The Oregon Liquor Control Commission is sending a strong message to licensees that they will lose their license if they transfer marijuana products to other entities. The OLCC entered into stipulation agreements with Slabtown and Home Grown Apothecary, licensed retailers, after staff recommended canceling their licenses after both entities transferred usable marijuana to non-consumers.
Home Grown Apothecary transferred around 6 pounds of useable marijuana in 176 separate shipments. The settlement notes that the retailer was not returning the product to the processor and it was not sold to consumers. The OLCC agreed to let Home Grown Apothecary sell its business, which must be completed by April 30, 2020. Home Grown will surrender its license if it is not able to complete the transaction by that time. It has also agreed not to seek a license renewal.
OLCC staff also alleged that Slabtown transferred usable marijuana products to a licensee in 131 separate shipments. Slabtown agreed to pay a fine of $5,280 and serve a 32-day suspension. The sanctions will be placed in Slabtown’s permanent file.
The OLCC once again shows the cannabis industry that it will shut down businesses for not following the rules. The enforcement minded regulator may become the normal course for mature markets and a model fo new markets looking to squash illegal activities.