Oregon Cannabis Regulator Ratchets Up Penalties and Cancels Cannabis Producer License

Staff of the Oregon Liquor Control Commission (OLCC) recommended that the license for Oregon Bud Works, a cannabis producer, be cancelled and inventory destroyed for multiple regulatory violations. Oregon Bud Works will have until January 31, 2019 to complete a sale of the company or it will be required to surrender its producer license. The OLCC staff’s recommendation to cancel the producer’s license sends a significant message to egregious rule violators and licensees that they must comply with the state’s regulations.

The staff of the OLCC found multiple violations of the state’s cannabis regulations during inspections of the premises. The OLCC”s findings are in line with past enforcement actions brought by Oregon including:

• Approval of Premises Structure:

  • Unapproved construction of a new building, and

  • Use of conex storage bins

• Seed-to-Sale Tracking System

  • Failure to enter inventory

  • Intentional misrepresentation of data

  • Failure to segregate harvest lots or affix UID tags and accurately weigh

• Surveillance Camera & Alarm System

  • Insufficient coverage

  • Failure to maintain video recordings and back up copies for 30 days

  • Failure to ensure 24 hour a day taping

  • Failure to have fully operational alarm system

• Restricted Access

  • Failing to prevent unauthorized access to restricted areas.