Cannabis Business in Oregon

Oregon’s cannabis industry continues to play a major role in the state’s economy, with total sales that reached over $955 million in 2023. The Oregon Liquor & Cannabis Commission (OLCC) oversees both adult-use marijuana and certain aspects of hemp regulation, ensuring that businesses in these markets operate within the state’s guidelines. In addition to overseeing the marijuana market, the OLCC also works closely with the Oregon Department of Agriculture (ODA) to regulate the hemp industry, setting THC limits and managing interactions between hemp and marijuana markets.

While there is no limit on the number of retail licenses issued at this time, Oregon's robust regulatory framework ensures that both medical and recreational cannabis businesses remain compliant. The state’s cannabis industry generated significant tax revenue, with $11.7 million collected by the state and an additional $1.8 million gathered from local taxes as of August 2024.

CBD in Oregon

Oregon permits the use of cannabidiol (CBD) derived from hemp and cannabis. The state legalized medical cannabis in 1998 with the Oregon Medical Marijuana Act. Medical cannabis products, such as CBD, are allowed under this act. Oregon also permits the use of CBD derived from hemp. There are no legal prohibitions against selling CBD products to individuals under 21, except for inhalable forms like CBD flower and vape.

Possession Limits

Oregon doesn't limit possession of hemp-derived CBD. As long as the products adhere to federal regulations, there are no restrictions on the sale, amount, or delivery method of hemp-derived CBD. Individuals of all ages can utilize hemp-derived CBD for medicinal reasons. However, for CBD oil, possession is restricted to those 21 and older or 18 and older with a medical marijuana program card. For marijuana CBD oil, the maximum possession is 72 ounces in liquid form and 16 ounces in solid form. In Oregon, doctors can recommend but not prescribe CBD oil.

Oregon Hemp Business Licensing and Regulations

Hemp Businesses

Hemp producers in Oregon need to be registered with the ODA, and their grow sites must also be registered, unless exempt. Those looking to produce hemp for CBD extraction need a license. However, no license is needed to sell hemp-derived CBD products as long as the THC concentration is below 0.3% and they are not advertised as dietary supplements.

Starting July 1, 2024, a new hemp vendor license will be required in Oregon for any hemp retailers or wholesalers who store, transfer, or sell hemp or hemp products for resale to another person. There is currently no requirement for a license or registration for a cannabis business to sell CBD products.

CBD Products

Oregon has specific labeling requirements for CBD products based on their form, as outlined in OAR 333-007-0060 - 333-007-0085. Products must meet these requirements before being sold or transferred:

CBD Topicals: The label on CBD topical containers must include:

• Processor's trade name and license or registration number
• Name of the company that packaged or distributed the product, if different from the processor
• Package ID or process lot number
• Production date
• Product identity
• Net weight or volume
• Recommended usage amount
• THC and CBD concentration
• List of ingredients in descending order of predominance
• Activation time
• Universal symbol
• Testing lab name, batch number, and analysis date
• Medical-grade symbol (if applicable)
• Statement: "This product is not approved by the FDA to treat, cure, or prevent any disease"

In addition to the information listed above, CBD topical labels intended for consumers must include the warnings "For use only by adults 21 and older. Keep out of reach of children" and "DO NOT EAT" in bold capital letters. For CBD topicals intended for patients, the warnings are: "For use by OMMP patients only. Keep out of reach of children." and "DO NOT EAT" in bold capital letters.

CBD Edibles: Labels for CBD edibles must contain similar information to CBD topicals. These include details about the processor, packager, production date, product identity, weight, serving size, THC and CBD concentration, ingredients, allergens, and more.

CBD Concentrates and Extracts: CBD concentrate and extract labels require information like the processor's details, packaging information, production date, product identity, weight, serving size, THC and CBD concentration, activation time, lab details, and a disclaimer about FDA approval.

CBD Tinctures: CBD tincture labels should include details about the processor, packager, production date, product identity, serving size, THC and CBD concentration, lab details, ingredients list, weight, and a disclaimer about FDA approval.