OLCC talks licensing, temporary regulations for marijuana bussinesses

Published 12:00 am Friday, December 4, 2015

Raised hands quickly shot up from potential recreational marijuana business owners who had plenty of questions for the Oregon Liquor Control Commission at a meeting Thursday.

The state agency’s first of seven workshops about licensing and temporary rules was at the Riverhouse Convention Center in Bend. The other workshops will take place in Medford, Eugene, Salem and Portland. About 250 people filed into the downstairs Exhibit Hall at the convention center to hear from OLCC officials and ask about the licensing process moving forward.

The OLCC will begin accepting license applications Jan. 4. The state agency will regulate growers, retailers and laboratories, wholesalers and processors.

Recreational retail shops won’t be open until October.

Microphones were passed around, and audience members asked questions about lighting for indoor and outdoor growing, licensing constraints, security requirements for marijuana businesses and whether the agency would limit licenses.

“At this time we’re not planning a cap,” said Amanda Borup, with the OLCC marijuana division, about the number of licenses to be issued.

That could change depending on potential changes from the Legislature, which convenes Feb. 1, according to OLCC officials. The supply and demand of the recreational pot marketplace are also expected to play into sorting out the initial flood of potential marijuana business owners.

“We don’t know how many license applications we’re going to get and what type we’re going to get,” said Will Higlin, senior director of licensing and compliance.

The OLCC plans to have all marijuana products tested before being purchased by customers. Laboratories licensed by the agency will conduct the testing and have to be certified by the Oregon Environmental Laboratory Accreditation Program.

The agency also plans to install a tracking system that will follow products from “seed to sale.” The logistics of the system are not yet completed, Higlin said.

“We have to train you on the program itself,” he said to the audience. “That will be your responsibility to understand the cannabis tracking program and what the expectations are for you.”

Higlin said the agency will first issue licenses to growers, followed by labs, processors and wholesalers. Retail shops would be the final group to be licensed sometime in October.

The OLCC plans to create a system that will allow businesses to find out if they’re approved earlier in the year so that they can make investments and sign leases ahead of time.

“We want to do that way before October to get you notified that you’re approved,” said Higlin. He added that conditions would be attached to approval not allowing recreational shops to sell marijuana before October.

There will be 11 compliance officers working for the OLCC to enforce recreational pot rules and regulations.

“We want a successful marijuana industry in Oregon,” said Higlin. He added that the state is not going to be the “big bad wolf.”

“We want to work together,” he said. “Part of our mandate is to get rid of the black market.”

The application fee for a license will be $250 and nonrefundable. The annual license fees for recreational marijuana growers will be either $3,750 or $5,750 depending on the square footage of the operation. Retailers, wholesalers, laboratories and processors will be required to pay a $4,750 annual fee.

The rules in place for recreational marijuana are temporary. The Oregon Liquor Control commissioners are expected to adopt finalized rules by June 28.

Voters approved Measure 91 in November 2014, which legalized recreational use. The medical marijuana program is overseen by the Oregon Health Authority.

Medical marijuana growers can be part of the recreational system but must receive a waiver from patients and grow no more than is allowed by OHA restrictions. The medical growers will be able to sell excess marijuana to recreational and medical retail stores with OLCC licensing.

The Bend City Council passed local rules for marijuana during a meeting that stretched into early Thursday. The rules include a 150-foot buffer between recreational marijuana shops and parks and day care centers.

Deschutes County commissioners will make a decision on proposed regulations for marijuana businesses in the unincorporated areas on Dec. 21.

Cities and counties will have a chance to hold up licenses if marijuana business owners try to locate in the wrong land use zone. The OLCC won’t issue a license to the business unless the agency receives an approved land use compatibility statement from cities and counties.

— Reporter: 541-617-7820,

tshorack@bendbulletin.com

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