10 things to know about OMMA license transfers in 2024
Oklahoma’s medical marijuana industry has experienced significant growth in recent years. With the introduction of a moratorium in 2022, the only way to get in the weed game these days is to acquire a license from an existing licensee. Until now, there has been little codified about this process—and little to it beyond submitting a renewal or update application with the appropriate information. Recently however, the state has introduced new legislation concerning the transfer of medical marijuana business licenses that put one more toll on your road to licensure with a critical step that cannot be missed. Here’s a breakdown of what this new law entails and how it impacts business owners in the industry.
Key Highlights of the New Law
1. Mandatory Approval for Transfers
With the passing of SB 1939, effective November 1, 2024, no medical marijuana business in Oklahoma can be transferred without written approval from the Oklahoma Medical Marijuana Authority (OMMA).
2. Application Process for License Transfers
If a licensee intends to transfer ownership of their medical marijuana business, they must first submit an application to the OMMA. Once the application is approved, the applicant must provide all necessary documentation to the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control (OBNDD). The original owner's business license and OBNDD registration will terminate 15 business days after the issuance of the new OBNDD registration. All medical marijuana product transfers must be completed using the state-authorized seed-to-sale tracking system within this 15-day period.
3. Authority to Deny Applications
Both the OMMA and OBNDD have the authority to deny any applications for license transfers. If an application is denied, the existing licensee or registrant is not affected. However, the existing business must submit timely and sufficient renewal applications to continue operations during the transfer process.
4. Restrictions on New Owners
New owners cannot take possession of any medical marijuana products or control any business activities until the transfer application has been approved by the OMMA and they are registered with the OBNDD.
5. Employment During Transfer Process
Prospective new owners may be employed by the current owner during the transfer process, provided they hold the proper employee credentials as per Section 427.14b of Title 63 of the Oklahoma Statutes.
6. Inventory Documentation
The new business owner must provide the OMMA with a detailed inventory of all items as specified in the Oklahoma Medical Marijuana and Patient Protection Act. This includes seeds, plant tissue, clones, plants, usable marijuana, extract batches, concentrates, and other related products.
7. Penalties for Unauthorized Transfers
Any attempt to transfer a medical marijuana business or its products without OMMA approval can result in the revocation or nonrenewal of the business license. Additionally, individuals involved in such unlawful transfers may face denial, revocation, or nonrenewal of current or future licenses.
8. Application Fees
The fee for the transfer application is the same as the annual license or application fee established for medical marijuana business license types.
9. Transition Period for Pending Applications
Businesses with pending transfer applications on the effective date of the new law have 30 days to submit a new application in compliance with the new regulations. The OMMA will refund the application fee to any applicant with a pending application upon receipt of the new application.
10. Rulemaking Authority
The OMMA is tasked with promulgating the necessary rules for the approval and denial of medical marijuana business transfers.
This new legislation marks a significant change in the process of transfering of medical marijuana business licenses in Oklahoma. Business owners should familiarize themselves with these new requirements to ensure compliance and avoid any potential penalties.
