There are growing concerns among cities and counties about the implementation of Ballot Measure 109, the 2020 initiative allowing limited, legal use of psilocybin. Found in certain types of mushrooms, psilocybin is known as a recreational drug, but researchers have been exploring its potential medical value for decades. Banned by federal law in 1971, psilocybin was recently designated a “breakthrough” therapy for severe depression by the United States Food and Drug Administration (FDA). The FDA hasn’t approved psilocybin as a treatment for any disease.
Only licensed service providers will be allowed to purchase psilocybin under Measure 109, and only adults over age 21 will be allowed to patronize psilocybin service centers. Unauthorized possession, consumption, and manufacturing of psilocybin will remain illegal. However, possession of psilocybin for personal use was decriminalized under Measure 110 (along with many other drugs). Oregonians will be free to pursue psilocybin experiences at licensed facilities for any reason. Facilitators will undergo training, but medical expertise isn’t required.
While there are some countries where psilocybin can be used legally, Oregon will become the first and only U.S. state to have laws allowing use of psilocybin. That translates into uncertainty for regulators and policymakers, with further uncertainty arising out of Measure 109’s conflict with federal law. Oregon’s uniqueness might generate a significant amount of tourism, as residents of other states seek legal psilocybin experiences here in Oregon.
There have been some reports of plans to open service centers resembling resorts, but most service centers will probably look more like the offices of a therapist or counselor. Since psilocybin’s intoxicating effects last around six hours, service centers will be labor intensive operations. The legal psilocybin manufacturing industry is expected to have a limited footprint since mushroom propagation does not require much energy, water, or space, and does not produce odors or other noticeable impacts on neighbors.
Measure 109 put the Oregon Health Authority (OHA) in charge of licensing manufacturers and service centers, and the agency has until the end of the year to complete their rulemaking. They adopted rules addressing products, testing, and training programs in May, and are now drafting rules covering service centers and manufacturers. In the next few weeks, OHA will publish those draft rules and convene a Rules Advisory Committee (RAC) to evaluate them and provide feedback. An Association of Oregon Counties (AOC) legislative affairs staff member will apply to represent counties on the RAC, and AOC hopes other county officials, especially county planning officials, will apply also. Details regarding how to apply for appointment to the RAC will be announced soon.
OHA created a website where the public can find up-to-date information about this program and has produced several resources to help local governments understand what to expect and get their questions answered. They hosted a webinar for AOC members in June. A recording from this presentation is available here. The presentation slides are available here. In addition, OHA created a Frequently Asked Questions (FAQ) document specifically for local governments.
Measure 109 also created the Oregon Psilocybin Advisory Board to advise OHA regarding program rules and processes. The board is composed of members who have various types of pertinent expertise or leadership roles in certain state agencies. A local government health official was an option for one of the seats on the board, and Clackamas County Health Officer Dr. Sarah Present was appointed. The board’s next meeting is scheduled for August 4, 2022 (click here for meeting details).
Measure 109 prohibited local governments from imposing taxes or fees on psilocybin, but local governments may impose reasonable time, place, and manner regulations on both service centers and manufacturing facilities. In addition, anyone hoping to open a psilocybin business must request a Land Use Compatibility Statement (LUCS) from their local government before submitting a licensing application to OHA. OHA is working on creating a standardized LUCS form that local governments can use, which is expected to be available soon. Local governments may also choose to prohibit all psilocybin businesses within their jurisdictions, but such ordinances must be approved by voters.
Because psilocybin businesses could start getting licensed early next year and program rules are still being written, uncertainty about the program has been frustrating for local officials hoping to enact appropriate regulations before businesses start opening. The forthcoming draft rules should alleviate some uncertainty. However, in hopes of preventing businesses from starting up before appropriate regulations are enacted, a number of jurisdictions have been rushing to give their voters the option of prohibiting psilocybin businesses, at least on a temporary basis, this November.
AOC will continue monitoring the implementation of Measure 109 and highlighting opportunities for local government input as OHA’s rulemaking efforts progress.
Contributed by: Michael Burdick | Legislative Affairs Manager