Whistleblowers Responsible for 5 out of 6 Oregon Cannabis Enforcement Actions

The Oregon Liquor Control Commission (OLCC) entered into six (6) stipulated agreements against cannabis licensees for a total of roughly $35,000 in penalties or 182 days suspension and one recommendation to cancel a cannabis license. Licensees should note that five (5) of the actions were started by whistleblower including neighborhood watch groups and employees.

The trend in enforcement proceedings over the prior year has been fines for failing to retain video footage. The OLCC will need to assess whether the current penalty structure provides enough deterrence for firms to retain surveillance recordings as retention can provide further evidence of additional violations.

The summary of each stipulated agreement includes:

• CO2 Company Auction House, LLC d/b/a CANNABIS & CO. :

  • Surveillance Recordings: Failed to retain 90 days of surveillance recordings

  • Compliant Source: Portland Neighborhood Involvement

  • Fine: $4,950.00 civil penalty OR serve a 30-day license suspension

• TopShelf Garden Centre, LLC d/b/a HEAD STASH HORTICULTURE

  • Surveillance Recordings: Failed to retain 90 days of surveillance recordings

  • Complaint Source; Complaint of On Site Consumption

  • Fine: $4,950.00 civil penalty OR serve a 30-day license suspension

• Cannabis Corner, LLC CANNABIS CORNER

  • Surveillance Recordings: Failed to retain 90 days of surveillance recordings

  • Complaint Source: Former Employee (illegal sales; unsanitary conditions; unreported theft)

  • Fine: $4,950.00 civil penalty OR serve a 30-day license suspension

• CO2 Company Auction House, LLC d/b/a HEADWATER (Wholesaler)

  • Surveillance Recordings: Failed to retain 90 days of surveillance recordings

  • Inventory Storage:

    • Failed to keep inventory in enclosed room

    • Failed to use steel door or commercial grade locks

  • Complaint Source: Portland Neighborhood Involvement

  • Fine: $6,105.00 civil penalty OR serve a 37-day suspension

• Pacific Partners RTG, LLC d/b/a WAY HIGH 101

  • False Statement – Denied on site consumption, which regulators later identified in video recordings

  • Consumption While on Duty

  • Failure to Enter Inventory into Seed-to-Sale System

  • Fail to Use Hygienic Practices when Handling Marijuana

  • Complaint Source: Former employee

  • Fine: $9,075.00 civil penalty OR serve a 55-day suspension

• Oregon Bud Works, LLC d/b/a Oregon Bud Works

  • 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.

  • Fines: Cancelled License