Oklahoma Just Legalized Medical Marijuana and Will Soon Be Open for Business
On June 27, 2018, Oklahoma became the 30th state to legalize medical marijuana for adults 18 years and older. The state’s measure is unique in that it does not list qualifying conditions for an individual to obtain a medical marijuana license, as compared to other states, which will make it easier for people to use cannabis for medical purposes.
Oklahoma has a big hole to fill because the demand for medical marijuana, with 56% of the population supporting the new law, will be high. This is a rare opportunity for individuals and businesses because they have an opportunity to become established from the ground up.
As of right now, Oklahoma is finalizing the licensing information and application requirements for those who wish to open a new marijuana business. The final details will be made available to the public by July 26, 2018, and the Oklahoma Medical Marijuana Authority will begin accepting applications no later than August 25, 2018.
According to the text of State Question 788, there will be three license categories available for new businesses:
Medical Marijuana Dispensary License – a licensed medical marijuana retailer may conduct retail sales of marijuana, or marijuana derivatives in the form provided by licensed processors, and those products can only be sold to a medical marijuana license holder or their caregiver.
Commercial Grower License – a licensed commercial grower may sell marijuana to a licensed retailer, or a licensed packager. Further, these sales will be considered wholesale sales and not subject to taxation. Under no circumstances may a licensed commercial grower sell marijuana directly to a medical marijuana license holder. A licensed commercial grower may only sell at the wholesale level to a licensed retailer or a licensed processor.
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. A licensed processor may sell marijuana products it creates to a licensed retailer, or any other licensed processor. Further, these sales will be considered wholesale sales and not subject to taxation. Under no circumstances may a licensed processor sell marijuana, or any marijuana product, directly to a medical marijuana license holder. However, a licensed processor may process cannabis, into a concentrated form, for a medical license holder, for a fee.
The application fee for each of these licenses is $2500, and the applicant must show proof of Oklahoma residency and be 25 years of age or older. Additionally, all applying entities must show that all members, managers, and board members are Oklahoma residents. An applying entity may also show ownership of non-Oklahoma residents, but that percentage ownership may not exceed 25%.