Navigating OMMA’s New Rules for Ownership and License Transfers
Oklahoma’s medical marijuana landscape is changing once again, with the implementation of new rules by the Oklahoma Medical Marijuana Authority (OMMA) effective October 29, 2024. Understanding these updates is crucial for businesses to remain compliant and avoid any potential issues with their licenses.
Given the on-going licensing moratorium and how many transfer requests have been submitted over the past couple years, one of the more important pieces of the new rules to understand relates to new processes around licenses changing ownership. Here’s a breakdown of the key changes and what they mean for current and prospective license holders.
Clarified Definitions and New Requirements
The OMMA has introduced new definitions for terms such as “change of ownership request,” “license transfer application,” “location change request,” and “name change request.”
"Change of ownership request" means any request submitted to the Authority that would change, amend, or in any way alter the ownership of a medical marijuana commercial license, including, but not limited to:
(A) Any shareholders owning an interest of a corporate entity and all officers of a corporate entity;
(B) Any partners of a general partnership;
(C) Any general partners and all limited partners that own an interest in a limited partnership;
(D) Any members that own an interest in a limited liability company;
(E) Any beneficiaries that hold a beneficial interest in a trust and all trustees of a trust;
(F) Any persons or entities that own interest in a joint venture;
(G) Any persons or entities that own an interest in an association;
(H) Any owners of any other type of legal entity; and
(I) Any other person holding an interest or convertible note in any entity which owns, operates, or manages a licensed medical marijuana facility.
"License transfer application" means any request submitted to the Authority in the form or manner prescribed by the Authority that would do one of the following:
(A) Transfer a medical marijuana commercial license from a prior owner to a new owner;
(B) Change, amend, or in any way alter the location of the licensed premises due to a change in ownership;
(C) Change, amend, or alter in any way the business name or individual or entity holding the license;
"Location change request" means any request submitted to the Authority that would change, amend, or alter in any way the location of the licensed premises.
"Name change request" means any request submitted to the Authority that would change, amend, or alter in any way the business name or individual or entity holding the license. Name change requests must be submitted in a license transfer application.
These updated definitions clarify the requirements and procedures surrounding ownership transfers as laid out in Senate Bill 1939. All licensees must adhere to the updated processes to ensure their business remains compliant.
The New License Transfer Application Process
If you’re planning to transfer ownership you’ll now need to submit a formal license transfer application.
This transfer application must be initiated by the seller generating a transfer code, then the buyer must begin the transfer application. Here’s what to keep in mind:
Application Fees and Requirements: If you submitted a transfer request prior to November 1st, 2024 the fee will be $500. If you submit any time following November 1st, 2024 the application fee for the transfer will be equivalent to the annual license or application fee required for medical marijuana business licenses. License transfer applications are subject to all existing requirements outlined under OAC 442:10-5-3.
OBNDD Registration: Once a license transfer is approved, the new owner must register with the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control (OBNDD) before the transfer is finalized. Until this registration is complete, the current owner remains responsible for the license, including submitting any necessary renewal applications.
Transition Period for Transferring Inventory
Upon OBNDD registration, there’s a strict 15-business-day window for the prior owner to transfer all inventory—this includes medical marijuana, concentrates, and products—to the new owner. Once this period ends, the prior owner will no longer be a licensee.
It’s essential to note that the new owner cannot take possession of or control any part of the medical marijuana business until the transfer is fully approved and OBNDD registration is completed. Any premature attempt to transfer inventory or control will result in severe consequences, including license revocation or denial of future applications.
Important Update for Pending Transfers
If you have a transfer of licensure pending—whether initiated as a renewal or a standalone ownership update request—be aware that all pending transfers must now follow the new transfer process. This means you have a 30-day window to start the process, which involves the current owner generating a transfer code. Failing to comply with these new requirements could jeopardize your business license.
Contact us at Gies Law Firm if we can help with your transfer and renewal process.
