OMMA and OBN Inspections in Oklahoma Cannabis Businesses: What Licensees Need to Know

Inspections of licensed medical marijuana businesses in Oklahoma are governed by both administrative regulation and law enforcement authority. The Oklahoma Medical Marijuana Authority (OMMA) is responsible for regulatory compliance and licensing oversight. The Oklahoma Bureau of Narcotics (OBN) operates independently under state law with full law enforcement authority.

Understanding the distinction between these agencies and the type of inspection being conducted is critical. Each carries different legal standards, risks and consequences for license holders.

OMMA Inspections: Regulatory Oversight and Administrative Enforcement

Under Oklahoma law and OMMA rules, inspections may be conducted during regular business hours or times of apparent operation. While OMMA often provides advance notice for routine compliance inspections or audits, advance notice is not guaranteed and is not required in all circumstances. OMMA retains authority to conduct unannounced inspections, particularly where there is a regulatory need, suspected non-compliance or follow-up on prior deficiencies.

In practice, routine annual inspections are frequently scheduled in advance, but licensees should not assume notice will be provided. OMMA rules permit immediate access to licensed premises, records and inventory when inspectors are lawfully present.

OMMA also has explicit authority to issue deficiencies and pursue enforcement. Under OAC 310:681-8-1, OMMA may impose administrative penalties, including fines, probationary status, suspension or revocation of a license. Importantly, many licensees underestimate how quickly “minor” compliance issues can escalate when violations are repeated or left uncorrected.

OMMA is not a criminal law enforcement agency, but its findings matter. OMMA inspection reports are routinely shared with other agencies and can form the basis for more serious enforcement actions.

OBN Inspections: Criminal Exposure and Enforcement Authority

OBN operates under an entirely different legal framework. Unlike OMMA, OBN is a law enforcement agency with authority under Oklahoma’s Uniform Controlled Dangerous Substances Act, codified at 63 O.S. § 2-101 et seq., as well as its own administrative rules under OAC Title 475.

When OBN is involved in an inspection, the risk profile changes immediately. OBN inspections may arise from changes in licensing, complaints, tips, suspected diversion, inventory discrepancies, operating outside the scope of a license or allegations of unlicensed activity. OBN agents are not limited to regulatory compliance. They have authority to seize cannabis and related property, conduct criminal investigations and refer matters to prosecutors when they believe criminal statutes may have been violated.

Unlike OMMA inspections, which are administrative in nature, OBN involvement can signal potential criminal implications and enforcement. When OBN agents are acting in a law enforcement or investigative capacity, statements obtained may be documented and referred to prosecutors, subject to constitutional and procedural protections. For that reason, inspections involving OBN carry materially different legal risks and should always be taken seriously.

Inspections vs. Interviews

It is also important to understand the difference between an inspection and an interview. An inspection involves observation, verification of records, inventory counts and review of compliance with applicable rules on-site. An interview involves questioning individuals for the purpose of obtaining statements or explanations. Licensees are required to permit lawful inspections, but inspections do not require owners or staff to speculate, guess, or provide narrative explanations beyond what the records show.

Agency interviews commonly arise outside the context of routine compliance inspections. Changes in ownership, management, or control of a licensed business, as well as transfers or applications requiring OMMA or OBN approval, frequently trigger owner or operator interviews as part of the registration or approval process. In those circumstances, questioning is intentional and focused, rather than incidental to an on-site inspection, and inconsistencies or mismatches in owner-provided information can result in delay or denial of approval.

When questioning moves beyond clarification and into eliciting explanations or admissions, an inspection or regulatory interaction may begin to take on a more investigative character, which carries different legal implications. This distinction is especially important when OBN is involved, as OBN agents are law enforcement officers and may be gathering information for enforcement or referral purposes. When a business becomes aware of a pending inspection or interview, notifying legal counsel early can help manage risk and ensure the process is handled appropriately.

What Inspections Actually Look Like

Under Oklahoma law (including 63 O.S. § 427.6 and related provisions in OAC 442:10), OMMA generally requires at least 24 hours' notice for inspections during regular business hours or times of apparent operation. This allows licensees to prepare, ensure key personnel are present and potentially have legal representation available. Routine annual compliance inspections and audits typically follow this notice protocol, as OMMA conducts at least one annual inspection per licensed business.

However, OMMA can conduct unannounced or no-notice inspections when there is a "showing of necessity," such as:

• Reasonable suspicion or evidence of violations (e.g., Metrc discrepancies, recordkeeping issues, or public health/safety concerns).

• Imminent threats to health or safety.

• Follow-up on complaints, prior violations, or verification of corrective actions.

• Other exigent circumstances justifying immediate entry.

Refusal to allow access during any inspection can result in serious penalties, including fines, suspension, or revocation of the license.

OBN inspections focus on controlled dangerous substances registration, diversion prevention, or criminal matters. These are often more enforcement-driven and frequently allow unannounced inspections, particularly for suspected violations or routine checks on handling/storage. Specific advance notice requirements are less rigidly defined compared to OMMA, and OBN has broad authority for no-notice entry when probable cause, regulatory needs, or joint efforts with OMMA apply.

In practice, many inspections provide notice where possible, but unannounced visits remain common for enforcement. Violations often stem from avoidable issues like poor recordkeeping, Metrc errors, or lack of employee training on inspector authority. Preparation and accurate, timely documentation are essential to minimize risks.

Consequences of Non-Compliance Under Oklahoma Law

The consequences of non-compliance depend on the agency involved and the nature of the violation. OMMA enforcement actions can include written warnings, administrative fines, mandated corrective action plans, suspension, or revocation of a license. A suspended or revoked license can effectively end a business and prevent any involved owners from reentering the market for 5 years.

OBN-related violations carry substantially higher stakes. These can include seizure of product, criminal charges, asset forfeiture, and permanent loss of licensure. Even discrepancies that appear administrative on their face can be characterized as diversion or illegal distribution if not properly explained and documented.

Once enforcement begins, the process moves quickly, and the margin for error is small.

Risk Management, Mock Inspections and Why Preparation Matters

Inspections are inevitable. Preparation determines the outcome.

We regularly conduct mock inspections modeled on both OMMA and OBN enforcement standards. These reviews reflect how regulators actually operate—not how the rules read in isolation. Mock inspections identify compliance gaps, stress-test METRC and recordkeeping systems, train staff on inspection protocols, and correct issues before they appear in an official report.

They also create a documented record of good-faith compliance efforts, which can be critical if enforcement action later arises.

Our compliance work is integrated with risk management. Our team includes Sabrina Alkire, a nationally recognized risk management professional and insurance agent specializing in the cannabis industry. Her work focuses on identifying gaps between regulatory exposure and insurance coverage – an issue many cannabis businesses do not discover until a loss or enforcement action occurs.

Aligning legal compliance with operational risk and coverage analysis allows businesses to identify exposure early, while it is still manageable.

Inspections are part of the Oklahoma cannabis regulatory landscape. They are unavoidable. The businesses that fare best are those that understand the distinction between regulators and law enforcement, recognize when risk escalates, and prepare before an inspection ever occurs. Proactive compliance is not optional; it is the difference between a correctable issue and a license-threatening event.

Contact us today if you would like us to help you with a mock inspection or any other compliance related challenge you may be facing in Oklahoma cannabis.