1. Understand regulatory and legal requirements. Do market research.

Research the laws and regulations governing adult-use or medical-use cannabis for more information about the regulatory requirements for licensure in the city or town you wish to operate.

Oregon Cannabis Legalization

In 1973, Oregon became the first state to decriminalize cannabis. In November 1998, voters also made Oregon among the first to approve cannabis for medical use when the Oregon Medical Marijuana Act was established by Ballot Measure 67, a citizens’ initiative. In November 2014, Oregon became the fourth state to legalize adult-use cannabis when Measure 91 was approved, legalizing non-medical cultivation and uses of marijuana in Oregon starting July 1, 2015.

The Oregon Liquor and Cannabis Commission (OLCC) is the agency responsible for regulating the production, processing and sale of recreational marijuana 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 products sold to Oregon Medical Marijuana Program (OMMP) cardholders in OLCC licensed marijuana retail shops.

Oregon Cannabis Market

  1. Decide the type of cannabis business. Choose a location. Check local zoning regulations.

Cannabis Licenses Types available in Minnesota

A producer may:

  • Possess, plant, cultivate, grow, harvest, and dry marijuana.
  • Engage in indoor or outdoor production of marijuana, or a combination of the two.
  • Produce kief as that term is defined in ORS 475C.089 and possess kief produced by the producer.
  • Sell, transfer, transport, and deliver usable marijuana to the licensed premises of a producer under common ownership, a processor, wholesaler, retailer, laboratory, non-profit dispensary, or research certificate holder, and immature marijuana plants and seeds to the licensed premises of a marijuana producer, wholesaler, retailer, or research certificate holder; other permitted by the rules.
  • Purchase and receive immature marijuana plants and seeds from a producer, wholesaler, retailer, or research certificate holder; usable marijuana produced by the licensee that has been stored by a wholesaler on the producer’s behalf; other permitted by the rules.
  • Allow a laboratory licensee to obtain samples for purposes of performing testing.

Limitations:

(a) 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.

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

  • Micro 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.

(c) Mixed Production. For a producer engaging in mixed production, the Commission 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 section (3) of this rule. 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.

(application fee $250; initial license fee $4,750; renewal license fee: Micro Tier I $1,000, Micro Tier II $2,000, Tier I $3,750, Tier II $5,750)

“This license is issued to marijuana business operators that process marijuana into various forms for consumption.”

A processor may:

  • Transfer, sell, or transport marijuana or industrial hemp waste to a producer, processor, wholesaler, or research certificate holder.
  • Purchase, possess, or receive as allowed by the rules whole, non-living marijuana plants that have been entirely removed from any growing medium from a producer, wholesaler, patient or designated primary caregiver, or a research certificate holder; usable marijuana from a producer, wholesaler, patient or designated primary caregiver, or a research certificate holder; kief from a producer; marijuana or industrial hemp waste from a producer, processor, wholesaler, retailer, laboratory, or research certificate holder; and other permitted by the rules.
  • Allow a laboratory licensee to obtain samples for purposes of performing testing.
  • Accept or make returns of marijuana items, as long as the processor only accepts or returns usable marijuana, marijuana items, immature marijuana plants, seeds, and whole non-living marijuana plants; only accepts or returns eligible items listed previously of this subsection from the original licensee that supplied or purchased the item; and accurately records the transaction in the CTS.

(application fee $250; initial license fee $4,750; renewal license fee $4,750)

“This license is issued to marijuana business operators who sell marijuana in wholesale quantities.”

A wholesale licensee may:

  • Sell, including sale by auction, transfer, deliver, or transport any type of marijuana item or hemp item to a retailer, wholesaler, non-profit dispensary, or research certificate holder, except that whole, non-living marijuana plants may not be transferred to a retailer or to a non-profit dispensary; immature marijuana plants and seeds to a producer; usable marijuana to the producer licensee that the wholesale licensee has stored on the producer’s behalf; usable marijuana, cannabinoid extracts, and concentrates to a processor licensee; trade samples as allowed under the regulations; marijuana or hemp waste to a producer, processor, wholesaler, or research certificate holder; and other permitted by the rules.
  • Purchase, possess, or receive any type of marijuana item or hemp item from a wholesaler; seeds, immature marijuana plants, usable marijuana, or kief from a producer; whole, non-living marijuana plants that have been entirely removed from any growing medium from a producer; trade samples as allowed under the regulations; marijuana waste from a producer, processor, wholesaler, retailer, laboratory, or research certificate holder; and other permitted by the rules.
  • Transport and store marijuana items and hemp items received from other licensees.
  • Allow a laboratory licensee to obtain samples for purposes of performing testing.
  • Accept or make returns of marijuana items, as long as the wholesaler only accepts or returns usable marijuana, marijuana items, harvested industrial hemp, hemp items, immature marijuana plants, seeds, and whole non-living marijuana plants; only accepts or returns eligible items listed previously of this subsection from the original licensee who supplied or purchased the item; and accurately records the transaction and its disposition once returned in the CTS.
  • Trim whole non-living plants and usable marijuana on behalf of a producer licensee, as long as both the wholesale licensee and producer licensee comply with all applicable rules including tracking all transactions and any packaging of marijuana items in CTS; and if trimming is performed on the wholesaler’s licensed premises; or trimming is performed at the producer’s licensed premises and the wholesale licensee holds a “For Hire Trimming Privilege”.

A micro-wholesale licensee may:

  • Purchase, possess, or receive usable marijuana, immature marijuana plants, seeds, whole non-living marijuana plants, and marijuana waste only from a producer with a micro tier I or micro tier II canopy; and
  • Accept or make returns marijuana items, as long as the micro-wholesale licensee only accepts or returns usable marijuana, marijuana items, immature marijuana plants, seeds, and whole non-living marijuana plants; only accepts or returns eligible items listed previously of this subsection from a producer with a micro tier I or micro tier II canopy; and accurately records the transaction in the CTS.

(application fee $250; initial license fee: Wholesalers $4,750, Micro Wholesalers $1,000; renewal license fee: Wholesalers $4,750, Micro Wholesalers $1,000)

A retailer may:

  • Sell, transfer, or deliver marijuana items or hemp items to a consumer 21 years of age or older, marijuana items or hemp items to a patient or designated primary caregiver between ages 18-21, marijuana seeds to a producer, marijuana items and hemp items to a retailer under common ownership, other permitted by the rules.
  • Accept or make returns, as long as the retailer only accepts or returns usable marijuana, marijuana items, hemp items, immature marijuana plants, and seeds; only accepts or returns eligible items listed in paragraph (A) of this subsection from either the original licensee that supplied the item or the customer or registry identification cardholder that purchased or was given the item; accurately records the transaction in the CTS; and does not resell any items returned by customers.
  • Purchase, possess, or receive usable marijuana, immature marijuana plants, seeds, and kief from a producer or from a research certificate holder; any marijuana item, except for whole, non-living marijuana plants, from a wholesaler; any marijuana item from a laboratory licensee; trade samples; marijuana items and hemp items from a retailer under common ownership; and hemp items from a Commission-certified hemp handler, a wholesaler, a laboratory licensee, or a processor with an industrial hemp endorsement.
  • Refuse to sell marijuana items or hemp items to a consumer.
  • Allow a laboratory licensee to obtain samples for purposes of performing testing as provided in the rules.
  • Accept returned marijuana items or hemp items that the retailer sold to a consumer and provide a refund or exchange with a product of equal or lesser value as long as the product is not resold; and
  • Sell marijuana items for medical purposes, as long as the retailer follows the regulations.

(application fee $250; initial license fee $4,750; renewal license fee $4,750)

A licensed marijuana testing laboratory may:

  • Obtain samples of marijuana items from licensees or registrants for the purpose of testing if the laboratory has an accredited scope item for sampling.
  • Transport and dispose of samples as provided in the rules.
  • Perform testing on marijuana items in a manner consistent with the laboratory’s accreditation by the Authority and regulations; and
  • Transfer the laboratory’s marijuana waste to a producer, processor, wholesaler, or research certificate holder.

(application fee $250; initial license fee: Laboratories $4,750, Sampling Laboratory $2,250; renewal license fee: Laboratories $4,750, Sampling Laboratory $2,250)

Cannabis Delivery in Oregon

Medical and recreational cannabis delivery are both permitted. Cities and counties can opt-in to allow cannabis home deliveries from adjacent jurisdictions. Deliveries must be made only by employees of the retail locations.

Cannabis Delivery Service by State

  1. Develop a solid cannabis business plan. Secure financing.

Application requirements include a business plan demonstrating a likelihood of success and sufficient business ability and experience on the part of the applicant. A typical cannabis business plan outline includes sections such as Executive Summary, Market Overview, Sales Strategy, Operating Plan, Organizational Structure (+ Diversity Plan) and Financial Plan.

'70% ready to go' business plan templates

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  1. Prepare the required documents. Submit applications. Pay fees.

An applicant shall provide information in a form and manner as prescribed by the Commission, which may include, but is not limited to the following:

  • The names and other required information for all individuals and legal entities who are applicants.
  • Any forms required by the Commission and any information identified in the form that is required to be submitted.
  • A map or sketch of the premises proposed for licensure, including the defined boundaries of the premises, the location of any primary residence located on the same tax lot as the licensed premises, and a scaled floor or plot plan sketch of all enclosed areas with clear identification of walls, all areas of ingress and egress, and all limited access areas.
  • An operating plan in a form prescribed by the Commission that demonstrates at a minimum, how the applicant’s proposed premises and business will comply with the applicable laws and rules regarding security, employee qualifications and training, transportation of product, preventing minors from entering the licensed premises, and preventing minors from obtaining or attempting to obtain marijuana items.
  1. Obtain the required licenses. Pay fees.

Life of a Licenses Application:

  1. Land Use Compatibility Statement requested from local government and included in application.
  2. Applicant has submitted license application in online licensing system and paid application fee.
  3. OLCC License Investigator receives application and begins review.
  4. License Investigator and Applicant collect all additional necessary information.
  5. License Investigator reviews application to determine if submitted information meets requirements. The OLCC must review for compliance with administrative rules and Oregon law. In some cases, a potential denial may be overcome if the applicant can correct the issue or otherwise show good cause to overcome the denial basis.
  6. OLCC Inspector visits site to determine compliance with physical requirements: Security, operations, etc. A failed inspection means that a premises does not meet security, operational, or other requirements. An opportunity is provided to correct any compliance issues, but failure to do so or a second failed inspection may result in application denial.
  7. Applicant has met all requirements of application and premises inspection.
  8. Applicant pays the licensing fee in the online system.
  9. The license is issued and can be printed by the applicant. It must be displayed prominently at the location.
  1. Register your business as an employer and a tax payer.
  1. Keep track of your ongoing compliance requirements.

Physical security measures, good production practices, packaging, labelling, transport and reporting requirements, taxes and more.

Oregon Cannabis Taxes

OLCC-licensed cannabis retailers are required to charge a retail sales tax of 17% for all recreational cannabis sold. In some cases, retailers must also charge customers an additional 3% for Oregon localities.

All OLCC-licensed cannabis retailers need to register with the Oregon Department of Revenue as cannabis tax collectors to open their cannabis tax account. This must be completed when your business receives its retail license from OLCC. You will need to complete a separate registration for each cannabis retail location approved by OLCC. OLCC-licensed cannabis retailers must make monthly payments to the department of the tax collected from customers.


Main steps in short

  • Understand regulatory and legal requirements. Do market research.
  • Decide the type of cannabis business. Choose a location. Check local zoning regulations.
  • Develop a solid business plan. Secure financing.
  • Prepare the required documents. Submit applications. Pay fees.
  • Obtain the required licenses. Pay fees.
  • Register your business as an employer and a tax payer.
  • Keep track of your ongoing compliance requirements.

Cannabis Cultivation and Extraction Business Plan Sample, Oregon

Oregon Cannabis Market