State Audit Reveals Inaccuracies in Washington’s Cannabis Sales Reporting

22 October 2024

Washington State’s cannabis tracking system, designed to monitor the production, processing, and sale of recreational and medical marijuana, has failed to meet its long-term goals, according to a recent state audit. Despite over a decade of development since marijuana legalization, the system remains incomplete and prone to errors, undermining its purpose as a comprehensive "seed-to-sale" monitoring tool.

The audit highlighted issues stemming from leadership turnover, outdated technology, and systemic inaccuracies. Currently, the system relies on a repurposed data backup platform that cannot provide real-time tracking crucial for regulatory enforcement. These shortcomings have led to significant errors, including a stark discrepancy in 2022 cannabis sales data, which the system reported as nearly $8 billion compared to the Department of Revenue’s estimate of $1.3 billion.

The system’s limitations affect a wide range of stakeholders. Law enforcement struggles to track illegal or unsafe practices, licensed businesses face operational inefficiencies, and medical marijuana patients risk compromised safety and oversight. With a more robust tracking system not expected until 2031, concerns are growing about the state’s ability to maintain accountability, safeguard public trust, and remain competitive in a rapidly evolving cannabis industry.