Major OMMA and Metrc Regulatory Compliance Events Coming in August

Moratorium on New Commercial Licenses and the Deadline to Sell All Medical Marijuana Products that are Not Compliant with Metrc

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Oklahoma House Bill 3208 (HB 3208) Prohibits OMMA from Processing New Applications for Commercial Licenses After August 1

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On May 26, 2022, Gov. Stitt signed Oklahoma House Bill (HB) 3208 that will prohibit OMMA from processing NEW applications for grower, dispensary and processor licenses after August 1, 2022. Current commercial licenses are NOT INCLUDED in this moratorium and will be able to apply to renew their license beginning 60 days before the license expiration date using the online portal.  HOWEVER, After Aug. 1, 2022, any commercial grower, dispensary or processor that allows a license to expire without a renewal application or by surrendering a license, will not be able to renew a license until the moratorium is over.  The moratorium will end on Aug. 1, 2024, unless the OMMA Executive Director determines all pending license reviews, inspections or investigations are complete and ends the moratorium earlier.

Most applicants for new and renewed grower, dispensary and processor licenses may still resubmit a corrected license application once, if the initial application is rejected after Aug. 1, 2022. According to the OMMA, some circumstances require a denial, and other circumstances allow an additional chance to resubmit an application. Contact the OMMA for additional information.

This means that the only way a new or existing medical marijuana company will be able to expand their footprint in Oklahoma over the next two years is by transferring ownership of an existing commercial license.  Although transfers of OMMA licenses used to be prohibited, new rules within the last year now allow commercial licensees to transfer ownership of their license using the change of ownership process in one of two ways.

The current owner can initiate an ownership transfer in the Thentia licensing portal at any time using the process to change the “Person of Interest” by submitting documentation for the new owner and paying a fee of $500.  The current or new owner can also initiate a business name change in Thentia for an additional $500 fee, and/or a location change for a separate $500 fee.

If the owners wish to avoid the above fees or happen to be transferring ownership within 60 days of a license expiration, the current owner can transfer the license to a new owner during the license renewal process by submitting the required documentation for the new owner. The change of ownership and/or a business name change and/or a location change can be completed as part of the renewal process for the standard renewal application fee.

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Deadline For Dispensaries to Sell Or Dispose of All Medical Marijuana Products That Are Not Compliant With Metrc is August 24

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Like all commercial licensees, dispensaries were required to be fully Metrc-compliant by May 26. Growers and Processors may not sell new untagged inventory, nor may dispensaries buy new untagged inventory and have through Aug. 24 to sell or legally dispose of untagged items that were in the dispensary’s inventory on May 26  Untagged sales will need to be accounted for as described in the OMMA’s Monthly Reporting section on Metrc’s Seed-to-Sale inventory tracking system.

Transporters may transport a dispensary’s untagged inventory to waste disposal facilities, and waste disposal facilities can legally dispose of the untagged inventory.  Untagged medical marijuana product inventory must be picked up on or before Aug. 24.

As mentioned in my blog entry earlier this month, if your dispensary purchased a Metrc-tagged product that was tested “outside” of Metrc – meaning the lab did not input the results directly into Metrc, there is no deadline to sell it as long as the lab entered information into Metrc’s “Notes” section about the tested batches.

*Disclaimer: this information does not constitute express or implied legal advice by Kenneth H. Robertson or by Mystic Medicinal, LLC.  Please consult an attorney if you have specific legal questions or concerns about your particular situation.

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