Oregon Adopts Cannabis Retail Rules

Dispensaries in Oregon won’t be able to sell recreational and medical cannabis in the same location and product will not be able to be used on-site under preliminary regulations approved by the Oregon Liquor Control Commission.

While dispensaries began sales earlier in October, full regulations to govern the industry won’t go into effect until next year. The state will begin accepting applications in January for business licenses under the new rules.

The Oregon Liquor Control Commission has given production and retail operations until 2017 to follow their guidelines.

Several of the proposed rules were controversial, including the commission’s limitations on the size of grow operations.

The state based demand for recreational cannabis on experience in Washington and Colorado, two other states that have legalized cannabis, and settled on maximum grow sizes of 10,000 sq. ft indoors and 40,000 sq. ft outdoors.

“It’s a really tough issue, and I don’t think we have the data at this point” to pick a precise number, said OLCC chairman Rob Patridge.

Other rules include a restriction on cannabis use inside of stores and a requirement that businesses be majority owned by residents of Oregon that have lived in the state for over two years.

The proposed rules also allow for deliveries, but restrictions put on the service are strict enough that the commission doesn’t expect it to be feasible. Drivers, for example, won’t be able to travel with over $100 worth of cannabis at any time.

These temporary rules could change before the OLCC creates permanent regulations next year.