Washington’s Cannabis Tracking Woes: State Still Uses Outdated Software a Decade After Legalization

It’s been over ten years since Washington legalized recreational marijuana, yet the state is still grappling with ineffective tracking systems. A recent audit reveals that Washington continues to rely on a makeshift software solution, delaying the implementation of a comprehensive digital tracking system by nearly two decades.

Audit Reveals Persistent Tracking Challenges

The Office of the Washington State Auditor released a performance audit highlighting significant shortcomings in the state’s cannabis tracking efforts. The Liquor and Cannabis Board (LCB) failed to implement a robust “seed-to-sale” system, opting instead for a temporary solution fraught with limitations.

  • LEAF System Failure: Launched in 2018, LEAF was intended to provide sophisticated tracking but faced immediate glitches.
  • Cannabis Central Reporting System: Introduced in 2021 as a backup, it remains the primary system despite its inadequacies.

Pat McCarthy, the state auditor, emphasized, “Washington’s legal cannabis marketplace employs over 100,000 people, and the risks of illegal trade are still very real.”

State’s Response: Commitment Amid Software Setbacks

In response to the audit, the Liquor and Cannabis Board defended its efforts, asserting that public safety and health remain top priorities despite the flawed tracking software.

“Our concern is that readers of this audit report may incorrectly infer that the agency has not prioritized the traceability or regulatory functions that are enacted in law,” the LCB stated. They continued, “More than ever, the agency prioritizes public safety and health in the cannabis industry.”

However, critics point out that the current system’s inability to provide real-time data and frequent errors undermine these claims. For instance, discrepancies between reported sales and estimates from the Department of Revenue highlight the system’s unreliability.

Technical Glitches and Implementation Delays

The LEAF system’s rollout was marred by technical issues from the start. Managed by three different sponsors and deputy directors within three years, the project struggled to function properly, preventing businesses from accurately reporting sales.

By 2021, the board abandoned LEAF and switched to the Cannabis Central Reporting System, hoping for a quick fix. Unfortunately, this “stopgap” solution has persisted far longer than anticipated.

Tracking System Launch Year Current Status
LEAF 2018 Scrapped in 2021
Cannabis Central Reporting Sys 2021 Still in use
New Tracking System TBD Planned for 2031

The audit notes that the new system is not expected until 2031, leaving the state reliant on outdated technology for nearly 20 years post-legalization.

Impact on the Cannabis Industry and Public Safety

The lack of a reliable tracking system poses several risks to both the industry and public safety. Without accurate tracking from production to retail, the state faces challenges in preventing illegal trade and ensuring product safety.

  • Economic Implications: Inaccurate sales data can distort the market, affecting taxation and business planning.
  • Public Health Risks: Without proper tracking, recalling unsafe products quickly becomes nearly impossible.

Furthermore, the current system’s inability to assign unique identification numbers to products complicates efforts to monitor and regulate the market effectively.

Future Plans and Ongoing Efforts

Despite the setbacks, the Liquor and Cannabis Board is not standing still. They began developing a new tracking system in November 2023, aiming to address the deficiencies of the Cannabis Central Reporting System.

The auditor’s office acknowledged the board’s efforts but criticized the prolonged timeline, attributing delays to historical project management issues and high turnover in essential roles. The board remains focused on replacing other aging IT systems, hoping to finally achieve a fully functional tracking system in the near future.

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