© 2019 by The J. Whitney Group.

All Regional Laws Apply to The JWG Services

Cannabis Business Consulting
  • Facebook Social Icon
  • Instagram Social Icon
  • Twitter Social Icon
  • YouTube Social  Icon
  • LinkedIn Social Icon

The J.Whitney Group, LLC

8565 S. Eastern Ave. 

Las Vegas, NV 89123

Bldg. 150 | Ste.172

P: 702.623.5543

E: cannabusiness@jwhitneygroup.com

  • Taylor H.

Oklahoma Marijuana Business Regulations Made Easy




MORE ABOUT THE REGULATIONS...

You have seen the simple one-page grid with the simple questions and answers about the Oklahoma marijuana regulations, and now you want to know more.


You're in luck! Throughout the rest of this piece you will find more information about:

  • Oklahoma marijuana business licenses

  • Marijuana business ownership requirements

  • Important points to keep in mind once licensed

  • Building requirements

  • Security requirements

  • Compliance Inspections

  • Inventory Control

  • Record Keeping

  • License Type Specific Regulations (Dispensary, Processor, Grower/Commercial Establishment)


OKLAHOMA MARIJUANA BUSINESS LICENSE TYPES

You may be unfamiliar with what each of the license types (dispensary, grower, producer, researcher) is, and what business activities they are each allowed to participate in. Here are the simple definitions of the marijuana business license types in Oklahoma.




Dispensary or Retailer

A business that has been licensed by the Oklahoma Medical Marijuana Authority (OMMA) following the rules and process on omma.gov, which is allowed to purchase medical marijuana from a licensed processor or a licensed grower, and to sell that medical marijuana to qualified medical marijuana patients, or their parents /guardian(s), and caregivers.


Grower or Commercial Grower

A business that has been licensed by the Oklahoma Medical Marijuana Authority (OMMA) following the rules and process on omma.gov, which is allowed to grow, harvest, and package medical marijuana for the purpose of selling medical marijuana to a dispensary, processor, or researcher.


Processor

A business that has been licensed by the by the Oklahoma Medical Marijuana Authority (OMMA) following the rules and process on omma.gov, which is allowed to: purchase marijuana from a commercial grower; prepare, manufacture, process, package, sell to, and deliver medical marijuana products to a dispensary or to another processor. A processor is also allowed to manufacture medical marijuana concentrate from marijuana received from a qualified MMJ patient, for a fee.


Researcher

Yet to be defined. There is space reserved in SQ 788 (regulation) for further explanation about researcher licenses. It would be safe to assume that this license has something to do with conducting medical marijuana research.


Transportation

This license type is issued along with dispensary, grower, processor and researcher licenses. Transportation licenses allow dispensary, grower, and processor license holders to transport marijuana from an Oklahoma licensed dispensary, grower, or

processor, to an Oklahoma licensed dispensary, grower, processor, or researcher *.


* Licensed researcher establishments with a transportation license may only transport marijuana purchased from a licensed dispensary, licensed grower or licensed processor back to their research site.





PRE-LICENSE

APPLICATION REQUIREMENTS FOR PROPOSED OWNERS

REQUIREMENTS FOR OWNERS OF OKLAHOMA MARIJUANA BUSINESS LICENSES

The marijuana business application requires that proposed owners do 6 simple things in order to provide a complete and correct application:

  1. Undergo a criminal screening at least 30 days before applying for a license

  2. Obtain an OBNDD

  3. Prove Oklahoma residency

  4. Prove identity

  5. Provide a personal photograph

  6. Fill out the application per the directions provided before submitting to OMMA


More about the 6 simple requirements for proposed owners of an Oklahoma marijuana business:

#1 Criminal Screening

  • The criminal screening must be conducted at least 30 days prior to submitting a marijuana business license application to OMMA.

  • Every individual on the proposed ownership team of a dispensary, grower, processor and/or researcher license must undergo criminal screening. ** For research licenses, all researchers must undergo criminal screening.

  • Criminal screenings are to be conducted through the Oklahoma State Bureau of Investigations [http://osbi.ok.gov]

#2 Acquire an OBNDD

All owners and research team members must acquire an Oklahoma State Bureau of Narcotics Dangerous Drugs Control (OBNDD) registration from [www.ok.gov/obndd] before handling marijuana or marijuana products.


#3 Prove Oklahoma Residency

To prove Oklahoma residency, provide one of these:

  • 1 unexpired Oklahoma issued driver's license;

  • 1 Oklahoma Identification Card;

  • 1 Oklahoma voter identification card;

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

  • 1 residential property deed to the property in the State of Oklahoma;

  • 1 current rental agreement for residential property located in the State of Oklahoma; or

  • 1 other documentation that the Department deems sufficient to establish residency.


#4 Prove Identity

Prove identity by providing a color copy or digital image of one of the following:

  • Front and back of an Oklahoma Driver's License;

  • Front and back of an Oklahoma ID card;

  • 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 any of the 3 previously listed documents

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


#5 Provide Personal Photograph

Before you read each of the requirements below, we'll boil it down to: submit a professionally taken passport photograph for each proposed owner.


The person in the photo must:

  • Include head and shoulders in the photo

  • Face the camera directly

  • Not wear eyeglasses or hats (unless traditionally religious)

  • Not show teeth

  • Keep eyes open


The photo itself must:

  • Be in front of a white background

  • Be taken no more than 6 months prior to application submission

  • Be a .jpg, .png or .gif

  • Be no larger than 3 MB

  • Not be digitally enhanced or edited

  • Pixels between 600 x 600 pixels and 1200 x 1200.

  • Be a perfect square


#6 Fill out the license application correctly and completely before submitting

The OMMA has a ton of applications to deal with, so make their jobs easier and your life easier by properly completing the license application the first time. Complete the application per the guidance and direction provided by the Oklahoma Medical Marijuana Authority, which can be found here.



LICENSED OPERATIONS

You received your cannabis business license in Oklahoma, now what? Now it's time to set up your operations. Many entrepreneurs underestimate how important the engineering and design phase is to the overall success of their operation. You can spend twice as much to fix design mistakes during construction, or you can spend the time and money upfront to engineer and design our facility accordingly.


POINTS TO KEEP IN MIND ONCE LICENSED

Time

Each license is valid for a 12-month period and then requires renewal through OMMA prior to the license expiring.


Location

Every single license is valid for a single location, at the address listed on the application.


Grounds for license revocation or fines:

  • Failure to renew the license

  • Sale of medical marijuana to a non-cardholder

  • Sale of marijuana and marijuana products in excess of the limit of 3oz flower, and 72oz extract products per transaction.

  • Refusing compliance inspection

  • Excessive failure to comply with rules

  • Criminal activity


BUILDING REQUIREMENTS

All cannabis business establishments shall meet the standards of any applicable state and local codes including but not limited to the codes adopted by the Oklahoma Uniform Building Code Commission regarding:

  • electrical

  • fire

  • plumbing

  • waste

  • building specification


SECURITY REQUIREMENTS

Currently, Oklahoma has surprisingly few security specifications regarding cannabis businesses. The 2 explicit security requirements include:

  • Cannabis business licensees are expected to implement appropriate security measures to deter and prevent the unauthorized entrance into areas containing marijuana and the theft and diversion of marijuana.

  • Cannabis business licensees are responsible for the security of all marijuana items on the licensed premises or all marijuana items in their possession during transit.


COMPLIANCE INSPECTIONS

Maintaining compliance with marijuana regulations is key for all marijuana businesses. Failure to comply with regulations can lead to hefty fines, operational delays, and even business closure. Here's how Oklahoma will deal with maintaining compliance in cannabis businesses.


Department Inspections

The Department (OMMA) may conduct inspections of a dispensary, grower, processor or researcher, either announce or un-announced on its own volition. The Department will also conduct inspections when they receive a complaint about a marijuana business' compliance violation.


Requests for Information

The Department may request to see company records and any other items or documents deemed necessary for a complete inspection. The licensed marijuana business must provide the requested information within 15 days.


Compliance Violation

In case of a compliance deficiency, the Department will provide a compliance violation report. The compliance deficiency must be fixed within 30 days. If compliance deficiencies are not resolved within 30-days, The Department may fine the marijuana business $500 for each deficiency.


Criminal Activity

If there is any suspected or reported criminal activity, The Department will report such activity to the appropriate law enforcement.



INVENTORY CONTROL

Inventory control is a crucial component of operating any cannabis business. Knowing where a product is at all times and keeping accurate and up to date records helps ensure that there is no theft or diversion occurring within the business. This is extremely important to the state department because their goal in regulating cannabis was to legitimize the business and hold it to the same standards as all other business (in some cases, higher standards). The last thing they want is for their legitimately licensed businesses to be feeding the black market. Keep your inventory records well to build your business's reputation as a good operator.


Systems Required

Each Grower, Dispensary, Processor, and Researcher must maintain an electronic inventory management system.


Requirements of the electronic inventory management system:

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

  • Identifies and tracks a licensee's stock of medical marijuana and medical marijuana products from the time the medical marijuana is propagated to the time it is sold

  • 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.

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


Physical inventory management system:

  • In conjunction with the electronic inventory management system, a licensee must establish ongoing inventory controls and procedures for conducting inventory reviews to enable the licensee to detect any diversion, theft, or loss in a timely manner.

  • The records from these daily, weekly and monthly inventory reviews shall be recorded in the electronic inventory control system.


Monthly Reporting

Each Grower, Dispensary, Processor, and Researcher must submit an inventory report to The Department (OMMA) by the 15th of each month. Each report submitted will provide the required information for the month before. Ex: if you are submitting a report on June 15, that report should contain information for the month of May.


The Department (OMMA) will provide the form for reporting. Each licensed business type has unique reporting requirements, listed below:


Dispensary Inventory reports must include:

  • The number of pounds of marijuana purchased from a licensed processor

  • The number of pounds of marijuana purchased from a licensed grower

  • The number of pounds of marijuana sold to a licensed processor

  • The number of pounds of marijuana sold to a licensed grower

  • The number of pounds of marijuana sold to a licensed researcher

  • Total $$$ dollar amount of sales to medical marijuana patients and caregivers

  • Total $$$ dollar amount of taxes collected from sales to patients and caregivers

  • A detailed explanation of an inability to account for any medical marijuana as either sold or in inventory (loss, theft, waste...).


Grower Inventory reports must include:

  • The number of pounds of marijuana harvested

  • The number of pounds of marijuana sold to processor licensees

  • The number of pounds of marijuana sold to researcher

  • The number of pounds of marijuana sold to a dispensary

  • The total amount of pounds of marijuana sold

  • The number of pounds of drying or dried marijuana on hand

  • The number of pounds of marijuana which was or will be disposed of (waste)

  • A detailed explanation of why any marijuana cannot be accounted for as having been sold, disposed of or maintained in current inventory (loss? theft?)

  • The total dollar amount of all sales to processor, dispensary, and researcher licensees.


Processor reports must include:

  • The number of pounds of marijuana purchased from grower licensees in pounds;

  • The number of pounds of marijuana sold to dispensary, processor, and researcher licensees

  • The number of pounds of medical marijuana manufactured or processed in pounds;

  • A detailed explanation of why any marijuana cannot be accounted for as having been purchased, sold, processed, or maintained in current inventory

  • The number of pounds of marijuana waste


Researcher reports must include:

  • The number of pounds of marijuana purchased from commercial establishments

  • The number of pounds of medical marijuana used for research

  • The number of pounds of marijuana waste

  • A detailed explanation of why any marijuana cannot be accounted for as having been purchased, used for research, or maintained in current inventory.


RECORD KEEPING

The following records must be kept for at least 7 years.


Business records, such as records of:

  • assets and liabilities

  • monetary transactions

  • journals

  • ledgers

  • agreements

  • checks

  • invoices

  • vouchers

Documentation of every medical marijuana sale, including:

  • The identification number associated with the receiving license

  • The quantity and type of medical marijuana sold

Documentation of every instance in which marijuana was purchased, including:

  • The license number of the selling entity

  • The quantity and type of medical marijuana purchased.

Researcher records must include

  • Documentation of every instance in which medical marijuana was used for research, including the quantity and type of medical marijuana used.


LICENSE TYPE SPECIFIC REGULATIONS

Everything above this section applied to all Oklahoma marijuana license type. Now, we are getting into some regulations which apply specifically to particular license types.


DISPENSARY

Tax Reporting

Dispensaries are responsible for charging sales tax on medical marijuana at the point of sale.


Sales Tax = 7% of gross sales


Monthly tax reporting and payment is required and must be submitted to the Oklahoma Tax Commission by the 20th day of each month, for the preceding month, on the topics of:

  • Gross sales

  • Tax collected

  • Tax due

The monthly report shall include:

  • Dispensary name

  • Dispensary address

  • Dispensary phone number

  • Dispensary license number

  • Month and year

  • Total gross sales receipts from the preceding month

  • Amount of tax due (7% of gross sales)

Sales allowance

  • three (3) ounces of usable marijuana

  • one (1) ounce of marijuana concentrate

  • seventy-two (72) ounces of medical marijuana products

  • six (6) mature plants, and/or six (6) seedling plants

Age requirement

Patients and caregivers must be at least 18 years old to enter a dispensary.


Prohibited Acts

  • Marijuana delivery

  • Sale to individuals under the age of 18

  • Selling more than the sales allowance

  • Allowance of consumption of marijuana or alcohol on premises

  • False advertising

  • Advertising to entice minors

  • Diversion


GROWER/COMMERCIAL ESTABLISHMENT

Packaging and Labeling

  • No package shall contain greater than 3 ounces of medical marijuana

  • Labels and packaging must not be attractive to minors

  • Packaging must contain a label that reads: "Keep out of reach of children."

  • All medical marijuana and medical marijuana products must be packaged in child-resistant packages.

  • A label must contain a warning that states "Women should not use marijuana or medical marijuana products during pregnancy because of the risk of birth defects."

Prohibited Acts

  • Allowance of consumption of marijuana or alcohol on premises

  • False advertising

  • Advertising to entice minors

  • Sale of

  • Diversion

  • Use of prohibited pesticides

  • Selling marijuana to patients or caregivers


PROCESSOR

Recommended Processor Best Practice

The Department suggests that processors adopt a Hazard Analysis and Critical Control Plan ("HACCP")


Prohibited Acts

  • Allowance of consumption of marijuana or alcohol on premises

  • False advertising

  • Advertising to entice minors

  • Diversion

Food Safety Standards

Processors must comply with food safety standards for edible marijuana products in all parts of the process, including:

  • preparation

  • production

  • manufacturing

  • processing

  • handling

  • packaging

  • labeling

Labeling Requirements

Proper labeling of processed marijuana products is crucial for consumer information and safety. Processors must affix compliant labels to all edible marijuana packaging.


Primary informational labels must include:

  • Name and address of the business

  • Name of the food

  • Net quantity or weight of content

  • Ingredients list

  • Food allergen information

  • List of cannabis ingredients

  • The batch of marijuana

  • The strain of marijuana (optional)

  • THC dosage in milligrams per unit

  • The lot code

  • Oklahoma uniform symbol 1in x 1in in color

  • The statement, "for accidental ingestion call 1-800-222-1222."

  • A warning that states, "Women should not use marijuana or medical marijuana products during pregnancy because of the risk of birth defects or while breastfeeding."

Reference the Food and Drug Administration (FDA) Food and Labeling Guide


Testing Requirements

To ensure that edible marijuana products are safe for human consumption, processors must test edible marijuana products.


Frequency: one time per quarter


Product amount tested: one lot of each type of edible product


Records: testing records must be kept for 3 years


Penalty for failure: failed products must be failed or recalled immediately. If recalled, the processor must notify The Department.


Testing categories:

  • Microbials

  • Solvent and chemical residue

  • Metals

  • Pesticide residue

  • Potency

  • Contaminants and filth

Testing Thresholds

Note* CFU=Colony Forming Unit : a unit used to estimate the number of viable bacteria or fungal cells in a sample.


Microbials

  • all products must be tested for aerobic plate counts

  • Salmonella - less than 1 CFU/gram

  • E.coli - less than 1 CFU/gram

  • Yeast - less than 104 CFU

  • Mold - less than 104 CFU

Solvent and chemical residue

  • Acetone < 1,000 ppm

  • Benzene < 2 ppm

  • Butanes/Heptane < 1,000 ppm

  • Hexane < 60 ppm

  • Isopropyl Alcohol < 1,000 ppm

  • Pentane < 1,000 ppm

  • Propane < 1,000 ppm

  • Toluene < 180 ppm

  • Total Xylenes (m, p, o-oxylenes) < 430 ppm

Metals

  • Lead - max limit < 1 ppm

  • Arsenic - max limit < 0.4 ppm

  • Cadmium - max limit < 0.44 ppm

  • Mercury - max limit <0.2 ppm

Pesticide and residue

  • Chlorinated hydrocarbons - max limit < 0.1 ppm

  • Organophosphates - max limit < 0.1 ppm

  • Carbamates - max limit < 0.1 ppm

  • Pyrethroids - max limit < 0.1 ppm

  • Neonicotinoids - max limit < 0.1 ppm

  • Acaricides - max limit < 0.1 ppm

  • Fungicides - max limit < 0.1 ppm

  • Bactericides - max limit < 0.1 ppm

Potency

  • Total THC

Contaminants and filth

  • A continual process of product inspection must take place

  • Contaminants include any biological or chemical agent, foreign matter, or other substances not intentionally added to products that may compromise food safety or suitability.


OKLAHOMA: THE WILD WEST OF WEED

Oklahoma is becoming known as the new wild west because of the large number of marijuana business licenses. However, just because it's wild, doesn't mean it has to be a mess. Operating within the rules is paramount and setting up your operation for success is critical. If you are a cannabis business license holder looking to set up your business to operate with high standards, to establish a competitive edge and to maintain compliance in the long term, contact us!


Find the complete SQ788 Oklahoma Medical Marijuana Regulation here.


***Note: The J. Whitney Group is not a legal firm and this content was not written or reviewed by a lawyer. The information contained herein should be considered informational and should not be considered legal advisement. For legal advice about marijuana businesses in Oklahoma, contact a licensed legal practitioner in the state of Oklahoma.