Oregon Cannabis Businesses Call for Permanent License Caps

The Cannabis Industry Alliance of Oregon (CIAO) is calling for lawmakers to make permanent a restriction on the licensing of new cannabis companies that is set to expire in April, according to a KLCC report.

Before the statewide licensing moratorium was enacted in 2018, officials had issued over 3,000 licenses for the production, manufacturing, and retail of adult-use cannabis products, the report said. “There are so many businesses competing for the same amount of market share that it’s just not feasible,” said Mike Getlin, board chair for the CIAO.

Oregon, which was the fourth U.S. state to adopt a cannabis legalization policy, did not initially set a cap on the number of available licenses and the industry has grappled since its launch with issues relating to oversupply, lack of demand, and record-low wholesale and retail cannabis prices.

“What we’re fighting for is not to fix the Oregon system. It is simply to not accidentally have a big old knife stuck in its heart.” — Getlin, via KLCC

Getlin hopes that lawmakers will address the issue during this year’s brief legislative session, which is scheduled from February 5 to March 10, as officials with the Oregon Liquor and Cannabis Commission have stated they may not have the legal authority to extend the licensing moratorium themselves.

The CIAO, which represents more than 500 cannabis operators in the state, was formed last October following the merger of two former cannabis industry organizations: the Oregon Cannabis Association and the Cannabis Industry Alliance of Oregon.

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