Report: Despite promises, Oregon’s psilocybin program isn’t paying off

According to Willamette Weekly, “Oregon Psilocybin Services is nowhere near able to support itself,” nearly three years after voters in the state approved a ballot measure to legalize it, despite promises by its supporters that “Oregonians will have access to a life-changing program.” to connect in a safe, legal environment, and after a two-year start-up period, it would not cost the taxpayer a penny.”

The outlet noted that supporters of the 2020 election proposal, Measure 109, claimed that the royalties paid “by mushroom growers, testing labs, travel agents and service centers would defray the costs of a new bureaucracy within the Oregon Health Authority.”

That was far from the case.

“Rule income is meager because too few people are looking for the various licenses (“Stuffed Mushrooms,” WW, May 24). Only four manufacturers, two test laboratories and eight service centers were licensed. All three types of businesses pay a one-time fee of $500 and then $10,000 per year to operate. Many more presenters have been licensed (88), but they only pay $150 upfront and then $2,000 a year,” Willamette told Weekly in a story published Wednesday.

“So far this year, Psilocybin Services has collected just $318,419 in fees, OHA says. This coincides with estimates by WW. Adding up the number of permits issued and multiplying all fees brings the total to $342,425 since the program began licensing participants on January 2.”

“Supporters of Action 109 said the program would cost far more to run – $3.1 million per year. To fill at least some of that gap, Oregon lawmakers allocated $3.1 million from the taxpayer-backed general fund for the biennium that began July 1 to cover the remainder of the deficit,” the outlet continued.

Measure 109 passed by a relatively narrow majority in 2020, with 50% of Oregon voters agreeing and 44% voting against. Oregon became the first state in the country to legalize psilocybin.

Earlier this spring, Oregon Psilocybin Services, a regulatory arm of the Oregon Health Authority, announced that it had granted the first state license for a psilocybin service center in Eugene.

Oregon Psilocybin Services (OPS) Division Manager Angie Allbee called it “a historic moment as psilocybin services will soon be available in Oregon, and we appreciate the strong commitment to customer safety and access while the doors of the… Prepare service centers for opening.”

At the time of the announcement, Oregon Psilocybin Services was offering a refresher on how the program worked.

“Under the nationwide model, customers 21 and older can access psilocybin services. While they do not require prescriptions or referrals from healthcare providers, they must first complete a prep session with a licensed facilitator. If they meet the criteria to proceed, they can attend an administration session at a licensed service center where they can consume psilocybin products in the presence of a trained and licensed facilitator,” the agency explained. “Customers can then participate in optional integration sessions that provide the opportunity to engage with community resources and peer support networks for additional assistance. Once licensed, service centers may employ and/or contract with licensed facilitators who are trained to deliver preparation, management and integration sessions to customers. Service centers will sell psilocybin products made by licensed manufacturers and tested by licensed laboratories. To date, OPS has issued three manufacturing licenses, one laboratory license, five moderator licenses and 84 work permits. OPS expects to issue additional licenses and work permits in the coming months.”

The state finalized rules for the psilocybin program late last year.

Albee and André Ourso, administrator of the Oregon Center for Health Protection, said at the time that the Oregon Psilocybin Services “received over 200 written comments and six hours of comments shared in the public hearings during the November 2022 public comment period.” .

“These comments have helped further refine and improve the rules, which have now been adopted as final. The final rules are a starting point for the first nationwide regulatory framework for psilocybin services, and we will continue to evaluate and develop this work as we move forward,” they said.

In response to this week’s Willamette Weekly report, Oregon Health Authority spokesman Afiq Hisham urged patience.

“It takes time to build a new department in the state government and become 100% fee-based, especially since ORS 475A is the nation’s first regulatory framework for psilocybin services and required an intense two-year development period,” Hisham told Willamette Weekly.