Oklahoma Cannabis Business Licensing Requirements. What You Need to Know.

Oklahoma Cannabis Business Licensing Requirements. What You Need to Know.
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This Past November, Voters in Oklahoma approved a ballot measure (Question 2) making the Sooner State the 30th in the nation to allow access to medical cannabis. The Bill is Called SQ788 (Question 2).

The proposal, which passed by 57% to 43% margin, will allow doctors to recommend cannabis for any medical condition they see fit. It also allows for commercial cannabis licenses in 5 different categories.

Here’s the skinny…..

What Is Allowed

Basically everything. Raw flower, oils, tinctures, edibles, pills, topical forms, gels, creams, forms medically appropriate for administration by vaporization or a nebulizer, patches, tinctures, and liquids

Patient Access to Medical Marijuana

Home cultivation of six mature plants and six seedlings is allowed, as is possession of up to one ounce of cannabis concentrates and 72 ounces of marijuana-infused edible products. Patients can also designate a caregiver to purchase or grow medicine for them.

A person in possession of a state issued medical marijuana license shall be able to:

Consume marijuana legally;

 

·         Legally possess up to three (3) ounces of marijuana on their person;

·         Legally possess six (6) mature marijuana plants;

·         Legally possess six {6) seedling plants;

·         Legally possess one (1) ounce of concentrated marijuana;

·         Legally possess seventy-two {72) ounces of edible marijuana; and

·         Legally possess up to eight (8) ounces of marijuana in their residence.

 

Possession of up to one and one-half {1.5) ounces of marijuana by persons who can state a medical condition, but not in possession of a state issued medical marijuana license, shall constitute a misdemeanor offense with a fine not to exceed Four Hundred Dollars ($400.00).

The license will be good for two (2) years, and the application fee will be One Hundred Dollars ($100.00), or Twenty Dollars ($20.00).

A temporary license application will also be available on the Oklahoma Department of Health website. A temporary medical marijuana license will be granted to any medical marijuana license holder from other states,

approval or rejection letter (stating reasons for rejection) to the applicant within fourteen {14) days of receipt of the application.

All applicants must be eighteen {18) years or older. A special exception will be granted to an applicant under the age of eighteen (18), however these applications must be signed by two (2) physicians and the applicant's parent or legal guardian.

 

Cannabis Business Licensing Application

 

A commercial establishment license shall be issued for a twelve (12) month period expiring one (1) year from the date of issuance. The license may be issued upon receipt of a completed application, payment of application fee and verification by the Department.

Requirements::

 

·         information about the establishment        

·         Name of the establishment;

·         Physical address of the establishment; GPS coordinates of the establishment; and

·         Phone number and if available, email of the establishment.

·         Full name of organization;

·         Trade name, if applicable;

·         Type of business organization;

·         Mailing address;

·         An attestation that the commercial entity will not be located on tribal lands;

·         Telephone number and email address; and The name, residence address, and date of birth of each owner and each member, manager, and board member, if applicable.

·         A list of all persons and/or entities that have an ownership interest in the entity;

·         A certificate of good standing Affidavit of Lawful Presence

·         If a licensed dispensary, proof that the proposed location of the dispensary is a least one thousand (1,000) feet from a public or private school.

·         Documents establishing the applicant, the members, managers, and board members, if applicable, and seventy-five percent (75%) of the ownership interests are Oklahoma residents

 

Licenses Available

 

·         Dispensary

·         Commercial Grow License

·         Processor License

·         Secure Transport License

·         Research License

 

Universal Regulations for All Licenses

 

·         No city or local municipality may unduly change or restrict zoning laws to prevent the opening of a retail marijuana establishment.

·         The location of any retail marijuana establishment is specifically prohibited within one thousand (1,000) feet from any public or private school entrance.

·         Applicants are required to obtain an Oklahoma State Bureau of Narcotics and Dangerous Drugs Control ("OBNDD") registration

 

Criminal history screening

Prior to issuance of any dispensary, grower, processor, transportation, or researcher license authorized by this Chapter, the following shall undergo an Oklahoma state criminal history background check within thirty (30) days prior to the application for the license:

 

Requirements:

 

·         Individual applicants applying on their own  behalf;

·         All owners of any applicant for a dispensary, grower, processor, or transportation licenses; and

·        For research license applicants, all principal investigators involved in the research project.

·        Proof of residency

·        An unexpired Oklahoma issued driver's license;

·        An Oklahoma Identification Card;

·        An Oklahoma voter identification card;

Location    

A  business establishment license shall only be valid for a single location at the address listed on the application.

 

License Renewal

Licensee’s have thirty (30) days from date of expiration to liquidate and transfer all medical marijuana products to another commercial establishment that is licensed


Proof of Residency

Applicants must submit any of the following:

·        A utility bill for the calendar month preceding the date of application, excluding cellular telephone and internet bills;

·        A residential property deed to property in the State of Oklahoma; (6) A current rental agreement for residential property located in the State of Oklahoma; or

·         Other documentation that the Department deems sufficient to establish residency.

 

Proof of Identity

 

Requirements:

 

·       Front and back of an Oklahoma Driver's License

·       Front and back of an Oklahoma Identification Card

·       A United States Passport or other photo identification issued by the United States government

·      Certified copy of the applicant's birth certificate for applicants who do not possess other documentation

·      A tribal identification card approved for identification purposes by the Oklahoma Department of Public Safety.

 

Applicant photograph

 

Requirements:

 

·         scanned photograph shall be scanned at a resolution of 300 pixels per inch from a 2 x 2 inch image with dimensions in a square aspect ratio (the height must be equal to the width).

·         A captured image must have minimum acceptable pixel dimensions of 600 x 600 pixels and maximum acceptable pixel dimensions of 1200 x 1200 pixels.

·         Be taken within the last six (6) months to reflect the applicant's appearance;

·         Be taken in front of a plain white or off-white background;

·         Be taken in full-face view directly facing the camera at eye level with nothing obscuring the face, such as a hat or eyewear:

·         If a hat or head covering is worn for religious purposes, submit a signed statement that verifies the hat or head covering in the photo is part of recognized, traditional religious attire that is customarily or required to be worn continuously in public.

·         If a hat or head covering is worn for medical purposes, submit a signed doctor's statement verifying the hat or head covering in the photo is used daily for medical purposes.

·         The applicant's full face must be visible and your hat or head covering cannot obscure your hairline or cast shadows on your face.

·         Be  taken with a neutral facial expression (preferred) or a natural smile with the mouth closed, and with both eyes open;

·         Not be digitally enhanced or altered to change the appearance

 

Transfer of license

Commercial licenses may not be transferred and Licenses may not be changed from one business type to another.

Inventory tracking, records, reports, and audits

The State requires a seed-to-sale tracking system that tracks medical marijuana from either the seed or immature plant stage until the medical marijuana or medical marijuana-infused product

 

Monthly Reports

Each commercial licensee shall utilize an inventory management system to maintain records and shall complete a monthly report on a form prescribed by the Department. These reports shall be deemed untimely if not received by the Department by the fifteenth (15th) of each month for the preceding month.


purchased, which shall include:

 

·         The license number of the selling entity; and

·         The quantity and type of medical marijuana purchased.

·         If researcher, documentation of every instance in which medical marijuana was used for research, including the quantity and type   of medical marijuana used

 


·         licensee;

 

If necessary, a detailed explanation of why any medical marijuana product purchased by the licensee cannot be accounted for as having been sold or still remaining in inventory;

Total dollar amount of all sales to medical marijuana patients and caregivers; and

Total dollar amount of all taxes collected from sales to medical marijuana patients and caregivers.

 

Grower reports shall include:

 

·         The amount of marijuana harvested in pounds;

·         The amount of marijuana sold to processor licensees in pounds; (C) The amount of marijuana sold to researcher, dispensary, and processor licensees in pounds;

·         The amount of drying or dried marijuana on hand; (E)      The amount of marijuana waste in pounds;

·         If necessary, a detailed explanation of why any marijuana cannot be accounted for as having been sold, disposed of, or maintained in current inventory; and

·         Total dollar amount of all sales to processer, dispensary, and researcher licensees.

 

Processor reports shall include:

 

·         The amount of marijuana purchased from grower licensees in pounds;

·         The amount of marijuana sold to dispensary, processor, and researcher licensees in pounds;

·         The amount of medical marijuana manufactured or processed in pounds;

·         If necessary, a detailed explanation of why any marijuana cannot be accounted for as having been purchased, sold, processed, or maintained in current inventory; and

·         The amount of marijuana waste in pounds.

 

 Researcher reports shall include:

 

·         The amount of marijuana purchased from commercial establishments in pounds.

·         The amount of medical marijuana used for  research.

·         The amount of marijuana waste in pounds;

·         If necessary, a detailed explanation of why any marijuana cannot be accounted for as having been purchased, used for research, or maintained in current inventory.

 

Dispensary reports shall include:

 

·         The amount of marijuana purchased from a licensed processor in pounds;

·         The amount of marijuana purchased from a licensed grower in pounds;

·         The amount of marijuana sold to licensees and the type of

 

Records.

Pursuant to the Department's audit responsibilities, commercial establishments shall keep a copy of the following records for at least seven (7) years from the date of creation:

 

·         Business records, such as manual or computerized records of assets and liabilities, monetary transactions, journals, ledgers, and supporting documents, including agreements, checks, invoices, and vouchers;

·         Documentation of every instance in which medical marijuana was sold, which shall include:

·         The identification number associated with the receiving license; and

·         The quantity and type of medical marijuana sold;

·         Documentation of every instance in which marijuana was.

 

Inventory.

 Each commercial licensee shall obtain and maintain an electronic inventory management system that:

 

Documents the chain of custody of all medical marijuana and medical marijuana products;

Establishes ongoing inventory controls and procedures for the conduct of inventory reviews and comprehensive inventories of medical marijuana and medical marijuana products for traceability which shall enable the licensee to detect any diversion, theft, or loss in a timely manner;

Identifies and tracks a licensee's stock of medical marijuana and medical marijuana products from the time the medical marijuana is propagated at the time it is sold to a patient or caregiver;

In event of a serious adverse event or recall, is capable of tracking medical marijuana or medical marijuana product from a patient back to the source of the medical marijuana or medical marijuana product; and

Tracks medical marijuana using an assigned batch number and bar code.

 

Penalties

 

Failure to file timely reports

If a licensee fails to submit a required monthly report, they will have 30 days to submit it or their license will berevoked

Inaccurate reports.

Within a two (2) year period of time, the first finding of inaccurate report(s): Five thousand dollar ($5,000.000)

 

Commercial License Details

 

Dispensary Licenses

The application fee shall be Two Thousand Five Hundred Dollars ($2,500.00) and a method of payment will be provided on the website.

Retail applicants must all be Oklahoma state residents.

Oklahoma State Department of Health shall have two (2) weeks to review the application, approve or reject the application

And Here’s the good news…..

Requirements:

·       Applicant must be age twenty-five (25) or older;

·       Any applicant, applying as an individual, must show residency in the state of Oklahoma;

·       All applying entities must show that all members, managers, and board members are Oklahoma residents;

·       An applying entity may show ownership of non-Oklahoma residents, but that percentage ownership may not exceed twenty-five percent {25%);

·       All applying individuals or entities must be registered to conduct business in the state of Oklahoma;

·       All applicants must disclose all ownership;

·       Applicant(s) with only nonviolent felony conviction(s) in the last two (2) years, any other felony conviction in 5 (years), inmates, or any person currently incarcerated may not qualify for a medical marijuana dispensary license.

 

Retailers have to complete a monthly sales report to the Oklahoma Department of Health.

It’s due on the 15th of each month and provide reporting on the previous month. This report has to  detail the weight of marijuana purchased at wholesale and the weight of marijuana sold to card holders, and account for any waste. The report must also show total sales in dollars, tax collected in dollars, and tax due in dollars.

Penalties for fraudulent reporting occurring within any 2 year time period will be an initial fine of Five Thousand Dollars ($5,000.00) (first) and revocation of licensing (second).

Penalties for fraudulent sales occurring within any 2 year time period will be an initial fine of Five Thousand Dollars ($5,000.00) (first) and revocation of licensing (second).

 

Commercial Grow Licenses

State Department of Health will within thirty (30) days of passage of this initiative, make available, on their website, in an easy to find location, an application for a commercial grower license. The application fee will be Two Thousand Five Hundred Dollars ($2,500.00) and methods of payment will be provided on the website. The Oklahoma State Department of Health has two (2) weeks to review application, approve or reject the application, and mail the approval/rejection letter

Requirements:

·         Applicant must be age twenty-five (25) or older;

·         Any applicant, applying as an individual, must show residency in the state of Oklahoma;

·         All applying entities must show that all members, managers, and board members are Oklahoma residents;

·         An applying entity may show ownership of non-Oklahoma residents, but that percentage ownership may not exceed twenty-five percent (25%};

·         All applying individuals or entities must be registered to conduct business in the state of Oklahoma;

·         All applicants must disclose all ownership;

·         Applicant(s) with only nonviolent felony conviction(s) in the last two (2) years, any other felony conviction in 5 (years), inmates, or any person currently incarcerated may not qualify for a commercial grower license.

 

A licensed commercial grower may only sell at the wholesale level to a licensed retailer or a licensed processor. If the federal government lifts restrictions on buying and selling marijuana between states, then a licensed commercial grower would be allowed to sell and buy marijuana wholesale from, or to, an out of state wholesale provider.

 

Licensee’s are required to complete a monthly yield and sales report 15th of each month, which detail…

·         amount of marijuana harvested in pounds

·         the amount of drying or dried marijuana on hand

·         the amount of marijuana sold to processors in pounds

·         the amount of waste in pounds, and the amount of marijuana sold to retailers in lbs.

 

Additionally, this report will show total wholesale sales in dollars.

 

Penalties for fraudulent reporting or sales occurring within any 2 year time period will be an initial fine of Five Thousand Dollars ($5,000.00) (first) and revocation of licensing (second).

 

Processing Licenses

 

State Department of Health shall within thirty (30) days of passage of this initiative, make available, on their website, in an easy to find location, an application for a medical marijuana processing license. The application fee shall be Two Thousand Five Hundred Dollars ($2,500.00)

 

The State has two (2) weeks to review the application, approve or reject the application, and mail the approval/rejection letter

 

Requirements:

 

·         Applicant must be age twenty-five (25) or older;

·         Any applicant, applying as an Individual, must show residency in the state of Oklahoma;

·         All applying entities must show that all members, managers, and board members are Oklahoma residents;

·         An applying entity may show ownership of non-Oklahoma residents, but that percentage ownership may not exceed twenty-five percent (25%);

·         All applying individuals or entities must be registered to conduct business in the state

·         of Oklahoma;

·         All applicants must disclose all ownership;

·         Applicant(s) with only nonviolent felony conviction(s) in the last two (2) years, any other felony conviction in 5 (years), inmates, or any person currently incarcerated may not qualify for a medical marijuana processing license.

·         A licensed processor may take marijuana plants and distill or process these plants into concentrates, edibles, and other forms for consumption.  State  Dept. within 60 days available a set of standards which will be used by licensed processors in the preparation  of  edible marijuana products.

·         monthly yield and sales report due the15th of each month for the previous month. This report must include:

o   amount of marijuana purchased in pounds, the amount of marijuana cooked or processed in pounds, and the amount of waste in pounds

o   report will show total wholesale sales in dollars.

 

Licensee’s will be subject to a penalty if a gross discrepancy exists and cannot be explained. Penalties for fraudulent reporting occurring within any 2 year time period will be an initial fine of Five Thousand Dollars ($5,000.00) (first) and revocation of licensing (second).

 

 

The newly elected Oklahoma Marijuana Regulatory Board (12 members) is creating a list of food safety standards for processing and handling medical marijuana in Oklahoma

 

 

Transportation License

 

Requirements:

 

A transportation license will allow the holder to transport marijuana from an Oklahoma licensed medical marijuana retailer, licensed growing facility, or licensed processor facility to an Oklahoma licensed medical marijuana retailer, licensed growing facility, or licensed processing facility.

 

All marijuana or marijuana products shall be transported in a locked container and clearly labeled "Medical Marijuana or Derivative".

 

Research License

 

A researcher may apply to the Oklahoma Department of Health for a special research license.

Licensse’s are also required to file monthly consumption reports to the Oklahoma Department of Health with amounts of marijuana used for research.

 

Taxes

 

The tax on retail medical marijuana sales will be established at seven percent {7%} of the gross amount received by the seller. This tax will be collected at the point of sale. Tax proceeds will be applied primarily to finance the regulatory office.

 

If proceeds from the levy authorized by subsection A of this section exceed the budgeted amount for running the regulatory office, any surplus shall be apportioned with seventy-five percent {75%} going to the General Revenue Fund and may only be expended for common education. Twenty-five percent {25%} shall be apportioned to the Oklahoma State Department of Health and earmarked for drug and alcohol rehabilitation.

Taxes shall be paid to the Oklahoma Tax Commission on a monthly basis. no later than the 20th day of the month

There are definitely more updates and revisions to come, but for now I hope I’ve cleared away some of the foggy mystery that surrounds obtaining a Cannabis Business License in Oklahoma. Bye for now. 

New Leaf Cannabis Consulting is a Full Service Cannabis Business Licensing, Management, and Funding Consultancy Agency. We provide Business Plans, Financials, Licensing Submission, Operations Manuals, Blueprint Assistance and Management, Branding and Packaging Design and Much More.

For assistance in obtaining a Cannabis License in Your State, you can reach us at….


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