Today closes out our five part series on “How to Open an Oregon Recreational Grow Operation” (see parts 1, 2, 3, and 4) with a discussion on canopy sizes and the medical bump-up canopy program. I also touch on Oregon’s marijuana worker permit program and discuss what you can expect after you submit your OLCC (Oregon Liquor Control Commission) license application. Remember that the law in this area has been changing rapidly, so much of what we have discussed so far is potentially subject to change.
Canopy Sizes. Your “canopy” is the part of your licensed premises that can be used to cultivate cannabis plants. In your cannabis license application you must tell the OLCC how much square footage you intend to use for cannabis cultivation, and you must clearly designate canopy areas on your site plan (see here for an example). The larger the total area, the greater your annual license fee:
- Micro Tier I – $1,000
- Indoor: Up to 625 sq. ft.
- Outdoor: Up to 2,500 sq. ft.
- Micro Tier II – $2,000
- Indoor: 626 to 1,250 sq. ft.
- Outdoor: 2,501 to 5,000 sq. ft.
- Tier I – $3,759
- Indoor: 1,251 to 5,000 sq. ft.
- Outdoor: 5,001 to 10,000 sq. ft.
- Tier II – $5,750
- Indoor: 5,001 to 10,000 sq. ft.
- Outdoor: 20,001 to 40,000 sq. ft.
It gets a bit more complicated if you have a mixed use site, but generally one foot of indoor area is equivalent to four feet of outdoor area. So, for example, a mixed-use Tier II producer could have all 10,000 indoor, a mix of 5,000 indoor/20,000 outdoor, or all 40,000 outdoor.
When you are deciding on your cannabis canopy limits, keep in mind that the limits apply only to mature plants, not to immature plants. You can grow as many mature plants as you can fit in your canopy areas. As there are no height restrictions, you should be thinking vertically.
Medical Bump-Up Canopy. Oregon’s legislature recently approved the “medical bump-up canopy” program, which allows recreational cannabis producers to set aside a small portion of their premises to cultivate medical cannabis. If you are interested in growing medical cannabis alongside your recreational cannabis, you can enter into a Producer-Patient Medical Canopy Agreement with up to 24 OMMP (Oregon Medical Marijuana Program) cardholding patients. These patients can reimburse you for your reasonable expenses, but you must give these patients their marijuana medicine free of charge.
Nevertheless, a medical canopy is still potentially profitable. Though you can grow up to six plants per patient, you can transfer no more than 3 pounds to a single patient in a year. This means you will likely have a surplus for each patient. The bump-up program allows you to generate some income from your medical marijuana crop by transferring up to 25% of that crop to registered producers and dispensaries.
Marijuana Worker Permit. Each of your employees must have a marijuana worker permit, including seasonal employees. Each permit costs $100 and each applicant must pass an online test and a background check. The OLCC has set up a simple website explaining the process, which includes a link to the study book.
What to Expect when the OLCC Follows Up. Once you submit your cannabis grow license application, the OLCC will conduct a preliminary review. You will likely receive a follow up letter from the OLCC identifying any deficiencies in your application you must resolve before you can obtain your grow license. To minimize delays, make sure your initial application is thorough and correct. The following are examples of issues that have come up:
- Failing to properly identify the portion of a tax lot that will be leased to your company.
- Including a residence within your licensed premises boundary.
- Failing to properly label your site and floor plans, including the location of your cameras.
- Failing to be consistent in your labels across site and floor plans.
- Failing to provide dimensions for each structure on your property.
- Failing to identify the materials that make up your fences/walls.
- Failing to label each camera with a number on your security plan.
Once you are confident you have met all of your Oregon cannabis grow application requirements and you have the required documents in order, you will be ready to request an inspection. If all goes well, and you have complied with all local requirements, you will soon be a licensed recreational grow operation. Congratulations!