A Guide to Oklahoma Cannabis Laws
Oklahoma has legalized medical marijuana only. Recreational use of cannabis is not legal.
Oklahoma residents with a physician’s recommendation can apply for a medical marijuana patient license.
Oklahoma cannabis business license holders must be 25 years old, an Oklahoma resident, and have a certificate of good standing from the state.
The application fee for a cannabis business is $2,500.
Oklahoma imposes a 7% excise tax on cannabis sales, in addition to state and local tax.
The regulatory body for Oklahoma’s medical marijuana industry is the Oklahoma Medical Marijuana Authority (OMMA).
Oklahoma patients are allowed up to 3 ounces of marijuana on their person.
Medical marijuana patients may possess up to 8 ounces in their residence.
Oklahoma Marijuana Laws
- As of January 2022, possession and sale of recreational marijuana is still illegal in Oklahoma under Oklahoma Statutes Title 63 §2-101, et seq., also known as the Uniform Controlled Dangerous Substances Act.
- Possession of recreational marijuana can lead to a misdemeanor charge with a penalty of up to 1 year or a fine of $10,000. Subsequent charges (or certain circumstances) can lead to increased penalties.
- Selling recreational marijuana in Oklahoma is a felony punishable by between 2-10 years in person and/or a fine of up to $5000.
- However, it’s important to note that marijuana use for medical purposes (medical marijuana) is allowed for certain conditions, in accordance with HB 2154 (approved in 2015) and SQ 788 (approved on June 26, 2018).
- According to the Oklahoma State Department of Health Medical Marijuana Control Program (310:681-2-11):
- All smokable, vaporized, vapable and e-cigarette medical marijuana and medical marijuana products smoked by a patient license holder are subject to the same restrictions for tobacco under Section 1-1521 et. seq. of Title 63 of Oklahoma statutes, commonly referred to as the “Smoking in Public Places and Indoor Workplaces Act.”
- The state of Oklahoma has changed some of its policies regarding marijuana possession and usage (Bill HB 26126 signed in March 2019) since this blog was originally posted. Citizens of Oklahoma with a medical marijuana license are permitted to have the following:
- Up to 8 ounces of marijuana at home
- Up to 3 ounces of marijuana on their person
- Up to 1 ounce of concentrated marijuana
- Up to 72 ounces of edible marijuana
- Up to 6 mature marijuana plants
- Up to 6 seedling plants
- However, without a medical marijuana license, possessing more than 1.5 ounces of herbal cannabis will still lead to a misdemeanor charge (with the penalty of a fine, but no jail time).
- The consumption of marijuana is legal in the home but illegal in public places. It is illegal to drive under the influence of marijuana, but Oklahoma residents with a medical marijuana license are allowed to drive with the marijuana in their car (closed and out of reach from the driver) if they do not cross state lines.
Marijuana business requirements
- HB4056– Requires a private laboratory under contract with OMMA to provide a list of recommendations for marijuana testing equipment, as well as testing standards and operating procedures. Beginning in June 2024, laboratories renewing their licenses and new laboratories looking to obtain a license will have to be in compliance with the determined standards.
- HB3929– Requires the OMMA to develop standards for process validation. Process validation would be voluntary and would require licensees to use the seed-to-sale system, meet testing requirements and pay an annual fee of $5,000.
- SB1704– Requires medical marijuana business employees to apply for a credential that authorizes them to work in the business. One or more third-party vendors would manage the credentialing process by conducting background checks, and verifying eligibility and suitability. If the application is not approved, the applicant can appeal the decision to the OMMA.
- SB1737– Requires all commercial growers to post signage at least 18″x24″ in size on the perimeter of the grow operation. Signs must include the business name, the physical address of the business, a phone number and the business license number. If a grower fails to put up the required signage within 60 days after their license renewal, the license will be revoked. The bill also requires all commercial growers with outdoor operations to register with the Oklahoma Department of Agriculture, Food and Forestry as an environmentally sensitive crop owner — this provides notice to nearby pesticide applicators in an effort to minimize pesticide drift.
Changing packaging requirements:
- HB3019– Requires purchased marijuana leaving a dispensary to be contained in an exit package, which is described as an opaque bag. It would also require marijuana containers to be printed with “For use by licensed medical marijuana patients only,” and “Keep out of reach of children,” on the container. The container may be clear.
- Bolstering OMMA and enforcement:
- HB3208– Issues a moratorium on business licensing for a maximum of two years, starting Aug. 1, 2022, or until the OMMA can complete all pending license reviews, inspections and investigations.
- HB3971– Implements a secret shopper program in which employees from the OMMA would purchase marijuana from dispensaries and send it to labs to test for contaminants and potency. Cannabis products found to have contaminants will have a recall issued.
- SB1543– Removes the OMMA as a division of the Oklahoma State Department of Health. The OMMA would instead function as its own distinct entity.
- SB1367– Does a few things related to punishments for unauthorized transfers of cannabis:
- Raises the penalty for purchases or transfers of value of medical marijuana by a marijuana business, its employees or agents of the business to unauthorized persons. For the first offense, the fine is $5,000 (up from $1,000) and $15,000 (up from $5,000) for subsequent violations occurring within a one-year timeframe.
- Raises the penalty for marijuana patients to share or sell marijuana to unauthorized persons. For the first offense, the fine is $400 (up from $200). For the second offense, the fine is $1,000 (up from $500), and the offender will have their license permanently revoked.
- Raises the penalty for marijuana patients, caregivers, businesses or employees that share or sell marijuana to an unauthorized minor. For the first offense, the fine is $2,500 (up from a citation). For subsequent offenses, the offender is subject to a citation and fine of $5,000 (no change).
- Revokes licenses upon the second incident of businesses, employees or agents fraudulently or inaccurately reporting within a 10-year period.
Restructuring the licensure process:
- HB2179– Increases the annual license fee for growers based on the size of their canopy; for processors based on the amount of marijuana processed; for dispensaries based on a tax formula, and would implement a flat fee for testing laboratories.
- All growers pay $2,500 as a base.
- Indoor facilities and greenhouses or light deprivation facilities with canopies over 1,667 square feet then pay an additional $2,500 for up to 10,000 square feet of canopy. For 10,001-20,000 square feet, the fee is $5,000. These tiered rates continue, with a maximum fee for 100,000+ square feet of canopy at $50,000, plus 25 cents per additional square foot of canopy.
- Canopy is defined as “the total surface area within a cultivation area that is dedicated to the cultivation of flowering marijuana plants.”
- Outdoor grows with canopies over 83,334 square feet pay an additional $2,500 for up to 2.5 acres. For 2.5-5 acres, the fee is $5,000. These tiered rates continue, with a maximum fee for 50 acres at $40,000, plus $250 per additional acre.
- Processors pay an application fee of $2,000 for up to 2,000 pounds of dried marijuana, with an annual fee of $3,500. For 2001-3000 pounds, the application fee increases to $2,500, and the annual fee increases to $5,000. For more than 3,000 pounds of marijuana, the application fee increases to $15,000, and the annual fee increases to $20,000.
- For dispensaries, in addition to the $2,500 application fee, the annual fee is calculated at 10% of the sum of 12 calendar months of combined annual sales tax and excise tax for the dispensary. The minimum fee must be at least $2,500, and the maximum fee can’t exceed $10,000.
- The annual fee for a testing laboratory license is $20,000.
- SB1726– Adds commercial grow facilities to the list of new marijuana businesses that must establish themselves at least 1,000 from a public or private school. It would also add technology centers primarily used for classroom instruction to the definition of “school.”
Oklahoma Cannabis Advertising and Marketing Guide Labeling and Packaging
- Adds prohibition that packages and labels cannot contain the OSDH or OMMA logo. Compliance inspectors have found several instances where this is occurring. Adds that deceptive, false, or misleading packaging and labeling includes claims that a product is “organic” without approval from Federal Government or “pesticide free” when pesticides have been used on the medical marijuana or products. Adds prohibition that packages and labels cannot contain universal symbols from other states. Prohibits designing a label in a manner that would cause confusion regarding the package’s contents, potency or other required information. Adds requirement that packaging and labeling contain current and accurate information that matches what is on file with the OMMA, including legal name, trade name and license number.
- Adds requirements for labels of non-edible products so they are more uniform with edibles and provide important information such as name, license number, batch number, quantity, and ingredients. These items are essential information for a patient to have access to in the event of a recall.
- Adds basic labeling requirements for wholesale transfers between growers and/or processors, which include name, license number, batch number, date of harvest or production, and a statement that the medical marijuana has passed testing or failed testing and is being transferred for remediation purposes only.
- Adds requirement that growers and processors store medical marijuana and products under conditions and in manner that protects against contamination and deterioration. Also requires it to be stored in fully sealed/closed receptacles when not in use.
- Adds prohibition against representations by licensee that it is engaged in commercial services for which it is not licensed. Adds prohibition against advertisement that could cause licensed patients to believe medical marijuana was grown in another state.
- Adds that deceptive, false, or misleading advertising includes claims that a product is “organic” without approval from Federal Government or “pesticide free” when pesticides have been used on the medical marijuana or products.
Oklahoma Cannabis Tax Guide
- Medical marijuana: Purchases are subject to a 7% medical marijuana excise tax, as well as the 4.5% statewide sales tax and any additional local municipal taxes. Expect to pay roughly 12% or more in taxes out the door.