HB 2272 strikes out in the Senate
A bill that would have temporarily capped Oklahoma medical marijuana business licenses has been amended by substitute—completely replacing its language.
Oklahoma’s free market medical marijuana industry lives on… for now. Word on the streets for the past couple weeks is that HB 2272 is going to die in the Senate. That became more official this week when the bill passed the Senate Appropriations committee as amended by nature of a substitute that completely struck and replaced the original language of the bill.
What was once the "Oklahoma Cap on Medical Marijuana Businesses Act of 2021,” that came along with new inactivity measurement regulations and the introduction of ten thousand dollar vouchers, now focuses on just one entirely different measure: Disclosure of foreign financial interest in Oklahoma medical marijuana businesses.
The latest bill text reads…
B. Any applicant seeking licensure as a medical marijuana dispensary, medical marijuana processor or medical marijuana commercial grower shall be required to attest under penalty of perjury to any foreign financial interest in the medical marijuana business operation and shall disclose the identity of such ownership, if applicable.
-HB 2272 as amended
OMMA applicants will have 60 days after their approval to make such an attestation to the OBNDD, or else they will have their license revoked immediately. The Committee substitute comes with an emergency declaration, meaning the act would take effect and be in full force once passed and approved.
The expressed intent of HB 2272 in its infamous license cap form was to curb illegal market activity. Critics of the bill who have tracked similar reform rollouts across various legal states were concerned the bill would have had the opposite effect and inadvertently limit patient access in certain areas.
While those concerns are calmed for now, HB 2272’s new language brings up new complexities to consider. For one example, disclosure of foreign investments could affect a persons immigration status, as any involvement whatsoever in the cannabis industry is incompatible with US immigration law—including if you are a green card holder or lawful permanent resident. In any case, the risk foreign interest may take transfers to the owner manager of the business. When multiple investment participants are involved, an owner/manager may not even know everyone’s citizenship status nor the newfound importance of knowing.
Oklahoma law already states that non-U.S. citizens cannot acquire or own land and bans foreign corporations from engaging in or owning or leasing agricultural operations. Whether this level of oversight leads to similar regulation or holds similar intent around foreign controlled land for the cannabis industry, HB 2272 still signals that tightening regulations around licensing are coming, albeit not in the form of caps at the moment. And as disclosure regulations continue to evolve here as they have in other states it will be increasingly crucial for hopeful licensees to understand them, as a single misstep could leave them without a license.
Keep a steady pace in your process people, but don’t fear being shut out or act so fast you miss a step that could slow things down more than you’d like (we can help with that piece). Sleep well knowing caps are likely not coming this September, and through collective investment in these types of processes, we can continue to sustain the long-term viability of a truly free market patient-oriented industry here in Oklahoma.
