medical marijuana. The OHA must review and report on the program annually.

The measure authorizes OHA to conduct or fund research on medical marijuana and directs OHA to report the research results.