Oregon’s medical marijuana and psilocybin regulatory programs will officially complete their merger tomorrow, September 1, as the Oregon Health Authority (OHA) looks to reduce costs amid budget shortfalls affecting both programs.

The Oregon Medical Marijuana Program (OMMP) and Oregon Psilocybin Services (OPS) will operate together as the Oregon Psilocybin and Medical Cannabis Section (PMCS). OHA announced the restructuring earlier this summer, with the transition taking place gradually and September 1 established as the completion date.

OHA said both programs have been experiencing budget shortfalls. Before moving to combine them, the agency took cost-cutting steps that included leaving vacant positions unfilled and reducing non-personnel expenses.

“Both OPS and the Oregon Medical Marijuana Program (OMMP) are experiencing budget shortfalls,” Angela Allbee, who has served as OPS section manager, said in announcing the change. She said combining the programs was the next step as the agency looked for ways “to increase efficiency and cost-effectiveness.”

Allbee will lead the combined Medical Cannabis & Psilocybin section. Megan Lockwood, who has served as OMMP section manager, is moving to the Oregon Health Authority’s Health Licensing Office. OHA has said the transition is intended to maintain continuity and stability for staff and regulated parties.

OMMP administers Oregon’s medical marijuana patient registry and oversees regulations affecting registered medical marijuana facilities and participants. Oregon Psilocybin Services, created following voter approval of Measure 109 in 2020, regulates psilocybin manufacturers, service centers, facilitators and laboratories. Oregon began accepting psilocybin license applications in January 2023.

The merger comes as Oregon is separately considering significant changes to psilocybin licensing fees in an effort to improve the program’s financial sustainability. A 21-day public comment period on those proposed rules begins September 1 and runs through September 21, with revised rules currently scheduled to take effect January 1, 2027.