Oregon medical marijuana dispensary program approves first applications

April 08, 2014

Last year, Oregon Governor John Kitzhaber signed into law a medical marijuana "dispensary bill." Prior to the legislation, those with Oregon Medical Marijuana Patient cards had no legal option to obtain marijuana other than to grow it themselves. And those who sold medical marijuana opened themselves to possible Oregon drug distribution charges.

The legislation gave the Oregon Health Authority until March 2014 to set up a registration system for stores that sell medical marijuana. The OHA was also tasked with creating rules for security and marijuana testing.

Some of the new rules include surprise inspections of medical marijuana dispensaries and require testing for mold, mildew and pesticides. Only Oregon residents can own dispensaries and they must locate within farm or commercial zones. Stores cannot operate within 1,000 feet of a school or another dispensary and cannot be at a medical marijuana grow site.

Local government restrictions

On March 19, 2014, a new law went into effect that allows local governments to impose restrictions and regulations on medical marijuana dispensaries. A moratorium may even be imposed for a period of time through May 1, 2015.

First applications processed

Since the registration system launched on March 3, it has approved eight applications and issued 22 provisional licenses. Dispensaries with provisional licenses must put in security systems before opening for business. The OHA posted a list of the approved dispensaries - three are in Portland, while others are in Salem, Bend, Hermiston and Eugene.

Of the 288 applications filed, 20 were denied. Information was lacking on some applications or proposed locations were within 1,000 feet of another dispensary or a school.

Applying to operate an Oregon medical marijuana dispensary

To file, the individual who owns or operates a facility must provide the following:
- The address where the shop will be located
- Contact information for the owner or person with legal responsibility (PFR)
- Identification, such as an Oregon driver license, for the PFR
- A business registration number from the Oregon Secretary of State
- Application fee of $4,000

The initial application can be completed online and will generate a Medical Marijuana Dispensary (MMD) number that must then be included on all subsequent correspondence. A fingerprint authorization, proof of residency, security system proposal and zoning documentation are also required and must be mailed.

The new law means that storefronts will no longer operate in a "legal gray area." With more regulations and inspections, it is still possible that owners of dispensaries may be issued violations. As the new rules go into effect, a criminal defense attorney can provide advice as inspections and enforcements of medical marijuana dispensaries increase.

Article provided by Mark C. Cogan, P.C.
Visit us at www.coganlawoffice.com