Oklahoma Cannabis Law
Honesty is Best: Navigating OBNDD Revocation to Avoid Criminal Prosecution
Oklahoma’s House Bill 2837 proposes mandatory annual training for all employees in the cannabis industry, with content approved by the Oklahoma Medical Marijuana Authority (OMMA). Employers must document each employee’s training completion to comply with OMMA’s inspection standards. The training costs, estimated between $250 and $500 per employee, will be the employer’s responsibility. OMMA will publish guidelines and approve training vendors once the bill is enacted, and businesses should monitor updates to maintain compliance. These requirements are intended to ensure that cannabis-related businesses follow state regulations.
Read more »Navigating Building Codes for Oklahoma Cannabis Greenhouse Growers
In Oklahoma, building codes affecting medical marijuana greenhouses often depend on whether the grow is classified as indoor or outdoor, with electricity use playing a key role. The presence of electrical wiring or equipment inside a greenhouse may trigger the need for a Certificate of Occupancy (COO) due to fire safety concerns. However, Oklahoma lacks clear, uniform building codes specifically addressing these greenhouses, leading to inconsistent enforcement. Other agricultural growers using similar structures, like strawberry or mushroom farmers, typically face fewer code requirements. These regulatory discrepancies raise questions about fair treatment under state law, including relevant Oklahoma statutes governing building and occupancy codes. Read more »
Can a Trust Own Your Cannabis Land? The Legal Answer for Business Owners
Cannabis businesses face limited and often costly insurance options due to federal restrictions, affecting their ability to protect assets and manage risks effectively. While insuring cannabis products directly is generally unavailable under traditional policies, coverage for physical property such as buildings and equipment may be obtained. Some property owners can add riders for tenant improvements. The federal prohibition on cannabis creates legal uncertainties around product insurance, increasing the risk of policy invalidation. Businesses must assess risks carefully and consider financial plans for uninsured losses. Relevant Oklahoma cannabis business insurance considerations are governed under federal and state regulatory frameworks. Read more »
Business Insurance for Cannabis Companies: What You CAN Insure
Cannabis businesses face limited and often costly insurance options due to federal restrictions, affecting their ability to protect assets and manage risks effectively. While insuring cannabis products directly is generally unavailable under traditional policies, coverage for physical property such as buildings and equipment may be obtained. Some property owners can add riders for tenant improvements. The federal prohibition on cannabis creates legal uncertainties around product insurance, increasing the risk of policy invalidation. Businesses must assess risks carefully and consider financial plans for uninsured losses. Relevant Oklahoma cannabis business insurance considerations are governed under federal and state regulatory frameworks. Read more »
The 60-Day Window: Critical Steps to Renew Your MMJ License Before OBNDD Revokes It
Oklahoma cannabis business license renewals require annual fees paid to both the Oklahoma Bureau of Narcotics and Dangerous Drugs Control (OBNDD) and the Oklahoma Medical Marijuana Authority (OMMA), with specific deadlines 60 days before renewal dates. Renewal applications may face delays or denials, requiring applicants to wait for OMMA approval before paying fees again. In some cases, a complementary rejection can be requested to correct errors and resubmit applications. Timely renewal with OBNDD is crucial to avoid registration revocation and operational disruptions. These processes are governed by Oklahoma statutes regulating cannabis licensing.
Read more »Things Get Messy: Legal Routes to Push a Problem Partner Out of Your Cannabis Business
Partnership disputes in Oklahoma’s medical marijuana industry involve complex legal considerations depending on the business structure. Corporations may follow bylaws for partner removal or buyouts, while Limited Liability Companies (LLCs) often face more complicated processes. Legal claims such as breach of fiduciary duty can arise if a partner violates ownership rights, though these cases may be costly and time-consuming. Oklahoma statutes govern these issues, including provisions relevant to fiduciary duties and business entity regulation Read more »
Navigating Partner Buyouts in the Cannabis Industry
Are you a business owner in the cannabis industry looking to buy out a partner without bringing in a new one? 420.Law has the answer for you. Trust is key in situations like these, but if it doesn't exist, contractual obligations and involving a third party may be necessary. Structuring contracts and processes is essential, and 420.Law can help you navigate the complexities of buying out a partner in a non-traditional business setting. With out-of-the-box thinking and alternative plans, there are always options to explore. Contact at 420.Law for expert advice on structuring your deal. Read more »
Breaking Up the Business: Proper Steps to Remove a Partner and Notify OMMA
Oklahoma law requires medical marijuana businesses to fully disclose ownership and report any permanent changes to the Oklahoma Medical Marijuana Authority (OMMA) to maintain compliance and protect licenses. If a partner exits the business, the OMMA must be notified immediately, and business documents like operating agreements should be updated to reflect this change. Failure to update ownership records can lead to disputes or investigations by the OMMA or the Oklahoma Bureau of Narcotics and Dangerous Drugs (OBNDD). Undisclosed ownership interests are illegal, and all financial arrangements should be documented to avoid conflicts.
Read more »Books Are Messed Up: Immediate Steps to Fix Reporting Errors
Stay on top of your medical marijuana business's accounting to avoid legal issues. If you suspect someone has messed up your books, take action immediately. Remove them from the business, document the reasons, and quantify the damage. Consider auditing your stock and books to uncover any discrepancies. Ignoring accounting errors could lead to severe consequences, such as losing your OBNDD registration. Proper bookkeeping is crucial in the medical marijuana industry to prevent legal troubles. If you're unsure about the extent of your accounting issues, seek help from professionals like 420.Law. Call us at (918) 932-2879 for guidance. Stay safe, stay legal. Read more »
Don't Go It Alone: Why You Need a Lawyer Immediately After an OMMA Inspection Failure
Oklahoma medical marijuana businesses are regulated by the Oklahoma Medical Marijuana Authority (OMMA). Failing an OMMA inspection can result in penalties such as fines, fees, or license suspension or revocation. Inspections assess compliance in areas including security, record-keeping, and product safety. After a failed inspection, business operators may have options like correcting violations, appealing fines, or requesting reconsideration of penalties. Timely response is important to avoid escalated enforcement actions. OMMA’s regulatory process and potential consequences are governed by Oklahoma statutes related to medical marijuana licensing, see Okla. Stat. tit. 63, §§ 420 et seq.
Read more »Maximize Dispensary Profit: Structuring Your Business to Beat Federal Tax Law
Medical marijuana dispensaries in Oklahoma face significant financial challenges due to federal tax laws that limit deductible business expenses. Traditional costs like rent, utilities, and wages often cannot be deducted as part of the cost of goods sold (COGS), which must reflect expenses that add value to the product during processing. Simply reselling packaged products does not qualify for COGS deductions. Processing activities, such as making pre-rolls, may be included in COGS if they increase product value, but tax rules are strict and complex. These restrictions stem from federal laws affecting marijuana businesses despite Oklahoma’s medical marijuana legalization.
Read more »The Double Punch: Fighting OMMA & OBNDD Audits at the Same Time
The cannabis industry in Oklahoma faces complex regulatory challenges involving multiple agencies. The Oklahoma Bureau of Narcotics and Dangerous Drugs (OBNDD) enforces Chief Operating Officer (COO) requirements, while the Oklahoma Medical Marijuana Authority (OMMA) oversees FINCEN regulations and METRC reporting. License holders must comply with accurate reporting and may face license removal if inactive or non-compliant. Without OBNDD approval of a qualified COO, businesses cannot legally operate, even if permits are obtained. Maintaining compliance with both agencies' rules is necessary to avoid penalties, license suspension, or operational delays under Oklahoma cannabis regulations. Read more »
Acquiring an Oklahoma Cannabis License: The Current Rules Explained
Oklahoma currently has a moratorium on issuing new medical marijuana business licenses through the Oklahoma Medical Marijuana Authority (OMMA). To legally enter the state’s medical marijuana market, one must purchase an existing licensed business, as licenses are not issued separately and cannot be applied for anew during the moratorium. This process requires thorough due diligence to check for any compliance issues or disputes related to the license with OMMA or the Oklahoma Bureau of Narcotics and Dangerous Drugs. The license transfer involves acquiring all assets and liabilities of the business, as outlined under Oklahoma medical marijuana regulations. Read more »
Is the Trust Real? Steps to Verify a Trust That May Hold Cannabis Business Assets
Are you struggling to find information about a trust your parents set up? Do you have questions about who the trustee is and what rights you have in the trust? As an estate planning attorney, I understand the frustration these questions can bring. It's important to know that accessing trust information can be complex and may not always result in a clear answer. If you find yourself in this situation, it's crucial to contact a knowledgeable attorney to help you navigate the process. Give me a call at (918) 932-2879 to discuss your trust concerns. Stay informed, stay protected. Read more »
Understanding Your Estate Planning Options as a Cannabis Business Owner
Effective estate planning in Oklahoma involves more than just drafting a will. Key documents typically include a durable power of attorney, which authorizes someone to handle financial matters if you become incapacitated, and a medical power of attorney, granting decision-making authority over healthcare. A HIPAA disclosure form is also important, as it allows designated individuals to access medical information during emergencies. Trusts can further manage asset distribution and help avoid probate, but require proper funding and supporting documents. Incomplete estate plans may lead to family disputes, legal delays, and financial complications under Okla. Stat. tit. 58 §§ 101–401. Read more »
High Cost, No Privacy: The Financial Pain of Probate for Cannabis Business Assets
Are you considering creating a will for your estate planning needs? While a will is a good starting point, it may not be enough to avoid probate and keep your personal information private. In a probate process, your will becomes a public record, showcasing your assets and who you have disinherited. This process can also be costly, with fees for notifying creditors and individuals, as well as lawyer and court fees. If you are in need of creating a will or facing challenges with an existing will, it is important to seek guidance from an experienced attorney to ensure your wishes are properly honored. Contact me at 420.Law to discuss your estate planning needs. Read more »
Intestate Probate for Oklahoma Cannabis Business Owners
When a person dies without a will or estate plan in Oklahoma, their property is distributed according to intestate probate laws. This process involves filing paperwork in the county where the deceased lived and notifying all potential heirs. Complications can arise, especially in blended families or when assets are not properly titled, sometimes leading to disputes or quiet title actions to resolve ownership issues. Oklahoma’s intestate probate laws set out the procedures and requirements for handling such estates, including notification and claims processes. Read more »
Irrevocable vs. Revocable: Which Trust is Right for Your Estate Plan?
An irrevocable trust in Oklahoma involves transferring assets into a trust where the original owner generally cannot reclaim them, removing those assets from their personal estate. A trustee manages the trust independently, which can protect the assets from being counted in estate calculations for programs like Medicaid. Irrevocable trusts require their own tax identification number and must comply with specific tax laws, as they may face higher taxation than personal assets. Properly established, these trusts help avoid probate delays and costs by ensuring assets are distributed according to the trust’s terms. Read more »
Protecting Your Assets: Do You Need a Trust for Your MMJ Business?
In Oklahoma, a trust is a legal arrangement where a trustee manages property for beneficiaries, and the trust itself is recognized as an owner of assets. Trusts can help protect assets and avoid probate, making them useful in estate planning for medical marijuana businesses. Trust documents vary in length and detail, specifying trustee powers, beneficiary rights, and distribution terms. Oklahoma law generally upholds trust protections, even for revocable trusts, but there are rare circumstances where trust assets may be vulnerable.
Read more »Protect Your License: What Happens When OMMA Files a Petition for Revocation?
Senate Bill 697 proposes allowing warehouse locations for commercial transporters within Oklahoma’s medical marijuana industry to operate as centralized distribution hubs. This bill permits temporary storage of medical marijuana products at these warehouses, requiring businesses to maintain documentation and comply with regulatory standards. While the bill has passed one legislative floor, specifics on fees, certificates of occupancy, and regulatory exemptions remain pending. The legislation aims to improve efficiency and compliance with upcoming trafficking rules. These developments reflect ongoing changes in Oklahoma’s medical marijuana laws and regulations. Read more »