P R E S S   R E L E A S E

Secretary of State SHEMIA FAGAN The State of Oregon

Contact: Ben Morris, 971-209-5521, ben.morris@sos.oregon.gov

Audit: Oregon has an opportunity to implement reforms in preparation for a future where cannabis is legalized nationally

Download a copy of the report.

SALEM, OR — The Oregon Liquor and Cannabis Commission (OLCC) and state leadership can better align the regulation of cannabis businesses to that of alcohol businesses, prepare the state for federal legalization of cannabis, and implement strategies to provide equitable access to the cannabis industry, according to an audit released today by the Oregon Secretary of State Audits Division.

“Oregon’s cannabis industry faces significant regulatory issues, stemming from federal restrictions on cannabis. This audit revealed Oregon’s regulatory system for cannabis compounds these problems,” said Deputy Secretary of State Cheryl Myers. “Given the action taking place at the federal level, now is the time for Oregon to prepare its system for a future when cannabis is legal nationally.”

Auditors found Oregon cannabis businesses are subject to regulations that create burdens the alcohol industry does not face, particularly when coupled with the current licensing moratorium and federal restrictions on interstate commerce, banking, and taxation. These regulations are not based on a robust risk assessment or any kind of test of real-world effectiveness but are instead based on federal guidance from 2018 that has since been repealed and was put in place to prevent federal intervention in Oregon’s legal cannabis system.

Auditors also found Business Oregon, the state’s economic development agency, will not work with cannabis businesses due to concerns over criminal liability and losing its federal funding. Compounding these issues is the fact Oregon has not developed a clear directive on how state agencies should interact with cannabis businesses.

Additionally, Oregon did not consider or include targeted equity provisions when developing the recreational cannabis program and OLCC’s current licensing system is not capable of tracking demographic data. The lack of these provisions hinders efforts to mitigate the disproportionate impacts experienced in communities targeted by the War on Drugs and does nothing to provide equitable access to this multi-billion-dollar industry.

This audit focused on the OLCC’s cannabis program. It does not examine the agency’s Distilled Spirits Program.

The audit includes three recommendations to OLCC. The audit also recommends the Governor and the Legislature work with the Oregon Department of Justice to develop guidance for state agencies working with cannabis businesses.

The report can be accessed online at https://sos.oregon.gov/audits/Pages/recent.aspx 

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About Secretary Shemia Fagan

Pronunciation: shuh-MEE-uh (rhymes with “Maria”) FAY-gen (rhymes with “Megan”)

Shemia Fagan is Oregon’s 28th Secretary of State. She grew up in small Oregon towns, Dufur and The Dalles, and was raised by her single dad and two older brothers. Her public service began on her local school board. She was later elected to the Oregon House of Representatives, then to the Oregon State Senate. Secretary Fagan was a civil rights attorney before being elected to Secretary of State in 2020. She stays busy keeping up with her young children, teaching her dog not to jump on people and being a fanatic for women’s basketball.

About Oregon SOS

The Oregon Secretary of State is one of three constitutional offices created at statehood. Oregon’s Secretary of State is Oregon’s chief elections officer, chief auditor, chief archivist, and oversees business and nonprofit filings. The Secretary of State also serves as one of three members of the State Land Board and as the chair of the Oregon Sustainability Board. Under Article V, Section 8a of the Oregon Constitution, if there is a vacancy in the office of Governor, the Secretary of State becomes governor. As an independently elected constitutional officer, the Secretary of State answers directly and solely to the people of Oregon.

Our Mission

Build trust between the people of Oregon and their state government so Oregonians trust the public services that can make a positive difference in their everyday lives.