December 13, 2013

$4,000 Application Fee for Oregon Dispensary Licenses

Oregon cannabis dispensaries will have to fork over thousands of dollars for business licenses under regulations released this week.

The rules require entrepreneurs to pay $4,000 to apply for a license ($500 of which is nonrefundable) and another $4,000 annually to renew the license.

The application fee is much higher than some members of the rule-making committee initially wanted. At a previous committee meeting, one member suggested a $1,000 application fee, while another proposed just $400.

But the group settled on the higher fee, likely because Oregon’s governor previously said it is crucial to set fees that provide sufficient funding for “extraordinarily vigorous” enforcement of the rules.

Oregon legalized medical marijuana use in 1998 but did not specify allowable distribution methods. This summer, lawmakers passed a measure – House Bill 3460 – that paves the way for state-licensed, regulated dispensaries.

About 170-200 unregulated dispensaries currently exist, according to the Marijuana Business Factbook. These businesses will now have to apply for and obtain licenses to continue operating. The application process begins in March.

The regulations released this week require dispensaries to meet a host of requirements covering everything from security and record-keeping to testing, labeling and location.

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