Oregon Cancels Cannabis Audit Over Ethics Concerns

12 March 2025

Oregon’s 2023 audit of the Liquor and Cannabis Commission (OLCC) has been withdrawn due to ethical concerns tied to former Secretary of State Shemia Fagan. The audit, which suggested updates to cannabis laws, has been called into question after it was revealed that Fagan had financial ties to La Mota, a major dispensary chain regulated by the OLCC.

Why Was the OLCC Audit Canceled?

• Conflict of Interest: While the audit was being conducted, Fagan was working as a paid consultant for La Mota, a company directly affected by the report’s recommendations.
• Loss of Trust: After an internal review, Secretary of State Tobias Read decided to remove the audit from public record, saying it was biased from the start and did not meet proper standards.
• A Future Audit Might Happen: Read stated that a new, independent audit of the OLCC may be conducted in the future to ensure fairness and transparency.

What Does This Mean for Oregon’s Cannabis Industry?

• Uncertainty for Dispensaries: Without the audit’s recommendations, businesses looking for regulatory updates will have to wait for new reviews under different leadership.
• Push for More Transparency: Many in the industry argue that cannabis regulations do need reform, but changes should come from unbiased, independent reviews—not from those with financial interests in the industry.
• Increased Oversight Expected: The controversy around La Mota has raised bigger questions about political ties in Oregon’s cannabis market, and there may be tighter rules on business and government relationships moving forward.

What’s Next?

For now, there are no immediate changes to Oregon’s cannabis laws. However, with growing pressure for reforms, the state may conduct a new audit of the OLCC in the future—this time, with stricter guidelines to avoid conflicts of interest.

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