Reasons for OMMA Rejection and what to do if you get one
A rejection notice is the last thing any OMMA applicant wants to receive, but they are avoidable and can be easily overcome in most cases.
OMMA applications are picking up and so is the sense of urgency to get them in. Rushing through the process however can prove problematic, with anything from a simple clerical error to a missing document being grounds for rejection. If you receive an OMMA rejection notice, it’s important to remember that doesn’t mean your application has been denied. Applicants have the opportunity to fix whatever issue may have triggered their rejection and resubmit their application for reconsideration within 30 days.
There’s no additional fee for modifying your application in response to a rejection, but it does extend the clock for OMMA to review it. Once it’s been resubmitted, OMMA has another 90 days to review your modified application. To avoid this lengthy delay and get the green light from the get go, it’s wise to understand some common reasons for rejection.
These are the main reasons applications get rejected
Background check was dated more than 30 days before the submission date for the grow application. When you receive your background check from the Oklahoma State Bureau of Investigation, that starts the clock for making sure that all the other necessary items are timely gathered so that the application submission can occur within 30 days.
A disqualifying criminal conviction: A “Disqualifying criminal conviction" means:
(A) Any non-violent felony conviction within last two (2) years of submitting an application to the Department;
(B) Any violent felony conviction for an offense listed in 57 O.S. § 571 (2) within last five (5) years of submitting an application to the Department; or
(C) Incarceration for any reason during submission of application to the Department.
Failure to submit the necessary and required documents: OMMA’s website provides an application checklist for commercial licenses and it’s as direct of information as you can get.
Lack of Required residency representation in companies’ ownership interests: The OMMA requires proof that at least 75 percent of the ownership is held by Oklahoma residents.
Not being in good standing with SOS: If your business is set up as an S Corp, an LLC or LP for example, then the application needs to include a certificate of good standing from the Secretary of State. If you have an existing certificate, but haven’t renewed your annual fee then your certificate alone doesn’t prove that it’s current with the Secretary of State.
Affidavit of Unlawful presence: If an owner cannot verify they are either a citizen or have Lawful Presence status in the US, the application will be denied.
Clerical errors/inability for authority to confirm the information submitted: The details are extremely important and it’s common for applicants to overlook something without ever realizing it.
What to do if you receive a rejection
Take a deep breath. Asses the reason for the rejection provided by the OMMA, correct the problem and resubmit. It can be that simple. Some problems are obviously easier to correct than others, for example clerical errors, signing a line or providing a document that was missed. Others can be more troubling, like discovering a partner has a felony; all the sudden now you’re on the hunt for a new partner.
Regardless the reason, it’s our specialty at Gies Law Firm to successfully navigate the OMMA application process for our clients. We are looking for red flags from the start that might slow or completely derail the process down the road to completely avoid these scenarios at every step of the process. We’ll gather all the documents, help structure your business, run your background checks and every other step from creating the Complia account to completing and submitting the application.
So, whether you’re just beginning your application process or have received a rejection notice yourself, we can help simplify and make sense of this process to ensure you receive the green light to start your cannabis grow, dispensary or processing business.
