Understanding Annual License Renewal Costs
This is Katrina Lucas with 420.Law, and I’m a cannabis business attorney. I got a question about what it costs annually to renew your license. Right now, it’s the OBNDD fees that you’ll have to pay 60 days prior to October 31st, and you’ll also have to pay your OMMA renewal fees 60 days before their renewal date.
The problem with OMMA licenses is that sometimes you’re doing transfers or renewals, and the laws or documentation have changed. You can end up stuck in the process for too long trying to figure out what the state needs, and you may go over your one-year timeframe.
Dealing with Delays and Rejections
So what do you do then? The answer is—you wait. You wait until you’re approved by OMMA, and then they’ll ask you to pay for the next renewal shortly after. Let’s say you submitted an application, it was denied, you resubmitted, and they didn’t look at it within the first 90 days. It’s been pending for seven months, and now you’re getting close to that 60-day renewal window—there’s not much you can do.
Hopefully, they’ll stop that delay, but if they don’t, you may want to request a complementary rejection so that you can re-enter the system. That way, someone can review your documents, verify that everything is up to date, and ensure that all the boxes are properly checked.
Attention to Detail is Key
You need someone who deals with OMMA and these records regularly so they know what needs to be addressed—what needs to be notarized, what needs to be signed, what must be within 30 days, what should already be completed, what your surety bond should look like, and who your signatories are. They’ll also check to make sure your names are consistent across documents.
It’s the little details OMMA will pick apart and reject for, but if you can get a complementary rejection and readjust your application, we may be able to get it approved within that 90-day window so you’re not stressed about the renewal.
Act Quickly with OBNDD
When it comes to OBNDD—do not delay. If you do, they will revoke your registration. You’ll then have to figure out where all your product is going to go while your OBNDD registration is redone, and you must do that before your OBNDD lapses. If, for some reason, you miss your 60-day window, there’s going to be a lot of scrambling to minimize your losses and keep your long-term costs down.
Contact Us for Assistance
Reach out to me at (918) 932-2879 if you’ve missed an annual renewal timeframe and believe you have good reason for them to grant you leeway—or if you need to reacquire a different license. We regularly come across clients who are leaving the business and others who want to get in, so brokering license deals is something we also offer. This is Katrina Lucas, a Tulsa OMMA compliance attorney with Wirth Law Office in Tulsa, Oklahoma. Stay safe, stay legal.