Oregon Marijuana Processing License

Does Oregon Require a Marijuana Processing License to Make Cannabis Products?

Measure 91, a bill approved by Oregon voters in 2014 and legalized recreational marijuana, mandates licensing for anyone or entity interested in cannabis processing in the state. In Oregon, marijuana processors process raw marijuana into cannabinoid concentrates, extracts, edibles, and other marijuana products. They obtain raw marijuana for processing from licensed marijuana producers. Measure 91, otherwise known as the Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act, authorizes the Oregon Liquor Control Commission (OLCC) to issue retail marijuana licenses, including processor licenses, to prospective licensees in the state. The Oregon Health Authority (OHA) issues medical licenses in the state.

The OLCC regulates Oregon's marijuana industry activities and is empowered to refuse, suspend, and cancel licenses for the various marijuana businesses, including processing. However, it cannot cite the prohibition of marijuana on the federal level as the basis of refusing to issue marijuana licenses or revoking them.

Does Oregon Require Licensed Cannabis Processors to Have Cultivation Licenses?

No. The state marijuana laws do not require a marijuana processor to have a cultivation license. However, marijuana processors are not barred from obtaining marijuana cultivation licenses, otherwise known as marijuana producer licenses in Oregon. A processor that sees the need to grow marijuana for its own use can get a separate license (producer license) different from their marijuana processor license. Essentially, a person or an entity can hold all marijuana license types in Oregon, provided they meet all licensing requirements and local regulations. However, they cannot keep more than one of any license type and operate with them at the same physical location.

How Does Oregon Classify Marijuana Processor Licenses?

Generally, Oregon has only one class of marijuana processor license. However, any license applicant can apply for any of the different kinds of endorsement under the marijuana processor license. These are:

• Cannabinoid concentrate processor
• Cannabinoid edible processor
• Cannabinoid topical processor
• Cannabinoid extract processor
• Industrial hemp processor

In Oregon, a marijuana processor must receive an endorsement from the licensing authority to enable them to process and sell cannabinoid concentrates, extracts, and other marijuana products. They can, however, hold multiple endorsements. The application process of each endorsement type differs even though there are general criteria that all marijuana processors must satisfy. A processor who plans to disengage in processing the product for which it was endorsed must promptly inform the licensing authority, stating the date it will cease processing such a product.

What are the Different Types of Cannabis Processor Licenses in Oregon?

Oregon has two types of cannabis processor licenses. These are the medical cannabis processor license and the retail (recreational) cannabis processor license. The holders of medical cannabis processor licenses process raw marijuana into marijuana products and transfer them to licensed medical marijuana dispensaries to serve medical purposes. On the other hand, marijuana products made by retail marijuana processor licensees are sold to the recreational market.

The Oregon Liquor Control Commission (OLCC) issues retail marijuana processor licenses, while the Oregon Health Authority (OHA) licenses facilities that process marijuana products for the medical market. The Oregon Medical Marijuana Program (OMMP) under the OHA regulates and registers all medical marijuana facilities in Oregon, including medical marijuana processing facilities.

Does Oregon Require a Separate License to Process Edibles?

No. The state-issued marijuana processor license covers marijuana edibles processing, among other marijuana products. A processor only has to obtain an endorsement to process edibles. A processor license holder endorsed to process cannabinoid edibles can only do so in a food establishment licensed by the Oregon Department of Agriculture (ODA). Such an establishment must meet particular security and other licensed premises requirements because it is also considered a licensed premises. A commercial kitchen license from the ODA is required for processing edibles in Oregon.

A cannabinoid edible processor in Oregon cannot process edible products in spots that run as restaurants (limited service, seasonal-temporary, single-event temporary, or intermittent-temporary restaurant) licensed under Oregon Revised Statutes (ORS) 624. Also, they cannot process cannabis edibles in places such as warehouses, commissaries, and mobile units. The state prohibits marijuana edible processors from sharing food establishments with anyone or entity the relevant licensing authority has not licensed or endorsed. An edible processor operating from a shared food establishment must identify a space to secure any marijuana or edible products they store in the establishment.

In Oregon, the packaging of marijuana edibles processed by any marijuana processor license holder endorsed as edible processor must show at a minimum, the following:

• The name and address of the processor
• Date of processing
• Product identity
• The license number issued by the OLCC to the processor
• Allergen declaration
• Warnings
• List of all ingredients (in declining order of weight of each component)
• Net weight
• Required statement
• Perishable declaration (if it applies)
• Name of testing laboratories that conducted testing and analysis and the dates performed
• Amount of CBD and THC per container and per portion (in milligrams)

How to Get a Cannabis Processing License in Oregon

An individual who is at least 21 years old and has been resident in Oregon for a minimum of two consecutive years is eligible to obtain the state's marijuana processor license. If the license applicant is a legal entity, they must also list the following persons as applicants on the application:

• All members of the business, if it is a limited liability company
• All partners of the venture, if a limited partnership
• If a corporate entity, all the principal officers and directors

Oregon Retail Marijuana Processor License Application

The Oregon Liquor Control Commission (OLCC) requires persons or entities seeking a retail marijuana processor license to submit their applications electronically via the Recreational Marijuana Licensing Portal. New users must create an account by registering for a business account before proceeding with their applications. Applicants must have the following information and documentation handy as they will be required to upload them on the licensing portal:

• Names and relevant information for persons who are applicants
• Names and details of individuals who are not applicants but have a financial interest in the proposed marijuana processor facility

A license applicant who has submitted their application electronically should complete the Marijuana Processor Application Form and forward it to the OLCC on the Commission’s requests to:

Oregon Liquor and Cannabis Commission

9079 SE McLoughlin Blvd.

Portland, OR 97222

While filling out this form, a prospective licensee must indicate the type of processor endorsement(s) they want. The OLCC requires an applicant to provide the following supporting documentation when submitting their paper application:

• A copy of a completed OLCC's Land Use Compatibility Statement if it is required by the municipality where the proposed marijuana processor facility will be located. An applicant must indicate the processor endorsement they intend to obtain while filling out this form.
• Evidence of legal ownership of premises for the proposed marijuana processor facility
• A detailed operating plan showing how the proposed business and premises will comply with regulations concerning:
  • Preventing minors from accessing the marijuana facility and from obtaining or trying to obtain marijuana products on the licensed premises
  • Marijuana products transportation
  • Security
  • Marijuana facility's staff qualifications and training
• A floor plan sketch of all the enclosed spaces on the proposed premises identifying windows, partitions, walls, counters, entrance, and exit
• The proposed premises' map showing all its boundaries and residence on the same parcel of land as the premises
• A Marijuana Applicant Questionnaire to list out every individual and legal entity considered as the marijuana processor license applicant
• The following for a person noted as an applicant:
  • Proof of residency - Rental receipts, utility bills, and mortgage documents bearing the applicant's name and address dated at least two years before the date of application. An Oregon annual resident tax return for the two years before the application date will also suffice.
  • Applicant's fingerprints or information for a criminal background check
  • An Individual History Form
• A person listed as having financial interest will provide:
  • An Individual History Form
  • Fingerprints or relevant information for a criminal background check
• Any license applicant interested in getting the extract processor endorsement must, in addition to other required documentation, provide the following:
  • A completed Extract Processing Equipment Form classifying all extraction equipment that will be used
  • Proof that the proposed facility has a Certificate of Occupancy to operate a marijuana processing business
  • Evidence that a certified electrical or mechanical engineer has inspected a hydrocarbon extraction equipment if the extractor uses hydrocarbon solvents

The OLCC will notify an applicant in writing if, after the application review and inspection, it determines that the applicant complies with Section 3 to 70, Chapter 1, Oregon Laws 2015, and Chapter 614, Oregon Laws 2015. Afterward, the Commission will provide the applicant with evidence of licensure containing a license number, a description of the premises for which the license was given, the effective date of the license, and the expiration date.

Oregon Medical Marijuana Processor License Application

The Oregon Health Authority (OHA) has the responsibility of licensing medical marijuana processors in Oregon. Prospective licensees must provide the following to complete their initial online applications:

• The applicant's business name and the registration number issued by the Oregon Secretary of State (SOS) or proof that the business has filed an application to register with the SOS
• Address of proposed processing facility
• Name and contact information of the proposed processing facility owner, Person Responsible for Processing Site (PRP), or persons who have a financial interest in the business.
• Valid identification card for each PRP entered on the license application and other persons named in the application. The OHA accepts a passport, driver's license, state identification card, or U.S. Military ID.
• A completed Medical Marijuana Individual History Form for each person listed in the license application.
• Fingerprints and other information for a criminal background check for each individual named in the application

To apply online, applicants are required to create an account using the Oregon Medical Marijuana Online System, where they will choose a username and password and verify afterward. Once this is done, they can apply to register as a processor. Typically, the system assigns a unique MMPS number to every successful application and sends a confirmation email to applicants. This unique number must be referenced on all forms and communication with the Oregon Medical Marijuana Program (OMMP) during the application process. Applicants must pay all required fees within five calendar days to avoid application denial.

Typically, the OMPP will notify the main PRP by mail to provide certain documentation within 30 calendar days of the notification after submitting the initial application. Applicants must include the unique MMPS number assigned on every document they send to the OMMP. Such documents include:

• A written letter or email from a local government authorized personnel stating that the proposed location for marijuana processing is not in an area zoned for a residential purpose (only for license applicants who intend to process marijuana extracts)
• A floor plan of the enclosed areas on the proposed marijuana premises. It should show the sizes of the interior sections and the overall dimensions of the facility. It should also describe the proposed use of each space while identifying secure rooms, windows, partitions, walls, safes, processing equipment, and counters.
• Proof that the license applicant has a legal right to the proposed premises such as a deed or a lease agreement
• A completed Medical Marijuana Processor Endorsement Form
• A site plan of the proposed marijuana processing facility

License applicants can submit these documents to the OHA via the Oregon Medical Marijuana Online System or by mail to:

Oregon Medical Marijuana Program

Oregon Health Authority

P.O. box 14450

Portland, OR 97293

How Much Does a Cannabis Processing License Cost in Oregon?

When applying for a retail marijuana processor license in Oregon, an applicant must pay a non-refundable application fee of $250 during the initial license application. If the Oregon Liquor Control Commission (OLCC) approves the license application, the marijuana processor license applicant will pay a license fee of $4,750. Licensees pay these exact amounts annually for renewals once the Commission approves their renewal applications. The OLCC charges $50 for criminal background checks per person listed on an application if the check was not included as part of the initial application. Electronic payment (credit cards) is the only payment means accepted by the OLCC for settling license application fees. The Commission may receive cash payments for the license fee, but this will require setting an appointment. This generally impacts and delays the application process.

To obtain a medical marijuana processor license in Oregon, applicants must pay a $4,000 fee, which includes a $500 non-refundable application fee and a $3,500 registration fee. Licensees also pay this same fee for license renewal annually. The Oregon Health Authority will not begin an application or renewal process if it has not received the requisite payment. Applicants should make these payments in the course of the online application process via the secure online process. If they cannot pay these fees during the online application process, they must do so within five days of submitting the online application.