Last updated: December 18, 2020.
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.
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.
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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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.
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.
Each patient license costs $100 (or $20 for those on
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
1 ounce of concentrates
72 ounces of edibles
There are three types of commercial cannabis licenses available in Oklahoma: grower, processor and dispensary.
Yes, the application process opened on August 25, 2018.
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.
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.
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.
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.
After licensing comes compliance. Learn the rules for running a medical marijuana dispensary in Oklahoma.
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.
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.
Medical cannabis dispensaries in Oklahoma can sell mature plants, seedlings, concentrates, flower and edibles.
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.
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.
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.
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. Metrc and OMMA will be releasing a timeline soon as to when will it become mandatory to start using Metrc for tracking, traceability and reporting.
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
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..
The Oklahoma Department of Health will have oversight and auditing powers over all of Oklahoma’s commercial medical marijuana operations.
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
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.
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.
Once you have a temporary or annual retail operator license, have created your account in Metrc and completed the required training, you may begin working with Metrc.
No, temporary licensees are not required to report in Metrc. However, temporary licensees are required to keep records of all track and trace information from the time they begin retail operations. Once an annual license has been approved, you must backlog all the track and trace information that you’ve recorded and begin daily reporting in Metrc.
Once you’ve set up your account in
The first way is manual reporting. This method requires logging in to your
The second way is to utilize a retail-specific cannabis dispensary software that can integrate with
In the event that you lose connectivity to
The state mandates that retailers maintain accurate inventory records. Physical inventory must be reconciled with records at least once every 14 days. You must also reconcile physical inventory with the counts you’ve reported in
Cova POS software provides complete seed-to-sale tracking functionality and has a number of built-in features designed to help you automatically comply with the legal regulations in your state/province. For example, the Cova POS system automatically monitors:
To ensure that you always maintain an expedient transaction pace and keep lines moving, Cova comes with a built-in offline sales processing mode that enables continuous access to critical functions even when your Wi-Fi or internet connection is unavailable. Once connectivity is restored, all transactions performed in offline mode are synchronized with the state’s reporting system, data is backed up, and reports and inventory records are adjusted accordingly.
By choosing a POS system with built-in tax reporting functionality, you’ll always know exactly how much tax you need to pay.
There are several reasons why a cannabis-specific POS is ideal for your operation—but the most important one is compliance management. Because traditional retail operations and pharmacies don’t have the same government-mandated compliance requirements, their POS systems aren’t built to manage the complexities involved with track and trace reporting and the other aspects of state compliance.
With the industry still in its infancy, regulations are bound to change. At Cova, our team keeps up with industry-wide and state-specific changes so that our developers can quickly made necessary software updates—and so you never have to worry about remaining compliant with the latest regulations.
Absolutely! Cova software is built on technology that has the ability to dynamically scale with your needs. Microsoft’s Cloud Computing Platform, Azure, automatically detects instances of heavy traffic (such as sales on 4/20) and assigns further servers and computing power as necessary to compensate—allowing you to process sales without interruption, even during the busiest retail periods.
Although technically you are not mandated to comply with the new law and regulations until July, it’s a good idea to implement a compliant POS now so you don’t have to switch later.
With Cova, you can easily stay compliant with California’s inventory reconciliation requirement by printing the Inventory-on-hand report and checking it against your physical inventory. You can make any necessary adjustments directly into the POS, which will then sync the data across your network.
Cannabis Business Lawyer & Founding Partner, Segev LLP
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.