Oregon makes history as the first state in the US to legalize psilocybin, also known as ‘magic mushrooms’ for therapeutic use. The new law includes key provisions such as the establishment of a program for the regulation and licensing of psilocybin service centers and facilitators, as well as guidelines for safe and effective administration . We’ve gathered what you need to know about the application process below!
What species and quantities of Psilocybin are allowed?
Right now only one species can be used, Psilocybe cubensis. The Psilocybin product quantities are measured in total grams of psilocybin analyte. A manufacturer may possess 200 grams of psilocybin analyte max, a service center 100 grams.
What is required in the application?
If you want to apply for a psilocybin license in Oregon, there are a few steps you need to follow. First, you need to fill out an application form and submit it to the Oregon Health Authority (OHA), along with the application fee. The application form must include:
- Information about all individuals and legal entities involved in the application
- Social equity plan
- Proof of residency
- Map or sketch of the proposed premises (for manufacturer, service center, and laboratory license applicants)
- Service center emergency plan (for service center applicants)
- Background check information
- For facilitator applicants, proof of completed training and documentation that the applicant passed the required exam
The following section breaks down each of these requirements further.
Individuals and Entities in the Application
Depending on the license, applicants may be individuals or legal entities. The OHA wants to be sure they have a complete picture of everyone involved in the application process, and has the following rules about who needs to provide personal information.
- Service center, manufacturing, and laboratory licenses must specify the legal names of all individuals and legal entities who qualify as applicants.
- Facilitator license applicants must specify the legal name of the individual who will hold the license
- For legal entities that are applicants, the following individuals within the entity must provide information:
- Limited Partnerships: each general partner
- LImited Liability Company: each manager and managing member of the LLC
- For-Profit Corporation: each principal officer of the corporation
- Non-Profit Entity: each principal officer of the entity
Social Equity Plan
Applicants for a manufacturer, service center, facilitator, or laboratory license are required to submit a social equity plan for their initial application to be considered complete. The social equity plan must include:
- 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
- For the renewal of a manufacturer or service center license, the applicant must provide documentation of the evaluation of the implementation of their social equity plan, based on the objective performance measures outlined in the plan
Proof of Residency Requirements
If you’re looking to operate a manufacturing or service center in Oregon, there are certain residency requirements that must be met by January 1, 2025.
For Legal Entities:
If the entity you’re proposing to operate is a legal entity (e.g. a corporation), more than 50 percent of the shares, membership interests, partnership interests, or other ownership interests must be held by one or more individuals who have been residents of Oregon for at least two years.
If the entity you’re proposing to operate is a partnership that is not a legal entity, more than 50 percent of the partnership interests must be held by one or more individuals who have been residents of Oregon for at least two years.
For Sole Proprietorships:
If the entity you’re proposing to operate is owned and operated by an individual, that individual must have been a resident of Oregon for at least two years.
Proof of Residency:
There are several ways to demonstrate proof of residency, including:
- A valid Oregon driver license or identification card issued at least two years prior to the date of application
- Oregon full-year resident tax returns for the last two years
- Proof of Oregon voter registration issued at least two years prior to the date of application
- Utility bills, lease agreements, rental receipts, mortgage statements, or similar documents that contain your name and address and are dated at least two years prior to the date of application
Site Map Requirements
Manufacturer, service center, and laboratory license applicants are all required to provide maps of the proposed license location. To be accepted, this map needs to include the following:
- Clearly marked boundaries of the premises
- Identification of any unlicensed ares within the building where the licensed premises is located, including suite numbers
- Identification of any residence or unlicensed structures located on the same tax lot as the proposed license premises
- A scaled floor plan identifying all points of ingress and egress
- Clearly marked camera locations
- Limited access areas
- Client administration areas
- Psilocybin product storage areas
Psilocybin licensed premises must adhere to the following location requirements:
- Cannot be located on publicly owned land
- Cannot overlap with any other licensed areas for adult-use cannabis, medical marijuana, liquor, health care facilities, restaurants, or residences
- Service centers are also prohibited from being located within 1,000 feet of a public or private school, or in a residential area within city limits
- Manufacturers with an edible psilocybin production endorsement have specific restrictions, such as not producing psilocybin in a restaurant or sharing a food establishment
Service Center Emergency Plan
Under Oregon law, every service center must create and maintain an emergency plan that outlines procedures for evacuating and relocating clients to a safe location in the event of unforeseen circumstances, such as fire or a power outage.
This emergency plan must be included with the initial application and provided to every facilitator who will offer psilocybin services at the service center. In the event of any changes to the emergency plan, the licensee must provide written notice to the OHA. This helps ensure that the OHA is aware of any updates and that the emergency plan remains current.
Criminal Background Check
In order to obtain a worker permit or license, applicants may be required to undergo a criminal background check. The OHA will also require a check if they learn of any convictions after the permit or license has been issued.
The background check must be submitted to the OHA for a fitness determination and must include the following information:
- Full name
- Date of birth
- Drivers license information
- Address and recent residency information
- The applicant must also provide fingerprints in accordance with the OHA’s instructions
- The OHA may request the applicant’s Social Security Number for positive identification during the background check process, but this is voluntary
Prior convictions for manufacturing psilocybin or marijuana or possession of a controlled substance will not be considered if they are over two years old and there has been no more than one conviction.
Facilitator license applicants are required to pass the facilitator exam prior to being issued a license. The exam is offered through an online interface and can be taken at any location of the applicants choosing. There is no cost associated with the exam, and it can be retaken as many times as the applicant wishes. To pass the exam, the applicant must receive a score of 75% correct or higher.
How much does a Psilocybin license cost?
The application has a $500 non-refundable fee. If the license is granted, the following fees must be paid based on license type:
- $10,000 for Manufacturers, Service Centers, and Laboratories
- $2,000 for Facilitators
- $5,000 for Non-Profit Manufacturers, Service Centers, and Laboratories
- $1,000 for Non-Profit Facilitators
What happens during application review?
The OHA might need to verify information from the applicant and could request additional documents or information from anyone listed in the application. They will check for a land use compatibility statement from the city or county where the business will be located. The OHA may also want to inspect the premises before issuing a license. For applicants not in compliance with the rules, the OHA will let the applicant know what needs to be fixed within 30 calendar days. If the problem is corrected, the OHA may schedule another inspection. If the applicant fails the second inspection, the OHA will deny the application unless the applicant has a good reason for additional inspections.
GreenGrowth CPAs will continue provide updates, and you can find more information at the Oregon Health Authorities website.