OR: Local Marijuana Businesses Face Challenges While Waiting For Retail Licenses

Katelyn Baker

Well-Known Member
Retail marijuana sales and purchases are on hold in Douglas County, while a majority of businesses wait for inspections before they can sell recreationally.

As of Jan. 1, businesses must possess a retail license to sell marijuana to the general public. That means four out of five stores in Roseburg can no longer sell product to patrons without a medical marijuana card until an inspector from the Oregon Liquor Control Commission comes to their shops and gives them the green light for a retail license.

La Mota, with locations in downtown Roseburg and Drain, is the only local business as of Thursday that holds a retail license to sell recreational marijuana in Douglas County. Cougar Cannabis, Umpqua Green Cross, Canna King and the 420 Club are currently waiting for OLCC inspections, which are expected within the next few weeks.

The other four Roseburg stores can still sell marijuana to medical cardholders as dispensaries, but once they obtain a retail license, they'll have to surrender their dispensary registrations because they can't operate as both. Dispensaries follow the Oregon Health Authority Oregon Medical Marijuana Program guidelines, while retail license applicants fall under OLCC.

Although retail stores will no longer operate as dispensaries, they can still sell the stronger medical-grade products with higher concentrations and dosage limits that's available only to medical marijuana cardholders.

The challenges businesses face

The challenge local dispensaries face occurs during the interim between Jan. 1 and the time the OLCC grants them a retail license following inspection.

Since many medical marijuana patients have surrendered their costly medical marijuana cards (about $500 in doctor and state fees), they have turned to relying on recreational cannabis to fill their medical needs. Now they can't purchase marijuana from their favorite local vendors as of Jan. 1.

"I am turning away 95 percent of all my business, as well as patiently waiting for an inspector to magically appear," said Canna King owner Dennis Rogers. Rogers said he waits from 9 a.m. to 9 p.m. daily for an unannounced visit from an OLCC inspector. "They just show up and expect you to be here."

Rogers said his store is currently on a holding pattern. He received a notice from OLCC in early December stating that everyone who applied for a retail license prior to Nov. 5 would be inspected and approved prior to Dec. 31.

"That is not the case," Rogers said. "As of Jan. 5, we have not seen hide nor hair of any inspector."

Rogers said he applied for his retail license in mid September 2016 and has already paid over $200,000 in taxes in the nine months that his dispensary has been open. Dispensaries were allowed by law to sell recreationally until Jan. 1, 2017.

"You think with $200,000 that these guys would get it right and get the manpower out there to make sure these stores are open," Rogers said. "I get 90 people coming into my business every day and I can only sell to three of them."

Some businesses waited to apply for retail licenses following November election outcomes. Retail license fees cost $4,750 yearly.

"This is delaying the good people in this city from getting the medicine that we voted for," Rogers said. His store is overflowing with product. "It hurts the most vulnerable medical people the most."

A complicated application process

OLCC recreational marijuana program spokesperson Mark Pettinger said that each application is a separate case and faces different challenges when fulfilling the requirements of the application process.

Some of the challenges OLCC has been facing include paperwork being incomplete. In other cases, an inspection of premises to ensure they comply with OLCC security requirements have not been completed. OLCC has more than 50 people working on retail marijuana applications.

As of Wednesday, Pettinger said OLCC has approved 257 retail licenses. The agency has been accepting retail license applications since Jan. 4 2016. It saw a spike in applications from October to December in 2016.

"Oftentimes there's a lot of back and forth over the course of a couple months in terms of one of our investigators taking the application, reviewing it and finding gaps, with an applicant acknowledging that they haven't submitted everything," Pettinger said.

After getting the proper documentation, an inspector goes to the physical location. A retail location must ensure it has operable cameras with a video recording device, panic buttons, alarms and safes to secure the product. All licensees must also provide land use compatibility statements to show their locations conform with local zoning laws.

"We still have a fair amount of applications to work through, but as with anything, we are becoming more efficient as we learn going through this," Pettinger said.

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News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Local Marijuana Businesses Face Challenges While Waiting For Retail Licenses
Author: Vera Westbrook
Contact: 541-672-3321
Photo Credit: Michael Sullivan
Website: The News-Review
 
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