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Oregon Cities/Counties Prohibiting Licensed Recreational Marijuana Facilities (UPDATE)

OLCC news

OLCC news

OREGON: The list of cities or counties in Oregon that have prohibited the establishment of licensed recreational marijuana producers, processors, wholesalers, and/or retailers has been updated to include Brownsville, Dufur, and Turner.


OLCC Provides Oregon Legislature With Recreational Marijuana Supply And Demand Study

OREGON: Today the Oregon Liquor Control Commission provided the Oregon Legislative Assembly with the 2019 Recreational Marijuana Supply and Demand Legislative Report required by ORS 475B.548.
2019 Recreational Marijuana Supply and Demand Legislative Report
A Letter from OLCC Director Steve Marks

Oregon’s Public Policy Approach to Support Legal Marijuana Production and the State’s Abundant Supply: The Course for Seeking the Right Balance

The Oregon Liquor Control Commission is grateful for the opportunity to produce for the Oregon Legislature a comprehensive examination of the amount of marijuana accounted for and contained within Oregon’s regulated recreational marijuana market.
Let me first acknowledge that we have a considerable supply of marijuana in our state’s recreational marijuana system.  That licensed Oregon cannabis growers have become successful in producing this volume of marijuana is due in no short order to the intentional choices made by Oregon voters and policy makers.  Now we find ourselves at a crossroads where our state’s history with marijuana and the future of cannabis commercialization meet.

Oregon’s unique geography and climate are qualities that have enabled generations of Oregon farmers to produce copious amounts of cannabis. The illegal export of Oregon cannabis has been taking place for decades. For Oregon, producing a lot of marijuana is not new news; producing a lot of marijuana that is tracked in the legal system is.

Recognition that cannabis is woven into the state’s cultural fabric initially emerged as institutional tolerance when Oregon became the first state in the country to decriminalize marijuana possession in 1973. Greater acceptance of cannabis occurred in 1998 when Oregon, following California’s lead two years earlier, established a medical marijuana program. A broader embrace of cannabis took place when Oregon voters approved Measure 91 in November,2014, and became the 3rd state to legalize recreational marijuana.

With the debate around legalization largely settled, Oregon’s elected officials began making annual adjustments during legislative sessions beginning in 2015.  Each legislative modification to Oregon’s regulated cannabis system has attempted to improve the industry’s economic stability by removing barriers to entering the market while at the same time enhancing regulatory compliance to address public safety concerns while withstanding federal scrutiny.

Oregon is not creating a new industry, it is converting an illegal cannabis production economy, and a loosely-regulated medical program, into a well-regulated legal market

Oregon oversupply is a sign that policy choices made to attract illegal and grey market producers into the new commercial system have been successful; this was a start-up challenge Colorado and Washington didn’t have to face. Oregon medical marijuana growers had long been suspected of diverting into the illegal market so it was important to attract these well-established producers into the OLCC’s new regulated recreational marijuana program.

To entice medical as well as formerly illegal growers into Oregon’s legal market the state lowered the barriers to entry with low license fees and taxes and chose not to limit the number of licenses. This approach fulfilled the immediate objective to absorb medical marijuana providers into the OLCC market, but it has led to industry churn as businesses face mounting cost pressures and attempt to position themselves for the long term.

The ongoing objective is to account for and contain legally produced cannabis within Oregon, create consumer confidence in the legal market, and establish compliance performance boundaries for marijuana licensees.

By requiring the tracking of marijuana flower and marijuana products, CTS has provided the most reliable accounting for legally produced cannabis in Oregon. For the first time, the state’s production of marijuana is accounted for and there are consequences – criminal and administrative – for licensees that divert product from the regulated system.

Oregon’s legal market has created a new growth industry with quality product, a diversity of choices, and transparent information for consumers

Oregon’s successful transition to a regulated adult-use market has provided customers an unprecedented degree of consumer safety confidence. Oregon’s testing program and packaging and labeling requirements are considered best-in-class and are being replicated by other states that have legalized adult use cannabis. This confidence has contributed to consistent growth in retail activity as evidenced by the $198 million in state and local sales tax revenue generated since legalization.

On the demand side the establishment of a legitimate market has resulted in consumers shifting their purchase activity away from the illegal market to licensed retailers. The conversion of most OMMP dispensaries to OLCC retailers, coupled with the OLCC’s deliberate effort to allow medical grade products for sale at retail, has established a statewide retail network, in which medical marijuana patients are also able to obtain tax-free products.

Industry innovation has continued since the OLCC’s establishment of and oversight over the marijuana supply chain in January 2017; today consumers are able to find a selection of products reflecting a marketplace with 2,100 licensees. As more consumer choices have been introduced and prices have decreased, sales have seen a corresponding increase.

A context for change

Oregon’s current supply in the legal market is a reflection of successful policies to move production into the legal system. The adoption of the legal system by recreational consumers and medical patients for the purchase of branded and tested cannabis products is a strong indication that the legal system is winning the battle against the illegal market.

At the same time, Oregon regulators and law enforcement, with support of the licensed industry, are developing and utilizing new resources and tools to confront illegal market activity. Now that the legal system has successfully taken hold, policy makers can make adjustments combined with market forces to work towards a sustainable economic balance between supply and demand.

The economic condition of the market that the OLCC will be regulating in the next two years remains uncertain. Just as it took time to establish legal alcohol markets after the repeal of alcohol prohibition, the development of the legal marijuana industry will require patience. In less than three years Oregon has made substantial progress toward creating a controlled, economically viable and well-regulated cannabis industry. While regulations to control and manage this new industry will continue to change, no matter the future course, the ability to support existing and aspiring licensees and take enforcement against those that don’t follow the rules will be a crucial function for the state and the private sector businesses that have entered this industry.

A primary objective of establishing Oregon’s regulated market was to contain cannabis legally produced in Oregon from diversion into the illegal market.  Oregon’s legal cannabis market and its framework for accountability and containment indicates the system is performing as it was designed.

At this point we have another opportunity to make intentional choices.  With market mechanisms and thoughtful public policy, the state of Oregon and the OLCC can continue to control what we’ve created – to reinforce and strengthen the regulatory system we’ve built in just three short years.  One corrective policy tool proposed by the Governor would allow the OLCC to place a moratorium on licenses.  As the 2019 legislative session progresses other ideas may emerge.

We expect any guidance that the Governor and Legislature may develop during the 2019 legislative session will strengthen the continued implementation of a regulated marijuana system that balances public safety concerns with the vision of Oregon voters.

The 2019 Recreational Marijuana Supply and Demand Legislative Report is more than just about numbers. Its substance and specific methodology reflect a state-of-the-art approach for evaluating use and demand and normalizing values and equivalencies of differing cannabis products as produced and sold in the Oregon marketplace. While not infallible, this study provides a sound base for the discussion and debate of policy development. The OLCC appreciates the work and time its talented staff and outside peer reviewers have spent to bring forward this public data on legal marijuana production in Oregon.

A copy of the 2019 Recreational Marijuana Supply and Demand Legislative Report can be found on the OLCC on the Recreational Marijuana main page under the Government Resources column.


OLCC Commissioners Approve Stipulated Settlements For Recreational Marijuana Violations

OLCC news

OLCC news

OREGON: At its monthly meeting January 17, 2019 meeting the Commissioners of the Oregon Liquor Control Commission approved the following fines and/or marijuana license suspensions or license surrenders based on stipulated settlements:

Odin Distillations* will pay a fine of $2,310 or serve a 14-day recreational marijuana processor license suspension for two violations.

Licensee is Odin Distillations, LLC; Odin Enterprises, LLC, Managing Member; Galt Industries, Inc., Member; Paul Amsbury, President/Stockholder; Mithlond Ventures, LLC, Member; David Loverink, Member; Pluto, LLC, Member; Nasem Issak, Member.

Rogue Farmer* will pay a fine of $7,620 or serve a 44-day recreational marijuana producer license suspension for three violations.

Licensee is Rogue Farmer at Quartz Creek, LLC.; Ryan Beyerlein, Member.

Cultivated Industries* will receive a letter of reprimand for three violations.  The Commission accepted the surrender of the former licensees’ producer license on May 8, 2018.

The former licensee is Nug Run Farms, LLC; RJV, LLC Managing Member; James Deneen Holdings, LLC, Managing Member; Norris Monson, Managing Member; SDFM, LLC, Managing Member; Steve Miller, Managing Member; David Boies, Member.

Evio Labs Bend in Bendhas surrendered its lab license and each licensee agrees to accept a letter of reprimand for three violations.

Licensee is CR Labs, Inc.; Lori Glauser, Co-Licensee, President, Director, Stockholder; William Waldrop, Co-Licensee, Secretary, Director, Stockholder; Anthony Smith, Co-Licensee, Stockholder; EVIO, Inc., Stockholder; Signal Bay, Inc., Stockholder.

Evio Labs Eugene/Oregon Analytical Services in Eugenehas surrendered its lab license and each licensee agrees to accept a letter of reprimand for six violations.

Licensee is EVIO Labs Eugene, LLC; EVIO Labs OR, Inc., Member; Lori Glauser, Manager, President, Director; William Waldrop, Manager, Secretary, Director; EVIO, Inc., Stockholder.

*The locations of OLCC marijuana producer, processor and wholesale licensees are exempt from public disclosure under Oregon law. 

A copy of the Stipulated Settlement Agreements for Marijuana Violation Cases can be found on the OLCC website, on the Laws & Rules page under the Final Orders section.


OLCC Commissioners Approve Stipulated Settlements for Recreational Marijuana Violations

OREGON: At its monthly meeting October 26, 2018 the Commissioners of the Oregon Liquor Control Commission approved the following fines and/or marijuana license suspensions based on stipulated settlements:

OLCC news

Cannabis & Co. in Portland*, will pay a fine of $4,950 or serve a 30-day recreational marijuana retailer license suspension for one violation
Licensee is CO2 Company Auction House, LLC; Kevin Walsh, Member; Ryan Walsh, Member.

Head Stash Horticulture; will pay a fine of $4,950 or serve a 30-day recreational marijuana producer license suspension for one violation
Licensee is TopShelf Garden Centre, LLC.; Nicholas Landis, Member; Elliot Ladwig, Member

Cannabis Corner in Portland*, will pay a fine of $4,950 or serve a 30-day recreational marijuana retailer license suspension for one violation
Licensee is Cannabis Corner, LLC., Patrick Maher, Managing Member.

Headwater; will pay a fine of $6,105 or serve a 37-day recreational marijuana wholesaler license suspension for two violations
Licensee is CO2 Company Auction House, LLC; Kevin Walsh, Member; Ryan Walsh, Member.

Way High 101 in Coos Bay*, will pay a fine of $9,075 or serve a 55-day recreational marijuana retailer license suspension for four violations.
Licensee is Pacific Partners RTG, LLC; Yotokko Kilpatrick, Managing Member; Deepak Kumar, Member; Timothy Bourke, Member.

Oregon Bud Works will surrender its recreational marijuana producer license for ten violations.
Licensee is Oregon Bud Works LLC; James Alexander, Managing Member.

*The locations of OLCC marijuana producer, processor and wholesale licensees are exempt from public disclosure under Oregon law.  

A copy of the Stipulated Settlement Agreements for Marijuana Violation Cases can be found on the OLCC website, on the Laws & Rules page under the Final Orders section.

NutraRisk Expands Cannabis Program For Recreational And Medicinal Operations

CALIFORNIA: NutraRisk, a division of Worldwide Facilities, announces that it is expanding its offering to include an exclusive cannabis program, providing General and Product Liability for medicinal and recreational operations.

NutraRisk can also place risks, in the eight states where recreational cannabis is legal, in another new and expanded Recreational Cannabis Program. In addition to these new General Liability Products, they can now provide a Crime option for the cannabis industry as well.

These programs represent some of the most tailored insurance coverage available for cannabis, CBD and hemp manufacture and sale.

“These insurance products are not yet mainstream, and the regulatory landscape is challenging. The cannabis industry at large faces significant challenges in finding comprehensive coverage,” says Morgan Moore, Life Science Practice Leader at NutraRisk.  “Many carriers hesitate to write these exposures and those that do often have very restrictive exclusions.”

NutraRisk has partnered with a few carriers that have decided that now is the time to enter into this sector and provide coverage for the various types of exposures. Coverage options include General and Product Liability up to $2 million, as well as Excess Liability up to $5 million. The approved classifications include (but are not limited to): cultivation – indoor, greenhouse, and outdoor operations, dispensaries / retail shops, growers, laboratories, transporters, recreational and medicinal marijuana.

“There are huge opportunities for retail insurance agents to increase their presence in this untapped and growing market,” Moore adds. “NutraRisk continues to partner with the innovative insurance carriers who are willing to explore cannabis coverages. Our Cannabis team consists of Casualty, Property and Financial Service Brokers who specialize in this space and have proprietary coverages available that are inclusive of the risks involved.”

“The cannabis industry represents the most tangible Crime risk in the history of insurance,” says Brian Savitch, Financial Services Specialist at NutraRisk. “With no banking solution in sight, this will remain a cash business. Unfortunately, most businesses have no idea that their cash on hand is insurable or that this type of insurance even exists.” Savitch adds, “Fortunately, we’ve partnered with a carrier, that is committed to cannabis, to offer a proprietary Crime product that will help bring peace of mind to cannabis business owners.”

Brian Savitch has an extensive background in D&O, E&O and Cyber. Over the past two years he has focused that expertise on the cannabis industry. Expect these ancillary lines to come to the forefront as sophisticated investors push insureds to properly round out their corporate insurance portfolios.



OLCC Commissioners Ratify Stipulated Settlement On Recreational Marijuana License

OREGON:  At its monthly meeting April 19, 2018, the Commissioners of the Oregon Liquor Control Commission ratified the following fines and/or marijuana license suspensions and destruction orders based on stipulated settlement:

Jenny’s Dispensary, Deschutes County; will pay a fine of $6,105 or serve a 37-day recreational marijuana retailer license suspension for two violations.  The first violation is for the licensee or its employees, agents, or representatives failing to keep surveillance recordings for a minimum of 90 calendar days.

The second violation is for is for the licensee or its employees, agents, or representatives failing to store marijuana items for sale in such a manner that the items were only accessible to authorized representatives until such time as the final sale to the consumer was completed.  Licensee is Jenny’s of Oregon, Inc.; David Rosen, President/Secretary.

CBD Oil; permitted its processor license to expire, accepted a Letter of Reprimand for the charged violations, and withdrew its request for a hearing for four violations.  The first violation is for the licensee or its employees, agents, or representatives operated other than as its license permits by delivering marijuana items to or on an area that was not a licensed premises, and/or by selling, transferring, delivering, transporting, purchasing, or receiving marijuana items other than as provided in OAR 845-025-3215(1), when it sold, transferred, delivered and transported the product “Modern Medicinals CBD Oil,” a cannabinoid extract, to non-licensed retailers and entities including, without limitation, Mandala Medicine & Wellness in Portland, Oregon, and Salem Hypnosis Solutions in Salem, Oregon.

The second violation is for the licensee or its employees, agents, or representatives intentionally failed to accurately enter data into the cannabis tracking system (CTS) that fully and transparently accounted for all inventory tracking activities, by adjusting the weight of packages in order to divert product out of the licensed system and elude the seed-to-sale CTS.

The third violation is for the licensee or its employees, agents, or representatives failed to accurately enter data into the cannabis tracking system (CTS) that fully and transparently accounted for all inventory tracking activities, by failing to finish and create manifests for 32 packages in its CTS inventory that were not present on the licensed premises on October 24, 2017, and that licensee claimed to have shipped on October 23, 2017; by failing to discontinue packages in CTS that had no content; and by failing to account for at least seven missing packages that did have content according to CTS.

The fourth violation is for the licensee or its employees, agents, or representatives distributed printed materials advertising its recreational marijuana product “CBD Oil” as having “comprehensive pain relief properties” and “medicinal effects” such as “relieves pain and inflammation,” “has antipsychotic effects,” “reduces anxiety,” “helps fight cancer,” “relieves nausea,” “may treat seizures and other neurological disorders,” and “promotes cardiovascular health.” On or about December 1, 2017, Licensee’s website claimed that its recreational marijuana product “CBD Oil” has curative or therapeutic effects in that it was stated to be highly effective in treating pain.

Licensee is Modern Medicinals, LLC; Jeffrey Hilber, Managing Member.

Medigreen Collective, Multnomah County; will surrender its retail license upon the transfer of ownership of the business for one violation, which was the licensee’s thirdCategory I violation within two years.

The violation is for the licensee or its employees, agents, or representatives failing to keep surveillance recordings for a minimum of 90 calendar days.  Licensee agrees to accept a Letter of Reprimand for this violation.  This reprimand will become a permanent part of Licensee’s Commission file and may be considered in any future application for any license by Licensee.  Licensee is MTO Holdings, Inc., Luay Tomeka, President/Stockholder.


The Green Earth Farmacie Los Angeles Opens To Recreational Cannabis Consumers

CALIFORNIA:  The Green Earth Farmacie, leading cannabis dispensary specialists, announced they are now open for adult use recreational customers. The Green Earth Farmacie is one of the first dispensaries in Los Angeles to officially open their doors to the general public. To participate, customers must be adults 21 years and over, with a valid ID to verify legal age.

“This is an exciting time for us, and quite frankly, it’s exciting for the people of L.A.,” said Mo Anouti, Founder and CEO. “I feel like this has been a long time coming and I can’t wait to provide our high-quality cannabis to people who have otherwise had their access restricted for far too many years.”

The announcement comes on the heels of the implementation of Proposition 64, a California State initiative passed in 2016 that saw voters legalize the sale of recreational marijuana used by adults. The measure also calls for taxation on the cultivation and retail sale of cannabis. Revenue generated from these taxes are set to go to drug research and treatment, youth programs, and various health and safety grants.

“It’s the dawning of a new era for Californians, and for Angelinos in particular,” continued Mr. Anouti. “We’re still going to continue proudly serving our medical cannabis patients, but we are happy that we now have the opportunity to provide the same great service and high-quality cannabis options to the public, too.”

Cannabis Sales Projected To Increase as California Paves the way for Recreational use

CALIFORNIA: The global legal cannabis market was valued at $14.3 billion in 2016 and is forecast to grow at a CAGR of 21.1% between 2017 to 2024 or culminating to $63.5 billion by 2024, according to a report by Ameri Research.

The market is going through a period of strong growth thanks to increasing legalization and decriminalization of cannabis products across North America and Europe. The report indicates that due to the complex regulatory structure at state and federal level, the full potential of the market is not yet clear. A recent report published by Arcview Market Research explains that growth of the legal cannabis industry will reaccelerate beginning 2018, as adult use sales ramp up in CanadaCalifornia, and Massachusetts along with medical sales in Florida.

In states like California for example, where new recreational cannabis laws went into effect on January 1st, 2018, analysts are projecting an increase in sales of Cannabis. The new industry is also expected to contribute to California’s tax revenue. The LA times reported that, California is on the verge of creating a legal market for marijuana worth more than $5 billion that will help make the state a destination for pot-loving tourists.

What You Need To Know About The Massachusetts Recreational Marijuana Program

By The Marijuana License

The Massachusetts Cannabis Control Commission just released the latest information on what rules and regulations business-owners can expect when the recreational marijuana program launches in July of 2018.

Here’s where the marijuana industry currently stands in Massachusetts: medical marijuana is legal and available for purchase for patients who register with the Medical Use of Marijuana Program. Meanwhile, even though the legalization of recreational marijuana was approved in November of 2016 the program is still months away from becoming a reality with marijuana business license applications expected to become available in July 2018. However, we just got a sneak peek into what the state’s future recreational marijuana program will look like thanks to the completion of public policy discussions held by the Cannabis Control Commission.

The discussions defined 5 main areas of recreational marijuana business licensing and operations: fees, inventory and record-keeping, business types, inspections and fines, and cash and banking.

Business Types

The state of Massachusetts will recognize and offer licenses to a whopping 11 types of recreational marijuana business:

  • Cultivation – Grows marijuana plants for sale to licensed manufacturers or retailers. Licenses are tiered based on the square footage of the cultivated area.
  • Craft Marijuana Cooperative
  • Microbusiness License – Microbusinesses operate on a smaller scale in terms of square footage and revenue and are able to participate in multiple areas of business without having to apply for separate licenses.
  • Manufacturing – Creates preparations, tinctures, concentrates and other forms of manufactured marijuana products for sale to licensed retail establishments
  • Independent Lab – Can test marijuana products for contaminants and concentration of THC and CBD
  • Retail – The state will offer separate licenses for brick & mortar stores with a physical location and stores that only offer delivery of recreational marijuana. Retailers can only sell marijuana products to the end consumer and customers must be 21 years of age or older.
  • Transporter – Transport marijuana plants or manufactured products for other licensed marijuana businesses
  • Research – Test marijuana products for scientific purposes
  • Social Consumption – Establishments that allow the consumption of recreational marijuana on their premises. The state will offer separate licenses to businesses that only allow the consumption of marijuana and those that offer mixed use. “Mixed use” has not been defined yet but may refer to food and non-alcoholic beverages. Smoking of marijuana within social consumption establishments will not be allowed.

Application and Licensing Fees

The state has set a flat application fee of $300 for all business types with the exception of Cultivation. Application fees for cultivators is tiered with Tier I through Tier IV applicants paying $100, $250, $400 and $600 respectively.

The state will also impose the following annual licensing fees on all businesses:


Tier I $1000

Tier II $2,500

Tier III $4,000

Tier IV $5,000

Craft Marijuana Cooperative: The same as Cultivation licensing fees

Microbusiness: $1,250

Manufacturing: $5,000

Independent Lab: $5,000

Retail: $5,000 (brick and mortar) $2,500 (delivery)

Transporter: $5,000

Research: $1,000

Social Consumption: $5,000 for primary use and a sliding scale for mixed use.

Inventory & Record Keeping

Licensed marijuana cultivators will be required to carry out a monthly inventory of plants they are currently cultivating and marijuana that has been stored. An additional annual inventory will be required that is comprehensive. Inventories must include the date they were performed, signatures from all who participated in the inventory and a summary of what was found.

All establishments will be required to implement a seed-to-sale tracking method and any business that cultivates, processes or sells marijuana for both medical and recreational use must have separate tracking of both classes of product.

Business must also keep historical records of their operating procedures, vendor training completion, background check reports, inventory records, personnel records, policies and procedures, staffing plans and the seed-to-sale tracking records.

Inspections and Fines

The commission decided to apply the same rules for inspections and penalties that are currently enforced for medical marijuana businesses. Methods for inspection may include random purchases made at retail by inspectors and the filing of complaints by employees and consumers. The commission will make use of license suspensions, sales limitations, quarantines and cease and desist orders to ensure compliance with regulations.

The framework for fines was also established, borrowing from the regulations applied to other industries in Massachusetts. Each incident can only incur up to a maximum fine of $25,000 and the fine can only be imposed upon the licensed entity rather than an individual. Written notice of fines must be provided as well as an option to appeal the fine.

Cash and Banking

Marijuana businesses have met major obstacles in trying to move their revenue legally through the banking system, often paying exorbitant fees for services. Massachusetts is proactively trying to improve this situation with two major actions.

First the state government will create its own agreement with state banks to allow retail establishments to make cash deposits electronically. Meanwhile, paying tax revenues to the state will also be made easier with the installation of new cash-handling machines placed across the state. These will allow businesses to deposit directly to the Massachusetts Department of Revenue at secure locations.

These policies have not yet been made official. The commission expects to have a final vote by the end of December 2017 before filing them as Draft Regulations.

The Marijuana License is a non-profit informational resource for patients and business-owners across the country looking to obtain a medical marijuana card or marijuana business license. It maintains an up-to-date database for each state.

Cannabis Product Sales Projected To Increase For Both Medical And Recreational Use

NEW YORK: A market report by Ameri Research emphasizes that the global legal cannabis market was valued at $14.3 billion in 2016 and is projected to grow at a CAGR of 21.1% from 2017 to 2024. During the forecast period, the demand for cannabis will continue to rise for both recreational and medical use products, and estimated global sales value is expected to reach $63.5 billion. The report points out the legal cannabis market is witnessing robust growth thanks to successful legalization and decriminalization campaigns across North America and Europe. Ameri Research also explained that due to the complex regulatory structure at the state level and federal level, the full potential of the market is not yet realized.

Major components of the cannabis industry are hemp products. “One of the most surprising things we found during this research was how many companies are currently operating in the space, and how few of them are generating significant revenue,” said Bethany Gomez, the Director of Research at Brightfield Group. “Essentially everyone is trying to do hemp, but only a handful are doing it well. It’s seen as easy because it can be sold online but, with restrictions on traditional marketing, it is very difficult to connect with your core consumer and even communicate why they need your product,” Forbes reported.