The Residency Requirement for Oregon Psilocybin Licenses

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It is crucial to understand the residency requirement for various psilocybin-related operational licenses, as Oregon, the first state in the United States to establish a psilocybin regulatory framework, starts accepting applications for psilocybin licenses beginning January 2, 2023.

Oregon Psilocybin Services and Draft Regulations

The two-year development period for psilocybin services started on January 1, 2021, and will continue till December 31, 2022. During this period, Oregon Psilocybin Services (OPS) is working with the Oregon Psilocybin Advisory Board and rule-making advisory committees (RACs) to make rules for psilocybin products and services. All rules are expected to be finalized and adopted by December 31, 2022.

This post is based on rules still in draft form, and open to revision following the public comment period. The final regulations, in their entirety, are expected to be adopted by December 30, 2022. 

We will update this post with any pertinent information as the rules are finalized and adopted.

Residency Requirement for Psilocybin Manufacturer and Psilocybin Service Center Licenses 

Per the proposed Rule 333-333-4050 Section (1), psilocybin manufacturer license applicants and psilocybin service center license applicants need to meet residency requirements to qualify for licensure. These residency requirements remain in effect until January 1, 2025. Starting in 2025, Oregonians (who did not meet the residency requirements previously) and out-of-state residents will also be able to apply for psilocybin licenses in Oregon.

If the Proposed Psilocybin Manufacturing or Service Center Business is an Entity

If the licensee is an entity, such as a corporation or LLC, the applicant must prove that at least one person who has resided in Oregon for at least two years or longer holds more than 50% of the shares, membership interests, partnership interests, or other ownership interests of the entity.

If the Proposed Psilocybin Manufacturing or Service Center Business is a Partnership

If the psilocybin licensee is a partnership, then the applicant must show that more than 50% of the partnership interests in the business are held, directly or indirectly, by one or more people who have lived in Oregon for at least two years.

If the Proposed Psilocybin Manufacturing or Service Center Business is Operated and Owned by an Individual

If the proposed entity under the license is owned and operated by an individual, then the applicant must show proof that they have lived in the State of Oregon for two or more years.

Residency Requirement for Psilocybin Facilitator Licenses 

The residency requirement for the facilitator license is similar to the residency requirements for the manufacturer and service center licenses. Per the proposed Rule 333-333-4050 Section (2), until January 1, 2025, to successfully qualify for a psilocybin facilitator license, an applicant must provide proof that they have been a resident of Oregon for two or more years.

Providing Proof of Residency Required for a Psilocybin License in Oregon

Proof of residency required for corporate and partnership psilocybin licensees in Oregon may be demonstrated by providing a statement prescribed by the Oregon Health Authority which verifies that more than 50% of the interests in the operating entity are held by individuals who have been residents of Oregon for two or more years.

Any of the following may serve as proof of residency for individual owner licensees and facilitator licensees :

  • A valid license or ID card issued in Oregon, issued at least two years ago
  • The applicant’s full-year State of Oregon tax returns over the previous two years
  • Proof of Oregon voter registration issued at least two years prior to the date of application
  • Proof of Voter Registration issued in Oregon at least two years before the date of the licensing application
  • Utility bills, lease contracts, rental receipts, mortgage statements, or other records with the applicant’s name and address from at least two years ago AND from the most recent month
  • Letter certifying that the applicant has been a resident of Oregon from a homeless shelter, nonprofit organization, employer, or governmental body for at least two years

Retaining Proof of Residency Documentation

If an applicant uses one of the above documents as evidence of residency, then they are required to retain that documentation for each relevant individual who is a member of the applicant’s legal entity and also qualifies as a resident of Oregon.

Licensees need to provide this documentation to the Oregon Health Authority upon request.

Residency Requirements for Psilocybin Testing Licenses

The draft rules do not specify any residency requirements for Psilocybin Laboratory Testing licenses.

Conclusion

Please note that this post is based on rules still in draft form, and open to revision following the public comment period. The final regulations, in their entirety, are expected to be adopted by December 30, 2022. We will update this post with any pertinent information as the rules are finalized and adopted.

From licensing to corporate matters, the team of psychedelic industry attorneys at Rogoway Law are subject matter experts, with extensive experience serving highly regulated industries. We can help ensure successful compliance with the residency requirements for a psilocybin license in Oregon through proper entity formation and organization, corporate structuring and reorganization, or expertly-crafted operating agreements. Contact us today with any questions about or assistance with your psilocybin license in Oregon.

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