Over the past few years, the cannabis industry in Oklahoma has seen a lot of growth. Since there are low barriers to entry, the Sooner State has become an appealing destination for potential dispensary owners. However, owning and operating this type of business requires you to understand the regulations and laws of the state. Whether you’re considering entering the market or are already involved, here is what to know about dispensary ownership in Oklahoma.
What Are the Licensing Requirements?
In the state, the Oklahoma Medical Marijuana Authority (OMMA) oversees all the licensing and regulation of dispensaries. If you want to own a dispensary in Oklahoma, you must meet a few requirements, such as:
- Any owner must be at least 25 years old.
- Oklahoma residents must hold at least 75% of the business ownership.
- Individuals with certain felony convictions may be disqualified from owning or operating a dispensary.
However, those are not the only requirements. There is also a thorough application process to get a license. You will need to submit several documents, such as proof of residency, an ownership disclosure, and a Certificate of Compliance from local authorities. Plus, you must pay a non-refundable application fee of $2,500.
Keep in mind that these businesses cannot be operated in just any place. There are regulations about where you can set up your dispensary. All dispensaries must comply with strict zoning laws. For example, you need to find a location that is at least 1,000 feet away from schools.
Once you have been granted a license, it is not for an indefinite amount of time. Licenses must be renewed on an annual basis. Along with that, all dispensaries are subject to regular inspections by OMMA to ensure compliance with state laws. If you fail to meet any of these regulatory standards, that can result in fines, suspension, or revocation of your license.
Financial Concerns
Opening a dispensary is not like other businesses. Yes, there are tax implications and startup costs, but some financial restrictions could impact your company.
You will need to have the initial startup costs. These include licensing fees, real estate costs, renovations, inventory, security systems, and marketing. You should budget between $150,000 and $500,000, depending on the size and scope of your business.
Additionally, your dispensary is subjected to a 7% excise tax in addition to state and local sales taxes. Along with paying taxes, you also need to keep accurate records and make timely tax payments to avoid penalties.
Despite medical legalization in the state, cannabis remains illegal on a federal level. That means that you cannot open a business bank account. For that reason, many dispensaries have to operate on a cash basis. There are some credit unions and state-chartered banks in Oklahoma that have begun offering limited services to cannabis businesses.
Staying Compliant in the State
If you plan to open a dispensary, you need to follow the strict regulations. First, state law mandates stringent security protocols. These businesses must have surveillance cameras, alarm systems, and secure storage for cannabis products.
Also, employees must be well-trained in compliance procedures, customer service, and product knowledge. Training programs must cover verification, dosage recommendations, and proper handling of sensitive medical information.
When you sell a product, you are responsible for its quality and safety. With that, you need to source cannabis from licensed growers, verify lab testing results, and adhere to packaging and labeling requirements.
Finally, you need to make sure to protect yourself from any legal issues that could arise. When you work with an experienced cannabis business lawyer, you can help reduce your risks and address any regulatory challenges.
Get Assistance for Your Cannabis Business
Now that you know about dispensary ownership in Oklahoma, what are the next steps? You need to work with an experienced attorney who can help you start down the road toward starting a dispensary.
If you are ready to begin, 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.