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 the House Committee on Economic Development, Small Business and Trade, 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, 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, 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 26th, 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 “State of the State” posts, marijuana sales revenues have dropped each year from 2022 to 2025. This means less tax collected. The state is predicting this 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.
