OMMA extends Metrc deadline by 60 days

“OMMA is extending the beginning inventory period for the state’s seed-to-sale tracking system, Metrc, through June 30th, 2021.”

The OMMA’s website released the above statement just 48 hours prior to today’s original compliance deadline. The decision was made in accordance with a court agreement, following the filing of an Application for Emergency Temporary Restraining Order and Temporary Injunction earlier in the week.

The class action lawsuit against OMMA and OSDH alleges they created a monopoly through their contract with Metrc and improperly required businesses to pay for its services—which include monthly fees of $40 and an additional .45 cents for RFID tags currently required for each individual plant. The suit is not against the state’s implementation of Metrc as a seed-to-sale program in total, but rather the method of implementation.

The next hearing is scheduled for June 29th, one day before the extended integration deadline of June 30th. As such, we’re encouraging licensees to take advantage of the injunction by moving forward with Metrc training, credentialing, beginning inventory and tag ordering. And will be continuing to work closely with our clients to keep them free of Metrc distraction and stress while ensuring they’re compliant ahead of the new timeline.

We hear and understand many people in the industry spent countless hours and thousands of dollars on additional employee wages ahead of today, rushing to meet OMMA’s original deadline for Metrc implementation and feel their effort was all for naught. Trust that being in a position to be and remain compliant with state regulation is crucial, beyond just Metrc, as the state begins to ramp up inspections and regulatory enforcement in general. At least you’ll already be set if Metrc does materialize at the end of June.

We hear and understand the route of resistance here as well; historically a lot has been accomplished through protest. In this scenario, what’s to lose if the court battle isn’t won just may be more than what’s worth the gamble to license holders. There is at least due cause for caution not working toward eventual implementation. Looking to other states, Colorado collected over $683,000 in fines from dispos in 2014; the following year a single retailer was fined $75,000 and suspended for 90 days for failing to maintain accurate tracking records. Oregon has even forced a few licensees to either sell or have their licenses revoked following violation citations... Compliance infractions are no joke. They can be a critical hit to your business and ultimately that’s what not implementing Metrc would become, pending court ruling.

If there’s anything we believe in as Oklahoma natives watching this industry explode, it’s the capacity for the people to change and sway policy in ways that seemed previously unimaginable. Whatever your position, make sure you and your longterm business goals are protected. Have a plan that will allow you to go with the tide, so you’ll be covered whichever way the ship sails with the suit.

How we can center patient needs presents itself here in almost two ways simultaneously: By being engaged in processes that will keep patient costs down and by being in a state of constant compliance in order to keep serving their needs with quality, safe medicinal product. These goals are shared amongst the vast majority of the Oklahoma cannabis community, and that’s becoming all the more obvious in all the ways we see business owners navigating this rollout.

How does the extension affect sales between Metrc and non-Metrc businesses?

There are a lot of questions left unanswered regarding Metrc and OMMA regulation; that’s part of the problem that brought on the suit. As far as we know, you can treat this period just as you were the pre-Metrc period to now. We are confirming with the OMMA compliance department that Metrc and non-Metrc businesses will still be able to engage in sales as long as inventory when things go live is correctly represented, and will update this writing if anything is communicated contrary to the way we understand it now.

If you need help scheduling a Metrc training, submitting back reporting or any other action item to help bring your business into compliance, get in touch with the attorneys at Gies Law Firm. That’s what we’re here for.