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2018-85-Minutes for Meeting January 29,2018 Recorded 3/9/2018
Recorded in Deschutes County CJ201 8-85 Nancy Blankenship, County Clerk Commissioners' Journal 03/09/2018 4:35:44 PM 11181111111111111111111 1 11 III For Recording Stamp Only Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97703-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org MINUTES OF WORK SESSION DESCHUTES COUNTY BOARD OF COMMISSIONERS, Allen Conference Room Wednesday, January 29, 2018 Present were Commissioners Anthony DeBone and Phil Henderson. Commissioner Tammy Baney was present via conference phone. Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy County Administrator; David Doyle, County Counsel; and Sharon Ross, Board Executive Assistant. Several citizens and representatives of the media were in attendance. CALL TO ORDER: Chair DeBone opened the meeting at 1:30 p.m. ACTION ITEMS 1. Oregon Liquor Control Commission Regulation of Marijuana and Hemp Matt Martin, Community Development Department explained this is a scheduled Work Session discussion with state agencies as a part of Deschutes County's marijuana evaluation project. Oregon Liquor Control Commission representatives present were Steve Marks, Danica Hibshman, and Amanda Borup. The Oregon Recreational Marijuana Program update included licensing, rules and program, enforcement, and packaging & labeling (a copy of the presentation is included in the record). Licensing procedures and criteria were reviewed. Challenges are faced regarding changing statutes causing rule changes for producers. With the 2017 legislation an OLCC processor may apply for Industrial Hemp Endorsement. On December 28th the 2017 legislation became in effect. Commissioner Henderson inquired how the Board can Minutes of Board of Commissioners' Work Session January 29, 2018 Page 1 of 5 become aware of the changes. Rule changes are included on the OLCC website. Enforcement protocols are being developed and permits holders are inspected. Currently there is one dedicated inspector for Deschutes County. Primarily the enforcement and inspections are done based on complaints. Enforcement relies on the cannabis tracking system, security measures on site, and complaints. The growers with more than 12 plants must be in the state tracking system by July. Commissioner Baney inquired about moldy plants and ensuring they are not in the market. OLCC requires these plants to be entered into the system as waste. Commissioner Baney noted the impact in our county on Exclusive Farm Use Lands and concentrations of areas are affected. [)LCCworks with local law enforcement. Inspections are done prior to license approvals. Commissioner Henderson inquired ifthere are issues with access. Growers are supposed to give access to OLCC in order to maintain their license otherwise there is a heavy penalty. OLCC has the opportunity for compliance visits. Commissioner DeBone noted the audience may submit questions to the Board at this time. Nick Lelack inquired on the renewal process and wondered if proposed changes would comply with the County's time, place, and manner. If the grows would increase in size, they require a new land use. The system revolving around medical marijuana was explained including registered grow sites and Oregon Health Authority (OHA). Matt Martin, Community Development Department noted the trend of registeredgromv sites are published on the OHA webpage. This is the second-to-Iast in the series of work sessions (OHA still to come). Staff asked for direction from the Board on next steps. Commissioner Henderson recommended having discussion on all of the information Iearned from the different agencies. Commissioners DeBone and Baney agree and commented on the challenges that need to be addressed. Nick Lelack, Community Development Department noted the staff could provide information collected from the discussions in a report to the Board. The report will finalize the public outreach, the stakeholder's interviews, and the discussions with the agencies. RECESS: A short recess was taken at 3:36 p.m. and the meeting was reconvened at 3:43 p.m. Minutes of Board of Commissioners' Work Session January 29, 2018 Page 2 of 5 2. Consideration of Board Signature of Document No. 2018-020, Mosaic Medical License Agreement Revised George Conway and Dave Inbody, Health Services and James Lewis, Property Management Specialist were present for the discussion. Dr. Conway noted an estimate of $300 per month for utilities has been incorporated into the license agreement. Commissioner Henderson noted his opinion this topic should have been brought to the Board in December and thinks the $300 is not an adequate fee for a five year lease of this facility. Commissioner Henderson feels the negotiations should have been reported to the Board. Commissioner Baney feels we serve the same cliental with Mosaic which will show a better outcome for the community. Commissioner Baney anticipates that within the contract there would be appropriate provisions should the CCBHC grant be ended. Counsel Doyle noted the 60 day termination clause. Commissioner DeBone noted the importance of setting the business tone of the contract. BANEY: Move approval of the contract as written DEBONE: Second VOTE: BANEY: Yes HENDERSON: No DEBONE: Chair votes yes. Motion Carried 3. CARA Local Drug Crisis Grant Application Health Services staff present were Tom Kuhn, Jessica Jacks, and Julie Spackman to ask for permission to apply for a Drug Free Communities Grant for the Bend area to fund three years at $50,000 per year. BANEY: Move approval HENDERSON: Second VOTE: BANEY: Yes HENDERSON: Yes DEBONE: Chair votes yes. Motion Carried RECESS: At 3:57 p.m. the Board took a short recess and reconvened in the Allen Conference Room at 4:04 p.m. Minutes of Board of Commissioners' Work Session January 29, 2018 Page 3 of 5 OTHER ITEMS: • The 2018 Board Retreat is scheduled for tomorrowWhitney Hale and iudith Ure presented the agenda. The retreat will begin at 8:3Oa.rn.tomorrow instead 0f0:OO EXECUTIVE SESSION: Atthe time of4:O5p.nn.The Board met inExecutive Session under ORS 193.6GO(2)(e)Real Property Negotiations. The Board came out of Executive Session at 4:17 p.m. RECESS: At the time of 4:17 p.m. Commissioner Henderson excused himself and returned at 4:25 p.m. OTHER ITEMS (continued): Commissioner DeBone noted there is no desiated alternate for the Central Oregon Intergovernmental Council currently. There is a meeting ori Thursday and is unable to attend. • County Administrator Anderson reported there are four members on the Fair Board with terms expiring and inquired on the Board's direction for reappointment or advertisements. Discussion held on appointment process. Commissioner Baneyfeels there should be a diverse geographic representation. County Administrator Anderson will review with Dan Despotopulos, Fair & Expo Director and will ask him to come to a work session to present the history of the board. • Steve Reinke, 911 Operations Director was present to review the radio system update. The Harris Corporation has more staff resources coming this week. They continue to close trouble tickets but we are not seeing substantial overall improvement. This is very concerning for Mr. Reinke. He is reviewing trouble tickets and collecting data to find where the issues began. The vendor recommends using an engineering team in the technical division and they recommend bringing in a trunked radio system contractor. The County would hire an independent expert to help analyze the system's performance and Harris Corporation's performance. Mr. Reinke has a proposal for that work. Commissioner DeBone inquired if there are major technical issues that need to be Minutes of Board of Commissioners' Work Session January 29, 2018 Page 4 of 5 addressed. The bottom line is when the system was first deployed we relied on Harris. Commissioner Baney asked if we have made final payment to them. She is concerned of the added costs to assist a contractor that is not meeting the agreement. Steve confirmed that the final payment was made. There should be a provision for them not fulfilling their contractual agreement. County Counsel Doyle noted the warranty agreement. Garbled and mis-transmissions are still being reported. A temporary tower site is being considered in the area of COCC where the biggest drops are. Commissioner Baney expressed appreciation for Mr. Reinke's leadership in making sure things are getting done. Interim solution of hiring the engineering firm is within the County Administrator's signing authority. Human Resources is drafting the engineer position description. The recruitment and posting may be complete within a few months; anticipate a Board ask to fund the position. ADJOURN: Being no further discussion, the meeting adjourned at 5:03 p.m. DATED this Day of F„_ 2018 for the Deschutes County 7264.'11 - Board of Commissioners. rding Secret.`ry Anthony DeBone, Chair Philip G. H. derson, Vice Chair Tammy Baney, Com loner Minutes of Board of Commissioners' Work Session January 29, 2018 Page 5 of 5 2 < Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 — Fax (541) 385-3202 — https://www.deschutes.org/ WORK SESSION AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 1:30 PM, MONDAY, JANUARY 29, 2018 Barnes and Sawyer Rooms - Deschutes Services Center — 1300 NW Wall Street — Bend Pursuant to ORS 192.640, this agenda includes a list of the principal subjects anticipated to be addressed at the meeting. This notice does not limit the ability of the Board to address additional subjects. Meetings are subject to cancellation without notice. This meeting is open to the public and interested citizens are invited to attend. Work Sessions allow the Board to discuss items in a less formal setting. Citizen comment is not allowed, although it may be permitted at the Board's discretion. If allowed, citizen comments regarding matters that are or have been the subject of a public hearing process will NOT be included in the official record of that hearing. Work Sessions are not normally video or audio recorded, but written minutes are taken for the record. CALL TO ORDER ACTION ITEMS 1. Oregon Liquor Control Commission Regulation of Marijuana and Hemp - Matthew Martin, Senior Planner 2. Consideration of Board Signature of Document No. 2018-020, Mosaic Medical License Agreement Revised - George Conway, Health Services Director 3. CARA Local Drug Crises Grant Application - Thomas Kuhn, Health Services EXECUTIVE SESSION 4. Executive Session under ORS 192.660 (2) (e) Real Property Negotiations At any time during the meeting, an executive session could be called to address issues relating to ORS 192.660(2)(e), real property negotiations; ORS 192.660(2)(h), litigation; ORS 192.660(2)(d), labor negotiations; ORS 192.660(2)(b), personnel issues; or other executive session categories. Executive sessions are closed to the public; however, with few exceptions and under specific guidelines, are open to the media. Board of Commissioners Work Session Agenda Monday, January 29, 2018 Page 1 of 2 OTHER ITEMS These can be any items not included on the agenda that the Commissioners wish to discuss as part of the meeting, pursuant to ORS 192.640. ADJOURN ®Deschutes County encourages persons with disabilities to participate in all programs and activities. To request this information in an alternate format please call (541) 617-4747. FUTURE MEETINGS: Additional meeting dates available at www.deschutes.ora/meetinacalendar (Please note: Meeting dates and times are subject to change. All meetings take place in the Board of Commissioners' meeting rooms at 1300 NW Wall St., Bend, unless otherwise indicated. If you have questions regarding a meeting, please call 388-6572.) Board of Commissioners Work Session Agenda Monday, January 29, 2018 Page 2 of 2 Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 — Fax (541) 385-3202 — https://www.deschutes.org/ AGENDA REQUEST & STAFF REPORT For Board of Commissioners Work Session of January 29, 2018 DATE: January 24, 2018 FROM: Matthew Martin, Community Development, 541-330-4620 TITLE OF AGENDA ITEM: Oregon Liquor Control Commission Regulation of Marijuana and Hemp ATTENDANCE: Matthew Martin, Senior Planner SUMMARY: The Board of County Commissioners (Board) is conducting a series of work sessions with state agencies, district representatives, and law enforcement as part of the County's marijuana evaluation project. This work session focuses on the Oregon Liquor Control Commission's (OLCC) role in regulating marijuana and hemp. The Board will meet with the following OLCC representatives: • Steven Marks, Executive Director • Danica Hibpshman, Director of Statewide Licensing & Compliance • Amanda Borup, Operations and Policy Community Development Department Planning Division Building Safety Division Environmental Soils Division P.O. Box 6005 117 NW Lafayette Avenue Bend, Oregon 97708-6005 (541) 388-6575 Fax (541) 385-1764 http://www,deschutes.org/cd MEMORANDUM TO: Deschutes County Board of Commissioners FROM: Matthew Martin, AICP, Senior Planner DATE: January 29, 2018 SUBJECT: Oregon Liquor Control Commission Regulation of Marijuana and Hemp 1. Background The Board of County Commissioners (Board) is conducting a series of work sessions with state agencies, district representatives, and law enforcement as part of the County's marijuana evaluation project. Prior work sessions were held with: • Oregon Water Resources, Central Oregon Irrigation District, and Tumalo Irrigation District on January 10; • Oregon Department of Agriculture on January 17; and • Deschutes County Sherriff's Office, District Attorney, and Code Enforcement on January 22. More information is available at httD://deschutescountyor.igm2.com/Citizens/Calendar.asox. II. Oregon Liquor Control Commission The work session on January 29, 2018, focuses on the Oregon Liquor Control Commission's (OLCC) role in regulating marijuana and hemp. The Board will meet with the following OLCC representatives: • Steven Marks, Executive Director • Danica Hibpshman, Director of Statewide Licensing & Compliance • Amanda Borup, Operations and Policy The OLCC provides the Business Readiness Guide Book for OLCC Marijuana Operations.' This document provides comprehensive information on how to establish legal operations in Oregon that comply with state and local laws. 1 The OLCC Business Readiness Guide Book can be found at: htto://www.oreson.gov/olcc/mariivana/Documents/BusinessReadinessGuide RecreationalMariivana.pdf Quality/ Services Performed with Pride tv! Pi 01 GC ell 13S I '4; 1 8 X .7,-, tr, --- , .f•.' I , ".'' 1-- ---- ,-, " g•' k ; :Li A 7,-.. ..) i• .: 1I - ",":" 'I 7'! !::i _ Yd SS.,3Y :,." 1 ':. i, ;, ,.. ';'j a V ''','"' ‘4.' ,.. , y 72'7 - ' -.7.4"\, ., *4 4 ` _ :::• :.,..,,, . a v ... 1 w 1 1:1 dt-8- , •- I i_. - -4J31331-1R1 ' -;:,_ .1 zi- a( • d avi SSMY ;•-!, r • ./ :1W I',TT' . ...- ' --4 -2 .1 ,.. !' .. '-• ',' ,_ ' : 4't, „ 2F, 1'..'.' --; i ----: ,-- 1_ i; I :-.., H • 1 CVOS 31)4NIH 11011 01 EL 33S Deschutes County - Newberry Business Park, la Pine 221014 -AB -00111 11 cop rtob * s Earth N. an Total Cost of Lot LL LL 0) 0 V) 0 U o O O l0 00 00 Oi d ct N LCD LO LA N N O Ln Lf) in N N co O N if? Ln s s M u1 0 t0 LO M 4 O N tO to M 01 O Lni-I LO m v) Ln N .0 01 r1 M to N >. 0).a N M M M M 00 . (0 O. o c0, O 01 O. LL R 0) 0)(0 N T v J -c+' (0 A.+ c 3 cf0 c o c c . 1"if'•ifsin'in' a r` o O M MCO rri )43 t0 Ln • O O Ln Ln m000co dam' o O L ▪ 00 @+d ` Le) <`) O u H b t O c w 2 cn if>• if? if? if} if? te+ ti 0 C) 0) ca J 0) .> c a) v C J Deschutes County �+ 4-, 4-0 LL LL LL 0) v 0) (a ca O CU 01 cll U T N 0) J Incentivized Lease Structure La Pine Only Revenue 1— '(f). i/? tn. N m d• Ln d N 01 01 co v 0->->->->- Annual Discount from Land oO O O O 0 o O 4 o O O O M O 0 0 0 o O O O 01 O u1' 00 O M Lf) m M 4 d' 4 c (a c w in ifs if> tf� v} 0 0 0 0 O O O LO O O O tO O O O 00 O O O O O' r` Ln N 0) Ln i/? i/} V? if} if} Annual Lease O 0 0 0 0 0 0 0 0 0 0 O O O O O 0 0 0 0 0 0 0 0 0 0 Lf) Lf) Lf) Lf) Lf) 4 4 d' d' d' .-1 N m Cr Lf) L L L L L L 001 N N 0) CO N N >- 1 >->- >' >- } . Remaining Land Sale O 0 0 0 0 00 00 CO N N d' d' cf 00 00 LO to LO r\ N N N N rl ri U 00 M N N r -I 0) O c 0) M d Ln (La COLCOLCOLCOL 0) a) N a) 0) L 0) ) C C >- >- >- >- >- C C 0 C >- W W W W W N 0 V (1) (0 0) J 0) N c CU 0 M m CO 0) c a) C y, Total Cost of Lot W 0) o_ V/ N 0 U o 0 0 to 0o 0o vi .4 .4 N t0 LO L(1 N N OLf1 IAN N O O N LO N LA N a) -a (0 (0 O o a, LL cc a J to � 0 r 0 0 O J L(1 L(1 O L N ▪ 00 U • • 0 Q O 0 0 s 4, 0 0) c Deschutes County in. 4- 4-+ 4-, LL LL LL ti 0) 0) ca ca N 0) a) �.0) J yi T a 0 cc a) J tib Incentivized Lease Structure CO 0) N v 70 m m to rn o o 0 0 00o 0 co 0 Ln O0l t▪ in O 0 0 0 000 0 Ni Ni Ni" (h M ,0 1.f1 i-1 Lf1 N LI -I' N M M d d' VI i/} i/• i/} N N M 0 t0 M e-1 lD tD M -i tD LD M CO lD 1-4 00 ci -•4 ri 0 0 0 0 0 O O O O O 0 0 0 0 0 Lf1 L!') L(1 to Ln M M M c•-)- c-1 N m C)' Ln 0) N N CC 0) 0) >- >- >- >- } 0 a) (0 0) J V (0 i+ c (0 c c c Q I� Annual Discount from Land 0 0 0 0 0 0 0 N O O O M O O O N O O O r-1 O C1 O N N ri rI 0) 1/)- 0 0 0 O O O O O O O O 0 0 0 0 O 0 O O O 0 0 0 0 0 (11v.) Lt-) L(1 Lf) L(1 Ca d' d Total Annu t/} i/)- 4./). L -1 N m d' L(1 (a (a (a (a f0 >- >- >- >- >- Remaining Land Sale t00 l00 to0 o 0, 01 01 tri tD N N N U1 Lf1 Ln L(1 Ln M M lfl M L-1 i/} t/)• t/} t/} ri N M C1' Lf1 L. COLCLO CLO m } >- >- >- >- >-->->->- c W W W LU W Business Readiness Gu for; OLCC Marijuana Operations Overview This document is intended for establishing OLCC licensed marijuana businesses. Businesses that follow the guidance in this book will be better prepared to establish legal operations in Oregon and comply with state and local laws. This guidebook provides information outside of the OLCC rules and regulations for licensed facilities. Please visit www.mariivana.oregon.Rov for a copy of those rules. Please note: The Oregon Medical Marijuana Program (OMMP) and the Medical Marijuana Dispensary Program are both administered by the Oregon Health Authority's Public Health Division. Reach out to the OHA directly with your questions: OMMP (questions related to patients, growers or caregivers): 971-673-1234 Dispensary Program (questions regarding medical dispensaries or processors): 855-244-9580 Who We Are The content* of this guidebook was provided by the following Oregon agencies: Office of the Governor Oregon Health Authority Oregon Department of Agriculture Bureau of Labor and Industries Business Oregon Department of Environmental Quality Department of Consumer and Business Services Oregon State Parks Department of State Lands Department of Land Conservation and Development Oregon Secretary of State Oregon Liauor Control Commission Oregon Department of Energy Oregon Water Resources Department Oregon Employment Department Energy Trust of Oregon Oregon Department of Revenue Oregon Department of Forestry Department of Public Safety. Standards and Training * As the OLCC marijuana program evolves the content and contributors will be updated. It is the responsibility of potential licensees to stay abreast and comply with all laws related to their business. Special thanks to the IRAC Recreational Marijuana Regulations workgroup who created a similar document applicable to Washington state entities. Their document can be found at httos://apps.Ihwmo.org/IRAC/Publications.asax. Page 1 2 6USINfSS READINESS GUIDE BOOK 1 Version 5.5 - October 6, 2017 Agency Contact Information Navigating through the regutatory framework can be compticated, Although government agencies are unable to give legal advice on business decisions, you may contact agencies directly to receive further clarification on a specific section or topic: Office of the Governor: http://wwwoenon.gov/Rov/uages/index.uoOx Oregon Health Authority: http://www.orexon.go»/OHA/PaAes/index.aspx Oregon Department of Agricutture: h11P://www.ore«on.gov/oda/Pages/defau|t.aspx Bureau of La bor and 1 ndustrjes: http://aww.orenon.gov/8OU/Pomeo/index.asPx Business Oregon: http://www.oregon4biz.com/ Department of Environmental Quality: http://www.oregun.gov/deo/paAes/indexasox Department of Consumer and Business Services: http://www.oreKon.gov/dcbo/pa#es/index.asa Oregon State Parks: http://www.oreAon.gov/OPRD/ Department of State Lands: http://wvvw.oremon.gov/ds|/paXes/index.asox Department of Land Conservation and Development: httP://www.o/egon.xov/kd/Paees/index.aspx Oregon Secretary of State: http://sos.oregon.Aov/Pages/index.aogx Oregon Liquor Control Commission: httm://mvvw.o/emnn.nov/o|cc/oaneu/index.asox Oregon Department of Energy: http://wwvv.oregon.nov/ENERGY/Paqea/inJex.aapx Oregon Water Resources Department: http://vvvvvv.oregon.Kov/0VVKD/pages/in6ex.asOx Oregon Emptoyment Department: kttp://wxxvv.oregnn.Rov/emp|oy/pages/defuu|t.asox Energy Trust of Oregon: http://ener#vtrust.ore/ Oregon Department of Revenue: 6ttp://www.oregon.gov/dor/puKes/index.asox Oregon Department of Forestry: h1tu://wvxvx.oregon.nov/ODF/Pages/index.asox Oregon Healthcare: httu://wvvw.oregonhea|thcare.gov/ Oregon Occupational Safety and Health Administration: httu://wwxx.orosho.org/ Oregon Building Codes Division: htto://www.cbs.state.or.us/external/bcd/ Department of Public Safety and Training: vvww.oregon.gov/DPSST/PS Visit the Below Websites to find Local Government Contacts: Cities: Nttp://www.orexon4biz.com/Resouoes/Chiex/ Chambers of Commerce; Nto://www.orennn4biz.com/Rexources/[hambeo/ Counties: httP://wwvv.orenon4biz.com/Kesources/[ounties/ Ports: httn://wvvwurenon4bizzom/Kesources/Pnrts/ Tribes: htto://www.orexon4biz.com/Kesou,ces/Tribes/ Community Development Organizations: htto://www.oregon4biz.com/Resources/Communitv- Development/ Additional Resources: LeagueofOre8on[ities:httv://www.00ities.urL Association of Oregon Counties: http://www.aocweb.org/aoc/default.aspx nUuN[s6k/m/|N/>,C,1,11[x11(v01e, Version 5.5 October 6, 2017 Contents SECTION 1: Know Your Business License Types OLCC Licenses Application Submittal Overview SECTION 2: Beginning Your Business Developing a Business Plan Secretary of State Business Number Employment Law Land Use Planning & Zoning Compliance Local Codes: Building codes & Working with Contractors SECTION 3: Safety First Workplace Safety & Health Workers' Compensation Insurance SECTION 4: Operating Your Business Oregon's Recreational Marijuana Tax Weights & Measures Pesticides Use Plant Health & Insect Pest Prevention/Management Fire Season Requirements Marijuana Worker Permits Private Security Services Food Safety Licenses Packaging & Labeling Pre -Approval Tobacco and Inhalant Delivery Systems Sales to Minors Oregon's Bottle Bill Air Emissions & Waste Management Agricultural Water Quality Water Rights Withholding & Transit Taxes Liability & Property Insurance Unemployment Insurance Employee Classification Health Insurance for You & Your Employees Office of Minority, Women, & Emerging Small Business Energy Use Page 1 4 Page 6 Page 6 Page 7 Page 8 Page 8 Page 9 Page 12 Page 14 Page 16 Page 17 Page 21 Page 24 Page 25 Page 25 Page 26 Page 26 Page 27 Page 28 Page 28 Page 29 Page 30 Page 34 Page 34 Page 36 Page 37 Page 38 Page 38 Page 39 Page 40 Page 40 (;l.1SI1\I1.SS RI:/\DINE SS GUIDE_(SOOK !Version 5.5--Octobei 6, 201.7 Eligibility Reminder Is your city or county located on the OLCC Opt -Out list? If so, you may not be eligible for a license. Oregon law grants cities and counties the opportunity to prohibit marijuana producers, processors, wholesalers, and/or retailers in their jurisdiction. Local governments are required to refer ordinances banning recreational marijuana to voters at the next general election.* For the complete opt -out list visit: http://www.oregon.gov/olcc/mariivana/Documents/Cities Counties RMJOptOut.pdf *Prior to December 27, 2015, cities and counties could implement local bans without placing the ordinance on the next general election if 55 percent or more of the voters in their jurisdiction voted against Measure 91. However the ordinance must have been adopted by December 27, 2015. Interested in seeing how your county voted on Measure 91? See the results from the Oregon Secretary of State website at http://sos.oreaon.gov/elections/Documents/results/results-2014-aeneral-election.pdf Page 1 5 {t4J51111 ` . I;i./ I)!Nf 55 (.1111 I OOflI< Version 515 October 6, 2017 SECTION 1 Page 1 6 OLCC Licenses rft rt, Producer: Ability to plant, cultivate, grow, harvest, and dry marijuana. Processor: Ability to process, compound, or convert marijuana into cannabinoid products, concentrates, and/or extracts. Wholesale: Can purchase quantities of marijuana from other licensed facilities and sell the products to licensed retailers, processors, producers, other wholesalers, or research certificate holders. Laboratory: Accredited by ORELAP and responsible for testing marijuana items for pesticides, solvents or residual solvents, tetrahydrocannabinol and cannabidiol concentration, and for microbiological or other contaminants. Retail: Can sell or deliver marijuana items directly to consumers. Research Certificate: Ability to research marijuana for the purpose of benefiting the state's cannabis industry, medical research, or public health and safety. Application Submittal Overview Applications are available online at www.mariivana.oregon.Rov. Be prepared to present the following items in your application: • Business details: company name, physical and mailing address, Secretary of State Number • Funding sources: interested parties and legal entities • Land Use Compatibility Statement (LUCS) • Business Operating plan • Floor plan of proposed facility • Proof of right to occupy the premises • Other documentation depending on license type. See OLCC rules available at www.mariivana.orezon.gov for more info. Applicants must pay a $250 non-refundable application fee at the time of submittal. 13U`,Iflf „kr:AUNNE:1,SGUIID1000K Version 5.5 October 6, 2017 SECTION 2 Der7,:o-f4 14 Yo:17. Developing a Business Plan Oregon is a place where entrepreneurs are building diverse industries. Business Oregon networks with many organizations to help entrepreneurs find resources and access services helpful to starting a business in Oregon. Step 1 - Research and Planning: Your firsstep in starting a business in Oregon begins with researching and preparing a business plan. Contact Oregon's professional associations and guilds if you need assistance. Professional service organizations can help navigate the registration process, create a business plan, and assist with other tasks related to start-ups. Step 2 — Setup: Business registration, business tax numbers, insurance, permits & licensing, hiring, and employer obligations. Find information, checklists, and forms for every step at the Business Portal at htto://wwe.oregon.gov/husinea/Paaes/too|kitasox. Step 3 - Find Financing: At this time, BusinesOregon is not able to provide financial services to businesses engaged in the possession, manufacture, or sale of marijuana. Oregon and out-of-state residents may invest in marijuana businesses. For more iriformation review OLCC rules for "financial interest" and applicant qualifications at www.mariivana.oregon.gov. Step 4 - Grow Your Business: Are you ready to take your business to the next level? Participate in the Grow Oregon program at http://www.oregon4biz.com/How-We-Can-Help/Grow-Oregon/ to experience sustained growth. Page 1 7 Visit Business Oregon's "How We CanHelp"wwebpa@mathttp://mmxw.orewon4biz.com/Hom-VVe-CanHelp/ for a full description of programs and services offered. - eUuw/��k|Au|w/\,uxNimox | Venim/-Ouohcr6,2n17 Secretary of State Business Number All businesses in the State of Oregon are required to register with the Secretary of State to obtain a business number. This number will be requested on the OLCC marijuana application. For more information on how to obtain a Secretary of State Business number visit the Secretary of State website at htto://sos.oregon.eov/Pages/index.asox. Not sure where to begin? The Secretary of State's Business Xpress website has detailed information on how to get your business up and running. Visit htto://www.oregon.gov/business/Pages/index.asox. Employment Law Oregon's Bureau of Labor and Industries (BOLI) works to protect employment rights. All businesses in the State of Oregon must comply with BOLI's regulations. Do your research early and familiarize yourself with BOLI laws to safeguard yourself and your employees. Employment Law handbooks: Bureau of Labor and Industries' (BOLI) affordable handbooks for employers can be an invaluable resource on topics such as Wage and Hour Laws, Civil Right Protections, Leave Laws, Legal Hiring Practices, and Discipline and Discharge. Employment Law Hotline: Compliance experts can field questions about a wage and civil rights issues at no cost at 971-673-0824. All calls are confidential. Employment and compliance seminars: How should businesses deal with difficult employees? What do start-ups need to know about wage and hour laws? What's the latest on paid sick time and other leave laws? How should HR professionals identify and address harassment and other civil rights issues? BOLI offers more than 100 low- cost seminars each year focused on what your business needs to know. Visit: htto://www.oregon.gov/boli/ta/oages/t sem taseminar.asox for more information. Page 1 8 Employers can order employer handbooks, download free compliance posters, or order low-cost bilingual composites at: http://www.oregon.gov/boli/TA/pages/t tabooks.asox. op lc) moritubou c:ortsurr piilptt Irni; by vis/:100 htto://whatslegalore gon.com UYili 1)101«.7 U tho ;(:1117(. 131.15INESS RI/\UMIC.S S 6UIDL00 l< I Version 5.5 —October 6, 2017 p.ggatems Image hY littnfinal Prot!, snrin,111, x5Yds.er, coni/ CC BY Land Use Planning & Zoning Compliance Depending on license type, different zoning restrictions may apply, however no OLCC mariivana licensed facility... • May be on federal property. • May be at the same physical location or address as a liquor licensee licensed under ORS Chapter 471 or as a retail liquor agent appointed by the Commission. • May be at the same physical location or address as a medical marijuana processing site registered with the OHA. • May be at the same physical location or address as a medical marijuana dispensary registered with the OHA. • With the exception of the producer license, may be in an area that is zoned exclusively for residential use. If you are a producer: • You may not be located at the same physical location or address as a medical marijuana grow site registered with the OHA, unless the grow site is also licensed under ORS 475B.080. • May not be located on public land. If you are a retailer: • Except as provided in Oregon Laws 2017, Chapter 7 & 613, the proposed licensed premises of a retail applicant may not be located within 1,000 feet of: o A public elementary or secondary school for which attendance is compulsory under ORS 339.020; or o A private or parochial elementary or secondary school, teaching children as described in ORS 339.030. Visit the Oregon Legislature website to review complete statutes (ORS) at httos://www.oreaonlegislature.aov/. Page 1 9 L)I1` IPJI .`,S I;l:AD N[ / 5 GUII([ NOOK I Version 5.5 ._ October 6, 2017 Consistency with local land use planning and zoning is probably the first consideration that potential applicants should investigate. Prior to acting on an application the OLCC: Must receive a land use compatibility statement (LUCS) from the city or county that authorizes land use in the city or county in which the applicant's proposed premises is located.* OLCC's land use compatibility form is available at www.mariivana.oreaon.gov. Work with your local government directly to ensure all information is correct prior to submission. *A LUCS is not required for those that meet all qualifications as indicated in 845-025- 1090, (3) of OLCC rule. The best way to ensure compatibility with local comprehensive planning and zoning is to contact your local planning department before you apply for a license, or if you are considering the purchase of land, before you make that purchase. )1 /:)((untie; lt(i ;Molt Tocol or'diii0)1; P5 I0 OhIl)rl)1UJ )71u1")f,1))))(1 upor"r tion, prod±!rtinn of 1;)oil].O .Ino 1n!!y P(.' licc:'lly,c/ by the ()LCC in my I TO ir)r)r'. Page 1 10 What about Exclusive Farm Use (EFU) Zones? ORS 475B.370 states that marijuana is a crop for the purposes of farm use, defined in ORS 215.203, and is permitted in Exclusive Farm Use (EFU) zones. llilorijuuilo ic', inciy be olloYli'd in ccr"ioin zonc5, un(l nuiy not 110 0/10(4rerl 1(10/1(1') /0000. Thi. 1110y ili!'j5o from city IU conn) y rlr)(.l ft om on(' /or. ('1lIUrIsdiu K)17 Tr onr,f11(1". Farm use includes both the preparation of the farm product, such as drying, packaging or labeling, and wholesaling of the unprocessed farm product. However, a variety of other uses that may be proposed in conjunction with farm use require local land use approvals, and some of these uses are specifically prohibited by HB 3400 if in conjunction with a marijuana crop. (;11s1NF"S ['LAMM 5; 61IIU1:0OOI< 1 Version 5.5 --- October 6, 2017 The following table identifies all of the farm -related uses that are allowed under state law in EFU zones when in conjunction with a marijuana crop: County Zones That Allow Marijuana -related Uses under State Law Use/Zones EFU Zone Forest or Mixed Other Zones Farm/Forest Zone Production Farm Use County discretion in Agricultural Building local zoning On-farm preparation (Le. drying, bulk/wholesale packaging) On-farm Processing Farm Use NA NA 1 Processing 1 Wholesaling Retailing County discretion in local zoning Counties have the discretion whether or not to allow marijuana -related uses in zones other than EFU, however, these standards must be adopted into local zoning codes. Marijuana -related uses that are specifically prohibited in EFU zones by ORS 4758 include: • Farm stands • Commercial activities in conjunction with a marijuana crop • New dwellings o New dwellings not allowed if used in conjunction with a marijuana crop include primary farm dwellings, accessory farm dwellings, and relative farm help dwellings. Agricultural buildings (ORS 215.213(1)(e) or 215.283(1)(e)) and on-farm, smaller -scale processing (ORS 215.213(1)(u), or 215.283(1)(r)) in EFU zones require local land use approvals. Virtually all authorized retail sales opportunities will be in non -resource zones. Marijuana production in non -resource zones, especially in cities, may be required by local governments to be within buildings in industrial zones. The most direct path for any license type is to first gain local land use approval for the proposed land use: • If the local planning office indicates on the LUCS form that the proposed use has been approved or is allowed in the applicable zone, then the application may move forward. • If the local planning office indicates the proposed use has been denied or is not allowed in the applicable zone, then the license will not be issued. Page 1 11 1 iJL'; crlipiuvul trot:'. ;1rii odr.iii.0101 rinc'111i1'l�iCttI1i11 thnt 1/l0)/ bC egoirt•d by the loco! p/oining ofjice. Verily 011 016er pernriii,s (love beeii occ?uired with the loco/ planning office jvi the proposed land. I%u 2Nrs ; RFJ,I)II C';5 GUll;l I100IK Version 5.5 -- October 6, 2017 Local Codes: Building codes & working with contractors Cities and counties may require registration or licensing for individuals and firms conducting business within their jurisdiction. It is recommended to begin a relationship with your local government prior to applying for a license. Consult your local county and city officials to learn about the requirements in your area. Building Codes Obtain all required building permits: Whether for new construction or remodeling of existing buildings, local governments administer Oregon building codes and issue permits. Building code requirements are determined by the structure's "primary use" which may include production/growing, processing, storage, or sale of marijuana. Check with your local building department to determine any required permits for a marijuana operation. Here are a few examples (not all inclusive) of when permits may be required: • Installing new equipment • Moving or adding walls • Adding counter or display cases • Removing building improvements • Remodeling various spaces • Modifying electrical, plumbing, mechanical, fire alarms, fire sprinklers, heating, ventilation, air conditioning, and other systems • Installing new signage or parking facilities Page 1 12 OU`;I(VE5` RI /\!AMISS GI JIDLNOOK Version 5.5 -- October 6, 2017 Working with Contractors Work with licensed contractors: If you hire a contractor to perform construction work, ensure that the individual or business holds an active license to work in Oregon. The Building Codes Division issues licenses to four types of trade contractors: electrical, elevator, plumbing, and boiler. Every trade contractor, must also possess an active building contractor license issued by the Construction Contractors Board (CCB). Check the status of both licenses by visiting the CCB website at www.ccb.oregon.gov or the BCD website at www.bcd.oreRon.gov. Obtain all required inspections: During construction, work with your contractor and local building official to identify and schedule any required inspections. Depending on the project, multiple inspections may be necessary. Obtaining all required inspections before you occupy the structure will assure you that the work is meeting the safety requirements established in the building code. When the work is up to code, the inspector will approve it and the local building department will issue a Certificate of Occupancy. Maintain relationships with local officials: The local fire marshal or chief is the authority on meeting building and fire code requirements once you occupy the building. Establish a positive working relationship with both local building officials and the fire department by ensuring they are aware of the marijuana business or operation, and apprise them of any alterations to the building after the business begins operations. The above section was provided by the Oregon Building Codes Division, a division of the Department of Consumer and Business Services. Page 1 13 Isr; 51"11c' keel" of rrlll;% rrra:, mid I!"i`;IJt'r iiuil` %v1 /101 i1" 1((c'1 r_1:,: OUHN[SS (tl AUINI SS 6,,1.11D 5005 1 Version .`. 5 October 6, 2077 SECTION 3 Workplace Safety & Health The section below was provided by Oregon OSHA, a division of the Department of Consumer and Business Services. The Oregon Safe Employment Act requires employers to provide their workers with a safe and healthful workplace. Requirements include: training employees and taking steps to prevent any injury or illness to employees during their day-to-day activities (e.g., using ventilation to minimize flammable atmospheres and providing personal protective equipment for use during pesticide handling). Most employers must follow a basic set of rules. Other regulations may apply based on specific business hazards. Businesses that grow marijuana are mainly subject to Division 4, which applies to most agricultural employers. Some potential hazards to look for during growing: • Pesticide exposure • Chemical and fertilizer use • Heat exposure • Air enrichment contaminants such as carbon dioxide and others like carbon monoxide, and nitrogen oxides if using burners/combustion • Electrical hazards from improper wiring • Sprains and strains (esp. hand intensive work during trimming) • Mold • Slips, trips, and falls (from presence of water or poor housekeeping) • Exposure to machine hazards (cuts, nips, pinches, or crushes depending on equipment) • Material handling equipment (e.g. forklifts) Processors that perform extractions are responsible for providing safety data sheets (formerly known as material safety data sheets) for the chemical extract that they produce (Oregon OSHA Rules Division 2, Subdivision Z). Page 1 14 O: /•/1t ?F:gHQtio ;tur?.'. http://www.orosha. ora/toolkit/our rules .htm. 0USINFSS RFADINFSS 6,UIDt_ItO(.)K 1 Version 5.5 -- October 6, 2017 Page 1 15 Some potential hazards to look for during processing: Extraction • Use of flammable compressed gases and solvents: o Fire o Compressed gas cylinder and extraction equipment safety • Air contaminant hazards (e.g. carbon dioxide if dry ice used to extract) • Chemical and extract products handling • Machine hazards associated with extraction and waste processing equipment • Noise (e.g. compressors for carbon dioxide extraction equipment) Kitchen • Fire • Burns and scalds (from work with ovens/stoves) • Slips, trips, and falls (from presence of water or poor housekeeping) • Heat exposure • Cuts from knives • Machine hazards (e.g. cuts and amputations) from food processing equipment • Chemical use (e.g. sanitizers like bleach) • Sprains and strains (from material handling) Packaging and Labeling Hazards • Sprains and strains (from material handling, repetitive work) • Machine hazards • Material handling equipment (e.g. pallet jacks) Some potential hazards to look for at retail stores: • Sprains and strains (from material handling) • Slips, trips, and falls (from poor housekeeping) • Workplace violence/crime Oregon OSHA has some overlap with areas covered by Oregon Department of Agriculture and the local Fire Marshal. The role that Oregon OSHA plays in regard to pesticides is enforcement of protecting worker health and safety, with a particular focus on the pesticide worker protection standard (Oregon OSHA Rules Division 4, Subdivision W). Oregon OSHA also addresses fire safety, but will defer to the decisions of the local Fire Marshal if a question arises where both agencies have codes that address the same hazard. Refer to Section 4 for more information regarding pesticides. 61.JSIIUI'SS 1U.-ADINI:5S t110)I 0001: Version 5.5 --October 6, 2017 Oregon OSHA Contacts Technical Experts: Phone: 503-378-3272 (V/TTY) or 800-922-2689 tech.webPoreeon.aov Worksite Consultations and Evaluations: Phone: 503-378-3272 (V/TTY) or 800-922-2689 consult.webCDoreeon.eov Find More Information: www.orosha.org Workers' Compensation Insurance Section provided by the Office of the Small Business Ombudsman for Workers' Compensation, a program of the Department of Consumer and Business Services. Workers' compensation insurance provides benefits to workers who are injured on the job. Injured workers receive medical treatment and disability benefits if they are off the job due to their injury. The insurance also provides employers important legal protections. If you employ workers, you must buy a workers' compensation insurance policy or be authorized to self -insure by the Department of Consumer and Business Services (DCBS). If you are a business that has employees and you do not have workers' compensation insurance, you may be subject to civil penalties. Worse yet, if an employee gets hurt on the job, your business will be responsible for all claims costs plus administration fees. The costs add up and can severely affect your business. Because the OLCC marijuana program is a new in Oregon, there may not be many companies offering workers' compensation coverage in the commercial market. However, if you are denied coverage one time, you can apply to the Oregon Workers' Compensation Insurance Plan or commonly known as the assigned risk plan. You can apply directly to the assigned risk plan by calling the National Council on Compensation Insurance at 800-622-4123 (toll-free) or you can work with your insurance agent. For more information, visit the Small Business Ombudsman for Workers' Compensation website: htto://www.oreaon.gov/DCBS/SBO/Pages/aet-coveraae.asox Page 116 Small Business Ombudsman for Workers' Compensation Contact Info Email: wc.advocate@oregon.gov or Call: 503-378-4209 Websites: http://www.oregon.gov/DCBS/SBO/Pages/sbo.asox http://www.cbs.state.or.us/external/wcd/communications/publications/2852.odf 0USIN[5; 0( ADINI 55 6 0IDE BOOK ( Version 5.5 - October 6, 2017 SECTION 4 Oregon's Recreational Marijuana Tax The retail tax on recreational marijuana sold in OLCC licensed retailers will be between 17-20%. There is no set date for when this tax goes into effect. It's based on when the retailer's license becomes active. The state tax rate is 17%; however, cities and counties can adopt an ordinance imposing an additional tax of up to 3%. These ordinances must be put on the bailot for the next general election. Filing a return Marijuana tax returns are due quarteriy.A separate return is required for each Iocation sefling recreational marijuana products. Your monthly payment vouchers do not replace your quarterly return. You must file a return even if there were not any taxable sales in the reporting period. If you sold recreational marijuana as a medical marijuana dispensary under early start, you may need to file two returns. For example: Page 1 17 • If your final day of sales as a medica marijuana dispensary was September 30, 2016 and your Oregon Liquor Control Commission (OLCC) license took effect on October 1, 2016, you should file your first retait tax return for fourth quarter on Revenue OnIine. • If your final day of sales as a medical marijuana dispensary was December 31, 2016, and your OLCC license took effect on January 1, 2017, you should file your first retail tax return for first quarter 2017 on Revenue Online. ,m�^` x��V �� 955 m/U1\11'8U1,A1)11\11 6I/11:11()u1(|VosiuoI5—Ocmbcr6'2017 Page 1 18 For all businesses transitioning from being OHA registered medical dispensary to an OLCC licensed retailer, you'll be required to file two returns for the fourth quarter: 1. One on paper for the 25 -percent tax rate, and 2. One on Revenue Online for the 17 -percent rate. You'll want to keep detailed sales records to know when your tax rate changed. Business identification number (BIN) Your BIN is a unique identification number issued by the Department of Revenue. This is not your Social Security number or federal employer identification number (FEIN). Your return will be rejected if you don't enter the correct BIN. You must have a separate BIN and file separate returns for each location where recreational products are sold. Submit your return OLCC Licensed Retailers: Can only submit your return electronically through Revenue Online at www.oreeon.eov/dor. OHA Medical Dispensaries: Can only submit your return on paper. Mail your completed return to: Oregon Department of Revenue PO Box 14630 Salem OR 97309-5050 Late filing and payment hni 171( liljoi7nr%ilo+I r_viiii('i. Ilic Oc;n:itii?rr'ni of /1( -venue ot [n.7-_')47 259/ or of im-Aii/ui?tl(.rtcrx,(joi((PofL'(/o ooki Penalty and interest are imposed if you mail your return or pay the tax after the due date. The penalty is 5 percent of the unpaid tax. If you file your return more than 30 days after the due date, DOR will impose an additional penalty of 20 percent of the tax due. Interest is imposed on any unpaid tax from the due date until the date payment in full is received. The current interest rate is 4 percent annually. BUSINFSS RLAC)INFSS (;llli ITOOK 1 Version 5.5 — October 6, 201.7 Payments You must collect the marijuana tax at the point of sale for recreational marijuana and remit it to the Department of Revenue. Taxes are due to the Department of Revenue by the last day of the month following the month in which it was collected. For a list of all payment and return deadlines visit: http://www.oregon.gov/DOR/programs/businesses/Pages/marijuana.aspx. lithe due date falls on a weekend or holiday, payment is due no later than the next business day. Make checks payable to Oregon Department of Revenue. Please include a completed voucher with your payment. Vouchers are available on the department's website at www.oregon.gov/dor/forms. Mail the voucher and payment to: Oregon Marijuana Tax Oregon Department of Revenue PO Box 14630 Salem OR 97309-0505 To pay by cash you need to call (503) 945-8050 for an appointment at least 48 hours in advance. Bring a completed voucher with your payment to your appointment. Visit Revenue Online at www.oregon.gov/dor to pay by credit card or ACH debit. Page ( 19 For more information on the marijuana tax program, visit www.oregon.gov/dor/marijuana. BU51NI SS Itf AUlI\I ` ;kit ill )1 li{)OK 1 Version 5.5 October 6, 2017 Registration OLCC licensed businesses selling recreational marijuana need to submit an Oregon Marijuana Tax Registration form. Businesses can use their OLCC license number as an ID number once they've registered. Businesses that were previously registered to sell recreational products under the early start provisions won't need to register again, but they will need to validate their accounts through Revenue Online after November 15, 2016. If you have more than one place of business selling recreational marijuana in Oregon, complete a separate Oregon Marijuana Tax Registration form for each location. Registration forms are available at www.oregon.eov/dor/forms. Employees • If you have employees, check the "Yes" box. o Corporate officers are considered employees, including those in subchapter "S" corporations. • Individuals or firms with employees need to file a Combined Employer's Registration form if you have not already done so. Note: The definition of "employee" differs among Oregon state agencies. If you have questions; refer to the Secretary of State's Oregon Business Guide or call the appropriate agency. Additional owner/officer information List information on additional owners, officers, partners, etc., on a separate sheet and attach it to the registration form. Other taxes As a business, you can file a corporate income or excise tax return. For more information on these returns, including guidance on which one to file, visit www.oregon.gov/dor/business. Business income may also change how you file your personal income tax return. Find out how it affects you, along with information about subtractions and deductions available in Oregon for recreational marijuana retailers at www.oregon.l;ov/dor/personal. Page 1 20 I,tISINI SS RFADINFSSGUIDI BOOK 1 Version 5.5 --October 6, 20 .7 Weights & Measures Scale Requirements Products offered for sale by weight in the State of Oregon must be weighed on an Oregon Department of Agriculture (ODA) licensed commercial scale. You will need a commercial scale if you: • Use the scale to sell directly to a buyer. • Use the scale to determine the net weight of a packaged product. • Use the scale to buy from a seller. • Use the scale to record data for entry into OLCC's Cannabis Tracking System (CTS). Scales used solely for process or quality control may not need to be licensed, for example: • A scale used solely to ensure that a consistent quantities of ingredients are used to produce edible products would be considered to be a process control tool and would not need to be licensed; However • A scale used to determine the net weight of a packaged product offered for sale is, however, considered a commercial scale and would need to be licensed by ODA Scale Suitability A commercial scale must be suited for its intended application before it can be licensed by ODA. There are many factors to be considered when assessing suitability, however the fundamental requirement is that the scale have an adequate resolution so that round off errors are kept to a reasonably low level when weighing products in commerce. To be suitable, a small scale should be able to display at least 100 divisions when a "typical" net load is placed on it. This requirement limits the errors associated with weighing to about 1 part in 100 or 1%. The net load excludes anv containers. bowls. jars. etc. used to contain the cannabis while weighing it. • • • Page 121 seine (!L,crl in (fi Hrc a r ()ni.titent 1711 r.ri poLknnr n, moy 1)01 t erd in bo !ircnsorl ij i 10 1101 )/(/(//i5 of tirC)si: L nrkerg(t`, (1/ veriJir (% nti (r lit. 01 0;(•r; (01i -10)0n -fa/.',/ 0/50 01-)001 C01)0/ lic 15 1/1cs or, tti't incni 1. 11)5 ()1 1}e' (4)0/0(111 to ODA {Nr rklits ((/15l ft/It;(;.-•t.-1Y `. 000i0m. A scale with 0.01 g ( 0.00[1] g) resolution is needed to routinely weigh a few grams of cannabis. A scale with 0.1 g ( 0.0[1] g) resolution would be suitable to routinely weight 10 grams or about % ounce. A scale with 0.01 Ib resolution would be suitable to routinely weight a pound or more. OUSINE > k1.:1;171(!( `>`, GU11?I 0((OI! Version 5.5 -- October 6, 2017 Ni0,13.12 Scale by L.u,z Monte • CC Be Bracketed Divisions Higher accuracy scales often incorporate a bracketed division in the scale's display. This bracketed division is in fact ignored when making suitability decisions as accuracy requirements are not defined for it. This is why this digit is displayed as distinct from all of the other digits on the display. A scale reading 0.0[1] g actually has an accuracy tolerance of only 0.1 g for small loads in spite of the displayed resolution and so cannot be expected to perform any better. Reading the bracketed division is similar to estimating length measurements between individual divisions on a ruler. It is just an estimate as to where the displayed weight falls between two adjacent divisions and may actually be in error by 5 or more divisions, even though the scale is operating correctly. Licensing a Scale ODA requires that all commercial scales have a valid National Type Evaluation Program (NTEP) Certificate of Conformance (CC), in addition to the suitability requirements, as condition of licensing. NTEP scales are required to have a data plate indicating its certificate of conformance number. The number has the format 00-000. If the data plate is missing then the scale cannot be licensed. Licensing a suitable NTEP certified commercial scale requires three steps; 1. Complete and return the ODA scale license application, and 2. Complete and return the ODA placed in service report form, and 3. Payment of the annual license fee. Both forms are available on the ODA website. It will take approximately two weeks beginning with receipt of payment by ODA before your license will arrive. Your scale is licensed when the two forms are returned to ODA and payment of the annual license fee is processed by ODA. Retain copies of the applications and your receipt as evidence of licensing until the physical license arrives. When you receive the physical license it is to be posted in plain view. Page 22 BUSINESS SE ADIEU 5S GUIDEBOOK I Version 5,5 - October 6, 2017 Annual Inspections Your Weights and Measures inspector will be notified so that an initial evaluation of the scale can be scheduled once your scale license application is processed. You can help ensure that this evaluation will go smoothly by doing the following: • Have the scale properly calibrated. o A set of calibrated mass standards will be required to complete a calibration of the scale. You may purchase these standards or you may contract a scale service firm to complete the calibration for you. • All commercial scales must be metrologically sealed. o Your scale should ship with the necessary hardware and instructions for sealing. It may not, however, include an actual physical seal if one is required (some scales are sealed electronically). The physical seal itself may be a pressure sensitive seal or a lead and wire seal designed to restrict access to the calibration function of the scale. If a scale service company handles the calibration for you make sure to verify that the physical seal is intact and to retain receipts for the service, provided. These two items serve as evidence that your scale has been properly adjusted. • Make sure the scale is installed on a stable surface and that it is properly leveled before use. o You may additionally need to include a draft shield around high sensitivity scales to help ensure that your scale adequately protected from the environment to enable accurate repeatable measurements. A scale should be able to display a stable measurement within approximately 30 seconds time and should remain stable long enough for all parties to view and agree upon the result. • If the scale is used for direct retail sales be sure to install it so that your customers can witness the entire weighing process from the normal customer position in the store. The customer must be able to see the scale indication. • Take care of your scale. Keep it clean, free of debris, and level. 1.11 .t/Y) Ci tf:(eif.: ccrt?nrr_ra;i flJ.!'illi!:;s 111,' i physic cel ,rr)1 nit si br:' lust'c)ller; „.r:ii ihoL c cce> .ing t/ c U111)I(1tiO/i(U,(:lloL (lJ thr rc;lr' Is lmpwcsihic without drOioymcii11r: seal. Your inspector will attempt to complete an initial inspection of your scale within approximately 30 days of receiving your license information. The inspector will verify that the scale has an NTEP CC number, that it is suitable for the application, that it is correctly placed, and that it is accurate to within the required tolerances. After the initial inspection Weights and Measures will conduct follow up inspections annually. For more information visit the ODA Weights and Measures Program website: http://www.oregon.gov/ODA/programs/ISCP/WeightsMeasures/Pages/LicenseScaleMeter.aspx Page 1 23 13U`,1(\I(5 ; RI_P,f_>If l_S (:,1.1105 BOOK 1 Version 5.5 -- October 6, 2017 Pesticides Use The Oregon Department of Agriculture regulates the sale, use, and distribution of pesticide products in Oregon. ODA relies on the federal framework the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), as well as state statutes, and enforces the product label as the law. Currently, there are no registered pesticide products in Oregon that are specifically labeled for use on marijuana. However, ODA has established criteria and a list of pesticide products to help guide marijuana growers and pesticide applicators throughout the state. The guide list contains over 300 pesticide products and is available on ODA's cannabis and pesticides webpage. The intent of the criteria is to assist growers in distinguishing those pesticide products with labels that do not legally prohibit use on cannabis from those that clearly do not allow use. Use of a pesticide on cannabis is allowed if it is intended for unspecified food products, is exempt from a tolerance, and is considered low risk. Those involved in using pesticides for cannabis production should consult the guide list, follow the product label, and use that product according to its directions. All other products used would be considered illegal and, if laboratory testing found the presence of these pesticide residues, it could be considered a violation of the Oregon Pesticide Law. The guide list will be updated on the ODA webpage as needed. Growers and pesticide applicators are encouraged to check the guide list frequently. For more information, contact Sunny Jones at (503) 986-4565 Pesticides Information: http://www.oregon.gov/ODA/programs/Pesticides/Regulatoryissues/Pages/CannabisPesti cides.aspx Page 1 24 ODA Cannabis website: http://www.oregon.gov/ODA/agriculture/Pages/Cannabis.asax BU`iINF 55 READ NESS Guo1)1:_000K I Version 5.5 October 6, 2017 Plant Health & Insect Pest Prevention/Management Like all other agricultural crops, cannabis is vulnerable to pests and disease. The Oregon Department of Agriculture can help growers identify plant pests and diseases. The identification service may require a fee. Plant Health website: http://www.oregon.gov/ODA/programs/PlantHealth/Pages/default.aspx Insect Pest Prevention and Management website: http://www.oregon.gov/ODA/programs/IPPM/Pages/Default.aspx Fire Season Requirements The last thing you need when growing your crop is a fire. While it's a good idea to be fire safe throughout the year, there are certain rules that must be followed when fire season goes into effect. The law, ORS 478.960 (4), requires that any equipment, used in agricultural operations powered by internal combustion engines, be equipped with a fire extinguisher of sufficient size and capacity, and fire tools as required by the district fire chief. Fires can ignite in several ways during the volatile Oregon fire seasons. The equipment itself could catch on fire from faulty wiring or a severed hydraulic fuel line. Hot exhaust idling over dry vegetation or even striking a rock could spark a fire. Be aware and be safe. Keep a charged garden hose and shovel nearby. Always have good communication tools at your fingertips (cell phone, radio, etc.) and know your exact location. Page 1 25 For more information visit: http://www.oregon.gov/ODF/Fire/Pages/FirePrevention.aspx BUSINI 1i,S krADIhiLSSt,U1Ul 600K 1 Version 5.5 --October 6, 2017 Marijuana Worker Permits All employees who perform work on behalf of an OLCC licensed producer, processor, wholesaler, or retailer, including but not limited to individuals who participate in the possession, securing, or selling of marijuana items are required to possess a valid marijuana worker permit issued by the Oregon Liquor Control Commission. The Marijuana Worker Permit materials are available at http://www.oregon.gov/olcc/marijuana/Pages/mjworkerpermit.asox. Private Security Services Any individual who performs, as their primary responsibility, any one or combination of the below private security services requires certification as a private security professional: Mgirlititirta 1t i1, the rc sl)un',ibiliil/ of Me license to enr, !T(1 his/hoi en ployc'r'7, hum ihr c ppropricrie v(tlid I:ic'1 �tili`5. • Observing and reporting of any unlawful activity; • Prevention of theft or misappropriation of any goods, money or other items of value; • Protection of individuals or property, including but not limited to proprietary information, from harm or misappropriation; • Controlling access to premises being protected; • Providing canine services for the purposes of guarding or detection; or • Authorized by the persons' employer as part of the person's employment, to take enforcement action by detaining or placing persons under arrest. Regardless if the individual is armed or unarmed, wears a uniform or plain clothes, is employed part or full time, this also includes individuals monitoring alarms, if they are performing at least one of the above items, certification is required. Does this include bud tenders? If an individual is hired to be a bud tender and one of their primary responsibilities, as indicated by their employer, is to physically, if necessary, escort individuals off the premises that may be intoxicated, underage, or unwelcome, certification is required. The Department of Public Safety Standards and Training (DPSST) in conjunction with the Board on Public Safety Standards and Training, is responsible for training, certifying and licensing Oregon's private security providers. For more information visit http://www.oreeon.gov/DPSST/PS or contact DPSST program staff at 503-378-8531 or security.investigatorsPstate.or.us. Page 1 26 (- USIN[55 READINF `,5 GUIDCI,OOK 1 Version 5.5 — October 6, 2017 Food Safety Licenses The Oregon Department of Agriculture is responsible for regulating the production, processing, and distribution of food products in the state of Oregon. If you are considering selling, storing, or manufacturing cannabinoid edibles, including the manufacturing of concentrates/extracts intended for use in edibles, we recommend you visit the ODA Food Safety Program web site at htto://www.oregon.gov/ODA/programs/FoodSafetv/Pages/Defau lt.aspx. A processing license is required from OLCC before ODA can provide onsite consultation assistance, review site plans, or issue a food safety license. ODA will not be able to issue a Home (Domestic) Kitchen Processing and Baking License for the manufacturing of cannabinoid edibles. Did you know? With the exception of packaging and labeling requirements that are established in ORS 475B*, cannabinoid edibles must be manufactured according to the same standards as traditional foods. *Read the full text of ORS 475B here: https://www.oregonlegislature.gov/bills laws/ors/ors475B.html. Page 1 27 EMPLOYEES gib MUST WASH HANDS BEFORE RETURNING TO WORK HIJ INNS RC/ UI(VI"t:5 (JH)CROO!< Version 5.6 Jetober 6, 2017 (m.n,e,u,J nee,eu Photo by SIIF LIor Wash, Hands .:n by /lian,66J m spa«. mm, « or Packaging & Labeling Pre -Approval All products sold at an OLCC licensed retailer must be packaged and labeled according to the requirements set out by the Oregon Health Authority (OHA) and the OLCC. • OLCC Licensees who hold a Producer, Processor, Wholesale, or Retailer license and are packaging and/or labeling products for ultimate sale to a consumer must receive approval from the Commission prior to selling or transferring any marijuana item to a consumer. • The packaging and labeling rules only apply to marijuana items for sale to a consumer, these rules do not apply to licensees transferring bulk product to another licensee. These requirements include, but are not limited, having the universal symbol, using a specific font type and size for warning information, and including specific text based on marijuana product type. For complete information visit: http://www.oregon.Rov/olcc/marijuana/Pages/PackaeineLabelinePreApproval.asox or contact Packaging and Labeling Specialist, Jamie Dickinson, at mariivana.packaging oreaon.gov or 503-872-5459. Ntinim.urm Universal SymbcI Size 0..8 inches Tobacco and Inhalant Delivery Systems Sales to Minors Did you know any location which sells retail or distributes tr harco products or inhalant delivery systems to consumers is required to have additional signage under OAR 333-015-0205? An outlet must post a notice substantially similar to the notice described below in a location that is clearly visible to the seller and the purchaser: Page 128 "The sale of tobacco products, smoking instruments and inhalant delivery systems to persons under 18 years of age is prohibited by law. Any person who sells, or allows to be sold, a tobacco product, smoking instrument or inhalant delivery system to a person under 18 years of age is in violation of Oregon law." Review the full text of OAR 333-015-0205 at: htto://arcweb.sos.state.or.us/pages/rules/oars 300/oar 333/333 015.html 01Iti11R[A[)IN S , C.;UIU000UK Version 5.5 - October 6, 07.7 a35 inches Oregon's Bottle Bill Oregon stores that sell beverages must accept empty beverage containers and pay the redemption value of the empty containers to customers at all hours the stores are open to the public. • Prior to April 1, 2017: Refund value is 5C. • Beginning April 1, 2017: Refund value will increase to 10C. Beverages currently included in Oregon's Bottle Bill are water, beer, carbonated soft drinks in container sizes up to and including 3 fluid liters. Effective January 1, 2018, all beverages except distilled liquor, wine, dairy or plant -based milk, and infant formula will be covered under Oregon's Bottle Bill and will require to have "OR 10C" on containers between 4 ounces and 1.5 liters. The size and location of a store determines how many empty containers that a store must accept. Large stores (5,000 square feet or larger) that are not in a redemption center zone must accept at least 144 containers per person per day. Small stores (under 5,000 square feet) that are not in a redemption center zone must accept at least 50 containers per person per day. A redemption center is a staffed facility that has received approval from OLCC to accept empty containers from consumers. Large stores within a redemption center convenience zone must either participate in the redemption center or must provide equivalent services to the redemption center, including accepting up to 350 containers per person per day. A participating large grocery store within the first convenience zone of a redemption center may refuse to redeem all containers and within the second convenience zone may limit returns to 24 containers per person per day. Small stores do not have to participate in a redemption center, but if they are within a redemption center convenience zone may limit returns to 24 containers per person per day. Go to OLCC's website at http://www.oregon.gov/OLCC/pages/bottle bill.aspx for redemption center locations and more information on Oregon's Bottle Bill. Page 1 29 You can also email questions, including checking to see if your store is within a redemption center convenience zone, to: bottle.biII@ oregon.gov. Rro1/II VY, t,UIUI 000K ( Veision 5.5 - October 6, 201.7 Air Emissions & Waste Management The Oregon Department of Environmental Quality does not regulate the growing or processing of marijuana however, marijuana businesses must abide by existing regulations designed to protect our air, land, and water. Air emissions, solid waste, hazardous waste, and wastewater management are areas where DEQ has a regulatory role. A list of conditions that may require a DEQ permit and contacts for more information is available at http://www.oregon.eovidea/Permits/Paces/default.aspx. Permit Requirements If a marijuana grow or processing site uses boilers or heating units the business may require: • A Notice of Intent to Construct • Registration of the unit • An Air Contaminant Discharge Permit Visit http://www.oregon.gov/deq/aq/Pages/agi.aspx for information about the DEQ Air Quality Program. Odor Controls Commercial/industrial facilities with a DEQ permit, such as an Air Contaminant Discharge Permit, are subject to DEQ's Nuisance Odor Strategy. For information about the strategy, see http://www.oregon.govidea/aa/PaRes/Clean-Powerasax. Fuci tol on' ~brie reClulmtions rluverrrrit rluoliiy muy m(1Copply to mciriju(o ! )rowel.: of i)tc:.c'Amit5. Have you heard of Oregon's Indoor Clean Air Act (ICAA)? This protects nearly every Oregonian from the health risks of secondhand smoke. The ICAA, also known as the Smokefree Workplace Law, prohibits smoking in the workplace and within 10 feet of all entrances, exits, and accessibility ramps that lead to and from an entrance or exit, windows, and air-intake vents. For more information email the Oregon Health Authority's Public Health Division at More. FreshAirPstate.or.us. Page 1 30 L'USINESS Itl-ADINI 55 SiUIDHIOOK Version 5.5 October 6, 2017 Are you a marijuana processor? • Volatile Organic Compounds (VOCs): Marijuana processing may emit volatile organic compounds. Use of solvents for extraction is one example. While it's unlikely the volume of VOCs emitted from marijuana processing would exceed the criteria for an air permit (10 tons per year of VOC emissions), businesses should be aware of the requirements, which the DEQ regulates. • Burning: Waste from processing is considered commercial waste, which may be prohibited from burning depending on location. Additionally, some materials are prohibited from outdoor burning including: plastic, solvents and wet garbage. Other materials may be burned under regulations administered by ODA, DEQ, cities, and counties. Page 1 31 More information is available at http://www.oregon.gov/deq/aq/Pages/Burning.aspx. Solid Waste Management Marijuana -related solid waste must be composted, processed, or disposed of at solid waste facilities permitted by DEQ to receive that type of solid waste. Oregon Revised Statute 459 addresses management of solid waste in Oregon. DEQ's materials management rules address recycling of recovered materials, composting of organic wastes, and disposal of solid waste. • Composting onsite: Marijuana growers that want to establish a facility to compost waste vegetative material must apply to DEQ for a permit if the operation will compost onsite more than 100 tons per year of type 1 or 2 feedstocks (vegetative material or manures) or 20 tons per year of waste that includes meat, eggs, dairy, or animal mortality, unless they meet certain exemptions from permitting requirements. Agricultural crop residues, such as vegetative marijuana wastes, are considered a "type 1" composting feedstock and may be composted alone or with other organic materials. DEQ encourages potential composters to contact DEQ to discuss the proposal to determine if an application is necessary. DEQ composting contacts and information about composting requirements is available at: http://www.oregon.gov/deq/Regulations/Pages/Marijuana-Regulation.aspx. 0USINF-SS OL /\L>INFSS MIDI 0Ot;K 1 Version 5.5 Oclober 6, 2017 • Composting off-site: Vegetative marijuana waste may also be sent off site to a DEQ- permitted composting facility where it is processed into finished compost. DEQ staff can help growers find a composting facility near their operations. • Solid waste storage and collection: Counties and cities regulate solid waste storage and collection at the local level. Solid waste generators — including growers, waste haulers, and disposal facility operators — are responsible for complying with solid waste storage and collection regulations. Businesses should take reasonable measures and implement best management practices to prevent trespassing and scavenging. For more information about waste storage and collection in your area of business, contact your local city or county. Hazardous Waste Management Marijuana production could result in the generation of hazardous waste. For example: Use of solvents for processing might result in ignitable or toxic wastes. Management of pesticides may result in pesticide hazardous wastes. Disposal of hazardous waste above specified quantities requires a U.S. EPA generator ID number obtained through DEQ. More information about how to determine if your waste is hazardous is available at: http://www.oregon.Rov/dea/Hazards-and-Cleanup/hw/Panes/default.asax. Page 1 32 Businesses should be aware of the following potential hazardous wastes: • Pressurized gas • Solvents • Used oil • Used mercury containing lamps • Waste pesticides — 3 percent or greater of any substance or mixture listed in 40 Code of Federal Regulations 261.33(e) or 10 percent or greater of any substance or mixture listed in §261.33(f) • Reportable quantities of a pesticide spill - pesticide residues greater than 200 lbs or 25 gallons OIJSIN[F55 [ :A1)11\1F5c, (MID MOK Version 5.5 October 6, 2017 CC BY Wastewater Discharge Management Federal and state regulations governing water quality may require marijuana growers or processors to apply for a DEQ Wastewater Discharge Permit. Discharge of wastewater to a surface water body is prohibited without a permit. • Agricultural wastewater discharges: o DEQ coordinates with ODA to manage nonpoint source agricultural runoff through implementation of agricultural water quality management area plans. Page 1 33 More information is available at: http://www.oregon.gov/oda/programs/NaturalResources/Pages/AgWaterQualitv.aspx o Land application of wastewater: Wastewater may be applied to the land under certain DEQ - approved conditions. Visit http://www.dea.state.or.us/wq/wgpermit/permits.htm for more information. o Pesticide use near water: DEQ requires a 2300-A pesticide general permit for any pesticide application in, over, or within three feet of water. Discharge of a pesticide must not cause or contribute to a water quality standards violation. More information can be found at http://www.dea.state.or.us/wa/wgpermit/pesticides.htm o Pesticide Stewardship Partnership: DEQ is a member of the Water Quality Pesticide Management Team, which coordinates with a number of agencies including OHA, ODA, and ODF to implement the Pesticide Management Plan for Water Quality Protection. The plan includes voluntary Pesticide Stewardship Partnerships to improve water quality associated with pesticide use in Oregon. /`,i>II II ` (t HDEIBOOK Version 5.5 -- October 6, 2017 • Municipal wastewater discharges: o Stormwater management: Discharge of any material other than uncontaminated stormwater to a stormwater conveyance system (street, gutter, ditch, inlet storm drain) is prohibited. o Pretreatment for sanitary sewer: Growers and processors may be able to discharge wastewater to a local sanitary sewer. Pretreatment before discharge may be required. Contact your local city or county for information about connecting or discharging to a sanitary sewer system. Discharge of any material other than uncontaminated stormwater (rain or snow melt) to a stormwater conveyance system (street, gutter, ditch, inlet storm drain) is prohibited. • Onsite septic systems: o DEQ or the local county may regulate an onsite septic system. Discharge of industrial wastewater into an onsite septic system is prohibited since these systems are only designed to treat domestic wastewater. In addition, planting and growing marijuana on top of a septic drainfield or irrigating and harvesting over a drainfield may affect a residential septic system's performance. Agricultural Water Quality In the production of any agricultural crop, including cannabis, growers are required to keep their activities from polluting the waters of the state. The Oregon Department of Agriculture is responsible for developing plans to prevent and control water pollution from agricultural activities and soil erosion on rural lands. ODA is also responsible for ensuring that growers, farmers, and ranchers meet the state's water quality standards. ODA's Agricultural Water Quality Program can direct growers to technical and financial resources to implement projects that will benefit water quality. Visit the Agricultural Water Quality Program website for more information: httD://www.oregon.gov/ODA/aro rams/NaturalResources/Paces/AgWaterQualitv.asnx Water Rights Under the law, all water in Oregon belongs to the public. Water users, with some exceptions, must obtain a permit or license from the Oregon Water Resources Department (WRD) to use water from any source including groundwater (wells) or surface water (streams and lakes). Generally, water flowing through or past private property does not automatically give the property owner the right to use the water without authorization from WRD. Page 1 34 BUSINESS KADINt S; GUIDL[OOK 1 Version 5.5 -- October 6, 2017 New water permits are not available in parts of Oregon for a number of reasons including hydrologic conditions, so investigate legal water resource options with your local watermaster before starting a project. A list of watermaster offices is available on the WRD website at: http://www.oregon.gov/owrd/pages/offices.aspx. Violations of Oregon Water laws can result in civil penalties or prosecution for a Class B misdemeanor. Most water rights in Oregon are obtained through a three-step process: 1. Apply to the Oregon Water Resources Department for a permit to use water. 2. Once the permit is granted, construct a water system and begin using water. Hire a certified water rights examiner to complete a survey of water use. Submit a map to WRD along with a report detailing how and where the water is being used. 3. If the water has been used according to the provisions of the permit, WRD will issue a water rights certificate. Once you have a water right, you must comply with the certificate conditions. All water rights are subject to forfeiture if not used for a period of five years. In times of water shortages or drought conditions, a senior water user (older certificate) can make a "call" for water and users with a junior water right may be regulated off in order to provide water to the senior user. Certain water uses are authorized under Oregon law as "exempt" from water use permitting. These exemptions include: • Collection of rainwater from an artificial impervious surface (building roof) • Springs, that under natural conditions, do not form a natural channel, or flow off the property where it originates Oregon water law also has an exemption for groundwater for non -irrigation related to commercial or industrial purposes. However, this exemption does not include water for plant growth or cultivation. Any use of groundwater to grow marijuana plants for commercial use does not qualify for an exemption. You must obtain either a water use permit or acquire water from a provider such as a city or water district. Page 135 it !ri('illlu'I Io (hock Vrii`I! ilie.' lecril v,wr;ier/ 0ULI iu !,lake' ttwi— your °;)i0ci)! piopct-6/ Ho. OUSINI `.S RI AJ)INLY:S GUIUL600K Version 5,5 October 6, 2017 Withholding and Transit Taxes Withholding Taxes Most businesses in Oregon who have employees must report the wages and withholding to the Department of Revenue. The income tax withheld must be sent to the department at the same time the federal withholding is sent to the IRS. Withholding laws and rules affect recreational marijuana retailers in the same way as any other employer. You may file the Oregon withholding tax returns quarterly, using Form OQ, or annually, using Form WA. Forms are available at www.oreaon.aov/dor/forms. Transit Taxes Transit district tax programs are administered by the Oregon Department of Revenue for the Tri - County Metropolitan Transportation District (TriMet) and the Lane County Mass Transit District (LTD). They provide revenue for mass transit. Transit payroll (excise) tax is imposed on nearly every employer who pays wages for services performed in the TriMet or LTD districts. A self-employment tax is imposed on self-employment earnings within the TriMet and LTD districts. If you're both an employer and self-employed you might be subject to both the transit tax on payroll and the transit self-employment tax on your self-employment earnings, The TriMet district includes parts of three counties in the Portland area: Multnomah, Washington, and Clackamas. LTD serves the Eugene -Springfield metro area. Transit laws and rules affect recreational marijuana retailers in the same way as any other employer. Reporting and paying withholding and transit To report the tax, businesses must submit quarterly payroll reports to both the Employment Department and the Department of Revenue. For detailed instructions on submitting the above reports and making payments, please visit www.oregon.gov/navrolltax or call (503) 945-8100. Registration To register your business to report employees' wages and tax please submit the Combined Employer's Registration form, available at www.oregon.aov/dor/forms. Page 1 36 IOISINI.`6 Rl:A{)IN[SS C,UID[000K 1 Version 5i.5 -. October 6, 2017 Liability & Property Insurance The most common types of coverage a business obtains are business liability and property insurance. While it is possible to get the above policies, some insurers worry that if they cover a loss, they will be financially supporting a federally illegal activity. This is similar to why many financial institutions are reluctant to open accounts for marijuana -related businesses. Because of the conflict between federal and state law, and because the industry is relatively new, there is a lot of uncertainty. Although your standard insurance company may refuse to sell you a policy because of the nature of your business, there are "surplus lines" companies that sell specialized types of coverage specific for marijuana -related companies. With regard to business liability and business property coverage, your insurance company may cover some interests, but exclude marijuana products. For example: Your insurer may provide liability coverage for someone tripping or falling in your store, but it may exclude the products you sell. A business property policy may choose to cover some items such as your building structure, computers, shelving, and furniture, but exclude the actual marijuana products. If you want to be sure something is covered, specifically ask for it. Ask your agent to show you in the contract specifically where that coverage is found. If your policy contains a general "public policy" exclusion or exclusion for illegal activity, ask your agent to amend the policy to explicitly clarify whether marijuana is covered. Keep your insurance company informed of your activities and maintain proper coverage to insure that activity. Page 1 37 • If the company knows you grow marijuana, and • It issues you a policy, and • Accepts premium for that policy, then it must honor that policy. The insurer would not be able to refuse coverage because of illegal or dishonest activities. If you have questions or complaints against your insurance company or agent, call 888-877- 4894 (toll-free) or go to www.insurance.oregon.gov. For more information regarding insurance visit http://dfr.oregon.gov/gethelp/Documents/4967.pdf. G41101: 001( Version 55 -- October 6, 2017 Unemployment Insurance Most businesses in Oregon must pay Unemployment Insurance (UI) taxes on their employee wages. These taxes fund unemployment insurance claims filed by workers who are out of work through no fault of their own. OLCC marijuana retailers are subject to UI laws and rules the same way as any other employer. In order to assess the correct tax amount owed, businesses must submit quarterly payroll reports to both the Employment Department and the Department of Revenue. For detailed instructions on submitting these reports, please visit www.oregon.gov/pavrolltax or call 503-947-1544, extension 1. Work performed in the OLCC marijuana industry is not considered agricultural labor in Oregon, and the exclusion detailed in ORS 657.045 does not apply to workers that grow, process, or sell marijuana. Or.le to the c//f f el/WS bei vice'? leder() I Gild si. !ir,' locos, it's rec )m,nended i.hol (41 rrinrijcrr?no bosin.e.,-,.sc.,5 coftsuli o oKexperi Pn eristur rorn,tflir ircc. Employee Classification Some workers in Oregon are independent contractors and are not subject to UI taxes. These workers do not need to be reported on quarterly payroll reports. Did you know? Different states and different government agencies in Oregon each have their own definition for independent contractors. In Oregon, booth the Employment Department and the Department of Revenue consider a worker to be an independent contractor if the worker has direction and control over the services provided, has an independent business offering the services provided, and is licensed to perform the services (if a license is required). More information about independent contractors can be found at www.oregon.gov/IC or by calling 503-947-1542. Please refer to ORS 657.040 and ORS 670.600 for the full text of the law. The legalization of recreational marijuana did not result in any changes to existing U1 laws or rules. A worker that is fired due to being under the influence of marijuana at work may be denied unemployment benefits. Much like alcohol use, if someone reports to work under the influence of an intoxicant and the employer has a reasonable written policy prohibiting workers from being under the influence, that worker can be fired and denied UI benefits. If you have questions about a specific unemployment claim that has been filed with these circumstances please call the UI Center at 1-877-345-3484. More information about the Oregon Employment Department is available at www.oregon.gov/emplov Page 138 005IE\II. SS READIN[ `5S GUIDE 0001< Version 5.5 -- October 6, 2017 Health Insurance for You & Your Employees No matter how big or small, every company needs healthy employees, but the options for coverage depend on the size of your company. Businesses with 49 or fewer full-time equivalent employees (FTE) can choose whether or not to offer coverage. Businesses who have 50 or more FTEs are required to provide health insurance coverage for their employees or pay a penalty. Don't have any employees? If you don't have employees, you may qualify fora health insurance plan through HealthCare.gov, where you can shop and compare plans. HealthCare.gov offers tax credits to help pay for premiums and out-of-pocket costs such as co -pays and deductibles. You may also qualify for a special enrollment period if you have a major life change, such as having a child or getting married. Visit www.HealthCare.gov or call 1-800- 318-2596 (toll-free) to learn more. You may also qualify for the Oregon Health Plan (Medicaid), which offers free or low-cost coverage for low-income Oregonians. If you earn less than $16,394 as an individual or $33,534 as a family of four, you may qualify. You can also visit www.OregonHealthCare.gov or call 1-855-268-3767 (toll-free) to find free, in-person help to sign up. Have employees and want to offer coverage? You can work with an insurance agent or insurer to get the right group coverage for your employees. Businesses with fewer than 25 FTEs, that purchase a certified health plan, may also be eligible for tax credits to help pay for employees' coverage. The tax credit covers up to 50 percent of premium costs for taxable organizations and up to 35 percent for tax-exempt organizations. To qualify, you must: • Provide health insurance to your employees • Pay at least 50 percent of employee -only health insurance premiums • Pay average annual wages of less than $50,000 a year For more information, visit www.OregonHealthCare.gov. Page 1 39 L,l,rsir e s tyre ilio required to offer cover t)C e 'to) coii)l0)/ep ; s/) 11 0 ul d 7.ieode0.s. 1),t1,1611. SS IU ADINII S EUID11.1l;)UI< I Version 5.5 -- October 6, 2017 Office of Minority, Women, & Emerging Small Business The Office of Minority, Women, and Emerging Small Business (OMWESB) is the sole certification authority for the state of Oregon. Being certified as a Minority Business Enterprise, Woman Business Enterprise, Emerging Small Business Enterprise, or Disadvantaged Business Enterprise opens the door to targeted government and private sector contracting opportunities. For more information on how to obtain certification, visit the OMWESB website at http://www.oregon4biz.com/How-We-Can-Help/OMWESB/ Energy Use The Oregon Department of Energy (ODOE) helps Oregonians make informed decisions about energy use. The agency offers technical and financial resources for energy efficiency, energy conservation, and renewable energy generation, with programs that target industrial and agricultural partners. ODOE gathers and shares information about efficient technologies for various industries, including cannabis production. ODOE provides an online calculator to help growers estimate and anticipate energy usage associated with growing indoor cannabis. Growers use the calculator to apply for and renew their OLCC permit. ODOE collects estimated energy use submitted as part of the permit application, and actual energy use submitted as part of permit renewals. The agency uses the information to develop benchmarks for the industry and to show energy trends over time. The agency's contributions to the Task Force on Environmental Best Practices helped to shape recommendations for the cannabis industry in Oregon, including the creation of voluntary third -party environmental best practice certifications. The agency's technical team provides information and resources to cannabis producers seeking to improve efficiency and conserve energy in their operations. Page 1 40 To access ODOE's energy usage calculator: http://energy.odoe.state.or.us/cannabis.html For more information about ODOE technical resources contact: Marty Stipe, PE, martv.stioe(aoreeon.gov, 503-378-4926 I USI( I. SS R5A INI S GUIDC0OOK Version 5.5 -- October 6, 20 Energy Trust of Oregon offers Oregon cannabis producers a wide range of technical services and cash incentives to reduce energy-related operating costs at new and existing cannabis grow operations. Cash incentives can cover up to 50 percent of your investment costs and are based on annual estimated energy savings. • High -efficiency lighting and lighting controls, including LEDs. • Technical studies, provided at no cost to the customer, to identify energy -efficiency opportunities for heating, cooling, ventilation and other systems, and cash incentives upon installation. • Cash incentives or rebates for greenhouse efficiency upgrades purchased through vendors, including greenhouse re -glazing, heating system upgrades, and controls. To be eligible to receive Energy Trust technical services and cash incentives: • Business must be registered with the State of Oregon and listed in the active business registry. • The project site must be located in Oregon and served by Portland General Electric, Pacific Power, NW Natural, or Cascade Natural Gas, on a qualifying rate schedule. • Additional eligibility requirements may apply and could vary depending on your project. The following rebates and incentives are available for greenhouses, lighting, and indoor grow operations: Page 1 41 • Greenhouse Rebate: Participants purchase their items, fill in, and submit the Greenhouse Rebate Form. Invoices/receipts and spec/cut sheets must be included. • Lightine Rebate: The lighting team can work with an operation to determine the rebate amount available for lighting upgrades. • Calculated Incentives: This requires pre -approval. Large Industrial Program staff visit the site and identify the energy saving measures applicable to that indoor grow operation. Staff work with the participant to determine the incentive available and sends the customer's incentive payment once the energy efficiency measures are installed and operating. Visit www.energvtrust.org/ae, or call 1-866-202-0576 for more information. Incentives are subject to availability and may change. Ii JSINI SS RrI\[6NI `5S GUII)I l>O0K Version 5.5 —October 6, 2017 Indoor Production & Electricity While there are a variety of factors that influence exactly how much additional electricity you will be using—including lighting, ventilation, air conditioning, and drying— one of the most important goals is ensuring you and your business are safe. Your electric meters and neighborhood transformers can safely meet typical business needs, but any time you are planning to make a big change in how you use electricity, it's essential to: • Call your utility provider to make sure your neighborhood transformer and wiring can handle the additional electrical load; and • Consult a licensed electrician to ensure your service panel, meter base, and circuits are adequate for your planned use. Today, there are more lighting technology choices than ever before. Some lamps, like LEDs, are extremely efficient. Others use large amounts of electricity. Metal halide and high- pressure sodium lights use substantially more energy than many appliances in your home. On average how long can your devices operate on 1 kilowatt-hour of electricity? • Clothes dryer (3,400 watts) –17 minutes • Hair dryer (2,000 watts) – 30 minutes • Microwave (1,200 watts) – 50 minutes • Grow lamp (1,000 watts) –1 hour • LED TV (50 watts) – 20 hours • Laptop (33 watts) – 33 hours Indoor producers could be paying about 13 cents for each kilowatt-hour of electricity. Safety – First Some metal halide and high-pressure sodium grow lights can pose a potential fire hazard because they produce a great deal of heat, so be careful of their use and surroundings. Always read the installation directions and warnings carefully and consult with a licensed electrician during set up. Make sure you have a ventilation plan to remove unwanted heat from the lights as well as the correctly rated circuits for your home. LED lights use much less energy than traditional bulbs and don't produce as much heat. Page 1 42 Did 1/(N1 ki owr' I\ec inq o J,00() vv(fit light troi1 7 (.i ot) lot .1C hours R. likr' ri(rining your cloiluc'.'7 (5)107 fot 1h 10,51 i llOUl'S crich 11,b1,11\11 _`34> 5 /U)Il5HS C UIUi. 000K 1 Version 5.5 October 6, 2017 Guidebook Revisions Record Revised Date Page/Section Description of Revision Nov. 25, 2015 Page 11/Sec. 2 Table at top of page corrected to include processing. Dec. 10, 2015 Page 15/Sec. 3 Final paragraph corrected content in parentheses. Dec. 10, 2015 Page 10/Sec. 2 Corrected final paragraph to clarify policy. Dec. 17, 2015 Page 2 Repaired Broken Hyperlink. Dec. 21, 2015 Page 28/Sec. 4 Added content from Energy Trust of Oregon. Dec. 30, 2015 Page 17/Sec. 4 Added tax content from DOR. Dec. 30, 2015 Page 29/Sec. 4 Added tax content from DOR. Dec. 30, 2015 Page 34 Regulatory Checklist updated to include new DOR content. Jan. 7, 2016 Page 5 Deadline verbiage corrected to reflect statute. Jan. 8, 2016 Page 21/Sec. 4 Pesticides Use section updated to include list information. Feb. 25, 2016 Page 20/Sec. 4 Updated Weights & Measures Section. Feb. 26, 2016 Page 6/Sec. 1 Removed reference to Individual History Form. Feb. 29, 2016 Page 35/Sec. 4 Added information on indoor production and electricity. Feb. 29, 2016 Page 25/Sec. 4 Air Emissions & Waste Management sections combined. Mar. 22, 2016 Page 5 Removed references to HB 3400. Mar. 22, 2016 Page 10/Sec. 2 Removed references to HB 3400. Mar. 22, 2016 Page 11/Sec. 2 Removed references to HB 3400. Mar. 22, 2016 Page 24/Sec. 4 Added Fire Season Requirements information. Mar. 22, 2016 Page 25/Sec. 4 Removed references to HB 3400. Mar. 31, 2016 Page 17/Sec. 4 Added information about local taxes. May 2, 2016 Page 11/Sec. 2 Updated side note regarding LUCS for more clarification. May 2, 2016 Page 2 Added information for Oregon Healthcare. May 2, 2016 Page 3 Added information for Oregon Healthcare. May 2, 2016 Page 34/Sec. 4 Added information about health insurance. May 2, 2016 Page 39 Updated checklist to include health insurance information. May 4, 2016 Page 2 Oregon Healthcare removed - is a division of DCBS. May 4, 2016 Page 3 Added information for DCBS: OHSA and Building Codes div May 13, 2016 Page25/Sec.4 Updated "handler" to "worker" permit and added new requirement. May 25, 2016 Page 5 Opt out information clarified. June 7, 2016 Page 6/Sec. 1 Removed references to residency requirement. June 7, 2016 Page 25/Sec. 4 Updated side note regarding permits June 7, 2016 Page 39 Removed word "retailers" regarding worker permits June 13, 2016 Page 25/Sec. 4 Added worker permit image June 13, 2016 Page 25/Sec. 4 Included verbiage regarding storage of edibles June 14, 2016 Page 6/Sec. 1 Added images for each license type June 29, 2016 Cover page Guidebook name updated June 29, 2016 Page 2 Clarified section regarding marijuana sold in medical dispensaries June 29, 2016 Page 2 Removed reference to recreational June 29, 2016 Page 5 Removed reference to recreational Page ( 43 BUSINESS RI /ii.)IIIE` ` 6 tJil)I 600K I Version 5.5 --October 6, 2017 Guidebook Revisions Record Revised Date Page/Section Description of Revision June 29, 2016 Page 6/Sec. 1 Updated proof of lawful possession language June 29, 2016 Page 8/Sec. 2 Removed reference to recreational June 29, 2016 Page 9/Sec. 2 Removed reference to recreational and updated "opt -in" language June 29, 2016 Page 9/Sec. 2 Updated 1,000 foot distance requirement June 29, 2016 Page 10/Sec. 2 Clarified language regarding LUCS June 29, 2016 Page 16/Sec. 3 Removed reference to recreational June 29, 2016 Page 17/Sec. 4 Removed reference to medical marijuana June 29, 2016 Page 25/Sec. 4 Updated language regarding worker permits June 29, 2016 Page 33/Sec. 4 Removed reference to recreational June 30, 2016 Page 26/Sec. 4 Added information regarding Packaging and Labeling June 30, 2016 Page 26/Sec. 4 Added information regarding OAR 333-015-0205 June 30, 2016 Page 41 Regulatory check list updated to include 2 most recent revisions July 22, 2016 Page 25/Sec. 4 Updated info regarding worker permits Aug. 23, 2016 Page 34/Sec. 4 Added information about business property and liability insurance Aug. 23, 2016 Page 42 Regulatory check list updated to include new insurance info Aug. 23, 2016 Page 25/Sec. 4 Updated website for worker permit materials Sep. 7, 2016 Page 4 Corrected typo in contents Sep. 7, 2016 Page 35/Sec. 4 Corrected extension number and added references to ORS Sep. 9, 2016 Page 37/Sec. 4 Updated contact info. Sep. 9, 2016 Page 23/Sec. 4 Updated pesticide list number Sep. 9, 2016 Page 24/Sec. 4 Clarified language Sep. 9, 2016 Page 31/Sec. 4 Clarified language Sep. 13, 2016 Page 25/Sec. 4 Removed language regarding food handler cards Sep. 13, 2016 Page 42 Removed language regarding food handler cards Sep. 15, 2016 Page 17/Sec. 4 Added clarifying language and moved registration section Sep. 15, 2016 Page 18/Sec. 4 Added clarifying language Sep. 15, 2016 Page 19/Sec. 4 Added clarifying language Sep. 15, 2016 Page 20/Sec. 4 Moved registration section to end of tax section Sep. 15, 2016 Page 43 Moved registration section to match updated layout Sep. 15, 2016 Page 4 Content pages updated Sep. 28, 2016 Page 28/Sec. 4 Corrected title of contact Nov. 1, 2016 Page 38/Sec. 4 Updated section regarding energy use Jan. 5, 2017 Page 2 Removed text regarding early start Jan. 5, 2017 Page 17/Sec. 4 Added additional text regarding due dates Jan. 5, 2017 Page 19/Sec. 4 Italicized old due date Jan. 5, 2017 Page 20/Sec. 4 Added additional text regarding early start Page 144 SUSINPSS REI\UIN[55 GUI( )f SOOK I Version 5.5 October 6, 2017 Guidebook Revisions Record Revised Date Page/Section Description of Revision Jan. 6, 2017 Page 39, Sec. 4 Added rebate and incentive information Jan. 9, 2017 Page 2 Added DPSST link Jan. 9 2017 Page 3 Added DPSST link Jan. 9, 2017 Page 4 Updated Table of Contents Jan. 9, 2017 Page 20/Sec. 4 Added section regarding private security services Jan. 9, 2017 Page 43 Updated regulatory checklist Jan. 13, 2017 Page 24/Sec. 4 Unbolded text Jan. 13, 2017 Page 45 Added DPSST logo Feb. 2, 2017 Page 29/Sec. 4 Added information about Oregon's Bottle Bill Feb. 2, 2017 Page 46 Updated regulatory checklist Feb. 2, 2017 Page 4 Updated Table of Contents Jun. 26, 2017 Page 2 Added a reference to medical processors Jun. 26, 2017 Page 17/Sec. 4 Removed old deadline Jun. 26, 2017 Page 17/Sec. 4 Removed filing deadlines and replaced with web link Jun. 26, 2017 Page 30/Sec. 4 Updated old web links Jun. 26, 2017 Page 31/Sec. 4 Updated old web links Jun. 26, 2017 Page 32/Sec. 4 Updated old web links Jun. 26 2017 Page 39/Sec. 4 Removed old application date Aug. 16, 2017 Page 9/Sec. 2 Updated law chapters regarding proximity to schools Oct. 6, 2017 Page 6/Sec. 2 Removed language regarding license fee. Page 1 45 HUS11\11.-5 Po.)01,, 1 Version 5.5 October 5, 2017 Regulatory Checklist O Eligibility Reminder o Reviewed the OLCC opt -out list O Safety First o Reviewed the Oregon Safe Employment Act • Trained alt employees • Taken proper measures to prevent injury or illness during day-to-day activities o Reviewed OSHA Division 4 rules (growers) o Reviewed OHSA Division 2 rules (processors) O Know Your Business License Types o Reviewed all of the OLCC license types and ensured you are compliant with OLCC rules o Are prepared to present all required documentation with your application as indicated in OLCC rules O Beginning Your Business o Developed a business plan o Obtained your Secretary of State business number o Have reviewed BOLI's laws regarding Wage and Hour, Civil Right Protections, Leave, Legal Hiring Practices, and Discipline and Discharge o Obtained all required bullding permits o Worked with licensed contractors on electrical, elevator, plumbing, boiler, mechanical, fire matters, and others as needed o Obtained all required code inspections u Maintaining relationships with local officials o Fotlowing all odor controls under DEQ o Following all zoning codes and have obtained your Land Use Compatibility (LUC) statement � Obtained alt permits in relation to emission comptiance O Operating Your Business o Fite marijuana tax returns quarterly o Remit marijuana tax cotlected to the Department of Revenue monthly o Registered for the marijuana tax program o Using scales licensed by the ODA o Confirmed all pesticides used are legal (ijapplicable) o Reviewed fire season requirements (,fapplicable) o All employees have marijuana worker permits (ifapplicable) o DPSSTcertification obtained (ifapplicable) o Obtained the appropriate ODA food safety licenses (ifapplicab!e) n Submitted packages and labels for pre -approval (ifapplicable) o Ensuring additional postage is up (,fcipplicab!e) o Reviewed Oregon's Bottle Bill information o Ensured your waste management plan is compliant with all DEQ regulations o Contacted the local watermaster to discuss water rights and obtain proper permits o Registered for withholding and transit taxes o Reviewed liability and property insurance information n Understand Unemployment lnsurance and policies o Reviewed information regarding health insurance Energy Use o Contacted ODOE to learn how to estimate energy use, costs, and improve energy efficiency o Contacted Energy Trust of Oregon for technical services RlF,11\11 (6 I:1 ANNE ,6 GIIIDI BOOK Version 5,5 — October 6, 2017 Page 1 46 This document provided by the following inter -agency contributors and subject -matter experts oz- CON5VMV ,c,rii icoNLSc 1/41-SERVI(.:8 (Imo Department 0+ Agriculture business ore n STATE LANDS Flea t State of Oregon Department of Environmental Duality OREGON ENERGY OREGON 01PAR1MLNI 1161idigrOF REVENUE Gw.r.I C leant of Oregon State of Oregon Employment Department BUSI1\11,`SS REAI NFSS (-1.11pli ROOK Version 5,5 — October 6, 2017 4--i C V ✓ O N m co ( CO Q c1)to C L ca c �E E o .c •N v) v)U .� O = -, ca r_i U 0303 C O 0 = N 0 4- N c6 O • c 2 ca 0 43) C 15 7 ', e s to 0,.. t4 co -.). , vi) ©t;_ 2.,) Y^ e"0 -c, (1) tu vo?S Cl.0) 0 '0 0 'um 4. ti1CO 0 0 oil ‘4- 81 .r; 0 0 m o o m 0 0 cr Ln - o r- N rfl N 00 M 0 M N Ln 00 N N N N l.0 Ln N M N l.0-1 0 00 • 0 CO 0 00 t.0 01 t.0 rn fr) 0 1 0 0 t• O 8 Iii 4-* VI 2 ,c13 u = .o o u - 8 .0 0 • 9. 4 ni 1- cu _1 o. a. re Wholesaler N t.0 Grand Total Niplogin Deschutes County Applications: 145 2 labs, 25 processors, 70 producers, 30 retailers, 18 wholesalers Active Licenses: 56 1 Lab, 10 processors, 18 producers, 20 retailers, 7 wholesalers 00:61,A8 rule/statute requirements 4-4 0 0) c(i) G) 0 b.0 1) 0) To 4-1 ta0 0 a) 1) 0) L.) 0 0 • • a) 845-025-2025 845-025-2040 and 845-025-2045 have a limit to 845-025-2500 and 845-025-2550 0 0 --I 0 CD 0 NJ 41 • — 0 (1) +a -0 a) CD v) . _ ro b.° 0 -I) 0.) 73 O ...CD E -D. 4-) a) 0 1- 4— +- -1 -0 (,) 4— t) O co ._ L... m 4-, c::3 am c) aJ Q.) aj s- C _0 co ro 0 CC 7:3 -0 L.) 71) ri la, • ...,_Z-- " cu i: .u.0 O c (13 - c IP co 0 co u = a) 0 _C 1:5 -I-J 0 4-1 -I) 1— 4J 4+.• a — 0 Q) oN- :ill _C V) CO Lf) I-- r• 0.. cNI 0 G (^, 1)101111114).! `1111MININ 14 a' • 845-025-3305 0 4J (1; U a) c6 s_ s) c1 as > c6 '� O .to =E O to >O O U L o 73 co Q. a) 4-1> U +� 0 U . 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CZ1 CO N 4...• c (L) 0 • MM. = (1.3 >. c a) (13 > v) I: c = ro a) U CL Cr) = 4-0 • mom 7) a) a) " -C (1) (0 4J E E t 2 c bn ...., .- -0 a) 0 b.0 co (-0 • c c v) 0 L._ I— a) 0 Cla co CU C 0 0 -.. .4-_-• ...c t v u U C E co ro 73 a).- = L.. 41 CT C -0 4Ej (1) ro co = 845-025-2700 and 845-025-2750 c N a) -Q '� O Q O � O - ate+ .N •a; a) ct3— c cu_ca� 0 2 C= = .� .� O - E E- v,0' a) C a) O O N i -0 OD a) O ca CI Q . a.O a) E —I CU CU IA ---:‹ -2 fro 8 U 0) 0 -0 0 4-14J U 0 0_ BULK TRANSFERS TO ANOTHER LICENSEE DO SMALL CONTAINERS INSIDE OF LARGER NOT NEED P&L APPROVAL CONTAINERS MUST BE LABELED t EccLLJ 15J E 4-J 4-- 73 C vi .4-, . — u Ui Lt) . a) o u E ro 2 E a) o 0 -5 0 " rt —" CV) ct. 22m o_ = 1 4-, 0 c a) o> E a) c 8 cu c 4J a/ C CU O > U '47; (..) 1.. RI CU 13 2 6 ..) _c 2 g cu0 ..v E a) + aM 0 1-) (,) •••.. tiO 0 ▪ w 4.0 • 11.E o> • . 8 = .-- -a a_ co Si C 11 t K Renewals as a means of enforcement and education 7 o( Update on coordination with state and local law enforcement )10J›6 yvvo \i‘Cnoba *V) L `c* Pt" t'‘ Z ?-QAC Board of Commissioners Work Session Agenda Monday, January 29, 2018 Page 2 of 2 -< Deschutes County Board of Commissioners 1300 NW WaII St, Bend, OR 97703 (541) 388-6570 — Fax (541) 385-3202 — https://www.deschutes.org/ AGENDA REQUEST & STAFF REPORT For Board of Commissioners Work Session of January 29, 2018 DATE: January 24, 2018 FROM: Thomas Kuhn, Health Services, TITLE OF AGENDA ITEM: CARA Local Drug Crises Grant Application RECOMMENDATION & ACTION REQUESTED: Staff recommend the Board of County Commissioners approve Health Services' request to apply for a Comprehensive Addiction and Recovery Act (CARA) Community -Based Coalition Enhancement Grant to Address Local Drug Crises. ATTENDANCE: Tom Kuhn, Community Health Program Manager; Jessica Jacks, Prevention Supervisor; Julie Spackman, Prevention Coordinator SUMMARY: The Substance Abuse and Mental Health Services Administration (SAMHSA) is accepting applications for Fiscal Year 2018 CARA Community -Based Coalition Enhancement Grants to Address Local Drug Crises Grants as an enhancement to current or formerly funded Drug -Free Communities (DFC) Support Program recipients. The purpose of this program is to prevent and reduce the abuse of opioids or methamphetamines and the abuse of prescription medications among youth ages 12-18 in communities throughout the United States. The grant award would be $50,000 per year for three years and would require no additional FTE. If awarded, this grant will extend the work of Health Services Prevention Program on the prevention of prescription drug misuse and abuse started under the Strategic Prevention Framework Partnerships for Success grant (2015-2019) by providing funding through 2021. Official Grant Title: Deschutes County Health Services GRANT APPLICATION REQUEST COMMUNITY-BASED COALITION ENHANCEMENT GRANTS TO ADDRESS LOCAL DRUG CRISES Source of Grant Funds: Substance Abuse and Mental Health Services Administration (SAMHSA) Funding Amount (include amount $50,000.00 per year for 3 years per year if multiple years): Required Matching Funds (if n/a applicable): Application Due Date and 1/29/18 - SAMHSA requires electronic submission for CARA Submission Method: Act grant funds through Grants.gov. No new FTE, existing FTE will be utilized Jessica McDonald Julie Spackman { FTE Required and Cost of FTE: 1 Staff Responsible: 1 Grant Administrator (if awarded): Please answer the following questions: 1. Briefly summarize what work the grant is intended to accomplish: The goal of this grant application is to prevent and reduce the abuse of prescription medications among youth ages 12-18 in communities throughout the United States 2. What priorities in the Health Services Strategic Plan would this grant activity support? Provide data to describe a documented health need that would be addressed and that is consistent with the Strategic Plan. ;This grant activity addresses the Health Services Strategic Plan following priorities: Goal #1, "Promote Health and Prevent Disease." This grant activity's purpose is to prevent and reduce prescription drug misuse and abuse among young people in Deschutes County. Goal #3, "Acquire and Use Resources Effectively." If awarded, this grant will supplement work started under the Strategic Prevention Framework Partnerships for Success (PFS) grant. According to the National Survey on Drug Use and Health (one of two approved data sources for grant eligibility), the Central Oregon region has experienced higher than national average non-medical use of pain relievers among 12-17 year olds since 2010: Rev. 9/18/2015 Nonmedical Use of Pain Relievers in the Past Year, by Age Group and Substate Region: Percentages, Annual Averages OR. Region 5 USA OR. Region 5 USA NSDUH (Central)* (Central) 2010-12 2010-12 2012-14 2012-14 12-17 yr olds 6.65 1 5.85 6.73 4.89 *Region 5 (Central: Crook, Deschutes, Jefferson Counties) 3. Would this support core program activities and, if so, which one(s)? Are additional funds needed to support these activities? This grant will extend work on the prevention of prescription drug misuse and abuse started under the Strategic Prevention Framework Partnerships for Success grant (2015- 2019) by providing funding through 2021. 4. Does this funding add new program activities? If so, what are the activities? Is it appropriate to add these new activities at this time? Any new program activities added through this funding will be strategically aligned and dovetailed with current programming. The specific activities will relate to the prevention of prescription drug misuse and abuse among youth 12-18 years old in Deschutes County and will be developed in collaboration with community partners who are also working on the prevention of misuse/abuse of opioids in our region. In particular, the grant activities are designed to dovetail with the efforts of the COHC's Pain Standards Task Force which focus on education, tracking and monitoring, and proper medication disposal. Grant activities will also be aligned with other DCHS efforts designed to reduce harm among people who are already misusing prescription drugs or who are addicted to other drugs.. 5. Is there a science base to support delivering the activities and services listed? Please describe that science base. The Substance Abuse and Mental Health Administration's Center for the Application of Prevention Technologies developed a toolkit to guide decision making on the prevention of prescription drug misuse and abuse, revised in May 2016. The document is called, "Preventing Prescription Drua Misuse: Programs and Strategies (Using Prevention Research to Guide Prevention Practicer 6. How long would the funding be available? If the funding is for less than three years, what is the plan to transition the work, staffing and expenses after the funding ends? This grant provides funding for up to three years, with an anticipated start date of June 15, 2018. Rev. 9/18/2015 7. What is the application deadline? Do you aany problems meeting this deadline? [January 29, 2018. No prd-blems - O. Do you have the staffing to write a comproposal? If not, how wUl you contract for these services? I es 9. Are there any matching requirements? I No 10. What other partner organizations could potentially be appling? What is the plan to work with them? None in Deschutes County. Applicants must currently or have previously been awarded a Drug Free Communities Grant. There are no other such organizations in Deschutes County. At this time, it Is unknown if Jefferson or Crook Counties will be,a_pplyinq. � 11. What are the potential potential poUtical issues that couLd arise as a resut of this application, funding, and/or activity? For the past few years, Oregon's legislature has addressed prescription drug issues through various pieces of legislation. It is possible that some of the work involved in this grant could be of interest to state Tegislators; however, the grant stipulates that funds must not be used to Iobby. Therefore, any contact with elected officials would be to provide data, to educate them about the issues in Central Oregon, and to inform them about Iocal prevention efforts. The youth engaged in the grant activities may wish to share their experiences and provide input to Iocal officials of the school district, cities, county and or other community organizations: 12. What is the fiscal impactto the department ifwe are awarded this grant? ATTACH fiscal impact analysis completed with Business Manager approval. '--- TheQnantw�pay U of direct program costs and will contribute an 8% rate (of direct program costs) in funding to the department's administrative overhoad. Existing Health Services FTE will perform tho functions of the grant; no additional FTE are being requested. Furthermore, the incremental demand from direct program staff should not significantly affect Health Services Administration to warrant the need of additional administrative FTE. The grant is Federal which will require additional fiscal support relative to State grants. The grant does not require a financial match. This grant is not being anticipated in the FY 2019 budget, and its award would necessitate a budget adjustment for FY 2019 (depending notification rd is re|vmd 13. Will a contract be required if we are awarded this grant? If yes, is there sufficient time to complete the contract process (estimated timeline: 4-6 weeks) prior to starting the work? Subcontracts may result if we are awarded. There is sufficient time to complete the contract process prior to starting the work. Rev. 9/18/2015 Department Dire'tor Signature 1 Date Director to Attend Board Meeting? (check one) ❑ Yes J No Contract Specialist Review: Board Meeting Date: Time: Grant Application Number: Rev. 9/18/2015 m. , o \\k\\ 0 6 .0 Ls 10 { t \/\g § +f\\ ««w_n na n • _ t MOI /\/c2 &k� ~ /` §ƒ)§k-0 r.4 2 e 0 0 % ® « mi IA. o \\�j&) o i_UTnUT _e _ _ eem ° m. _§�� 0 0 0 0 0 0 0 0 \{{ t 0 2 o d` 0 o 0 o 0 o m a 2° = k g g q 0 0 a 0 0 5 2 I, 2 Coo ¥ ® ! e $ % . m ¥ ' R R / a Zi > ~ - ° • ) - J « G - _m 1f em n _ 7[�]} �t 00 00 00 0 \(\/6\ E$ S S• S S S 2 S t 2= #QJ 00ja. in In0 C9 CL 4- Tot Gra SES W 0 -< Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 — Fax (541) 385-3202 — https://www.deschutes.org/ AGENDA REQUEST & STAFF REPORT For Board of Commissioners Work Session of January 29, 2018 DATE: January 24, 2018 FROM: George Conway, Health Services, TITLE OF AGENDA ITEM: Consideration of Board Signature of Document No. 2018-020, Mosaic Medical License Agreement Revised RECOMMENDATION & ACTION REQUESTED: Staff recommends signature of revised Document 2018-020. CONTRACTOR: Mosaic Medical AGREEMENT TIMEFRAME: Starting Date: January 1, 2018, or upon execution Ending Date: June 30, 2023 INSURANCE: Insurance Certificate Required: No Insurance Review Required by Risk Management: No BACKGROUND AND POLICY IMPLICATIONS: Deschutes County Health Services is negotiating a lease agreement with Mosaic Medical to operate a primary medical care clinic at the Health Services building located at 2577 NE Courtney Drive, Bend. Under the license agreement, Mosaic Medical will occupy multiple examination rooms and an office currently designed and constructed for such purposes on the first floor of the building. The lease agreement has been revised based on input from the Board of County Commissioners at the January 10, 2018, Work Session. FISCAL IMPLICATIONS: The space would be provided in kind, and Mosaic Medical would pay a proportionate share of the overall building utility costs. ATTENDANCE: Dr. George Conway, Health Services Director; James Lewis, County Property Manager; David Inbody, Health Services Deputy Director; Megan Haase, FNP, Mosaic Medical CEO, or other representative from Mosaic Medical MEMORANDUM Date: January 17, 2018 To: Board of County Commissioners From: George A. Conway, MD, MPH, Director, Health Services Re: Mosaic License — Courtney Staff Report Dear Commissioners, Thank you very much for considering our proposed licensing of Mosaic Medical to provide primary care services at our Courtney facility. Thanks also for Commissioner DeBone's very helpful suggestion that we ask Mosaic Medical to pay prorated utilities on the space. Toward that end, we have calculated total utilities for Courtney per month: 2577 NE COURTNEY OBJECT Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2016 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 TOTAL AVG MO WATER/SEWER 440120 390.27 375.86 40176 324.82 585.47 467.73 762.08 831.42 963.32 540.41 90641 441.09 N/A 6,990.64 58255 City of Bend NATURAL GAS 440130 2,569.50 1,709.40 1,484.53 859.75 865.75 344.86 218.63 154.53 137.17 352.20 520.58 1,449.71 N/A 10,666.61 888.88 Cascade Natural Gas ELECTRIC 440110 2,335.40 2,378.46 2,495.04 2,204.54 2,293.65 2,494.32 2,683.65 2,624.33 2,837.60 2,649 12 2,299 29 2,162.12 N/A 29,457.52 2,454.79 Central Electric NOTE: 4's highlighted are from H.T.E. where the invoices are not readily available. Grand Total 47,114.77 3.926.23 To the monthly overall utilities, we applied a 0.065 coefficient (because the potential Mosaic space will constitute 6.5% of Courtney square footage; information supplied by James Lewis) to the total $3,926.23. This would equal $255 per month. Security surveillance costs would add $10 per month pro rata ($150 per month for the facility x 0.065). Mr. Lewis suggested that we round this up to $300 per month. I discussed this possibility as an add-on with Megan Haase, RNP, Mosaic Medical CEO, who was able to obtain verbal approval from their board chairman. Mr. Lewis more recently supplied an estimate for common area maintenance, which would include utilities as well as parking, snow removal, and taxes) at approximately $1,000 per month. A discussion with Ms. Haase immediately after the 10 January Work Session indicated that an amount of $1,000 per month (per Commissioner DeBone's ad hoc estimate during the board meeting) would require board approval within Mosaic. She was very concerned that such approval would not be granted, as even the prospect of no -cost (in-kind) establishment of this new location was controversial among their board (due to their threshold costs for opening a new location). Mosaic License — Courtney Staff Report Page 1 of 2 Mosaic's board meets only monthly. Even if approved at a February meeting, this additional change could delay HRSA submission sufficiently to result in a (best -case) June opening. This would delay our ability to offer primary care services on site by up to two months. Our primary consideration is offering the broadest range of high-quality integrated services to our clients. The prospect of having a Federally Qualified Health Center co -located in our Courtney facility offers excellent prospects for such services to our clients, and would afford excellent complex behavioral health services on site for Mosaic clients requiring such services. This new medical home would afford "one stop" service for our clients, many of whom are low-income and face major transportation challenges. Another consideration is revenue. CCBHC payments are determined using the following formula: Our estimates per month of (number of eligible encounters x PPS rate) — (adjusted capitation payment) = CCBHC Payment Here is the data based on the first six months: Eligible encounters = 20,624 PPS Rate = $286.92 Eligible encounters x PPS Rate = $5,917,438 Adjusted capitation payment = $3,562,288 CCBHC Payment = $2,354,150 (average $392,358/month) Courtney represents about 1/3 of all eligible encounters. The impact of losing Courtney's portion of CCBHC would be about $130,786 per month, and add substantially to uncertainty whether Deschutes County Health Services might lose its entire CCBHC status, which would result in a large additional revenue loss. Weighing the options, staff recommendation is for the Board of County Commissioners to (please) approve an amended license with $300 added per month for utilities. Mosaic License — Courtney Staff Report Page 2 of 2