Oregon Psilocybin: State of the State (2024)

Table of Contents

The end of 2024 marks two years in the books for the Oregon Psilocybin Services (OPS) program. It has been a long road: in my year-end 2023 post, I explained that the program was incubated on a protracted, two-year runway prior to launch. This mean we are four years along, with two years of live action.

Today, the program remains limited, small and somewhat novel. Still, about 8,000 clients have participated despite the high costs of doing so; and there were significant developments in 2024, especially here at the end of the year.

The OPS program grew a bit in 2024… Or did it?

Here are licensing statistics culled from the December 27, 2024 OPS applications report and the approved training center list, as compared to the same time last year.

	2023	2024	Change
Manufacturer	7	11	+4
Service Center	20	31	+11
Testing Lab	2	1	-1
Facilitator	201	345	+144
Worker Permit	406	724	+318
Training Program	24	22	-2

Overall, the numbers appear to show modest growth in the manufacturer and service center categories; a slight contraction in testing labs and training programs; and a strong (unsustainable) influx of licensed facilitators and permitted workers. However, I think the numbers above are misleading in a vacuum.

At this time last year, we had significantly more applicants in the manufacturer (+21), service center (+36) and testing lab (+3) categories than were ultimately approved. Or, to say it differently in some cases, more applicants than those who chose to go through with approval. Today, we have only one pending application in each of the manufacturer and service center categories, and no testing labs on deck. People just aren’t trying to get in anymore.

The reason people are staying away isn’t because it’s unduly difficult to get licensed (they let this guy in, after all). OPS data also confirm that only two service center applications have been denied, with no denials in any other category. So it’s a business viability issue for most people. This summer, the Oregon Capital Chronicle kicked off a raft of reporting on lack of customer demand in the OPS system, noting at least one service center closure. We’ve since become aware of a few more, and others operating on a limited or part-time basis.

Fundamentally, the program is also imbalanced. There are far too many facilitators, nearly all of whom are gig workers and cannot find sustainable, full-time work in the OPS milieu. Correspondingly, there are too many training programs. At the other end of the spectrum, having just one testing lab may be all that is needed given the amount of manufacturing, but it also can’t be healthy for testing integrity.

More local OPS bans

In November, 15 additional cities and one county voted to ban psilocybin services within their borders. According to Oregon Public Broadcasting, the naysayers include: Lake Oswego, Warrenton, Seaside, Oregon City, Estacada, Hubbard, Amity, Sheridan, Mt. Angel, Jefferson, Lebanon, Redmond, Sutherlin, Rogue River, Brookings and unincorporated Clackamas County.

Only the tiny coastal town of Nehalem held the line, defeating an opt-out measure by three votes. These new “dry” jurisdictions joined the 25 counties and 26 cities that locked out the OPS program in the 2022 election. In my view, the new bans aren’t extremely impactful. Last year, I wrote:

Most of the manufacturers, service centers and related economic activity are concentrated along the I-5 corridor, from Portland down to Eugene. There are pockets of limited activity in Jefferson County (down south), Deschutes County (central) and sparsely populated cities and counties that likewise decided not to shun the program.

In the most recent bans, the largest population centers are Beaverton and Oregon City; however, they are located in Portland metro with nearby services. The bigger access issue, in my view, is lack of services for disabled and homebound patients who cannot travel. That one is being litigated, and we’re hoping for a just result.

The resident ownership requirement is no more

As of January 1, 2025, the residency requirement for owning a majority interest in an OPS business will sunset. As with access issue mentioned just above, this “locally owned” rule was likely unconstitutional from the start. Unlike the former issue, however, no challenges arose and the two-year requirement ran its course– as we predicted back in 2022.

I offered some thoughts in a blog post this summer for non-residents looking at a wide-open OPS system, foremost of which is that it’s a buyer’s market. Some of the buying is already baked in— I have personally structured and come across other psilocybin entities with call options, automatic redemption features, etc., in favor of non-resident owners. Many of these individuals and investors will spring from 49% or 50% ownership to 100% as of January 1, 2025.

Other new OPS rules

The residency requirement may be going away, but a number of other rules will take effect on January 1, 2025. Generally speaking I’m not a fan. Nor were the 63 stakeholders who signed this public comment, which argued that several of the rule amendments “would increase costs for all licensees, and further push psilocybin services out of reach for many Oregonians.”

A full analysis of the new rules is beyond the scope of this blog post, but my colleagues at Emerge Law Group summarized the most impactful changes here. In addition to these new strictures, it’s worth noting that every client who wishes to participate in a psilocybin administration session as of January 1, 2025, must complete a client data form. That data will be aggregated by the Oregon Health Authority (OHA) and submitted quarterly to Oregon Health and Sciences University. Some individuals may steer clear of the OPS program due to this requirement.

What’s next for Oregon psilocybin?

My guess is that the OPS program will continue to plod along and require additional taxpayer subsidy in 2025. The OHA will continue to administer the program ably and preciously and properly, and we’ll see advocacy in the legislative session around issues of health care provider protections and “dual licensure” (more on that here). At the federal level, no one should be overly concerned about enforcement against OPS program actors– despite the VISIONS Act predictably going nowhere.

From a client or user perspective, it will continue to be a question of what people are willing or able to pay. There is plenty of psilocybin in Oregon both inside and outside of the OPS regime. There are also many facilitators operating outside of the OPS system, or sometimes in and sometimes out. Regardless, and unlike Ballot Measure 110 from the 2020 election (decriminalizing all drugs), the OPS system is here to stay. In 2025, it will likely remain a good option for curious individuals with the wherewithal to access services, and those who would like to support them. Not so much for businesses and investors eager to make money.

___

For more on all things Oregon and psilocybin, including expansive coverage of OHA rules and program developments, check out our 50 post archive here. For information relevant to starting a psilocybin business in Oregon, check out these specific posts: