Since the legalization of recreational cannabis in Oregon in 2014, reports of illegal cannabis operations have emerged from across the state, prompting lawmakers to take action by 2018. Disturbing accounts of unlicensed grow sites near the California border revealed workers living in shipping containers and being guarded by armed personnel. In secret hash oil labs throughout Central Oregon and Portland, dangerous electrical setups and pressurized butane gas led to explosive incidents, resulting in significant property damage and even fatalities. Additionally, local sheriff’s deputies intercepted large quantities of processed marijuana destined for states like Texas and Florida, evading state inspections and tax regulations.
In response to the escalating concerns surrounding these illicit activities, legislators established a new grant program seven years ago aimed at bolstering law enforcement efforts to dismantle such operations. The Illegal Marijuana Market Enforcement Grant, managed by the Oregon Criminal Justice Commission, was initially funded with $3 million from cannabis tax revenues. Over the years, this funding has increased, allowing for a broader range of counties and nonprofit organizations to participate in enforcement efforts.
To date, Oregon has invested $46 million in tackling the illegal cannabis market over the past seven years. This funding has facilitated the seizure of millions of cannabis plants and provided assistance to hundreds of workers in dangerous situations. However, state agencies acknowledge that there is still limited understanding regarding the true scale of Oregon’s illicit cannabis market, even as millions are allocated annually toward combatting it.
This lack of clarity regarding the return on investment for Oregonians highlights the need for better coordination among state agencies in addressing both supply and demand for illegal cannabis. Experts and advocates emphasize that more proactive measures are necessary to protect workers and support the legal market.
During recent legislative sessions, some lawmakers have voiced a desire for deeper insights into the illicit market while reviewing presentations from the Criminal Justice Commission staff. The commission’s recent reports have incorporated enforcement data from various state agencies involved in shutting down illegal operations, including the Oregon Liquor and Cannabis Commission, which oversees cannabis licensing and compliance, as well as the Water Resources Department and the Oregon State Police.
After peaking in 2021 and 2022, the number of law enforcement raids and the amount of seized product have both decreased. Officials attribute part of this decline to a shift toward indoor grows, which are harder to detect compared to outdoor facilities and hoop houses, and are typically smaller in scale.
Many stakeholders believe that the grant program has significantly impacted the reduction of the issues that alarmed lawmakers seven years ago. However, a proposed budget appropriation outlined in January fell short of grantees’ requests, amounting to roughly $7 million less than what is needed to maintain current spending levels.
Lawmakers are now grappling with the challenge of determining the appropriate funding amount for future efforts. During a budget subcommittee meeting on public safety on February 11, co-chair Rep. Paul Evans, D-Monmouth, requested clarification from agency Director Sanchagrin regarding the financial resources necessary to achieve further progress, referencing a $20 million one-time funding increase the Legislature authorized just four years prior.
