A: There are five types of
recreational marijuana licenses: Producer, Processor, Wholesaler, Retail,
Laboratory, and a Certificate for Research. A producer is also
known as the grower. A processor is a business that will transform the raw marijuana
into another product (topicals, edibles, concentrates, or extracts). A
wholesaler is a business that buys in bulk and sells to licensees rather than
to consumers. A retailer is a business that sells directly to consumers.
A retailer is a business that sells directly to consumers. A laboratory will
test marijuana based on rules established by the Oregon Health Authority.
To receive a Laboratory license a Lab must be accredited by the Oregon
Environmental Laboratory Accreditation program (ORELAP).
Q: When will the OLCC begin
accepting license applications?
A: The OLCC began
accepting license applications for recreational marijuana on January 4, 2016.
Q: How much are the licensing fees?
A: A non-refundable application fee of $250 is required for
all license types.
-Micro Tier I -
-Micro Tier II $2,000
-Tier I $3,750
-Tier II $5,750
-Micro Wholesaler: $1,000
Q: How many licenses can I have?
A: A licensee may hold multiple licenses and multiple license
Q: Who will be eligible for a
A: 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.
I sell or make marijuana products for pets?
retailers may not sell marijuana products that are specifically to be consumed by
Q: What if my city/county wants
to go “dry?”
A: The Oregon Legislature allows local governments to opt out
of the program through the adoption of a local ordinance. Contact your
local municipality directly to verify what their current polices are on
marijuana businesses in their jurisdiction.
Q: Can a license be transferred?
A: Licenses are not
transferrable. 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.
Q: Is there a limit to the number
of licenses that will be issued?
A: No. There is no limit to
the number of licenses the OLCC will be issuing.
Q: Is there a closing date on
A: No, there is no closing date
for accepting applications.
Q: Do you have a time frame for
how long it will take to get a license?
A: There is no specific time frame regarding how long it may
take to get a license. The OLCC intends to license producers and
laboratories first, as these items must be in place before all other license
types may operate. This will then be followed by processors, research
certificates and then retailers. It is expected to have the retailers to
be licensed by Fall 2016.
Q: If I do not have computer
access is there a paper application?
A: The application is only
available online, beginning January 4, 2016.
Q: Do you have to be an Oregon resident to receive a license?
A: Due to recent legislative changes the residency requirement
is no longer applicable.
Q: How much information do
capital investors have to disclose to the OLCC?
A: We will ask amount and description. OLCC may require
additional information be included in the interested parties section. We
ask potential applicants to use their best judgement in regards to disclosing
information, it is important to not appear as if you are hiding information in
Q: Are applications time stamped?
A: 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
Q: Is there a ranking in regards
A: No, the OLCC intends to license producers and laboratories
first, as these items must be in place before all other license types may
operate. The OLCC will next license processors, research certificates and then
retailers. It is expected to have the producers/labs licensed by Spring
2016 and for the retailers to be licensed by Fall 2016.
Q: Can all license types buy and
purchase from each other?
A: Yes, however there are certain restrictions regarding who
can buy what items. You are encouraged to read Division 25 rules and review all the specific privileges under
each license type. For example: a producer may not sell useable
marijuana to another producer, only immature plants.
Q: Can my attorney complete the
application for me?
A: 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.
Q: Can we apply for a license even
though the building isn’t complete?
A: 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.
Q: Does my on-site facility
manager have to be a two year resident?
A: No, all residency requirements were removed in 2016
Q: Are applicants with a complete
application expected to go through the licensing process quicker?
A: 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.
Q: Will we be required to submit
information for spouses?
A: 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.
Q: 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?
A: 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.
Q: If one of my applicants has an
outstanding tax burden will this affect our license?
A: Each application is reviewed on a case by case basis.
Q: If I am teaching an education
class on growing marijuana do I need a license?
A: If you are within the laws of personal possession, then
no. If you are intending to sell marijuana products then you will need a
Q: If I want to apply as the DBA
which SOS registration do I use?
A: If you are applying with the DBA business information, then you
should use the corresponding SOS registration number with that DBA.
Q: Are franchises a possibility?
A: Yes, there is nothing in our current rule language
Q: Once I’m approved for a license am I
required to operate my business immediately?
A: There is no requirement to operate your business as soon as
you’ve received your license. This is your personal business decision.
Q: If I have a criminal
background will I be denied approval for a license?
A: We are unable to confirm if an application will be approved
or denied as each application is considered on a case by case basis.
However it is important to provide as much information as possible so as not to
appear as if you are withholding or providing false information.
Q: Do employees need to be listed
on the application?
A: No, however a log of all employees will be entered into the
Cannabis Tracking System (CTS).
Q: Are there resources available
for those interested in transitioning from an agricultural farmer to a
A: You may wish to contact the Oregon Department of Agriculture.
They have a cannabis coordinator who may be able to assist.
Q: What happens if I feel the
investigator reviewing my application is abusing their power?
A: OLCC has a process for making complaints against
employees. If you feel a final decision adversely affects your license,
you are entitled to pursue a hearing under ORS Chapter 183.
Q: Can I have all of my licenses
in one building?
A: The language in Division 25
rules does not prevent different license types from being located on the same
property. However Chapter 475Bdoes indicate the Oregon Liquor Control
Commission may require a premises to be segregated into separate areas if there
appears to be a reason for the licensed areas to be separated. All applicants
should also be in compliance with local government regulations. Although Division
25 rules do not require segregation, the local government may have specific
restrictions on this matter. The OLCC recommends applicants work
with local governments to ensure compliance.
Q. I would like to split a warehouse into multiple areas and
rent the space to licensees. Is this possible?
A: Yes, for most license types. Indoor growers may be
located in the same building as long as they are not under common ownership.
Processors and Wholesalers can all be located in the same building as long as
they have their own area separated from the others by permanent walls and do
not share a common entrance to other licensees areas.
Q: What information will be
subject to public records requests?
A: Some application information
is subject to disclosure under Oregon’s Public Records Law. There are
exceptions to disclosure, including addresses, select proprietary information,
and security details. If necessary the OLCC will work with the Department
of Justice to determine if specific application information should be
considered public or confidential under Oregon Public Records Law.
Q: Can I open a smoking lounge?
A: Public consumption is still prohibited under law.
Licensure for a cannabis café allowing public use would require a statutory
change. Also, cannabis falls under the regulation of Oregon’s Clean Air
Act in 2016.
Q: Are there limits in regards to
how much marijuana can be transferred between license types?
A: No limit has been established at this time. We
encourage applicants to research Oregon Department of Transportation laws and Division 25 rules.
Q: How is banking handled?
Banks won’t work with me because marijuana is illegal federally?
A: The OLCC does not set banking regulations.
Q: What level of debt can an applicant
have while applying?
A: The OLCC does not check credit.
Q: Can I charge for the tours
that I conduct on the premises?
A: OLCC Division 25 rules
do not prohibit charging for tours conducted on premises. However, all
tours must comply with requirements in rule.
Q: I want to move my licensed
premises, how do I do this?
A: Changing the location
of a business requires submittal of a Change of Location application and
payment of the $1,000 review fee.
Q: If I want to be a contractor
to perform work at licensed premises do I need a license?
A: This will depend on the
circumstances of the financial interest and work performed. In general, a
contractor who is paid a set fee to do work will not be required to be licensed
under the OLCC licensing system. Profit-sharing arrangements may constitute a financial
interest requiring a license.
Q: How will the grower/processor
know that the retailer is licensed? Will licensees be able to check with
the OLCC about license status?
A: OLCC will have a list
of retail licensees posted on our website and it updated on a weekly
basis. The license will be available for electronic download and
must be printed and posted on the licensed premise, according to OLCC Division
25 rules. When transferring product to another licensee, a manifest through CTS
is required, which will list the receiving licensee’s CTS information and
confirm that they have an active license.
Q: How do you define out of
ordinary compensation for financial interest?
A: Out of the ordinary compensation would be paying an
employee at a much higher rate than others doing the same job. If your
investigator thinks someone is receiving an unreasonable rate of pay they may
inquire why and how the business decision was made.
Q: How do we do the background
A: Fieldprint, in coordination with the Oregon State Police,
will be used to perform the background check on all persons where this is
required. You will be notified by the investigator reviewing your
application who is affected and if/when it is time to get your fingerprints for
the background done.
Q: Will we receive notice before an
inspector visits the premises?
A: After licensure the inspector may visit the premise at any
time, however there is no intention to continuously visit a premise unannounced
unless a reason arises to do so.
Q: Is there a minimum or maximum
A: No, expect that a producer’s mature canopy area may not exceed the
maximum allowed by their license type.
Q: How long is the license good
A: The licenses are annual from the date of payment.
Q: What is the minimum age of the
workers on a site?
A: All employees must be 21+.
Q: What if there’s a change to
the business structure after a license is issued?
A: There is a change of business structure form that must be
completed prior to the change occurring, as indicated in the OLCC Division 25 rules.
Q: Can a liquor licensee apply
for a recreational license?
A: Yes, but the proposed business may not be at the same
location as the liquor establishment.
Q: How do we submit the LUCS request form?
A: After submitting the LUCS to your local
jurisdiction and paying their local fee, applicants rshould return the final
LUCS to the OLCC with the initial application or upon request by OLCC
staff. OLCC will then verify with the local government that all information on
the form is correct.
Q: If I submit an Outdoor Producer
application will I be licensed in time to participate in this 2016 grow season?
A: Based off of the current trend the
outdoor producer license investigations are averaging about 90 days, but may be
longer or shorter depending on various factors. OLCC will accept
applications for all license types at any time, but you will need to make your
own judgment, based on this current average, whether submitting your
application will work for your business.
Q: I received a Producer license from
the OLCC and would like to know when I can sell my product into the
recreational marijuana market?
A: A producer may sell or transfer
their recreational product to any OLCC licensed Processor, Wholesaler or
Retailer. A producer cannot sell or transfer their recreational product
directly to consumers. You will need to make sound business decisions on how
you will store your product until these facilities have been licensed. At this
time the OLCC anticipates starting to issue licenses to Processors, Wholesalers
in July or August 2016, and to Retailers starting in October 2016. Until
then, you will not be able to sell or transfer your product into the
Q: I have been in Local Government
Review for a long time but have already submitted my approved Land Use
Compatibility Statement (LUCS).
A: Once the OLCC has noted the receipt
of your processed or submitted LUCS your status will be changed to Local
Government Review. You will remain in Local Government Review until your
application has been assigned to an investigator.
Q: I submitted my application months
ago and haven’t been contacted by anyone from the OLCC.
A: The OLCC is working diligently to
process the hundreds of applications that have been submitted. The OLCC intends
to begin licensing Producers and Laboratories first, followed by Processors,
Wholesalers, Retailers and Research Certificates. We are working to
screen and assign applications as quickly as the process and staffing allows.
You will be contacted directly by your investigator once your file has been
Q: I have submitted an application and
have questions about it. What information does the OLCC need in order to answer
my questions about my application?
A: Any time you contact the OLCC with
questions it will be extremely helpful for you to provide your Record ID
number. This is a number that you can easily find by logging into your
application, and will be on the same line as your application on your license
Q: I submitted my license application
but would like to upload updated documents to it. How do I do this?
A: If you have not yet been assigned an
investigator, you may email email@example.com and include the record ID number for
the application you would like to upload documents to. If you have been
assigned an investigator, you may contact your investigator and ask them to
help you upload documents to your application.