Cannabis Law

Cannabis is legal in both Washington and Oregon, though a number of restrictions apply. Hemp, which is statutorily defined as cannabis containing less than 0.3% THC on a dry weight basis, is now federally legal, assuming the producer and handler or processor followed appropriate state and federal regulations. Recreational marijuana, while legal in both states, is federally illegal. The laws surrounding recreational marijuana, its production, its sale, and possession are very complex even in the states that allow it. If you have questions about hemp or recreational marijuana, it is recommended that you contact an attorney.

Those wishing to receive a marijuana license must apply to their local regulator. At this time, the Washington Liquor and Cannabis Board is not accepting additional licenses. However, the Oregon Liquor Control Commission is still accepting applications, and has in fact streamlined its application process significantly.

The Oregon Liquor Control Commission is the regulatory body governing liquor and recreational marijuana in Oregon. The Oregon Department of Agriculture is the regulatory authority for food and agriculture in Oregon. Both regulators are involved in recreational marijuana in Oregon.

Starting a business requires a number of critical steps, such as registration with the appropriate secretary of state, filing with the IRS, insurance concerns, sources of funding, etc. However, cannabis businesses also require obtaining proper licensing or registration from applicable regulators, such as the WLCB or the OLCC.

The WLCB is not accepting marijuana retail applications at this time. The OLCC charges $4,750 annually for recreational marijuana retail applications and renewals. However, the full cost of any marijuana business is much higher, and depends on a number of factors, including rental amounts, utilities, local business licenses and fees, land use applications, building permits, and fees to professional service providers.

License requirements vary depending on each license. State regulatory bodies, such as the OLCC, impose restrictions on security requirements, licensing, etc. Local land use officials may impose additional requirements, such as maintaining a certain distance from residentially zoned properties. Building departments and fire marshals have their own requirements as well, including capacity and storage of dangerous materials (for marijuana processors). It is strongly recommended that you contact an attorney to understand which requirements apply to your license and location.

Only marijuana retailers, licensed by the Washington Liquor and Cannabis Board or the Oregon Liquor Control Commission may sell recreational marijuana in their respective states.

A leased space may be sufficient for a recreational marijuana producer license, assuming that the location and its features satisfy state law.

No.

Advertising online is legal under state law, subject to a series of restrictions. For example, advertising in a way that is directed to minors is illegal. Oregon allows licensed recreational marijuana retailers with a home delivery endorsement to deliver marijuana to authorized purchasers. However, all sales of recreational marijuana must be completed within the state in order to comply with state law.

If CBD is derived from recreational marijuana, a license is required for its production, processing, wholesaling, and sale. If CBD is derived from hemp, a registration with the Oregon (or Washington) Department of Agriculture is required for producers and handlers. CBD sales on their own do not require a license as long as the product complies with state and federal law.

While certain hemp-derived CBD sales may occur on online marketplaces, recreational marijuana may not be sold through such marketplaces.

Recreational marijuana, whether produced commercially or for home use, is illegal under federal law. Nonetheless, both Oregon and Washington have a licensing process for commercially produced recreational marijuana, and both states provide for growing certain types of marijuana for home use, subject to significant restrictions. For example, medical marijuana for home use may be available in Washington, but recreational marijuana is not. To qualify for growing medical marijuana in Washington, a grower must meet the requirements specified in Washington's medical marijuana laws. Conversely, in Oregon, you may grow up to four household recreational marijuana plants, but they may not be sold commercially. In both cases, additional fact-specific restrictions apply, so it is recommended to speak with an attorney before you begin planting.

State and federal law distinguish hemp and recreational marijuana a little differently, but generally, hemp contains less than 0.3% THC on a dry weight basis. Anything beyond that amount is considered marijuana, is illegal under federal law, and requires specific licensing under state law.

Recreational marijuana licenses exist for producers, wholesalers, processors, retailers, laboratories, and researchers. Additional endorsements, such as endorsements to deliver recreational marijuana in Oregon, may apply to each. Different hemp registrations exist for production and processing. Moreover, further licensing may be required for food items. Knowing which license type is necessary requires knowing which industry you’re in, as well as a careful analysis of applicable law. It is strongly recommended that you contact an attorney to understand which license is needed.