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In a report released last week, the Office of the Washington State Auditor found that the state’s “stopgap” cannabis industry product tracking technology, Cannabis Central Reporting System (CCRS), has “failed.” The report notes that the state Liquor and Cannabis Board (LCB) has no plans to implement a better system until 2031 – nearly 20 years after cannabis was legalized by voters in the state.

“A robust, ‘seed-to-sale’ tracking system has been under development for 12 years but has yet to be fully realized. The recreational cannabis market has changed throughout those years. At this time, I believe this report can serve as an important framework through which state leaders can engage with LCB to establish clear goals for ensuring accountability in our modern recreational cannabis system.” — “Evaluating Washington State Oversight of the Cannabis Industry: Follow-up issues,” Office of the Washington State Auditor, 10/22/24

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Executive Summary

State Auditor’s Conclusions (page 27)

When Washingtonians authorized growing and selling cannabis for recreational purposes in 2012, they did so through an initiative that also promised tight control of a newly legal market. In 2018, we found that a robust, computerized tracking system then under development would allow the Washington State Liquor and Cannabis Board (LCB) to track any plant or product, ensure licensee compliance, and prevent diversion to the illegal market.

With the present audit, however, we discovered that the cannabis tracking system subsequently failed. Facing the need to replace other aging information technology systems, LCB does not expect to fully implement a more effi cient tracking system until 2031 – nearly 20 years aft er the legal recreational cannabis market was authorized by voters. In my view, this performance audit off ers two important benefi ts.

First, we do make recommendations intended to help LCB make the best use of the tracking tools atits disposal today.

Second, this report serves as an important status update to elected leaders, including legislators and the governor. A robust, “seed-to-sale” tracking system has been under development for 12 years but has yet to be fully realized. Th e recreational cannabis market has changed throughout those years.

At this time, I believe this report can serve as an important framework through which state leaders can engage with LCB to establish clear goals for ensuring accountability in our modern recreational cannabis system.