Oregon

HB3460 creates new provisions for medical marijuana dispensaries in the state of Oregon. The Department of Public Health will be overseeing the Oregon medical marijuana program as it rolls out.

 

 

  • Comprehensive merit-based application process will require the first initial application, including non-profit information, site locations, proof of capitalization, and other specific Dispensing Center or Cultivation Center business and operations plans.

 

  • A dispensary must not be located within 1,000 feet of the real property comprising a public or private elementary, secondary or career school attended primarily by minors orlocated within 1,000 feet of another medical marijuana facility; 

 

  • Regulations require grow sites and dispensaries to maintain a complete seed-to-sale inventory control system, to monitor the chain of custodyand current whereabouts, in real time, of medical marijuana from the point that it is harvested at the grow site and transferred to a dispensary and its patient members.

 

  • Laboratory testing is required on testing for traces of pesticides/mildew and determining THC/CBD content, overall quality, and potency.

 

  • Marijuana must be cultivated in a grow site that is an enclosed, locked facility.

 

  • Dispensary must be located in an area that is zoned for commercial, industrial or mixed use or as agricultural land and may not be located at the same address as a marijuana grow site

 

  • (MIP) Marijuana-Infused Products are allowed to be dispensed.

 

  • A person convicted for the manufacture or delivery of a controlled substance in Schedule I or Schedule II may not be the person responsible for a medical marijuana facility for five years from the date the person is convicted.

 

  • A person convicted more than once for the manufacture or delivery of a controlled substance in Schedule I or Schedule II may not be the person responsible for a medical marijuana facility. 

 

Open a Dispensary in Oregon - Application Requirements

 

 

  • A non-refundable application fee is yet to be established by the Oregon Department of Health. 

  • The department has stated that regulations should be finalized by January 31st, 2013.

GRC recommends that  $150,000 or more in starting capital could be necessary to pay the expenses involved with development of your dispensary business plans, securing site locations, any consulting fees accrued, and paying all state financial requirements for ONE Dispensary Center or Cultivation Center license. There will be additional costs when applying for more dispensary licenses in Oregon.

 

This may or may not include the amount needed to develop either the grow site or the dispensary. For a grow site only, it is imperative to have the necessary operations costs covered for up to 2-4 months during initial cultivation cycle after receiving a cultivation license to operate. Please contact us for more information on how to open a dispensary in Oregon.

 

State financial requirements to open a dispensary in Oregon

 

Qualifying patients are allowed to cultivate and sell excess medication to a dispensaries in Oregon, and be reimbursed for the expenses involved. 

 

Oregon was previously a medical marijuana state and through the this bill is allowing the establishment of dispensaries to allow safer and more abundant access to medicinal cannabis. Dispensaries in Oregon will be vertically integrated with a cultivation site for a traditional "closed loop" system.

 

Measure 91 - Four types of marijuana businesses will be allowed and regulated by the Oregon Liquor Control Commission. “Marijuana producers” will cultivate marijuana for wholesale. “Marijuana processors” will produce marijuana extracts and products. “Marijuana wholesalers” may purchase marijuana and marijuana products to sell to marijuana retailers and other non-consumers. Lastly, “marijuana retailers” are allowed to sell marijuana and related items to individuals 21 and older. Application fees will be $250, and licensing fees are $1,000 per year.

 

The election results will be certified on December 4, 2014, at which time the Oregon Liquor Control Commission (OLCC) can begin rulemaking. Possession and home cultivation by adults 21 and older becomes legal on July 1, 2015. The OLCC will begin accepting applications for marijuana businesses on January 4, 2016.

 

The OLCC has primary oversight and regulatory authority over licensed businesses. It will consult with the State Department of Agriculture and the Oregon Health Authority as necessary when drafting rules.

 

The OLCC may decide how many licenses to allow in a locality, refusing a license if there is reasonable grounds to believe there are sufficient licenses in the area or if the granting of a license is “not demanded by public interest or convenience.” It is not clear how the OLCC will decide between competing applications (such as by merit or lottery). The commission may disqualify applicants for a number of reasons, including for lacking a good moral character, for lacking sufficient financial resources or responsibility, for relevant past convictions, and for using marijuana, alcohol, or drugs “to excess.”

 

The OLCC will develop the regulations. Among other rules, it may ban or regulate advertising and may require laboratory analysis of cannabis.

 

The new law creates an excise tax on all marijuana sold by marijuana producers at wholesale. Marijuana flowers are taxed at $35 per ounce. Marijuana leaves are taxed at $10 per ounce. Immature marijuana plants are taxed at $5 per plant. The excise tax will be adjusted for inflation. In addition, the commission can make recommendations for adjustments to the rates for the purposes of maximizing revenues, minimizing the illegal marijuana industry, and discouraging underage marijuana use.

 

After the OLCC retains funds sufficient to carry out its oversight obligations, the excise tax revenue will be distributed in the following ways:

 

  • Forty percent (40%) will go to the Common School Fund. (Common School Fund dollars are distributed to all 197 of the state’s K-12 school districts. Utilizing their share of the 2014 fund, the Eugene, Bend, and Medford school districts were able to fund 19, 16, and 13.5 full-time teaching positions, respectively.)

 

  • Twenty percent (20%) will go to the Mental Health Alcoholism and Drug Services Account.

 

  • Fifteen percent (15%) will go to the State Police Account.

 

  • Twenty percent (20%) will go to cities and counties for use by local law enforcement. This 20% will be distributed proportionately by population (before July 1, 2017) and then proportionally by licensees held in each municipality.

 

  • Five percent (5%) will be transferred to the Oregon Health Authority for alcohol and drug abuse prevention, early intervention, and treatment services.  

 

At least 16 marijuana-related bills were introduced on January 12th, 2015, when legislators were sworn into office, and many more are in the works.

 

House Bill 2636, would limit a physician to approving medical marijuana cards for no more than 450 patients.

 

House Bill 2040 would prohibit retail sales within one mile of a school, and House Bill 2041 would allow localities to set up a one-mile exclusion zone around schools.

 

PREGNANCY WARNING: Senate Bill 445 would make it mandatory for pot retailers and medical marijuana dispensaries to display warning signs for pregnant women.

 

DAY-CARE PROVIDERS: House Bill 2781 would prohibit state funds from going to day-care providers with medical marijuana cards.

 

HEMP FARMING: House Bill 2668 would remove the requirement that industrial hemp farmers get a permit from the state. The federal government now allows hemp cultivation for research purposes.

 

MARIJUANA RESEARCH: There are 2 billls that refer to setting up bodies to study medical marijuana and how best to serve patients. They are Senate Bill 479 and Senate Bill 480.

 

SCHOOL EXCLUSION ZONE: Senate Bill 124 and Senate Bill 162 would tighten penalties on selling or producing marijuana within 1,000 feet of a school.

 

MEDICAL MARIJUANA DISPENSARIES: Senate Bill 460 would allow medical marijuana dispensaries to remain in place even if a school moves into the 1,000-foot exclusion zone. Prozanski said he doesn't think it would be fair to drive a dispensary out of business in such a case.

 

Open a Dispensary in Oregon - Application Requirements

 

  • Comprehensive merit-based application process will require the first initial application, including non-profit information, site locations, proof of capitalization, and other specific Dispensing Center or Cultivation Center business and operations plans.

 

  • A dispensary must not be located within 1,000 feet of the real property comprising a public or private elementary, secondary or career school attended primarily by minors orlocated within 1,000 feet of another medical marijuana facility; 

 

  • Regulations require grow sites and dispensaries to maintain a complete seed-to-sale inventory control system, to monitor the chain of custodyand current whereabouts, in real time, of medical marijuana from the point that it is harvested at the grow site and transferred to a dispensary and its patient members.

 

  • Laboratory testing is required on testing for traces of pesticides/mildew and determining THC/CBD content, overall quality, and potency.

 

  • Marijuana must be cultivated in a grow site that is an enclosed, locked facility.

 

  • Dispensary must be located in an area that is zoned for commercial, industrial or mixed use or as agricultural land and may not be located at the same address as a marijuana grow site

 

  • (MIP) Marijuana-Infused Products are allowed to be dispensed.

 

  • A person convicted for the manufacture or delivery of a controlled substance in Schedule I or Schedule II may not be the person responsible for a medical marijuana facility for five years from the date the person is convicted.

 

  • A person convicted more than once for the manufacture or delivery of a controlled substance in Schedule I or Schedule II may not be the person responsible for a medical marijuana facility. 

 

State financial requirements to open a dispensary in Oregon

 

 

  • A non-refundable application fee is yet to be established by the Oregon Department of Health. 

  • The department has stated that regulations should be finalized by January 31st, 2013.

$150,000 or more in starting capital could be necessary to pay the expenses involved with development of your dispensary business plans, securing site locations, any consulting fees accrued, and paying all state financial requirements for ONE Dispensary Center or Cultivation Center license. There will be additional costs when applying for more dispensary licenses in Oregon.

 

This may or may not include the amount needed to develop either the grow site or the dispensary. For a grow site only, it is imperative to have the necessary operations costs covered for up to 2-4 months during initial cultivation cycle after receiving a cultivation license to operate. Please contact us for more information on how to open a dispensary in Oregon.