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Running a retail cannabis business can be taxing if you don’t know what you’re doing. Any small business requires a level of professionalism, but a cannabis business is unique in that the laws of each state, county, and even city differ across the U.S.
Without a consensus, even a seasoned pro in one state will still have to study up on other states, and even once you get the hang of a state’s laws, they can quickly change at any given election. Here’s everything you need to know about operating a compliant cannabis business in Oregon, and the state’s cannabis laws.
Yes.
The Oregon Health Authority manages licenses for medical marijuana. The Oregon Liquor Control Commission (OLCC) manages licenses for recreational marijuana.
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. The decision will be reevaluated in 2019.
Both the OLCC and OHA, which are still accepting medical license applications, have online applications for new licenses.
Submit the online application, confirm your account via email, pay your fees, and provide the required documents (copy of government-issued ID card, information/fingerprints for background check, written statement from local government approving location zoning, business information, etc.).
A medical marijuana license in Oregon costs $4000. This includes a $500 non-refundable application fee and $3500 registration fee. Medical licenses are issued for: Growers, Processors, Dispensaries, Physicians, and Laboratories. The OLCC has six retail business licenses: Producer, Processor, Wholesale, Laboratory, Retail, and Research Certificate. A $250 non-refundable fee is due upon submission. Fees vary depending on the type of business. Producers are $100-5750, while Processors, Wholesalers, Retailers, and Labs pay $4750. A hemp certificate may also be obtained for $500.
The OLCC has a comprehensive business readiness guidebook online with information about worker permits, fire season requirements, pesticides, taxes, OSHA, zoning, insurance, and more. Employees need individual Marijuana Worker permits. Food safety licenses may also be required by any employees who handle edibles.
All the licensing and application fees listed above are annual, which means they must be paid every year.
A retail license is required to service recreational patients. A dispensary or caregiver license is needed to serve medical patients. It is possible to hold both licenses by paying a “medical bump up” fee to the OLCC. However, the medical and recreational dispensaries must be separate buildings (or suites).
The OLCC is no longer processing new license applications until 2019. It can take up to 21 business days for your application to be processed for a medical license with the OHA.
Yes. You can obtain a recreational license, but you can’t sell both recreational and medical cannabis from the same location. You’ll need two separate locations. You can, however, grow or produce for both medical and recreational.
There are currently 16 counties and 75 cities that ban recreational marijuana businesses that within their jurisdiction. You will need written local approval during the state licensing application process, so you can’t bypass talking to your local government and law enforcement and working with them to get your business started.
There are no specific laws regarding cannabis events in Oregon, and several events have been held since both recreational and medical marijuana was legalized throughout the state.
Throughout July 2015, events were held statewide to give away cannabis. Talk to the local venue where you plan on holding an event to get one started.
The location of your cannabis events determines which license you’ll need to pursue. If you’re attending an event like a High Times Cannabis Cup, you’re actually a vendor at that event.
Holding your own offsite events puts you in a High Times position where you need to file the proper city and county licenses. Work with the venue to ensure this is completed in a timely manner.
Yes, you can hold more than one license of any type. You can hold events on your premises, host offsite events, or attend offsite events proudly representing your business.
Reading, understanding, and consistently applying Oregon state cannabis regulations is essential. During the application process, your entire organization will be tested on compliance competency.
Also track everything. Record every interaction. Have every dollar, plant, and product tracked from seed to sale. A solid POS that can automatically interface with the state’s tracking system is only the start of what you’ll need to stay compliant.
Required cannabis business security measures will cost at least $100,000. Video surveillance, security lighting, transportation and waste disposal processes, platforms, and procedures need to be in place from day one.
Cloud video data storage will be a significant cost for startup businesses. Plan ahead for this.
It’s a funny question, because you’ll be labeling all product that enters and exits your retail store. There are no specific regulations about packaging on premises, but cannabis must be already sealed before transport.
Yes and no. Generally you can’t sell alcohol or tobacco at cannabis dispensaries or cannabis at smoke shops, liquor shops, etc. Terpenes (basically cannabis essential oils) and hemp products have different rules. It’s possible to create cannabis-flavored products that don’t include THC.
Also, tinctures contain alcohol, so even though THC vodka or beer (or even vodka or beer without cannabis) would be passe in Oregon dispensaries, alcohol-based tinctures are allowed.
You can. So long as you meet the requirements (i.e. different suites for each operation), you can house everything in one building. Each license can be obtained and stacked on each other.
Public consumption is not allowed, so you cannot sample in store. However, you can give product away. In fact, Oregon is notable for how the state gave products away to celebrate recreational legalization.
Your store can be open anytime between the hours of 7am and 10pm, seven days a week.
There are no advertising laws for cannabis in Oregon.
18 for medical and 21 for recreational.
Both medical and recreational cannabis businesses in Oregon are required to report to Oregon’s Cannabis Tracking System (CTS). Oregon’s system of record for the cannabis industry is Franwell’s Metrc POS platform. Your POS should ultimately report directly to Metrc directly to seamlessly remain compliant.
You’ll need to pay Franwell $40 per month per Metrc license and $0.25 to $0.45 for package and plant tags.
