Oregon: A Trailblazer in Cannabis Policy Reform

Oregon was the first state to decriminalize possession of small amounts of cannabis in 1973, downgrading it to a fine similar to a traffic offense. Voters also made Oregon among the first to approve cannabis for medical use when they approved Ballot Measure 67 in 1998.

In November 2014, Oregon became the third state (tied with Alaska) to legalize adult-use cannabis — including possession, home cultivation, and retail sales.

Oregon has made significant strides in improving its cannabis policies, but there is still important work to be done, particularly regarding employment protections. While Oregonians legalized adults’ use of cannabis, many employers still use drug testing that excludes cannabis consumers. This puts Oregon behind some other states that have enacted laws protecting cannabis consumers’ jobs post-legalization

A 2025 bill, SB 176, would have established employment protections for medical cannabis patients, among other revisions to Oregon’s medical cannabis law. The bill would have prohibited employers from making hiring or firing decisions solely based on an individual’s status as a medical cannabis patient or a positive test result for cannabis metabolites. It would also have prevented healthcare providers from denying treatment or restricting access to medical resources for patients who hold a valid medical cannabis card. While SB 176 advanced out of the Senate Judiciary Committee with amendments, it ultimately died in the Joint Committee on Ways and Means during budget negotiations. Advocates are expected to pursue similar legislation in the next session.

Ask your lawmakers to protect medical cannabis patients employment and healthcare rights by submitting our prewritten letter here.

Oregon Governor Pardoned Nearly 50,000 for Cannabis Possession

In November 2022, then-Gov. Kate Brown (D) issued pardons for 47,144 convictions for simple possession of cannabis and forgave more than $14 million in unresolved fees and fines.

Brown released a press statement saying, “Oregonians should never face housing insecurity, employment barriers, and educational obstacles as a result of doing something that is now completely legal, and has been for years.”

This mass pardon excused state-level convictions for possession of one ounce or less of cannabis prior to legalization. In order to have been eligible, possession must have been the only charge, the case could not include victims, and the individual charged must have been 21 years or older at the time of the arrest.

The Oregon Judicial Department sealed court records associated with these pardoned offenses. However, as it notes, “for some convictions – especially those from before 2005 – there may have been insufficient information for the State to determine whether the conviction met the Governor’s criteria specified in the Governor’s marijuana pardon order and described above. As a result, those convictions with insufficient data were not included in the Governor’s pardon." For convictions that weren’t pardoned, individuals can petition for expungement or a case-by-case pardon.

Gov. Brown’s pardon came in her final weeks in office.

Updated Market Conditions and Licensing

Oregon’s cannabis market remains oversupplied, keeping wholesale and retail prices among the lowest in the country. According to Oregon Liquor and Cannabis Commission (OLCC) data, as of July 2025 there were over 3,000 active marijuana licensees. Retail flower prices have averaged below $4 per gram, compared to $10 or more in East Coast markets.

The legislature has repeatedly extended moratoriums on new producer, processor, and retailer licenses, first enacted in 2019. Most recently, in 2025, it was extended until at least March 2027. The OLCC has also tightened transfer restrictions to curb license speculation and consolidation. These measures are designed to stabilize the saturated market, though critics argue they entrench existing operators.

In March 2024, the legislature passed HB 4121, which converted the blanket moratorium into a population-based licensing cap system that remains in effect throughout 2025. Under this law, Oregon now may have no more than one producer or retailer license per 7,500 residents and one processor or wholesaler license per 12,500 residents. Total cannabis sales for fiscal year 2024-25 exceeded $950 million, slightly down from the pandemic-era peak, but steady compared to 2023. State tax revenue from cannabis was about $170 million in 2024, with allocations to schools, public safety, and mental health programs. Average wholesale prices in mid-2025 were around $600 per pound for indoor flower and $300 per pound for outdoor flower, highlighting the ongoing price depression caused by oversupply.

2025 Legislative Session Highlights

In addition to SB 176, lawmakers considered several cannabis-related measures:

SB 162 would have required cannabis businesses to submit product samples to regulators for compliance testing. It also included provisions on license terms and hoop-house regulations. The bill stalled in committee and did not advance.

SB 347 aimed to tighten enforcement by disqualifying properties from farm-use tax benefits if used for unlicensed cannabis production. Supporters framed it as a tool against illegal grows, but critics warned it risked penalizing legitimate landowners. The bill died in committee.

SB 558 proposed extending hemp license reporting requirements. It passed.

HB 3724 focused on cannabis marketing restrictions, particularly limiting advertising that could appeal to minors. It would have required OLCC to adopt stricter criteria for promotions and sponsorships by licensees. The measure advanced but ultimately failed to reach final passage.

HB 3372 made technical adjustments to cannabis licensing, including clarifying water rights for hemp cultivation and refining application procedures. It was signed into law, providing regulatory certainty for cultivators and processors.

HB 3825 addressed intoxicating hemp products and synthetic cannabinoids. The law reinforced prohibitions on CBN, delta-8 THC, and other artificially derived compounds, requiring clearer testing and labeling standards. It was signed into law in 2025, bringing Oregon in line with other states tightening rules on hemp-derived intoxicants.

Social Equity and Criminal Justice

Oregon continues to fund equity grants from cannabis tax revenue. The Cannabis Equity Program received $15 million in 2025 for BIPOC-owned businesses, workforce training, and community reinvestment. Advocates, however, argue these funds are insufficient given the disproportionate harms of past enforcement.

Medical Cannabis and Home Cultivation

Oregon’s medical cannabis program, established in 1998, remains intact. Registered patients can possess up to 24 ounces and cultivate up to six mature and 12 immature plants. However, patient registry fees are the highest in the nation at $200 per year (with reduced fees for veterans, those receiving SNAP or SSI benefits, and those enrolled in the Oregon Health Plan). Patient numbers have plummeted by 81% since legal adult-use sales began, which is more than any other legalization state.

Home cultivation of up to four plants for adult-use is also legal, but patients with medical cards retain higher limits. Advocates continue to call for reduced fees and other reforms to the medical program.

Oregon Legalizes Interstate Cannabis Commerce

Looking ahead, Oregon prepared for future national reforms by signing a groundbreaking bill into law in 2019, authorizing interstate cannabis commerce. Under this law, Oregon’s governor can enter into agreements with other states where cannabis is legal to allow the import and export of cannabis products — but only once federal law permits it or if the U.S. Department of Justice issues a policy allowing such commerce.

Currently, no such federal policy exists. However, Oregon remains poised to act as soon as the opportunity arises, positioning itself as a major player in a future national cannabis market.

Cannabis Cafés and Social Consumption

Efforts to allow cannabis cafés and designated social consumption spaces have resurfaced in Oregon. In 2025, a proposed ballot initiative cleared legal review and advanced to the signature-gathering phase for the November 2026 ballot. If approved by voters, the measure would authorize licensed businesses to permit on-site cannabis consumption in lounge-style settings, similar to recent models adopted in Nevada and Colorado.

Although no legislative proposal advanced during the 2025 session, the ballot campaign represents a renewed push to expand consumer options and normalize social consumption outside of private residences. Advocates argue that Oregon’s current system leaves renters, tourists, and residents of federally subsidized housing without safe, legal places to consume cannabis. 

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