Oklahoma Medical Marijuana Licensing and Compliance Guide
Medical Marijuana
In 2018, Oklahoma voters authorized the state’s medical marijuana program with State Question 788 (SQ 788). SQ 788 created the state laws that launched the industry. The Oklahoma Medical Marijuana Authority (OMMA) is the regulatory agency for Oklahoma’s medical marijuana program. OMMA’s rules are based on the state laws created by SQ 788, in addition to subsequent amendments and new state laws passed by the Oklahoma Legislature. OMMA was a part of the Oklahoma State Department of Health until it became an independent state agency on November 1, 2022. OMMA is responsible for processing commercial and patient license applications; providing customer service to licensees and applicants; facilitating the rulemaking process based on state statutes; enforcing its rules; and investigating possible violations of medical marijuana laws.
Oklahoma offers several different types of medical marijuana business licenses, which include the following:
- Grower – A medical marijuana grower license allows a business to legally grow marijuana for medical purposes in Oklahoma. Licensed growers can only sell to licensed processors, dispensaries, and other growers. Licenses are available for Oklahoma residents who are at least 25 years old. Applicants must provide documents establishing the applicant and the members, managers, and board members, if applicable; and 75% of the commercial applicant’s ownership interests belong to Oklahoma residents, as required in the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq. Owners and officers must pass a background check; and growers must ensure their property line is not within 1,000 feet of the property line of a public or private school. Additionally, grower license applicants must submit proof of one of the following to OMMA: a surety bond for at least $50,000 per license; or proof that the licensee has owned the licensed premises for at least 5 years. The application fee varies depending on the size of the purported operation (i.e., the license tier) and whether the applicant’s grow operation will be indoor or outdoor. Licensed growers must comply with Title 63 O.S. § 420 et seq. and the Oklahoma Administrative Code (OAC) 442:10, and licenses are valid for one year. In addition, a transporter license is issued simultaneously with approved grower licenses. The transporter license allows the licensee, through its licensed transporter agents, to transport their own medical marijuana and medical marijuana products to another licensed business. Anyone driving a transportation vehicle must have a transporter license and transporter agent license identification card.
- Processor – A medical marijuana processor license allows a business to legally process marijuana for medical purposes in Oklahoma. Licensed processors can sell to licensed dispensaries and other licensed processors. Licensed processors may also process marijuana into a concentrated form for a patient license holder for a fee. Licenses are available for Oklahoma residents who are at least 25 years old. Applicants must provide documents establishing the applicant and the members, managers, and board members, if applicable; and 75% of the commercial applicant’s ownership interests belong to Oklahoma residents as required in the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq. Processor license application fees are calculated by the amount of biomass used in production or the amount of concentrates produced. Licensed processors must comply with Title 63 O.S. § 420 et seq. and the Oklahoma Administrative Code (OAC) 442:10, and licenses are valid for one year. Additionally, a commercial transporter license is issued simultaneously with approved processor licenses. The transporter license allows the licensee, through their licensed transporter agents, to transport their own medical marijuana products to another licensed business. Anyone driving a transportation vehicle must have a transporter license and transporter agent license identification card.
- Dispensary – A medical marijuana dispensary license allows a business to legally sell medical marijuana and medical marijuana products, including mature plants and seedlings. Licensed dispensaries can only sell to other licensed dispensaries or patient license holders, caregiver license holders, research license holders, and the parent or legal guardian named on a minor’s patient license. Licenses are available for Oklahoma residents who are at least 25 years old. Applicants must provide documents establishing the applicant and the members, managers, and board members, if applicable; and 75% of the commercial applicant’s ownership interests belong to Oklahoma residents as required in the Oklahoma Medical Marijuana Patient Protection Act, 63 O.S. § 427.1 et seq. Owners and officers must pass a background check; and dispensaries must provide proof the nearest perimeter wall is not within 1,000 feet of the property line for any public or private school. Licensed dispensaries must comply with Title 63 O.S. § 420 et seq. and the Oklahoma Administrative Code (OAC) 442:10, and licenses are valid for one year. Additionally, a transporter license is issued simultaneously with approved dispensary licenses. The transporter license allows the licensee, through its licensed transporter agents, to transport their own medical marijuana and medical marijuana products to another licensed business. Anyone driving a transportation vehicle must have a transporter license and transporter agent license identification card.
- Transporter – A medical marijuana commercial transporter license is a standalone license allowing a licensee, through its licensed transporter agents, to transport medical marijuana and medical marijuana products between other licensed businesses. The transporter licensees may not grow, process, or sell their own medical marijuana–only transport other licensed businesses’ products. Applicants must provide documents establishing the applicant and the members, managers, and board members, if applicable; and 75% of the commercial applicant’s ownership interests belong to Oklahoma residents as required in the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq. The nonrefundable application fee is $2,500 plus a credit card processing fee. Licensed commercial transporters must comply with Title 63 O.S. § 420 et seq. and the Oklahoma Administrative Code (OAC) 442:10, and licenses are valid for one year.
- Transporter Agent – A medical marijuana commercial transporter agent license is required for agents, employees, officers, or owners of a commercial transporter, grower, processor, or dispensary to transport medical marijuana, medical marijuana concentrate, or medical marijuana products. Transporter agent licenses allow a business holding a transporter license to transport medical marijuana and medical marijuana products to other commercial licensees via its transporter agents. Transporter agents must submit an employment verification form verifying their employment with the licensed transporter when applying for a transporter agent license. There is certain supporting documentation required for the Transporter Agent Application, including (1) a color copy of the applicant’s valid, unexpired Oklahoma driver license; (2) documents establishing the applicant as an Oklahoma resident; (3) a digital photograph; (4) an employment verification form prescribed by OMMA verifying the applicant’s employment with the transporter licensee; (5) a criminal background check conducted by the Oklahoma State Bureau of Investigation establishing that the applicant does not have a disqualifying criminal conviction that is dated within 30 days of application submission; and (6) an affidavit of lawful presence signed by the transporter agent applicant. The nonrefundable application fee is $25 plus a credit card processing fee, and a separate application and fee is required for each agent license. Commercial licensees must notify OMMA within 14 days when a transporter agent no longer works for them as an agent. Licensed commercial transporter agents must comply with Title 63 O.S. § 420 et seq. and the Oklahoma Administrative Code (OAC) 442:10. Licenses are valid for one year unless the license is deactivated by the business licensee employing the transporter agent, voluntarily surrendered, or revoked by OMMA. Transporter agent licenses shall not extend beyond these events.
- Testing Laboratory – A testing laboratory license allows a laboratory testing facility to analyze harvested and processed medical-use marijuana for the presence of harmful contaminants. Licensed labs may charge fees to other commercial licensees for compliance testing. As a condition of licensure, all applicants must show documentation of accreditation to ISO 17025 standards by an accreditation body like ANSI/ASQ National Accreditation Board (ANAB), American Association for Laboratory Accreditation (A2LA), Perry Johnson Laboratory Accreditation (PJLA), International Accreditation Service (IAS), or COLA. Laboratories will only be permitted to report test results generated in their laboratory from methods for which they possess accreditation. Licenses are available for Oklahoma residents who are at least 25 years old. All members, managers, and board members of entity applicants must be Oklahoma residents, and entities must have at least 75% ownership by an Oklahoma resident. Owners and officers must pass a background check. Licensed laboratories must comply with Title 63 O.S. § 420 et seq. and the Oklahoma Administrative Code (OAC) 442:10, and licenses are valid for one year.
- Waste Disposal Facility – A medical marijuana waste disposal facility license authorizes the licensee to dispose of medical marijuana. The waste disposal facility license also authorizes licensees to transport medical marijuana waste. To be eligible for a waste disposal facility license, applicants must have a current permit from the Oklahoma Department of Environmental Quality. Additionally, owners and officers must pass a background check; and waste facilities must provide proof that the nearest perimeter wall is not within 1,000 feet of the property line for any public or private school. The non-refundable application fee is $5,000 plus a credit card processing fee. A submitted application does not guarantee a license will be granted, even if the applicant meets the minimum requirements. Once licenses are granted, licensed entities may apply for waste disposal facility permits for additional locations. Licensed waste facilities must comply with Title 63 O.S. § 420 et seq. and the Oklahoma Administrative Code (OAC) 442:10, and licenses are valid for one year.
- Research – A research facility license authorizes the licensee to grow, cultivate, possess, and transfer to other licensed research facilities and licensed testing laboratories, by sale or donation, marijuana for the limited research purposes approved in the application. Other important things to note include that: every applicant must supply a project description in the application; biomedical and clinical regulations subject to federal regulations and institutional oversight are not subject to OMMA licensure or regulations; research facility applicants, if a private business, must supply information on ownership; and research facility applicants who are using public funds or working with public institutions must provide information and documentation of their involvement and meet additional criteria. Owners and officers must pass a background check. The nonrefundable application fee is $500 plus a credit card processing fee. Licensed researchers must comply with Title 63 O.S. § 420 et seq. and the Oklahoma Administrative Code (OAC) 442:10, and licenses are valid for one year.
- Education – An education facility license authorizes the licensee to provide training and education to people involved in the cultivation, growing, harvesting, curing, preparation, packaging, or testing of medical marijuana, or the production, manufacture, extraction, processing, packaging, or creation of medical-marijuana-infused products or medical marijuana products for the limited education and research purposes approved in the application. Education facility licensees are authorized to transfer, by sale or donation, medical marijuana grown within its operation to licensed research licensees, and to transfer to licensed testing laboratories. Other important things to note include that: every applicant must supply a project description in the application; biomedical and clinical regulations subject to federal regulations and institutional oversight are not subject to OMMA licensure or regulations; by law, education facility applicants must be a non-profit and are required to provide non-profit registration with the application; and education facility applicants who are using public funds or working with public institutions must provide information and documentation of their involvement and meet additional criteria. Owners and officers must pass a background check. The nonrefundable application fee is $500 plus a credit card processing fee. Licensed researchers must comply with Title 63 O.S. § 420 et seq. and the Oklahoma Administrative Code (OAC) 442:10, and licenses are valid for one year.
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Notably, though, a moratorium began on August 26, 2022, for new grower, processor, and dispensary licenses. This means that no new licenses can be issued. HB 3208 (2022), passed by the Oklahoma Legislature and signed by the Governor, put the moratorium in place. Notably, HB 2095 (2023), also passed by the Oklahoma Legislature and signed by the Governor, extended the moratorium end date to August 1, 2026, unless OMMA’s Executive Director determines all pending licensing reviews, inspections, or investigations are complete. The moratorium does not affect current licensees, who can apply for renewal.
Hemp
Hemp cultivation and sale in Oklahoma are governed under the Oklahoma Industrial Hemp Agricultural Pilot Program, initially established by the Oklahoma Agricultural Industrial Hemp Pilot Program Act. Following the federal legalization of hemp through the 2018 Farm Bill, Oklahoma updated its regulations to allow broader participation in hemp cultivation and processing under Oklahoma Statutes Title 2, Section 3-401 et seq., which defines the framework for hemp production aligned with federal standards. The Oklahoma Department of Agriculture, Food, and Forestry (ODAFF) oversees the state’s hemp program. It issues licenses for hemp cultivation and processing and ensures compliance with state and federal regulations.
- Cultivation – To legally cultivate hemp in Oklahoma, growers must obtain a license from the ODAFF. License applicants are required to submit detailed descriptions of cultivation sites, GPS coordinates of the land, and comprehensive farming plans. All hemp crops must contain 0.3% THC or less, and fields are subject to inspection and testing to ensure compliance.
- Processing and Sale – Processing hemp into products, particularly those containing cannabinoids like CBD and minor cannabinoids such as Delta-8 THC, is regulated under state law. Processors must also obtain a license from the ODAFF and adhere to specific safety and labeling regulations to ensure product quality and consumer safety.
- Delta-8 THC Regulation – Oklahoma has witnessed a rise in the popularity of Delta-8 THC. As of now, Delta-8 THC is legal in Oklahoma as long as it is derived from legally produced hemp and contains less than 0.3% Delta-9 THC. However, the state has begun to scrutinize the regulation of Delta-8 and other synthetic or semi-synthetic cannabinoids more closely due to concerns about their psychoactive effects and safety. Retailers and producers are required to clearly label their products to indicate the presence of Delta-8 and ensure that all products are compliant with state laws regarding cannabinoid content.
- Market Outlook – The hemp market in Oklahoma is growing, with increasing interest from farmers and entrepreneurs looking to explore the economic opportunities presented by hemp and its derivatives. The state continues to adapt its regulatory framework to balance promotion of the hemp industry with ensuring public health and safety.
Psychedelics
In Oklahoma, psychedelics such as LSD, psilocybin, and MDMA are classified under Schedule I controlled substances as per Oklahoma Statutes Title 63, Section 2-204. This classification means that these substances are considered to have a high potential for abuse, no currently accepted medical use in treatment in the United States, and a lack of accepted safety for use under medical supervision.
- Recent Legislative Efforts – Recent legislative developments in Oklahoma indicate a growing interest in the potential therapeutic benefits of psychedelics, specifically psilocybin. In 2022, Representatives Logan Phillips and Daniel Pae introduced bills aimed at promoting scientific research into psilocybin-assisted therapy.
- HB 3174, introduced by Rep. Phillips, aims to create a pathway for academic medical centers and licensed physicians to conduct clinical trials with psilocybin for veterans suffering from mental illnesses.
- HB 3414, sponsored by Rep. Pae, initially proposed to increase psilocybin research and decriminalize possession of small quantities of psilocybin-containing fungi or plants. However, the decriminalization provision was removed during committee reviews.
- Ketamine and Telehealth Laws – Ketamine, classified under Schedule III in Oklahoma, is recognized for its use in anesthesia and has been gaining attention for its potential off-label use in treating depression and other mood disorders. Oklahoma allows the prescription of controlled substances, including ketamine, through telemedicine, as outlined in Oklahoma Statutes Title 59, Section 478. This legislation ensures that patients can access necessary treatments via telehealth platforms, following proper medical procedures and evaluations.
- State Right to Try – Oklahoma adheres to the Federal Right to Try Act, which allows terminally ill patients to access investigational drugs that have completed Phase 1 of a clinical trial but have not yet been approved by the FDA. Oklahoma’s adoption of this act is in line with efforts to provide patients with more treatment options in facing severe or life-threatening conditions.
- State Religious Exemptions – While Oklahoma does not specifically address religious exemptions for the use of psychedelics, federal rulings such as the U.S. Supreme Court decision in Gonzales v. O Centro Espirita Beneficente Uniao do Vegetal allow certain religious groups to use ayahuasca legally. Individuals in Oklahoma wishing to use psychedelics for religious purposes would need to rely on these federal protections.
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