HB2989 proposes cannabis grow applicants win General Election for licensure

A recently proposed bill would subject cannabis grow applicants to a county level vote before approving license applications.  

HB2989 proposes a county application process which would require Oklahoma cannabis grower applicants to win a majority vote of approval from their respective county. If the registered voters in the county reject a grower’s application, then OMMA would place the applicant on a blacklist registry restricting them from even seeking licensing again in that county for five (5) years. The bill would also impose an annual submission deadline of June 30th on all commercial grow applications required to face this general election vote of approval. These elections would occur during the  general election held in even-numbered years. So by design, the process would effectively prevent any grow application from gaining momentum until they are presented for approval in a general election

G. All applications for approval of a commercial grow license by the county shall be submitted not later than June 30 each year. The question for approval of the license shall only be submitted for a vote at the General Election held in each even-numbered year.

HB2989 would subject grow applicants to the political hurdle of seeking approval of general voters who have no knowledge or expertise in whether or not a cannabis application presents a viable working model. Voters with no training on regulatory compliance would guard the toll bridge of any business attempting to enter any given county. HB2989 does not offer a single economic benefit to the state. No cannabis business applicant could appropriately plan nor would anyone reasonably be willing to commit to years of financial overhead on an investment that depends on the temperature of a county’s voter population.

Elections would undoubtedly subject business applicants to an extreme disadvantage. Requiring votes on applicant’s prospective future leaves the applicant open to generalized, blind bias. What other business model is required to first seek approval of the county within which they reside? Tying voting polls to licensing would introduce a voting process into an administrative function of government that no other industry has been subjected to.  Beyond being an egregious breach of the separation of powers, the concept of approving of a respective business’s operational integrity or regulatory compliance by seeking a win in a general election reeks of an ulterior motive. And that ulterior motive becomes all the more clear when one looks at residency of the representative promoting this bill.

This bill was authored by Todd Russ, house representative for District 53 in Oklahoma. Mr. Russ hails from one of the most restrictive counties in our state when it comes to cannabis: Rogers Mills. Presently, Rogers Mills has 21 cannabis business in operation. To put that in context, as of today, the Oklahoma Medical Marijuana Authority reports 12,197 cannabis businesses in our state. Mr. Russ’s County currently represents .002 percent our states cannabis industry. If a county desires to block cannabis companies from operating within their county lines, they should find a constitutional way to do so rather than proposing a house bill that serves no other valid purpose beyond acting as a barrier to entry that not only hinders commerce but worse—infringes on the right to pursue a legal business in a legalized industry—a legalization that has already won approval through the election process when it passed state question 788 in 2018. 

Even if a  grow applicant were to win voter approval from their respective county, HB2989 extends the licensing process by potentially years.  This cuts against the recent endeavors OMMA has taken to expedite the licensing process, something that they communicate proudly.

District 55 circled in red has some of the lowest licensing numbers in the state.
Data provide by omma.ok.gov

Preserving market access directly impacts efforts at preserving patient access as well. As Federal legalization becomes more of an inevitability, the growth of Oklahoma’s cannabis canopy could secure Oklahoma’s place as a nationwide industry leader. Our legislature should preserve that promise and protect the potential for Oklahomans to be the benefactors of this industry’s success. The recent expansion of OMMA’s regulatory task-force and enforcement resources are beginning to result in some measurable market correction. From December 2021 to January 2022, the authority reported 1,600 fewer business licenses already. That capacity was granted by the legislature in the last session, so the program absolutely needs regulatory refinement. Some course corrections could ensure we continue to drive the cannabis industry in the right direction. One should take caution however, when legislation such as HB2989 seeks not to correct our state’s course as much as it seeks to dead end it. 

If HB2989 becomes law it will go into effect November of 2022, making June 30th 2023 the application submission deadline for statewide elections in November of 2024. 

Read HB2989 full bill text >>

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New bill would force license cap decision on Oklahoma counties