Oklahoma Medical Marijuana Law
Medical Marijuana License Consulting, Compliance Auditing, & Legal Representation
Medical marijuana dispensary owners, cultivators or growers, and processors in Oklahoma face a wide variety of legal issues and regulatory schemes everyday. Business owners need advising on, among other facets, the growing medical marijuana industry in Oklahoma and the marijuana regulatory laws, employment laws, leases, zoning, litigation and trial issues, real estate, land uses, tax issues, business operations, and business transactions.
Diver Law Firm’s services for initial startup and dispensary owners range from business setup or merger to dissolution and all matters related and in between. Oklahoma state and local laws provide a regulatory framework on medical cannabis owners that are countless, confusing, and unrelenting. Our attorneys can help guide you through the red tape to ensure that your business operates legally and successfully.
Business Formation & Structure
During the start-up period, a business owner must consider a significant number of issues, including the type of entity, governance, capital structure, and ownership. This is particularly important in the cannabis industry, where restrictive ownership, tax complications, and financing rules present unique problems and lucrative opportunities. What is typically routine for new business owners, might be restricted or even prohibited in the cannabis industry and even related or ancillary businesses.
Diver Law Firm business formation services include:
Entity selection and formation
Corporate governance documents - articles of incorporation and bylaws, operating agreements, shareholder agreements, partnership agreements, etc.
Financing and capital contribution documents - loan agreements, convertible notes, option/warranties, and private placement memorandums, etc.
Employment agreements
Non-Compete/Non-Disclosure Agreements
Compliance for Growers, Processors, & Dispensaries
Following the initial rollout of SQ 788, OMMA has continued to implement compliance and reporting requirements for medical marijuana business owners. New reporting requirements target growers, processors, and dispensaries which may have an impact on how to operate your cannabis business. The monthly reports are due by the 15th of each month for the preceding month and licensees may complete this process on OMMA’s online portal.
Growers/Cultivators will now be required to provide additional information to the OMMA on their monthly reports. Growers will now need to report the amount of medical marijuana transported to other licensed business as well as the number of plants transported to licensed business owners.
Dispensaries & Processors will see additional questions in the OMMA web portal and requires monthly reporting of the amount of medical marijuana transported to other licensed businesses, the amount of medical marijuana transported from another licensed business, and will need to provide a list of all transporter license numbers that have transported for their business.
Failing to report the required information to OMMA may result in administrative penalties imposed against you and your business. OMMA deems reports to be untimely if it does not receive reports by the 15th and regulations provide OMMA with the authority to impose sanctions against the business and business owner. If a licensed business owner fails to submit a required monthly report, or fails to correct the deficiency within thirty (30) days of OMMA’s written notice of the violation then the business “shall be subject to a fine of $500.00 and any other administrative action and penalty authorized by law.”
Failing to report the required information can result in the above-mentioned action however, gross errors may result in significant financial penalties and revocation of your OMMA business license. New OMMA regulations provide that if a licensee has submitted one or more reports that contain gross errors and those errors cannot reasonably be attributed to normal human error then the following penalties “shall be imposed:”
First Inaccurate report(s): $5,000 fine; if fine not paid within thirty (30) days of receiving the fine notice, the license “shall be revoked”
Any additional report(s): Revocation of OMMA license.
Maintain proper reporting records is paramount to your business’ success. OMMA may conduct on-site audits and may request documentation that supports any assertions made. This is why you should always ensure your Oklahoma medical cannabis business is compliant with OMMA regulations and offers proof of such to state authorities. If you or your business is facing administrative action from the Oklahoma Medical Marijuana Authority, you should contact an attorney dedicated to the practice of criminal defense and medical marijuana law. State law provides that licensed medical marijuana businesses have a right to notice of an alleged violation. Also, the licensee has a right to present a defense at a hearing as well as appeal any adverse ruling.
Diver Law Firm’s mission is to achieve the best possible results for our clients through hard work and dedication, attention to detail, and comprehensive and thorough representation utilizing modern techniques to ensure positive outcomes. We strive to maintain the highest level of professionalism, integrity, and ethical standards on our practice and in your medical marijuana business.
Corporate & Contract Services
Once a business is formed and operating, keeping a sound legal structure is vital to your success. Diver Law Firm negotiates and drafts countless corporate and commercial contracts for our clients and their business needs. Our general corporate and business contract services include:
Corporate governance and business operations
Commercial contract and corporate transactions
Mergers and acquisitions
Asset sales and purchase agreements
Equipment leases and sales
General Counsel Services - board meetings and minute drafting, mediation/arbitration for corporate disputes, conflicts of interests, etc.
Later-stage financing and capital investment
Tax Law
No business involved in the cannabis industry can move forward without first considering the tax implications. Diver Law Firm assists cannabis businesses, in conjunctions with the business’ accountants and other financial professional, with basic tax considerations of entity formation, business transactions, and day-to-day operations. Diver Law Firm has significant experience helping business owners and their accountants understand the complex and special tax rules that apply to marijuana businesses, such as Internal Revenue Code Section 280E, which prohibits most deductions for the cost of selling marijuana while allowing deductions for the cost of goods sold. Diver Law Firm can help respond to state and federal audits as well as advise on reporting cash transactions. By partnering with CPAs and tax court attorneys, we can help ensure your business is in compliance with tax law in the most profitable way.
Exit Strategy
Keeping your livelihood, freedom, and investment safe is paramount. While the cannabis industry is new, business owners should always consider a viable exit strategy as soon as possible, even during the startup phase. Exit, whether through a sale, merger, buyout, or otherwise, should always be an element of your own business strategy. Diver Law Firm partners with accountants and financial advisors, estate attorneys, and other professional to help ensure that business owners keep the fruits of their labor for themselves and their families.
FAQs in the Cannabis Industry
Is cannabis legal in my state?
Answer: The industrial hemp and cannabis industry is booming all across the nation and in many countries around the world. The reality is that cannabis laws and the regulatory framework between federal, state, and local authorities is a complicated and confusing relationship. Diver Law Firm can evaluate your location to determine if you are eligible for regulatory licenses and permits necessary to stay within the guidelines found in your jurisdiction. In any event, cannabis remains regulated by the federal government and is considered a Schedule I controlled substance according to the Controlled Substance Act. Having competent and experienced legal advice is vital to staying safe in this industry. Here is a current resource providing the states and jurisdictions allowing for medical and/or recreational cannabis as well as have decriminalized marijuana in some form.
What kind of cannabis business can I start?
Answer: Generally speaking, commercial cannabis operations are licensed by a state agency in the following categories:
Cultivation - growing and farming the cannabis plant
Manufacturing/Processing - transforming the cannabis flower into a cannabis product or byproduct
Testing - many states require independent lab analysis of the medical cannabis product to ensure consumer and patient safety
Transportation - this varies by jurisdiction though many states require licensing to transport cannabis products
Retail/Dispensary - direct to consumer sales of cannabis products are strictly controlled by state licenses
How long does it take to start a cannabis business?
Answer: Typically, this is a long process but with proper planning and advice, you can start immediately and drastically reduce your timeline. Ultimately, wait times depend on state licensing and local approval processes, the number of other applicants creating an administrative backlog, and the efficiency of the applicant. Obviously, the experience, or lack thereof, can drastically increase the amount of time spent waiting and losing profits so having an experienced business representative and knowledgable cannabis consultant is key to your success.
How much does it cost to start a cannabis business?
Answer: Licensing fees can vary widely by state and business model, but in addition to licensing, a commercial cannabis operation should expect financial liabilities in the form of a physical premises, purchasing costs associated with your operation, software and hardware to maintain records, startup capital for employee salary and inventory, etc.
Typically, the costs associated with any business startup are significantly higher than you anticipate. However, with proper planning and thorough advice, you can manage your costs and mitigate potentially expensive missteps by relying on an experienced business representative and cannabis consultant.
Can you guarantee my cannabis license?
Answer: Our attorneys are experienced in the regulatory framework associated with the cannabis industry and has successfully applied for medical cannabis licenses in Oklahoma. We have successfully appealed unfavorable decisions and have helped secure licenses for patient all across the state however, there are no guarantees. What Diver Law Firm does guarantee is that you will receive the most skilled and experienced business representation and qualified cannabis consultancy in Oklahoma. Do no trust your time, money, and livelihood without having a dedicated legal representative on your side.
Do you offer services not listed on your site?
Absolutely. Diver Law Firm prides itself on offering comprehensive business and legal representation that is specifically tailored to our clients’ needs. Contact us at (405) 896-8080 and start your new cannabis business today!
Diver Law Firm provides services from start-up consultation to exit strategy, including entity formation and governance, financing, and leasing and state and local licensing. Beyond that, Diver Law Firm helps its clients understand and maintain full compliance with the complicated rules in the highly regulated industry. The Oklahoma Medical Marijuana Authority (OMMA) was established to oversee the medical marijuana program and is the agency responsible for licensing, regulating, and administering the medical cannabis program authorized by state law. Diver Law Firm can help provide critical assistance with monthly reporting, sales tax permits, Oklahoma Bureau of Narcotics and Dangerous Drugs registration, food licensing and maintaining food safety standards.
Diver Law Firm also helps its clients in maintaining and expanding their businesses, securing long-term financing and employment agreements, vendor contracts, product-licensing agreements, and many other transactional aspects related to the cannabis industry. Diver Law Firms prides itself on providing dedicated business consultation tailored to this unique and expanding industry. Our attorneys maintain a constant understanding of state and federal cannabis legislation as well as relevant court opinions and policy changes that can affect the cannabis industry.
Contact Diver Law Firm today at (405) 896-8080 and allow our team represent you and your businesses interests as you navigate this new lucrative industry.
Helpful Links
Here is a list of helpful links that may answer additional questions:
Oklahoma Medical Marijuana Authority (OMMA)
Current OMMA Rules Title 310, Chapter 681 - Medical Marijuana Control Program
Food Safety Standards for Processors, 310:681-5-8.1. (.pdf)
State Question 788 (.pdf)
OMMA News and Updates
