New laws for Oklahoma cannabis industry go into effect November 1st
November 1st ushers in a new era for the Oklahoma Medical Marijuana Authority and brings new requirements for cannabis business licensees.
Fourteen bills relating to cannabis were signed into law this year and five of them go into effect today, November 1st, 2022. The new laws bring some big shifts for the industry, from establishing OMMA as independent from the Oklahoma Department of Health to requiring new registrations and credentialing for licensees and their employees.
The new laws affect the marijuana authority itself and touch almost every point of the business side of the industry and with enforcement ramping up, should not be overlooked.
New Laws going into effect November 1st, 2022:
SB 1543: Establishes the Oklahoma Medical Marijuana Authority as a stand alone agency.
The law also give OMMA the authority to investigate violations of criminal laws regarding medical marijuana, seize product, refer evidence, reports or charges to appropriate law enforcement authorities and aid in prosecutions of violations of the Oklahoma Medical Marijuana and Patient Protection Act.
HB 3019: Allows cannabis to be sold in clear child-resistant containers so that medical cannabis patients can view the product through its packaging.
The law requires all cannabis to be placed in an exit package at the point of sale or transfer, whether from dispensary or caregiver. "Exit package" is defined as “an opaque bag that is provided at the point of sale in which pre-packaged medical marijuana is placed.”
The law also requires two new label warnings: a. "For use by licensed medical marijuana patients only", and b. "Keep out of reach of children".
SB 1367: Enhances penalties for the unlawful diversion of medical marijuana products to someone not legally allowed to acquire or consume them.
Penalties for sales, purchases or transfers for value of medical marijuana by a medical marijuana business, employees or agents of the medical marijuana business to persons other than those allowed by law occurring within any one-year time period may now include an initial fine of five thousand dollars ($5,000.00) for a first violation and fifteen thousand dollars ($15,000.00) for any subsequent violation. These fines increased from one thousand ($1,000) and five thousand ($5,000) respectively.
The law also makes the second incident of grossly inaccurate or fraudulent reporting by any employee or agent of a business within a ten year period cause for license revocation.
Additionally, the law states that any person who shares less than three (3) grams of medical marijuana with an unauthorized person at no value is subject to an administrative fine of four hundred dollars ($400.00).
SB 1704: Piggybacks on the increased diversion penalties of SB 1367 by allowing OMMA to revoke the license of any person directly involved with the diversion of marijuana after investigation. If by a preponderance of evidence, a pattern of diversion or negligence leading to diversion can be established, OMMA may revoke any business licenses associated with the diversion and any entity with common ownership.
The law also requires all employees of medical marijuana businesses to apply for and receive a credential authorizing them to work in a licensed medical marijuana business beginning Jan. 1, 2024 and allows OMMA to contract with a third party to provide those services.
SB 1737: Requires outdoor growers to register with the Oklahoma Department of Agriculture, Food and Forestry as sensitive crop owners in an effort to minimize the harms of pesticide drift on marijuana crops.
The law also requires all commercial growers to post signage at the perimeter of their licensed property. The sign must measure no less than eighteen (18) inches by twenty-four (24) inches with a font size of no less than two (2) inches. The business name, address, phone number and OMMA license number must be displayed on the sign in black standardized font on a white background. Failure to erect signage can result in license revocation.
READ: What growers need to know about new signage requirements and sensitive crop registry >>
Stay aware
As a cannabis business owner it is imperative that you are aware of on-going legislative changes in order to implement new regulatory requirements and remain in compliance. Compliance issues that often arise in this industry can be completely avoided also by having representation that is plugged into the current of Oklahoma cannabis law and who act expeditiously to inform, inspect and help implement. At Gies Law Firm, we are committed to keeping our cannabis clients in a constant state of compliance and cultivating the legal understanding needed to sustain long term growth in an ever-changing industry. Contact us today.
