PORTLAND, Ore. (KOIN) — The store owner of Shroom House, located on West Burnside Street, says that they are selling magic mushrooms, but that “they’re not a dispensary, they’re a health and wellness shop.”

KOIN 6 News started looking into this after a former employee, Kace Colwell, reached out about potential illegal sales and distribution of psilocybin. The former employee said he was led to believe the business was following Oregon law, but then told KOIN 6 he knew something wasn’t right.

“I was led to believe by management at Shroom House that this was the first, medically licensed and sanctioned place to buy psychedelics in the state of Oregon,” Colwell said. “They’re breaking all sorts of laws over there.”

Measure 109 was passed in November 2020 by Oregon voters and is now codified in Oregon Revised Statutes (ORS 475A).

Measure 109 created a two-year development period from Jan. 1, 2021 to Dec. 31, 2022, in which Oregon Psilocybin Services (OPS) has been working to set up systems and processes for the licensing and regulation of psilocybin products and provision of psilocybin services.

OPS will adopt all rules for the section by Dec. 31, 2022 and will begin accepting applications for licenses on Jan. 2, 2023. The Oregon Health Authority confirmed there are no licensed facilitators or service centers at this time.

A customer shows off the magic mushrooms he bought at Shroom House (KOIN).

“Retail sales of psilocybin are illegal under Oregon law,” said Sam Chapman, Executive Director of Healing Advocacy Fund, a nonprofit supporting the implementation of Measure 109 in Oregon with education.

“Nothing under Measure 109 or any other law allows the retail sale of psilocybin mushrooms today or in the future,” he said.

Scientific research shows that psilocybin therapy has great promise as a breakthrough mental health treatment when used in a safe and regulated manner.

“That’s why Measure 109 called for the delivery of psilocybin therapy under the care of a trained facilitator, and inside a licensed service center, ” Chapman said. “Many Oregonians stand to benefit from the healing properties of psilocybin, including those suffering from depression, anxiety and addiction, but the therapy must be delivered safely.”

KOIN 6 News also spoke with second-time customer Reshawn Davis, who bought magic mushrooms the store named “Hillbilly.”

“When I heard about this place, I thought I was trippin’ or something,” he said. “And I knew this stuff had to be real. Once I checked the reviews to see if it’s a real shop. Someone said first shroom dispensary in Oregon.”

PPB confirmed that the Narcotics and Organized Crime Unit is aware of the allegations of this store illegally selling psilocybin.

“They’re straight up just lying to people about the most basic facts about their store, about the shrooms being sanctioned,” Colwell said. “So I don’t know what else they’re willing to lie about.”