It’s been a while since we wrote a round-up post on Oregon cannabis. Here are some items of note, as we head into the fall. Gather ‘round!

Proposed THC cap and packaging requirements

On August 19th, the Oregon Capital Chronicle ran an article featuring a renewed push by Sen. Lisa Reynolds (D-Portland) to cap individual edibles at 10 milligrams of THC. This would be a reprisal of failed Senate Bill 1548, which we covered in February at the start of the 2026 legislative session. SB 1548A passed the Oregon Senate, but died in House committee following industry opposition.

Related to the THC cap, SB 1548A contained newly restrictive packaging proposals (i.e., a requirement for individually packaged servings; added warnings). The packaging component likely did more damage to the bill’s chances than the actual serving limits, seeing as non-medical THC is already capped at 10mg THC/serving. As I explained in February, “the industry argument here is that cannabis packaging requirements generate tremendous waste, and are an affront to sustainability. It’s a good argument.”

It’s worth noting that SB 1548A contained an additional public health prong, restricting dispensary siting requirements. I wouldn’t be surprised to see this provision removed on re-introduction, because the big target here is serving limits. But it’s hard to say at this point. As I explained in March, “SB 1548A could always pop up again next session, as a stand-alone bill or in some other format.”

Reynolds did say that she will be hiring a lobbyist this time around. We’re also scheduled for a six-month session beginning in February (as opposed to the 35-day session of 2026), which means Reynolds’ proposal will get a real look.

Bottom line: this isn’t going away, and industry will need to gear up for another fight.

Tax enforcement

Portland’s Willamette Week ran a story on August 23rd, titled “Owner of La Mota Issued $7.9 million in liens.” The story describes five tax liens issued to Aaron Mitchell “and dozens of his LLCs” for unpaid taxes going back to 2020.

A client sent me this story, and asked how Mitchell and La Mota are still running around in the OLCC space. I directed him to what I wrote back in December of 2024: “The answer is simple: La Mota probably reached a deal on payment plan with the Department of Revenue.”

If those payment plans are also now in default, with liens assessed, the jig may finally be up for Mitchell and La Mota. Or, maybe not! According to a 2023 story in the same publication, by the same reporter, Michell and his partner “and the many companies they control, have been issued over $1.8 million in tax liens in recent years by the state.”

Elsewhere, OLCC and DOR do continue to enforce the tax payment rules caused by the far-reaching La Mota scandal. That is to say, marijuana retailers must obtain a certificate of tax compliance in order to renew or transfer a license, showing they are current on state taxes, or operating under an approved DOR payment plan.

New CTS protocols

Compliance Education Bulletin CE2-2601 takes effect next week, on September 1st, 2026. The bulletin defines a new CTS process for entering compliance test results in Metrc on secondary lab sample packages. This development succeeds from the 2024 crackdown on THC inflation and testing labs. (In all, we still have 10 licensed labs, down from 11 when this story broke.)

CE2-2601 is not a rule per se, but licensees need to comply with the bulletin. OLCC emphasizes that “failure to adhere to the new process after September 1, 2026 will result in missing test results for the source package.” No one wants that, obviously.

Dreary forecast for industry growth

Two days ago, on August 26^th, Oregon’ Chief Economist released the state’s Q3 Economic and Revenue Forecast. A key takeaway includes “marijuana forecast profile revised substantially,” and not for the better. The forecast includes a $14 million reduction in tax revenue in the current biennium (two-year period), as compared to last quarter’s forecast for the same period.

As I’ve highlighted in successive, annual “State of the State” posts, marijuana sales revenues have dropped each year from 2022 to 2025. This results in less tax collected. The state is predicting the trend will continue, with lower prices and stagnant demand. This means more squeeze on producers, which means more diversion activity, probably. It also means less money for schools, police, public health, cities and counties. We would love to see this trend reverse, or even just relent. There are no easy answers, unfortunately.

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“I’m hoping that the cannabis industry will take the lead, and they’ll decide they don’t want to be like the tobacco industry.”

By Mia Maldonado, Oregon Capital Chronicle

Karma Clarke, a Douglas County mother, thought marijuana was harmless in 2014 when she voted in favor of the ballot measure legalizing recreational cannabis in Oregon.

She believed that until six years later, when her then-20-year-old son began smoking marijuana regularly.

He had played sports and maintained good grades in college, but when he returned home after completing his associate degree, Clarke said her son began acting strangely. He stopped leaving his room, and he lost the ability to perform everyday tasks such as reading a tape measure or answering questions.

After several doctor visits, her son was admitted in two different psychiatric hospitalizations. Although his drug tests came back clean, something had switched in his brain, she said.

Clarke shared her story of witnessing her son develop a psychotic disorder at a virtual meeting Wednesday, where state Sen. Lisa Reynolds, D-Portland, invited her and public health experts to speak about policy proposals aimed at preventing youth access to cannabis.

“I’m hoping that the cannabis industry will take the lead, and they’ll decide they don’t want to be like the tobacco industry and they don’t want to keep denying that there’s a link between their products and people’s lives being ruined,” Clarke said.

Reynolds looks to THC caps again, and more warning labels

Recreational cannabis has been legal in Oregon for adults 21 and older for more than a decade, but it remains illegal for minors. Still, an estimated 13,000 youth between ages 12 and 18 use cannabis in Oregon, according to Dr. Julia Dilley, a Multnomah County epidemiologist who led a 10-year study looking at cannabis legalization and public health impact in Oregon and Washington.

Reynolds, a pediatrician who has served in the Legislature for five years, is seeking to improve cannabis prevention education in schools, cap individual edibles at 10 milligrams of THC and require manufacturers provide more warning labels on their products.

Reynolds’s efforts are inspired by her work as a pediatrician, and because she believes her brother’s habitual marijuana use in the ’70s contributed to his severe mental health problems as an adult.

Teens using cannabis are at 11 times higher risk of developing a psychotic disorder compared to teens not using cannabis, studies show.

“When we talk about the risk of psychosis, this isn’t just what we would call a bad experience while you are actually intoxicated by cannabis,” Reynolds said. “This is a long-term disability.”

Additionally, more children are turning up in hospitals after consuming edibles resembling desserts such as brownies or cookies.

She spearheaded legislation earlier this year to cap individual edibles at 10 milligrams of THC. Her bill made it past the Oregon Senate, but it died in the committee process on the House side as members received intense pushback from marijuana industry groups. Reynolds said she’ll propose the legislation again, but this time with the help of a lobbyist.

The Cannabis Industry Alliance of Oregon did not immediately respond to the Capital Chronicle’s request for comment.

Oregon is one of the most loosely regulated marijuana states

More than 800 calls since 2025 to the Oregon Poison Center were related to cannabis, said Dilley, the Multnomah County epidemiologist. One-third of those calls were for children younger than 5.

Cannabis use among youth is higher in Oregon than it is in Washington because it doesn’t have the same protective measures, she said.

Unlike Washington which requires that cannabis manufacturers individually wrap all edibles with a 10 milligram THC cap, Oregon cannabis manufacturers can sell individual edibles with more than 10 milligrams of THC, such as sodas or cookies containing 100 milligrams of THC that are meant to be split into several portions. Both states require an edible package contain no more than 100 milligrams of THC.

Unlike Oregon, it’s illegal to grow nonmedical marijuana at home in Washington. Washington also caps the number of retail cannabis outlets and applies a 37 percent sales tax. Oregon’s cannabis sales tax ranges from 17 percent to 20 percent, depending on where it’s bought.

Both states require cannabis businesses to be located at least 1,000 feet away from public schools. Washington requires this buffer also apply to private schools, playgrounds, childcare facilities, libraries and other locations, though Oregon localities can establish additional buffers under state law.

Oregon does require warning labels on cannabis products related to pregnancy. These labels are working and preventing people from using cannabis during pregnancy, Dilley said, adding that Oregon could go a step further at providing more warning labels about cannabis use contributing to worse mental health outcomes.

“These products should not be designed or marketed to appeal to children,” pediatrician Dr. Jill Pearson said. “Yet, time and time again, we are just rep

This story was first published by Oregon Capital Chronicle.

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Oregon’s governor has signed a bill to allow patients with debilitating medical conditions to access medical marijuana in certain health facilities such as hospices.

Gov. Tina Kotek (D) approved the legislation from Rep. Farrah Chaichi (D) on Tuesday after it cleared the Senate in a 20-8 vote last month and was passed by the House of Representatives in a 39-3 vote in February.

Chaichi said in testimony to the Senate Health Care Committee that the bill is “an important tool to facilitate cannabis use as an alternative or addition to opioid use in end of life care.”

“While sometimes necessary, opiates are often overly sedative, preventing quality family interaction in someone’s final days,” she said. “As someone who lost my mother while she was intubated, I know how meaningful it is for patients to be present and in the moments of their last days and weeks with their loved ones. This is a quality of life and a quality of care issue. The bill’s goal is to ensure patients who desire this important and valid medical treatment have access across the board.”

As enacted, HB 4142 will require hospice, palliative and home care organizations, as well as residential facilities, to develop rules permitting registered patients with debilitating conditions to use medical cannabis.

The reform is similar to—albeit somewhat more limited than—multiple “Ryan’s law” measures that have advanced in state legislatures across the country. Ryan’s law, which is named after a young cannabis patient in California who passed away, generally refers to a policy broadly permitting medical marijuana use in health facilities such as hospitals.

The Oregon bill doesn’t extend to hospitals, but it builds upon the state’s medical cannabis program in a way that advocates say will meaningfully improve quality of life for seriously ill patients.

Under the proposal, the Oregon State Board of Nursing will further be prohibited “from disciplining a nurse who discusses the medical use of marijuana with a patient,” according to a legislative summary. It will additionally make it so eligible health facilities can act as medical marijuana caregivers if authorized by regulators.

The legislation “exempts residential facilities that provide a patient with medical marijuana from criminal laws related to the possession, delivery, or manufacture of marijuana” and “allows a conditionally designated residential facility to develop a written policy and train staff before the operative date,” the summary says.

Now that the governor has signed the measure, it is set to become operative on January 1, 2027.

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