Oklahoma Dispensary Laws

LAST UPDATED FEBRUARY 26, 2021

With the passing of SQ 788 in June 2018, Oklahoma became the 30th U.S. state to legalize medical marijuana. Oklahoma residents over the age of 18 with a valid physician’s recommendation can apply for a medical marijuana patient license. If approved, they can purchase medical marijuana from licensed dispensaries throughout the state. There are exceptions for non-residents and patients under 18 years old as well.

Under Oklahoma Dispensary Law, Oklahoma Medical Marijuana Authority (OMMA) is in charge of licensing, a process that began in August 2018. Since that time, Oklahoma’s market has become one of the largest, fastest-growing and most valuable in the nation. The Sooner State issued more than 7,300 medical marijuana business licenses in its first year alone, including over 1,800 dispensary approvals, and more than 5% of the state’s population is registered as medical marijuana patients — more than any other program in the U.S. Dispensaries are allowed to sell mature plants, seedlings, edibles, flower and concentrates to valid patients or their caregivers.

In September 2020, the OMMA announced that they have contracted Metrc for all seed-to-sale tracking and compliance in Oklahoma. All marijuana businesses in Oklahoma are now required to either integrate with or input their information into Metrc. Oklahoma has one of the largest medical marijuana dispensary markets in the country, and Metrc will make cannabis business operations more compliant and safer. Complete the new business system metrc training with your specific Metrc account number by March 26, 2021, and you must be ready to start reporting your dispensary's inventory to Metrc by April 30, 2021. Learn more on OMMA's website about the next steps.

Below, we’ve provided answers to as many questions as possible relating to Oklahoma’s dispensary laws and licensing process. We will continue to update this page as new information becomes available. This page is informational only and should not be considered legal advice.

At Cova, we’re on top of cannabis compliance so you can focus on what really matters: your shop and your customers. Our automated compliance includes ID scanner, purchase limit alerting, compliant product labeling and receipts, and one-click Oklahoma report exporter.

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Oklahoma Medical Cannabis Law

Here are the basics on the new medical marijuana law in Oklahoma

What is the process to apply for a medical marijuana patient license?

You have to be 18 or older and an Oklahoma resident to apply for a medical marijuana patient license. The application must include written documentation of approval by an Oklahoma board certified physician. All applications will be approved or denied with 14 days.

There are exceptions for those under 18 years old and non-residents. For younger patients, their application must be signed off by two Oklahoma board-certified physicians and a parent or legal guardian. A parent or legal guardian has to pick up any medical marijuana from the dispensary for younger patients.

Non-residents with a medical marijuana card from another state can apply for a 30-day temporary patient license.

Are there any qualifying conditions?

No, there are no qualifying conditions for medical marijuana patients in Oklahoma. All that is required is a recommendation from an Oklahoma board certified physician.

How much does a medical marijuana patient license in Oklahoma cost?

Each patient license costs $100 (or $20 for those on medicaid, medicare or SoonerCare) and lasts for two years. Temporary patient licenses last for 30 days and cost $100.

What are the possession limits for medical marijuana patients in Oklahoma?

While local governments can increase limits for medical marijuana patients, state law says it is legal for medical marijuana patients to possess:

  • 3 ounces of marijuana on their person
  • 8 ounces in their residence
  • 6 mature plants
  • 6 seedlings
  • 1 ounce of concentrates
  • 72 ounces of edibles

Medical cannabis Licensing

Are you interested in launching a medical dispensary in Oklahoma? Here’s everything you need to know about licensing.

What type of medical cannabis licenses are available in Oklahoma?

There are three types of commercial cannabis licenses available in Oklahoma: grower, processor and dispensary.

Is the application process open?

Yes, the application process opened on August 25, 2018.

What state agency is in charge of licensing?

The Oklahoma Medical Marijuana Authority (OMMA) will be in charge of reviewing and approving licenses. Once a license is granted, it must be registered with the Oklahoma Bureau of Narcotics and Dangerous Drugs Control (OBNDD) as well.

Is one entity allowed to own more than one license?

There is no stated limit for the amount of licenses one entity or individual can apply for and receive. Each dispensary location must have a separate license. If multiple licenses are owned by one entity, it has to be registered under a special status with the OBNDD.

Are there any requirements regarding applicants?

Applicants for commercial licenses must be at least 25 years old; an Oklahoma resident with proof of residency; and have a certificate of good standing from the state. Any medical marijuana operation must be 75% owned by an Oklahoma resident.

What is the application fee for dispensaries?

The application fee for a medical marijuana license in Oklahoma is $2,500 plus any credit card fees. These fees are nonrefundable, even if the application is ultimately rejected.

Where can I find more information about the Oklahoma cannabis licensing process?

You can find robust application information on OMMA’s website and their application checklist.

Oklahoma Dispensary Laws

After licensing comes compliance. Learn the rules for running a medical marijuana dispensary in Oklahoma.

Whom can Oklahoma dispensaries sell to?

Only medical patients (or their caregiver) with a valid medical marijuana patient license can purchase goods from an Oklahoma dispensary. Dispensaries can verify a patient or caregiver by a physical medical marijuana ID card or through the state’s database.

Licensed dispensaries can not sell medical marijuana to out-of-state individuals or entities.

What does Oklahoma cannabis law say about dispensary location?

Dispensaries in Oklahoma must be at least 1,000 feet from a public or private school. This is measured by a straight line (shortest distance) from the property line of the dispensary to any entrance of the school.

What can an Oklahoma dispensary sell?

Medical cannabis dispensaries in Oklahoma can sell mature plants, seedlings, concentrates, flower and edibles.

Are there daily purchase limits for medical marijuana patients?

In a single transaction, a dispensary cannot sell more than three ounces of usable cannabis, one ounce of marijuana concentrate and 72 ounces of medical marijuana products. These all fall in line with possession limits for patients.

What are labeling and packaging requirements for medical marijuana?

Oklahoma law states that packaging for medical marijuana cannot be attractive to minors, must contain proper warnings to keep out of reach of minors and child-resistant packaging.

Wholesale package labels must include name, license number, batch number, date of harvest or production, and a statement that medical marijuana has passed or failed testing and is being transferred for remediation purposes only.

Packages and labels cannot contain OSDH or OMMA logos.

What is the tax on medical cannabis?

There is a 7% gross receipts tax on all cannabis, plus sales tax, that must be collected upon sale. A sales tax permit has to be obtained after a license is granted by OMMA.

Cannabis Tracking and Reporting

No regulated cannabis market exists without tracking and reporting. Find out how Oklahoma will prevent diversion into the black market with these tracking rules.

What reporting requirements are required for dispensaries?

OMMA has partnered with Metrc to provide inventory tracking and reporting services to cannabis businesses, and Metrc system is gradually being integrated with OMMA reporting requirements.

Metrc is a fully integrated compliance system that allows real-time tracking and tracing of marijuana products. Licensees will have to attach unique, serialized tags to every product, which will have readable text, barcodes, and RFID chips to uniquely identify every plant or flower, both physically and digitally in the cloud software. Retailers will then enter information such as weight, transfer of custody, and test results into the online software platform, which will be then available to the business owners and the OMMA. You can now sign up for Metrc training. To familiarize yourself with how Metrc works, you may check out videos on its YouTube channel. Complete the new business system metrc training with your specific Metrc account number by March 26, 2021, and you must be ready to start reporting your dispensary's inventory to Metrc by April 30, 2021. Learn more on OMMA's website about the next steps.

Until then, dispensaries can keep following the previous reporting method as outlined below:

The OMMA developed a monthly reporting template that must be submitted on the 15th day of every month. The monthly reporting template includes:

  • Weight of cannabis purchased at wholesale, tracked by batch numbers
  • Weight of cannabis sold to patients, tracked by batch numbers
  • Accounting for any waste or destroyed products
  • Total sales in dollars
  • Tax collected in dollars
  • Tax due in dollars

What are the laws on record keeping?

All records must be maintained for at least seven years after the date of recording. These records must be accessible to auditors within 15 days of being requested.

Who has oversight and auditing responsibilities?

The Oklahoma Department of Health will have oversight and auditing powers over all of Oklahoma’s commercial medical marijuana operations.

What are the penalties for breaking compliance laws?

A dispensary will be subjected to penalties for non-patient sales and/or gross discrepancies in inventory tracking that cannot be explained. The first offence will come with a fee of $5,000 and a second offense (in a two-year period) will result in a revocation of license.

Will Cova reporting meet Oklahoma's requirements?

Yes, the Cova dispensary POS software suite will allow you to generate required reports in one click and submit them to OMMA, virtually eliminating the risk of compliance errors due to human error. Cova’s system will automate compliance in other ways too, by offering instant age verification and monitoring purchasing limits.

Is Cova integrated with Metrc?

Yes — not only is Cova fully integrated with Metrc but we’re one of few cannabis-specific POS companies with two-way integration to Metrc's tracking system. Our system will automatically handle compliance reporting and seamlessly send any adjustments and reports to Metrc, thus helping you maximize operational efficiency and meet all Oklahama's changing laws and regulations. Once Metrc system is implemented in OK, Cova is there to help you with everything.

ron-segev

Ron Segev

Cannabis Business Lawyer & Founding Partner, Segev LLP

Legally reviewed by

Ron Segev

Ron Segev is the founding partner of Segev LLP. A practical-minded business lawyer with expertise in the cannabis industry, he represents cultivators, dispensaries, CBD extractors, oil extractors, food processors, media and marketing companies, consultancies, and other businesses in the legal cannabis market.

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