Oregon Psychedelics Business License

Since the passing of Measure 109 in 2020, there has been a consistently high demand for Oregon psychedelics business licenses from entrepreneurs, researchers, and service centers.

Of the hundreds of applications received for the main types of licenses by the Oregon Health Authority (OHA), only a fraction are approved.

The exciting opportunities available here for prospective businesses and facilitators in the emerging psychedelics sector make the competition for licenses intense. Your best chance of success is to ensure that your license application meets all the regulations and makes a compelling case to the OHA.

Our Oregon psychedelics lawyers are experienced in helping businesses in challenging industries get started, having helped many cannabis businesses become licensed in multiple states.

As your trusted partner—from business formation and license application to compliance and beyond—we’ll help to de-risk the process of getting set up and operating your psychedelics business.

What types of psychedelics business licenses are available in Oregon?

Measure 109 legalized the use of psilocybin-based products in licensed businesses in Oregon.

This has created opportunities for entrepreneurs, health practitioners, and investors to open the following types of psychedelics businesses:

• Service centers: where psilocybin is used to treat patients.
• Manufacturing: where certain fungi, extracted psilocybin products, and edible psilocybin products are produced.
• Laboratory testing: facilities where psilocybin-based products are researched.
• Training: where psilocybin training programs apply for approval of their curricula.

To operate legally in any of these areas, you’ll first need a service center, manufacturer, testing lab or training program license.

If successful, your business will be qualified to operate only in the specific sector of the industry to which your license relates.

Facilitator licenses are also available for individuals who provide psilocybin services for patients, operating from licensed service centers.

How do you apply for a psychedelics business license in Oregon?

The Oregon Health Authority has been accepting applications for psychedelics business licenses for some time already. Many psilocybin-based businesses have already become operational across the state, helping patients get the treatment they need (more details below).

Each type of license application has specific requirements but must generally address each of the following areas:

• Information about all individuals and legal entities involved in the application.
• Social equity plan to ensure that the business will meet Oregon’s social equity goals (more below).
• Proof of residency: most applicants must be able to show that they have been residents of Oregon for at least two years.
• A detailed map or sketch of the proposed premises (for manufacturer, service center, and laboratory license applicants).
• Location requirements: the business cannot be located on publicly owned land or overlap with any other licensed areas for certain types of businesses.
• Service center emergency plan, covering procedures for evacuating and relocating clients to a safe location if necessary.
• A criminal background check: note that solitary prior convictions for manufacturing psilocybin or marijuana or possession of a controlled substance will not be considered if they are over two years old.

To secure a facilitator license, applicants will need to prove that they have completed the necessary training and take an online test.

Supporting documentation must accompany the license application form. Sometimes, during the application review process, the OHA requests further documentation and an inspection of the proposed business premises may be required before a license is issued.

Because of the complexities involved in gathering and preparing all of the correct documentation and building a powerful case for a business license, many applicants seek legal assistance from a knowledgeable psychedelics business attorney.

What is the social equity requirement?

Every application for a psychedelics business license in Oregon must include a social equity plan.

This should “consider how certain communities have been disproportionately harmed by systemic inequities and how they propose to address these inequities in their business practices.”

More specifically, new applications should include the following:

• A description of how the principles of diversity, equity, justice, and inclusion are applied to the licensee’s internal practices and policies
• Objective performance measures that the licensee will use to evaluate the plan

To renew a license, every manufacturer or service center applicant must provide documentation of the steps it has taken to achieve its social equity plan.

How many psychedelics business licenses are issued in Oregon?

As of February 2024, 21 service center licenses had been approved, along with eight manufacturer licenses, 24 training program licenses, and two testing lab licenses.

Hundreds of facilitator licenses and worker permits have also been issued. You can check the latest figures at the OHA’s Oregon Psilocybin Services website.

How much does a psychedelics license cost in Oregon?

To apply for a psychedelics business license, you’ll first need to submit a non-refundable $500 fee with your application.

If the license is granted, the additional fees are as follows:

For-Profit Groups:

• $10,000 for manufacturers, service centers, and laboratories
• $2,000 for facilitators

Non-Profit Groups:

• $5,000 for non-profit manufacturers, service centers, and laboratories
• $1,000 for non-profit facilitators

Why hire a psychedelics business lawyer?

The opportunities to enter the new frontier of the psychedelics industry in Oregon are many—but they don’t come without significant risks, including significant startup costs.

Psychedelics are not generally accepted around the U.S. (Colorado is the only other state to have legalized psychedelics) and the authorities are paying close attention to what happens in the pioneering state of Oregon.

Consequently, the industry here is highly regulated. The license application process is competitive and rigorous and experienced psychedelics lawyers are not easy to find because the sector is so new.

Being able to rely on the skills and knowledge of lawyers seasoned in establishing businesses in highly regulated industries can be invaluable in overcoming the many hurdles involved.

At Cannabis Law Solutions, we’ve been helping businesses in tough sectors become established for many years.

We can help you secure a psychedelics business license and get set up for long-term success whether you’re in research, development, commercialization or medical practice involving psychedelics. Call 866-329-0729 for a consultation.