Cannabis Legalization and Regulation in Oregon
Oregon legalized adult-use cannabis in 2014 through Measure 91, with retail sales beginning in 2015. Adults 21 and older may legally possess up to 2 ounces of cannabis flower in public, up to 8 ounces at home, 16 ounces of solid edibles, 72 ounces of liquid-infused products, and 1 ounce of concentrates. Home cultivation is permitted, with each household allowed up to four plants for personal use. Public consumption is prohibited, and impaired driving remains illegal.
The Oregon Liquor and Cannabis Commission (OLCC) regulates the adult-use cannabis market, including licensing for cultivators, processors, wholesalers, retailers, and testing labs. Oregon is known for its large cultivation capacity, which has led to significant oversupply issues, prompting tighter controls on production and licensing. Municipalities may impose restrictions or opt out of retail operations.
Oregon’s medical cannabis program, established in 1998, remains in effect. Registered patients may possess higher limits than recreational users, cultivate more plants, and designate caregivers. Medical dispensaries are largely integrated into the adult-use system, with tax exemptions and additional protections available for medical patients.
Hemp cultivation and hemp-derived CBD products are legal in Oregon. However, intoxicating hemp-derived cannabinoids such as delta-8 THC and THCA are restricted and must be sold only through licensed cannabis businesses. All cannabis and hemp products are subject to strict state testing, labeling, and packaging requirements.
For cannabis operators, Oregon is a competitive and highly regulated market with downward pricing pressure due to oversupply. Banks and financial service providers require strict compliance, including license verification, ownership disclosures, tax IDs, financial statements, and operating agreements. Because the industry is heavily cash-based, operators must maintain secure armored transport, reconciled deposits, AML/BSA monitoring, and audit-ready accounting systems. Excise and sales tax compliance is closely monitored and essential to maintaining stable banking relationships.
The Oregon Liquor and Cannabis Commission oversees all adult-use cannabis operations. For official program information, licensing resources, and compliance updates, visit:
https://www.oregon.gov/olcc/marijuana/pages/default.aspx
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