The Washington State Auditor has issued a performance audit evaluating the effectiveness of Washington’s oversight of its cannabis industry.
Released under the title “Evaluating Washington State Oversight of the Cannabis Industry,” the report outlines critical shortcomings in the state’s cannabis tracking system—a cornerstone promised to voters in 2012 with the passage of the recreational cannabis legalization initiative.
Initially, Washington State’s Liquor and Cannabis Board (LCB) aimed to implement a comprehensive “seed-to-sale” tracking system designed to monitor every stage of cannabis production and distribution. In 2018, the auditor’s office found this system under development, expressing confidence it would safeguard compliance, prevent illegal market diversions, and ultimately enhance transparency. However, the new audit reveals that the anticipated system has faltered, and the LCB now projects it won’t be fully functional until 2031, nearly 20 years after voters initially approved recreational cannabis.
Washington State Auditor Pat McCarthy emphasized two key outcomes from the performance audit. First, the report recommends that the LCB improve its use of current tools for tracking and regulatory enforcement. Second, it delivers a critical update to Washington’s elected officials, spotlighting the need for stronger accountability frameworks and clear objectives for state cannabis oversight.
The Joint Legislative Audit and Review Committee (JLARC) will review the audit findings, and the public is encouraged to attend and comment at an upcoming hearing by the Initiative 900 Subcommittee. Further details on the date and location will be available on JLARC’s website. Additionally, the auditor’s office plans to conduct follow-up evaluations to ensure recommendations are implemented and may initiate follow-up audits if needed.
You can find the full audit by clicking here.
