Oregon Cannabis Compliance: Three Common Problems

An Oregon Liquor and Cannabis Commission (OLCC) licensee must comply with all rules stemming from ORS 475B. There are a lot of them. These rules have been in a constant state of flux since 2015, and they are buttressed by other sets of permanent rules, temporary rules, proposed rules, bulletins and guidance. In my experience, most licensees are good about complying with these rules; others not so much.

Today I want to take a minute and talk about three common rules violations I keep seeing. I want to highlight these particular, random issues because they implicate rules that have been on the books for quite some time; yet people continue to trip on them. These rules violations come up for us occasionally when a client or potential client receives a Notice of Proposed License Cancellation, but more commonly they arise when someone asks us to draft or revise an agreement, or requests advice on a proposed course of action. These violations are also tied together in a certain sense.

Financial Interest Rules in the Business Sale Context

This is a serious problem. It became acute in the year leading up to the 2018 “pause” of license application processing, and remained

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