Since 2018, Oklahoma’s open-market system has made it one of the biggest booming cannabis markets in the country. However, for entrepreneurs interested in entering the cannabis space, understanding the licensing fees in Oklahoma is the first step in starting your next venture. We will break down all the potential costs you may encounter in the Sooner State.
Fees and Licenses in Oklahoma
The Oklahoma Medical Marijuana Authority (OMMA) oversees the licensing and regulation of cannabis businesses in the state. There are several types of licenses in the cannabis industry.
Remember, these costs can change, but as of 2024, the fees for these licenses are $2,500. However, you will need to decide which category your business will fall into:
- Dispensary license: This allows businesses to sell medical cannabis products to licensed patients and caregivers.
- Grower license: Once you have obtained this license, you or your businesses can cultivate cannabis plants. This fee applies to operations of all sizes, from small-scale farms to large commercial grow operations.
- Processor license: This type of license allows holders to manufacture products from raw cannabis.
- Transporter license: You will need this license if you have a business that transports cannabis and cannabis products between licensed facilities.
- Testing laboratory license: This license allows you to run an operation that maintains product safety and compliance.
- Waste disposal license: With these licenses, you can start a business specializing in disposing of cannabis waste.
While these figures are for smaller businesses, Oklahoma does have tiered pricing for growers and processors. That means that large businesses have to pay more for their licenses.
Tiered Licensing for Cannabis Processors and Growers
The OMMA has a tiered licensing structure for cannabis growers and processors. With that, the fees for the license can change based on the size of the business.
For growers, this structure is based on the square footage of the cultivation space.
- Tier 1 (Cultivation area of 0 to 10,000 square feet): Annual Fee: $2,500.
- Tier 2 (Cultivation area of 10,001 to 20,000 square feet): Annual Fee: $5,000.
- Tier 3 (Cultivation area of 20,001 to 40,000 square feet): Annual Fee: $10,000.
There are several other tiers as well, with fees raised based on the size of the cultivation area.
Cannabis processors are also subject to a tiered licensing structure. The tiers are based on the amount of biomass produced or the use of cannabis concentrate.
- Tier 1 (Up to 10,000 lbs. biomass or up to 100 L of concentrate): Annual Fee: $2,500.
- Tier 2 (10,001-50,000 lbs. of biomass or 101-350 L of concentrate): Annual Fee: $5,000.
- Tier 3 (50,001-150,000 lbs. of biomass or 351-650 L of concentrate): Annual Fee: $10,000.
License Renewal Costs
Along with the base licensing fees, businesses must pay for renewal costs. A license is only valid for one year. After that, they must be renewed annually. Unless your company has expanded, the renewal fee is the same as the initial licensing fee.
Other Fees
In addition to the license fees, there are other costs associated with starting and maintaining a cannabis business in Oklahoma. For example, you may have to pay for a background check. These checks are conducted to ensure compliance with state regulations. Plus, they prevent individuals with certain criminal histories from entering the industry.
Also, licensed facilities must meet specific requirements for security, zoning, and operational standards. If you need to add building renovations, surveillance systems, and other compliance measures, that can add to your costs.
Some municipalities may impose additional fees or taxes on cannabis businesses. You will want to check local regulations to know whether you will incur more expenses.
These businesses are required to carry liability insurance. You may need to secure bonds to operate legally. Insurance premiums can be higher because of compliance and security “risks.”
Finally, you will want to consider your legal costs. Legal services for cannabis businesses can help you navigate the licensing process, draft compliance policies, or resolve disputes. These extra fees must also be considered for your operating costs.
Learn More About the Potential Fees for Your Business
Understanding cannabis licensing fees in Oklahoma is important for anyone interested in entering the state’s thriving medical marijuana market. While the base fees are relatively low compared to other states, there are other costs to starting and maintaining a compliant cannabis business.
If you are ready to get a license for your cannabis business, reach out to Brune Law Firm. We are here to help answer your questions and keep you legally compliant in the state. Schedule a consultation by calling (918) 876-0408.