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Dr.KiaraSimpson,United States,Researcher
Published Date:05-07-2017
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Business Readiness Guidebook for OLCC Marijuana Operations Page 1 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 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: 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 Potential licensees should ensure they are compliant with all other local regulations, including but not limited to obtaining proper permits associated with operating their business. It is advised to begin working with your local governing bodies prior to submitting your OLCC application. Page 5 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 Photos from top to bottom: Farm Photo by The View from Fez, Suzanna Clarke or Sandy McCutcheon; Edibles by The World's Best Ever: Design, Fashion, Art, Music, Photography, Lifestyle, Entertainment; Lab by Desirie Luna, Emily Ohshimo & Victoria Pequegnat; Cannabis by WALTER CRONKITE SCHOOL OF JOURNALISM AND MASS COMMUNICATION AT ARIZONA STATE UNIVERSITY - CC BY SECTION 1 OLCC Licenses 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 Be prepared to present the following items in your application:  Bu siness details: company  Business Operating plan name, physical and mailing  Floor plan of proposed facility address, Secretary of State  Proof of right to occupy the premises Number  Other documentation depending on  Funding sources: interested license type. See OLCC rules available parties and legal entities at for  Land Use Compatibility more info. Statement (LUCS) Applicants must pay a 250 non-refundable application fee at the time of application or renewal; however, the license fee is not due until approval. Page 6 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 SECTION 2 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 first step 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 Step 3 - Find Financing: At this time, Business Oregon 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 information review OLCC rules for “financial interest” and applicant qualifications at Step 4 - Grow Your Business: Are you ready to take your business to the next level? Participate in the Grow Oregon program at to experience sustained growth. Visit Business Oregon’s “How We Can Help” webpage at Help/ for a full description of programs and services offered. Page 7 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 SECTION 2 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 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 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 Stay up to speed on handbooks for employers can be an invaluable resource on topics such as Wage and marijuana Hour Laws, Civil Right Protections, Leave Laws, Legal Hiring Practices, and Discipline consumption laws by and Discharge. visiting http://whatslegalore Employment Law Hotline: Compliance experts can field questions about a wage and and make civil rights issues at no cost at 971-673-0824. All calls are confidential. sure your employees do the same. 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: for more information. Employers can order employer handbooks, download free compliance posters, or order low-cost bilingual composites at: Page 8 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 Directions Image by http://english-final-project- - CC BY SECTION 2 Land Use Planning & Zoning Compliance Depending on license type, different zoning restrictions may apply, however no OLCC marijuana 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 All licensed premises site is also licensed under ORS 475B.080. are to be located in  May not be located on public land. Oregon. Importing or exporting marijuana If you are a retailer: items into or from the state is a local and  Except as provided in Oregon Laws 2016, chapter 83, section 29b, the federal offense. 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 Cities and counties have the ability to adopt ordinances imposing reasonable regulations on the operation of businesses located within their jurisdiction. Be sure to contact your local government to ensure you are in compliance with their local laws. Page 9 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 SECTION 2 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 Marijuana facilities that authorizes land use in the city or county in which the applicant’s proposed may be allowed in premises is located. certain zones, and may not be allowed OLCC’s land use compatibility form is available at Work in other zones. This with your local government directly to ensure all information is correct prior to may differ from city submission. to county and from one local jurisdiction A LUCS is not required for those that meet all qualifications as indicated in 845-025- to another. 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. 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, Except for counties and is permitted in Exclusive Farm Use (EFU) zones. that adopt local Farm use includes both the preparation of the farm product, such as drying, ordinances packaging or labeling, and wholesaling of the unprocessed farm product. prohibiting marijuana However, a variety of other uses that may be proposed in conjunction with operations, the farm use require local land use approvals, and some of these uses are production of specifically prohibited by HB 3400 if in conjunction with a marijuana crop. marijuana may be licensed by the OLCC in any EFU zone. Page 10 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 Photos from top to bottom: Crops by Unknown; Farm by Wally - CC BY SECTION 2 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 County discretion in Agricultural Building local zoning local zoning On-farm preparation (i.e. drying, bulk/wholesale packaging) Processing On-farm Processing Wholesaling Farm Use Retailing NA NA 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 475B 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 LUCS approval does not by local governments to be within buildings in industrial zones. bypass additional documentation that may The most direct path for any license type is to first gain local land use approval be required by the local for the proposed land use: planning office. Verify all  If the local planning office indicates on the LUCS form that the proposed other permits have been use has been approved or is allowed in the applicable zone, then the acquired with the local application may move forward. planning office for the  If the local planning office indicates the proposed use has been denied or proposed land. is not allowed in the applicable zone, then the license will not be issued. Page 11 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 SECTION 3 SECTION 3 SECTION 2 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 12 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 SECTION 2 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 or the BCD website at Be sure to keep copies of all permits Obtain all required inspections: During construction, work with your contractor and and inspections for local building official to identify and schedule any required inspections. your records. 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 13 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 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 Find detailed OSHA protective equipment for use during pesticide handling). regulations here: http://www.orosha. Most employers must follow a basic set of rules. Other regulations may apply based on specific business hazards. org/toolkit/our_rules .htm. 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 14 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 Symbol by Anne Sherod - CC BY SECTION 3 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. Page 15 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 SECTION 3 Oregon OSHA Contacts Technical Experts: Phone: 503-378-3272 (V/TTY) or 800-922-2689 Worksite Consultations and Evaluations: Phone: 503-378-3272 (V/TTY) or 800-922-2689 Find More Information: 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: Small Business Ombudsman for Workers’ Compensation Contact Info Email: or Call: 503-378-4209 Websites: Page 16 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 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 ballot for the next general election. Filing a return Marijuana tax returns are due quarterly. A separate return is required for each location selling 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:  If your final day of sales as a medical 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 retail tax return for fourth quarter on Revenue Online.  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. Page 17 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 SECTION 4 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 OHA Medical Dispensaries: Can only submit your return on paper. Mail your completed return to: For more information contact Oregon Department of Revenue the Department of Revenue at PO Box 14630 503-947-2597 or at Salem OR 97309-5050 Late filing and payment 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. Page 18 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 SECTION 4 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: If the 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 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 to pay by credit card or ACH debit. For more information on the marijuana tax program, visit Page 19 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 SECTION 4 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 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 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 Page 20 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 SECTION 4 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 A scale used to ensure a are used to produce edible products would be considered to be a process consistent fill of packages control tool and would not need to be licensed; However may not need to be  A scale used to determine the net weight of a packaged product offered licensed if the net weights for sale is, however, considered a commercial scale and would need to be of those packages are licensed by ODA verified on a licensed commercial scale. Scale Suitability Questions about specific uses and licensing A commercial scale must be suited for its intended application before it can be requirements may be licensed by ODA. directed to ODA’s Weights There are many factors to be considered when assessing suitability, however the and Measures program. 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 any containers, bowls, jars, etc. used to contain the cannabis while weighing it.  A scale with 0.01 g ( 0.001 g ) resolution is needed to routinely weigh a few grams of cannabis.  A scale with 0.1 g ( 0.01 g ) resolution would be suitable to routinely weight 10 grams or about ½ ounce.  A scale with 0.01 lb resolution would be suitable to routinely weight a pound or more.  Page 21 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017 Marijuana Scale by Laura Monte - CC BY SECTION 4 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 0.01 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 READINESS GUIDEBOOK Version 5.3 – June 26, 2017 SECTION 4 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 It is unlawful to required (some scales are sealed electronically). The physical seal itself operate a scale may be a pressure sensitive seal or a lead and wire seal designed to restrict access to the calibration function of the scale. commercially that is not properly sealed. If a scale service company handles the calibration for you make sure to The physical seal must verify that the physical seal is intact and to retain receipts for the service be installed such that provided. These two items serve as evidence that your scale has been accessing the properly adjusted. calibration function of the scale is impossible  Make sure the scale is installed on a stable surface and that it is properly leveled without destroying the before use. seal. 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. 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: Page 23 BUSINESS READINESS GUIDEBOOK Version 5.3 – June 26, 2017

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