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U.S. Industry opportunities

Oregon

Oregon marijuana laws 

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In 1998, Oregon voters passed Oregon Ballot Measure 67, establishing the Oregon Medical Marijuana Act and allowing the cultivation, possession and use of marijuana by patients with written recommendations from physicians for certain medical conditions. However, licensed dispensaries did not open until 2014, under House Bill 3460 [2013]. In the same year, Oregon voters passed Measure 91, authorizing the Oregon Liquor Control Commission to begin regulating recreational marijuana businesses.

 

One of the biggest challenges in Oregon has been the complete separation of the supply chains for the medical and recreational marijuana markets. Oregon has made limited adjustments, such as the licensing of medical canopy by OLCC producers and the ability for OMMP growers to transfer up to 20 lbs of marijuana per year to the OLCC market.

 

While Oregon’s market for marijuana is large, the market is oversaturated, leading to dramatic declines in the price of recreational marijuana. The state distributed $95M in tax revenue from the recreational marijuana market by September 2017, only a year and a half after beginning to accept applications for recreational marijuana businesses.

 

As of April 2018, Oregon had over 45,000 registered patients and 22,000 registered growers. This is a decrease since the peak of 73,000 in 2016; a change likely due to the introduction of the recreational market.

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A list of dispensaries can be found here. 

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On December 20, 2018, the Oregon Liquor Control Commission (OLCC) adopted changes in the rules regulating recreational marijuana focusing on licensing and compliance requirements, providing licensees flexibility with business, and access to medical marijuana for patients. 

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Application Fees/Start up costs

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Marijuana Producer, Marijuana Processor, Marijuana Retailer,

and Marijuana Wholesaler license applications all must submit a

$250.00 application fee.

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Available License Types

  • Marijuana Producer

  • Marijuana Processor

  • Marijuana Retailer

  • Marijuana Wholesaler 

 

Qualifying Conditions 

  • Cancer

  • Glaucoma

  • A degenerative or pervasive neurological condition

  • HIV/AIDS

  • Post-traumatic stress disorder (PTSD)

  • A medical condition or treatment for a medical condition that produces one or more of the following:
    - Cachexia (a weight-loss disease that can be caused by HIV or cancer)
    - Severe pain
    - Severe nausea
    - Seizures, including but not limited to seizures caused by epilepsy
    - Persistent muscle spasm, including but not limited to spasms caused by multiple sclerosis

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Through January 2019, there were 4,368 submitted applications and 2,101 licensed recreational cannabis businesses in Oregon, including 1,114 producer licenses.

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In Oregon, cannabis is divided into 2 categories: industrial hemp and marijuana. If hemp-made, a license or registration is not required for a business to sell CBD products under the state’s Hemp Program as long as the product has <0.3% THC and is not advertised as a dietary supplement. Testing requirements are implemented and enforced by the Oregon Department of Agriculture (ODA) to ensure growers and handlers are in compliance prior to sale or transfer to consumers. Overall, there is no legal prohibition against the sale of CBD products to individuals who are <21 years of age (unless it is used for the sale of inhalant delivery systems and their components) or limitations on purchases from retail locations.

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Estimated market size

Oregon state cannabis tax revenue kept growing in the 2019 fiscal year, which ended on June 30, topping $102 million, a 24.2 percent increase over the $82.2 million collected in 2018

how to start a marijuana business oregon

If you are just starting your marijuana business, the next best step is to start a Business Plan to help educate your team and be ready to apply for a marijuana business license. If you are ready to apply for a Marijuana Business License in Oregon, please Contact us or call our offices to set an appointment to get started. You can also select another State Opportunity, or fill out our Contact Form to discuss potential strategies such as Investment or Partnership Opportunities. 

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