Preparing to open your own cannabis business requires a lot of preparation and coordination. We have collected a page of resources for our readers in Oklahoma who are interested in opening a business in this state.
An overview of Oklahoma Cannabis Regulations
Medical cannabis became legal in Oklahoma in April 2015, with the passage of House Bill 2154. However, this original CBD-only law provided limited access to the medication which was only available to patients with severe seizure disorders.
Then in June of 2018, Oklahomans voted in favor of State Question 788, officially making Oklahoma the 30th U.S. state to legalize marijuana for medicinal use.
The Unity Bill, as the measure was dubbed, received bipartisan support in the state House and Senate. The Washington Post called the measure “one of the most progressive medical marijuana bills in the country.”
Unlike most states with medical marijuana programs, Oklahoma’s medical marijuana law allows doctors to recommend the drug for any medical condition.
The law provides for a state-regulated system for commercial cultivation, processing, and retail of medical marijuana to be governed by the Oklahoma State Department of Health.
The DOH established the Oklahoma Medical Marijuana Authority to be the state’s regulatory body and licensing authority. OMMA oversees all licensing related to medical marijuana, including licensing for patients, caregivers, growers, processors, dispensaries, and researchers.
Basic Requirements for License Applications
Under Oklahoma law, there is no limit for the number of licenses that can be held by any entity or individual. And as of March 11, 2019, OMMA had approved licenses for 1,109 dispensaries, 1,972 growers and 553 processors.
Applicants for commercial marijuana licenses in Oklahoma must meet the following basic requirements:
- Applicants must be 25 or older.
- Individual applicants must be Oklahoma residents.
- Members, managers, and board members of entity applicants must all be Oklahoma residents.
- Entities must show that at least 75% ownership held by an Oklahoma resident.
- Unless the business entity is a Sole Proprietorship or General Partnership, the applying entity must submit a copy of the Oklahoma Secretary of State’s certificate of good standing document. For more information, visit the Oklahoma Secretary of State at www.sos.ok.gov.
- All owners must provide a background check; nonviolent felony convictions in the last two years and any other felony conviction in the last five years for any owner will disqualify the applicant.
- Dispensaries must provide proof that they are not within 1,000 feet of any entrance to any public or private school.
- Each owner will need to supply an Affidavit of Lawful Presence Form and supporting documentation if he or she is not a U.S. citizen.
- All medical marijuana operations must be at least 75% owned by an Oklahoma resident.
- Applicants must pay a non-refundable fee of $2,500. The application fee will not be refunded for applications not approved.
For a detailed list of all required documents and information, OMMA has provided a Commercial License Checklist.
Once an application has been submitted, one of three things can happen.
- If the application is deemed complete and meets all requirements, an approval letter and license will be mailed within 14 days of the application submission date.
- If an application is incomplete due to unclear or missing information or documents, you will receive email correspondence letting you know what information is missing and you’ll be able to log into your account to make corrections.
- If an application is reviewed and denied because all requirements have not been met, a denial letter stating the reason(s) for denial will be mailed within 14 days of submission.
Licenses are valid for one year from the date issued, unless the license is revoked by OMMA. A license may be renewed before it expires.
In order to keep tabs on the industry, OMMA requires license holders to maintain a seed-to-sale-tracking system. At a minimum, this system must be able to track and report on the following metrics:
- Monthly production of cannabis
- Weight of cannabis purchased at wholesale, tracked by batch numbers
- Weight of cannabis sold to patients, tracked by batch numbers
- Accounting for any waste or destroyed products
- Total sales in dollars
- Tax collected in dollars
- Tax due in dollars
On the 15th day of each month, license holders are required to submit a monthly report to OMMA. Any discrepancy in inventory that cannot be explained or a failure to submit a monthly report will subject the license holder to substantial fines.
Failure to correct any discrepancy within 30 days of written notice from OMMA will result in license revocation. Furthermore, all records must be maintained for at least seven years after the date of the report and must be accessible to auditors within 15 days of being requested.
The fine for a first offense is $5,000. Any second offense within a two-year period will result in the revocation of the license.
Below are links to the monthly reporting forms, template, and instructions.
- Monthly Reporting Forms
- Monthly Reporting Template
- Monthly Reporting Instructions
- Monthly Reporting Deadlines
A more comprehensive look at Oklahoma’s cannabis regulations and requirements is provided by Viridian Sciences, a leading provider of cannabis ERP and seed-to-sale tracking systems. That document can be found here:
Other resources to open or expand your business can be found here on CUE Cannabis. Every business needs software in order to operate effectively. The CUE Experts have identified several essential software and service categories that will help you run your business. These areas include:
- Accounting & Bookkeeping
- Business Consulting Services
- HR & Payroll
- Business Insurance
- Legal Services
If you have any questions about which of these software and services is right for you, get in touch with one of our CUE Experts.
License Forms and Documents
- Rules & Regulations
- Ownership Disclosure Form
- Proof of Location Using GPS Coordinates
- Proof of Distance from A School
- Commercial License application checklist
- Background Check Requirements
- Business Licensees: Surrender of License Form and Instructions
All questions regarding monthly reporting should be directed to OMMACompliance@ok.gov.
The Oklahoma Medical Marijuana Authority
- Phone: (405) 522-6662
- Hours: Mondays through Fridays from 8:30 a.m. to 5 p.m.
Help is available at http://omma.ok.gov/help