Oregon Cannabis License Guidelines

Oregon Liquor and Cannabis Commission

Licensing and Enforcement Criteria

The Oregan Liquor and Cannabis Commission (OLCC) is the agency responsible for regulating the sale and service of alcoholic beverages in Oregon as well as managing the production, processing and sale of recreational cannabis in Oregon through the Control, Regulation and Taxation of Marijuana and Industrial Hemp Act. The agency also regulates the production, processing, and sale of medical cannabis products sold to Oregon Medical Marijuana Program (OMMP) cardholders in OLCC licensed cannabis retail shops.

The OLCC has exclusive authorization to make recreational and medical grade cannabis available to consumers through licensed cannabis stores. The program also tracks the growing, transporting, processing and selling of recreational marijuana products. The Public Safety Program is responsible for licensing and regulating the operation of the recreational cannabis industry in Oregon.

The OLCC is responsible for tracking any OMMP grow (producer) that is registered to produce cannabis for three or more patients, OMMP processing sites, and OMMP dispensaries. The Oregon Health Authority administers the Oregon Medical Marijuana Program.

For anyone growing cannabis in Oregon it is important to know whether your grow must pay the $200 grow site registration fee in order to receive their cannabis license.  Growers must pay the grow site registration if they are:

  • Growing for another person; or
  • Growing at a site other than their home; or
  • Growing more than 12 plants; or
  • Transferring excess product to processors or dispensaries.

To be exempt from the grow site registration fee ALL of the following must be true:

  • You are growing only for yourself; and
  • You are growing at your own residence where there are 12 or fewer mature plants; and
  • You are not transferring product to an OHA processing site or dispensary.

Processor License Fees

A total of $4000 in fees will be due at the time of application.  A $3500 registration fee and a $500 non-refundable application fee.  There will also be a $35 background check fee for each person listed on the application.  Finally, there is a $480 Cannabis Tracking System user fee.

Licensed cannabis dispensaries in Oregon may not be located in an area zoned as residential. A licensed cannabis dispensary may not be located within 1,000 feet of a school or another registered dispensary and may not be at an address registered with the Oregon Medical Marijuana Program as a grow site. Local government agencies may have additional restrictions, and applicants should communicate with those local agencies when deciding where to locate a dispensary.

Oregon Cannabis Law & Compliance

Several laws and ordinances regulate the Oregon legal cannabis industry, as well as the many different steps in the supply chain. These laws range over dispositions for cultivators, manufacturers, distributors and retail dispensaries. The most recent news can be found on these websites:

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FAQs

Will there be a quota for how many retail outlets will be allowed?

There is no quota for the number of retail licenses the OLCC will be issuing at this time.

How do I apply for a Recreational Marijuana License?

You may apply for a new recreational marijuana license by navigating to the Recreational Marijuana Licensing System and clicking on the “Register for a Business Account” button.  Once you have created an account, you can log in to submit license applications. You may use this to apply for a new laboratory license or a research certificate. You may also use it to complete a change of ownership for any license type.

What licenses are currently unavailable and when will they become available?

Applicants may not apply for a new Producer, Wholesaler, Retailer, or Processor license until March 31, 2024.

Can an outside individual or business purchase the license of an existing cannabis business in Oregon?

If a business is proposing to add or replace a “licensee of record” (a person or entity whose name appears on the license certificate), or to add new natural persons who will own 51% or more of the business, you must submit a Change of Ownership form. The Change of Ownership form must be submitted by the current licensee or an authorized representative of the current licensee, from an email address associated with the current licensee’s account. This type of change requires prior approval from OLCC before the change can be implemented. The buyer must submit a new license application in the Recreational Marijuana Licensing System (a “change of ownership” application). The buyer cannot operate the business until the new license has been issued.

Can an outside business or individual buy into a licensed cannabis business without taking over majority control?

If your business is proposing to remove people who qualify as “licensees” or add people who will qualify as “applicants” and these changes do not rise to the level of a “change of ownership,” please submit a Change of Business Structure Notification form. This type of change requires the licensee to notify OLCC, but it does not require prior approval from OLCC before implementing the change. If OLCC discovers a denial basis related to a person you have added, you can choose to remove that person from the business or OLCC can propose license revocation or restrictions. This form may also be used to change the name of a legal entity when the Secretary of State number remains the same.

Oregon Cannabis License Types

Producer

A producer may possess, plant, cultivate, grow, harvest, and dry marijuana in the manner approved by the Commission.  Producers may engage in indoor or outdoor production of cannabis or a combination of the two.

The producer is also licensed to sell, transfer, and deliver usable cannabis to the licensed premises of a producer under common ownership, a processor, wholesaler, retailer, laboratory, non-profit dispensary, or research certificate holder.

Mature Canopy Size Limits:

Indoor Production: Unless otherwise provided by these rules, the maximum mature canopy size limits for indoor production are:

  • Micro tier I: Up to 625 square feet
  • Micro tier II: 626 to 1,250 square feet
  • Tier I: 1,251 to 5,000 square feet
  • Tier II: 5,001 to 10,000 square feet

Outdoor Production: Unless otherwise provided by these rules, the maximum mature canopy size limits for outdoor production are:

  • Tier I: Up to 2,500 square feet.
  • Micro tier II: 2,501 to 5,000 square feet.
  • Tier I: 5,001 to 20,000 square feet.
  • Tier II: 20,001 to 40,000 square feet.

Laboratory

Licensed laboratories must also be accredited by the Oregon Environmental Laboratory Accreditation Program (ORELAP) in addition to the OLCC. Licensed laboratories are responsible for testing cannabis and its derivative products for pesticides, solvents or residual solvents, tetrahydrocannabinol and cannabidiol concentration, and for microbiological or other contaminants.

Research

This is a certificate that allows the holder to research marijuana for the purpose of benefiting the state’s marijuana industry, medical research, or public health and safety.

Processor

Required to process, compound, or convert marijuana or hemp into cannabinoid products (including edibles, vape cartridges, tinctures, etc.), concentrates, and/or extracts. Most processors also must obtain a commercial food kitchen license from the ODA as part of their OLCC license.

Wholesaler

Required to purchase quantities of marijuana in any form from other OLCC licensed growers and processors and sell the products to licensed retailers, processors, producers, other wholesalers, or research certificate holders. This license also provides the ability to purchase hemp from licensed processors and sell hemp items to licensed retailers, processors, and other wholesalers.

Retailer

Required to sell or deliver marijuana or hemp items directly to consumers.

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