How to Open an Oregon Recreational Grow Operation – Part 2: Preparing for the OLCC

The OLCC wants to know more about the people behind your company.
The OLCC wants to know about the people behind your company.

Last week I opened part 1 of this series, on finding the perfect location for your recreational grow op. Before moving into part 2, I wanted to take a moment to remind you of recent Oregon legislation that will cut into the profitability of medical grow operations. As we explained in BREAKING NEWS: Oregon Sticks It to the Medical Marijuana Program (Again), you should probably be focusing your efforts towards the recreational program.

By now you have found a perfect site in a cannabis friendly area. Your new location will comply with all state, county, and municipal requirements and regulations. You are certain you will have adequate power and water. You have your letter of intent to either lease or purchase the property. You are now ready to begin the OLCC licensing process. Remember that each local government has its own unique approval process. For example, some jurisdictions require you apply for a separate local business license alongside the Oregon Liquor Control Commission (OLCC) license. You should begin developing a relationship with your local planning department, and should move forward with both the state and local procedures at the same time.

Land Use Compatibility Statement. The OLCC won’t simply take you at your word that your property is compliant. The OLCC application process requires you submit a completed Land Use Compatibility Statement (LUCS) proving your property is eligible for cannabis cultivation. You will submit the LUCS form to your city planning department (or county planning department if your property is outside city boundaries), as well as an application fee. Assuming you have done your due diligence correctly, the planning department will return your LUCS with an all clear.

Ownership and Control Information. As part of the OLCC process, you will need to provide detailed information on your business entities, as well as key owners and officers. Depending on the type of entity, the following individuals must also submit Information History forms:

  • Sole Proprietorship
    • The sole proprietor
  • General Partnership
    • Each general partner
  • Limited Partnership
    • Each general partner and each limited partner owning 10% or more of the partnership
  • Corporation
    • Principal officers, directors owning or controlling at least 3% of stock, natural persons owning or controlling at least 10% of stock
  • Limited Liability Company
    • Members owning at least 10% of LLC and Members committing at least 10% of the total investment in the LLC

Generally, the spouse or domestic partner of anyone required to submit an Information History form must also submit an Information History form. The OLCC Investigator may also require additional forms from anyone with a financial interest in your grow operation, including landlords under profit sharing leases, silent majority investors, and anyone else with ownership or control who doesn’t fit into one of the above categories. The Investigator may also require some or all of these individuals provide fingerprints for background checks.

Now that you have started the LUCS process and have gathered your business entity and individual history information, you can move on to preparing your electricity and water estimates, as well as your operating and security plan. In part 3 of this series, we discuss your security requirements, your cultivation plan, and how to calculate your utility needs.