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Different Types of Cannabis Licenses


SUMMARY

With the passage of SQ 788, Oklahoma became the 31st state to legalize the "licensed use, sale, and growth of marijuana in Oklahoma for medicinal purposes." Since the passage of SQ 788, the cannabis industry in Oklahoma has quickly become one of the fastest growing in the nation. The fast growth of the cannabis industry offers a unique opportunity for individuals and businesses who would like to capitalize on the booming market. Currently, Oklahoma law allows for 5 types of medical marijuana business licenses.

  1. Commercial grower;
  2. Processor;
  3. Dispensary;
  4. Transporter; and
  5. Testing laboratory.

BACKGROUND

Commercial Grower: A medical marijuana "commercial grower" is an individual or entity that has been issued a medical marijuana commercial license by the Oklahoma State Department of Health (the "Department"), which allows the grower to grow, harvest, dry, cure, package, sell, transfer, and transport or contract with a commercial transporter for the transport of medical marijuana in accordance with Oklahoma law and the Department's rules to a dispensary, processor, grower, research facility, education facility, or testing laboratory.

Processor: A medical marijuana "processor" is an individual or entity that has been issued a medical marijuana commercial license by the Department, which allows the processor to: purchase medical marijuana or medical marijuana products from a grower or processors; process, package, and sell, transfer, transport or contract with a commercial transporter to transport medical marijuana or medical marijuana products that they processed to a licensed dispensary, processor, or testing laboratory in accordance with Oklahoma law and the Department's rules; and process medical marijuana received from a licensed patient into a medical marijuana concentrate, for a fee.

Dispensary: A medical marijuana "dispensary" is an individual or entity that has been issued a medical marijuana commercial license by the Department, which allows the dispensary to purchase medical marijuana or medical marijuana products from a licensed processer, grower, or dispensary; to sell medical marijuana and medical marijuana products to a licensed patient, (if licensed patient is a minor, then to the licensed patient's parent(s) or legal guardian(s)), a licensed caregiver, a research facility, and an education facility; and to sell, transfer, and transport or contract with a commercial transporter to transport medical marijuana or medical marijuana products to another licensed dispensary, and to transfer medical marijuana products to testing laboratories.

Transporter: A medical marijuana "transporter" is an individual or entity issued a medical marijuana commercial license by the Department, which allows the transporter to transport, store, and distribute medical marijuana and medical marijuana products to and from the licensed premises of commercial establishments and testing laboratories. As used in the Department's rules, "Transporter" or "Commercial Transporter" does not mean licensed commercial growers, processors, and dispensaries who are automatic holders of transporter licenses.

Testing Laboratory: A medical marijuana "testing laboratory" is a public or private laboratory licensed pursuant to Oklahoma law and the Department's rules to conduct testing and research on medical marijuana and medical marijuana products.


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IMPLICATIONS

It is important to know and understand the differences and intricacies between each type of business license listed above because the application process and laws governing each business license are different. Maneuvering through all of the applicable laws, rules, and regulations for each type of medical marijuana business license can often be confusing and time consuming. Oklahoma Marijuana Laws and regulations can be convoluted. As a business owner, it is essential to know and understand all laws, rules, regulations, and requirements to obtain your marijuana business license. Furthermore, it is imperative for a business owner to stay up to date with all necessary compliance requirements in order to ensure your marijuana business runs smoothly and is not closed due to failure to comply with state laws. Additionally, if you are planning to enter into the Oklahoma medical marijuana industry, it is important for each business owner to carefully consider many other complex legal and tax issues including, but not limited to, business formation and structuring, banking and finance, tax considerations, employment matters, securities issues, contracts and operational agreements, asset protection, and various other issues. Munson & McMillin is well positioned to serve clients on a broad variety of the aforementioned issues as each issue relates to Oklahoma medical marijuana matters.


ABOUT MUNSON & MCMILLIN

Munson & McMillin, PC is a mid-sized business law firm with offices in Edmond and Tulsa, Oklahoma. The firm serves clients in a wide range of business, employment, and oil and gas matters.


CONTACTING MUNSON & MCMILLIN

This publication is provided by Munson & McMillin as a service to businesses. If you or someone you know needs advice, legal representation, or consultation in the emerging Oklahoma medical marijuana industry, please contact Vijay Madduri at vmadduri@munsonmcmillin.com or Hilary Jones at hjones@munsonmcmillin.com.