Oregon Cannabis License Guidelines

Oregon Liquor and Cannabis Commission

Licensing and Enforcement Criteria

The Oregon Liquor and Cannabis Commission will be charged with issuing licenses for businesses to participate in the adult-use, medical and cannabinoid hemp industries. The Oregon Medical Marijuana Program (OMMP) is currently committed to processing applications and issuing registration cards.

The OLCC is no longer accepting recreational marijuana business license applications, as there’s an oversupply in the state. Prices have plummeted on the wholesale market as low as $50 a pound, so new licenses were suspended on June 15.

Oregon Cannabis Law & Compliance

Several laws and ordinances regulate the Oregon commercial 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:

FAQs

Can I get a license anywhere in Oregon?

Unfortunately, the answer to this question is no. While licenses are permitted in the vast majority of the state, Oregon law allows cities and counties the opportunity to prohibit marijuana producers, processors, wholesalers, and/or retailers in their jurisdiction by way of a specific process that must go to a vote in a general election. As a result of this, there are certain local jurisdictions in which licenses are prohibited.

Who will be eligible for a marijuana license?

Anyone over 21 years of age and older will be eligible for a recreational marijuana license who meets all requirements as outlined in OLCC Division 25 rules.

Can a license be transferred?

Licenses are not transferable. However, a licensee that proposes to change its corporate structure, ownership structure, or change who has a financial interest in the business may do so by submitting a form prescribed by the Commission prior to making the change. If a licensee has a change in ownership that is 51% or greater, a new application must be submitted.

Is there a limit to the number of licenses that will be issued?

No. There is no limit to the number of licenses the OLCC will be issuing.

Is there a closing date on applications?

No, there is no closing date for accepting applications.

If I do not have computer access is there a paper application?

The application is only available online.

Do you have to be an Oregon resident to receive a license?

No, there is no residency requirement.

Are applications time stamped?

Yes, due to the nature of an online system. The date/time stamped on the application will not be used to determine the order of issuing licenses.

Can my attorney complete the application for me?

Yes, the OLCC does not prevent business representatives from applying for the license on behalf of their applicant clients, however the applicant must be the e-signatory on the application.

Can we apply for a license even though the building isn’t complete?

Yes, you may apply for your license even though the building, security measures, etc. are not complete, however all items must be in place prior to license approval. You must have a premises address to apply for a license.

Are applicants with a complete application expected to go through the licensing process quicker?

We are unable to determine the time it will take to process individual applications, since each application is approved/denied on a case by case basis. However the more documents you have up front the better.

Will we be required to submit information for spouses?

An applicant’s spouse is considered a person with financial interest and their information is required to be included in the application whether they are involved in the business or not.

Am I required to own the land I’m using for my license or can I rent?

At the time of application the Division 25 rules indicate you need to prove lawful possession of the property.

Do I have to hold the lease until my application is approved?

It is not required to own the property that is being used for the license. You will need to provide verification you have the legal right to use the land proposed for business. A draft lease or agreement referencing the circumstance between the potential licensee and the property owner may be acceptable when submitting the application, but any such lease or agreement will need to be executed prior to license issuance.

Oregon Cannabis License Types

There are many different license types for cannabis in Oregon. We are here to help you understand which one is the best for you and your business.

Producer

Required to plant, cultivate, grow, harvest, and dry marijuana. This license has different tiers depending on the size of an operation, whether the operation is indoor or outdoor, and whether the operation is for mature or immature plants. Size is determined by the size of the canopy.

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

  • Micro tier I: Up to 2,500 square feet.
  • Micro tier II: 2,501 to 5000 square feet.
  • Tier I: 5,001 to 20,000 square feet.
  • Tier II: 20,001 to 40,000 square feet.

Mixed Production

For a producer engaging in mixed production, the OLCC will use a 4:1 ratio, for outdoor and indoor respectively, to allocate canopy size limits under this section, not to exceed the sum canopy size limits set forth in the mature canopy limits. For example, if a Tier II producer in the first year of licensure has 1,000 square feet of indoor mature canopy area, then the producer may have up to 36,000 square feet of mature outdoor canopy area at the same time.

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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