§ 63-427.14 — Medical marijuana business license – Requirements.

Oklahoma § 63-427.14

• Jurisdiction: Oklahoma
• Title 63: Public Health And Safety

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A. There is hereby created the medical marijuana business license, which shall include the following categories: 1. Medical marijuana commercial grower; 2. Medical marijuana processor; 3. Medical marijuana dispensary; 4. Medical marijuana transporter; and 5. Medical marijuana testing laboratory. B. The Oklahoma Medical Marijuana Authority, with the aid of the Office of Management and Enterprise Services, shall develop a website for medical marijuana business applications. C. The Authority shall make available on its website in an easy-to-find location, applications for a medical marijuana business. D. 1. The annual, nonrefundable fee for a medical marijuana transporter license shall be Two Thousand Five Hundred Dollars ($2,500.00). 2. The initial, nonrefundable fee for a medical marijuana commercial grower license shall be calculated based upon the total amount of square feet of canopy or acres the grower estimates will be harvested, transferred, or sold for the year. The annual, nonrefundable license fee shall be based upon the total amount of square feet of canopy or acres harvested, transferred, or sold by the grower during the previous twelve (12) months. The amount of the fees shall be determined as follows: a. For an indoor, greenhouse, or light deprivation medical marijuana grow facility: (1) Tier 1: Up to ten thousand (10,000) square feet of canopy, the fee shall be Two Thousand Five Hundred Dollars ($2,500.00), (2) Tier 2: Ten thousand one (10,001) square feet of canopy to twenty thousand (20,000) square feet of canopy, the fee shall be Five Thousand Dollars ($5,000.00), (3) Tier 3: Twenty thousand one (20,001) square feet of canopy to forty thousand (40,000) square feet of canopy, the fee shall be Ten Thousand Dollars ($10,000.00), (4) Tier 4: Forty thousand one (40,001) square feet of canopy to sixty thousand (60,000) square feet of canopy, the fee shall be Twenty Thousand Dollars ($20,000.00), (5) Tier 5: Sixty thousand one (60,001) square feet of canopy to eighty thousand (80,000) square feet of canopy, the fee shall be Thirty Thousand Dollars ($30,000.00), (6) Tier 6: Eighty thousand one (80,001) square feet of canopy to ninety-nine thousand nine hundred ninety-nine (99,999) square feet of canopy, the fee shall be Forty Thousand Dollars ($40,000.00), and (7) Tier 7: One hundred thousand (100,000) square feet of canopy and beyond, the fee shall be Fifty Thousand Dollars ($50,000.00), plus an additional twenty-five cents ($0.25) per square foot of canopy over one hundred thousand (100,000) square feet. b. For an outdoor medical marijuana grow facility: (1) Tier 1: Less than two and one-half (2 1/2) acres, the fee shall be Two Thousand Five Hundred Dollars ($2,500.00), (2) Tier 2: More than two and one-half (2 1/2) acres up to five (5) acres, the fee shall be Five Thousand Dollars ($5,000.00), (3) Tier 3: More than five (5) acres up to ten (10) acres, the fee shall be Ten Thousand Dollars ($10,000.00), (4) Tier 4: More than ten (10) acres up to twenty (20) acres, the fee shall be Twenty Thousand Dollars ($20,000.00), (5) Tier 5: More than twenty (20) acres up to thirty (30) acres, the fee shall be Thirty Thousand Dollars ($30,000.00), (6) Tier 6: More than thirty (30) acres up to forty (40) acres, the fee shall be Forty Thousand Dollars ($40,000.00), (7) Tier 7: More than forty (40) acres up to fifty (50) acres, the fee shall be Fifty Thousand Dollars ($50,000.00), and (8) Tier 8: If the amount of acreage exceeds fifty (50) acres, the fee shall be Fifty Thousand Dollars ($50,000.00) plus an additional Two Hundred Fifty Dollars ($250.00) per acre. c. For a medical marijuana commercial grower that has a combination of both indoor and outdoor growing facilities at one location, the medical marijuana commercial grower shall be required to obtain a separate license from the Authority for each type of grow operation and shall be subject to the licensing fees provided for in subparagraphs a and b of this paragraph. d. As used in this paragraph: (1) “canopy” means the total surface area within a cultivation area that is dedicated to the cultivation of flowering marijuana plants. The surface area of the plant canopy must be calculated in square feet and measured and must include all of the area within the boundaries where the cultivation of the flowering marijuana plants occurs. If the surface of the plant canopy consists of noncontiguous areas, each component area must be separated by identifiable boundaries. If a tiered or shelving system is used in the cultivation area, the surface area of each tier or shelf must be included in calculating the area of the plant canopy. Calculation of the area of the plant canopy may not include the areas within the cultivation area that are used to cultivate immature marijuana plants and seedlings, prior to flowering, and that are not used at any time to cultivate mature marijuana plants. If the flowering plants are vertically grown in cylinders, the square footage of the canopy shall be measured by the circumference of the cylinder multiplied by the total length of the cylinder, (2) “greenhouse” means a structure located outdoors that is completely covered by a material that allows a controlled level of light transmission, and (3) “light deprivation” means a structure that has concrete floors and the ability to manipulate natural light. 3. The initial, nonrefundable fee for a medical marijuana processor license shall be Two Thousand Five Hundred Dollars ($2,500.00). The annual, nonrefundable license fee for a medical marijuana processor license shall be determined based on the previous twelve (12) months as follows: a. Tier 1: The transfer or sale of zero (0) to ten thousand (10,000) pounds of biomass or the production, transfer, or sale of up to one hundred (100) liters of cannabis concentrate, whichever is greater, the annual fee shall be Two Thousand Five Hundred Dollars ($2,500.00), b. Tier 2: The transfer or sale of ten thousand one (10,001) pounds to fifty thousand (50,000) pounds of biomass or the production, transfer, or sale of one hundred one (101) to three hundred fifty (350) liters of cannabis concentrate, whichever is greater, the annual fee shall be Five Thousand Dollars ($5,000.00), c. Tier 3: The transfer or sale of fifty thousand one (50,001) pounds to one hundred fifty thousand (150,000) pounds of biomass or the production, transfer, or sale of three hundred fifty-one (351) to six hundred fifty (650) liters of cannabis concentrate, whichever is greater, the annual fee shall be Ten Thousand Dollars ($10,000.00), d. Tier 4: The transfer or sale of one hundred fifty thousand one (150,001) pounds to three hundred thousand (300,000) pounds of biomass or the production, transfer, or sale of six hundred fifty-one (651) to one thousand (1,000) liters of cannabis concentrate, whichever is greater, the annual fee shall be Fifteen Thousand Dollars ($15,000.00), and e. Tier 5: The transfer or sale of more than three hundred thousand one (300,001) pounds of biomass or the production, transfer, or sale in excess of one thousand one (1,001) liters of cannabis concentrate, the annual fee shall be Twenty Thousand Dollars ($20,000.00). For purposes of this paragraph only, if the cannabis concentrate is in nonliquid form, every one thousand (1,000) grams of concentrated marijuana shall be calculated as one (1) liter of cannabis concentrate. 4. The initial, nonrefundable fee for a medical marijuana dispensary license shall be Two Thousand Five Hundred Dollars ($2,500.00). The annual, nonrefundable license fee for a medical marijuana dispensary license shall be calculated at ten percent (10%) of the sum of twelve (12) calendar months of the combined annual state sales tax and state excise tax of the dispensary during the previous twelve (12) months. The minimum fee shall be not less than Two Thousand Five Hundred Dollars ($2,500.00) and the maximum fee shall not exceed Ten Thousand Dollars ($10,000.00). 5. The annual, nonrefundable license fee for a medical marijuana testing laboratory shall be Twenty Thousand Dollars ($20,000.00). E. All applicants seeking licensure or licensure renewal as a medical marijuana business shall comply with the following general requirements: 1. All applications for licenses and registrations authorized pursuant to this section shall be made upon forms prescribed by the Authority; 2. Each application shall identify the city or county in which the applicant seeks to obtain licensure as a medical marijuana business; 3. Applicants shall submit a complete application to the Authority before the application may be accepted or considered; 4. All applications shall be complete and accurate in every detail; 5. All applications shall include all attachments or supplemental information required by the forms supplied by the Authority; 6. All applications for a transporter license, initial dispensary license, initial processor license, or laboratory license shall be accompanied by a full remittance for the whole amount of the license fee as set forth in subsection D of this section. All submissions of grower applications, renewal processor applications, and renewal dispensary applications shall be accompanied by a remittance of a fee of Two Thousand Five Hundred Dollars ($2,500.00). The Authority shall invoice license applicants, if applicable, and notify applicants in the same method and manner as the application was submitted to the Authority for any additional licensing fees owed pursuant to subsection D of this section prior to approval of a license application. Applicants and licensees shall remit all required license and application fees, including any additional licensing fees, if applicable, in full within forty-five (45) days of notification by the Authority. Failure to remit such fees shall result in the denial of the application. License fees are nonrefundable; 7. All applicants shall be approved for licensing review that, at a minimum, meet the following criteria: a. twenty-five (25) years of age or older, b. if applying as an individual, proof that the applicant is a resident of this state pursuant to paragraph 12 of this subsection, c. if applying as an entity, proof that seventy-five percent (75%) of all members, managers, executive officers, partners, board members or any other form of business ownership are residents of this state pursuant to paragraph 12 of this subsection, d. if applying as an individual or entity, proof that the individual or entity is registered to conduct business in this state, e. disclosure of all ownership interests pursuant to the Oklahoma Medical Marijuana and Patient Protection Act, and f. proof that the medical marijuana business, medical marijuana research facility, medical marijuana education facility and medical marijuana waste disposal facility applicant or licensee has not been convicted of a nonviolent felony in the last two (2) years, or any other felony conviction within the last five (5) years, is not a current inmate in the custody of the Department of Corrections, or currently incarcerated in a jail or corrections facility. Upon reasonable suspicion that a medical marijuana business licensee is illegally growing, processing, transferring, selling, disposing, or diverting marijuana, the Authority, the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the Oklahoma State Bureau of Investigation (OSBI), or the Attorney General may subpoena documents necessary to establish the personal identifying information of all owners and individuals with any ownership interest in the business; 8. There shall be no limit to the number of medical marijuana business licenses or categories that an individual or entity can apply for or receive, although each application and each category shall require a separate application, application fee, or license fee. A commercial grower, processor and dispensary, or any combination thereof, are authorized to share the same address or physical location, subject to the restrictions set forth in the Oklahoma Medical Marijuana and Patient Protection Act; 9. No medical marijuana business premises is permitted to have multiple licenses of the same type pursuant to the licensing requirements of this section, excluding the following: a. a commercial grower with a combination of an indoor or outdoor growing facility on one parcel of land, b. a licensed medical marijuana processor used by multiple licensees, and c. a licensed medical marijuana business that has an approved application by the Authority while the new business seeks registration from the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control pursuant to Section 427.14c of this title; 10. All applicants for a medical marijuana business license, research facility license or education facility license authorized by the Oklahoma Medical Marijuana and Patient Protection Act, or for a renewal of such license, shall undergo a national fingerprint- based background check conducted by the Oklahoma State Bureau of Investigation within thirty (30) days prior to the application for the license, including: a. individual applicants applying on their own behalf, b. individuals applying on behalf of an entity, c. all principal officers of an entity, and d. all owners of an entity as defined by the Oklahoma Medical Marijuana and Patient Protection Act; 11. All applicable fees charged by the OSBI are the responsibility of the applicant and shall not be higher than fees charged to any other person or industry for such background checks; 12. In order to be considered a resident of this state for purposes of a medical marijuana business application, all applicants shall provide proof of state residency for at least two (2) years immediately preceding the date of application or five (5) years of continuous state residency during the preceding twenty-five (25) years immediately preceding the date of application. Sufficient documentation of proof of residency shall include a combination of the following: a. an unexpired state-issued driver license, b. a state-issued identification card, c. a utility bill preceding the date of application, excluding cellular telephone and Internet bills, d. a residential property deed to property in this state, and e. a rental agreement preceding the date of application for residential property located in this state. Applicants that were issued a medical marijuana business license prior to August 30, 2019, are hereby exempt from the two-year or five-year Oklahoma residence requirement mentioned above; 13. All license applicants shall be required to submit a registration with the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control as provided in Sections 2-301 through 2-309 of this title; 14. All applicants shall establish their identity through submission of a color copy or digital image of one of the following unexpired documents: a. front of a state-issued driver license, b. front of a state-issued identification card, c. a United States passport or other photo identification issued by the United States government, or d. a tribal identification card approved for identification purposes by the Department of Public Safety; 15. All applicants shall submit an applicant photograph; and 16. All applicants for a medical marijuana business license seeking to operate a commercial growing operation shall file along with their application a bond as prescribed in Section 427.26 of this title. F. The Authority shall review the medical marijuana business application; approve, reject, or deny the application; and send the approval, rejection, denial, or status-update letter to the applicant in the same method the application was submitted to the Authority within ninety (90) business days of receipt of the application. G. 1. The Authority shall review the medical marijuana business applications, conduct all investigations, inspections, and interviews, and collect all license and application fees before approving the application. 2. Approved applicants shall be issued a medical marijuana business license for the specific category applied under, which shall act as proof of their approved status. Rejection and denial letters shall provide a reason for the rejection or denial. Applications may only be rejected or denied based on the applicant not meeting the standards set forth in the provisions of the Oklahoma Medical Marijuana and Patient Protection Act and Sections 420 through 427.28 of this title, improper completion of the application, unpaid license or application fees, or for a reason provided for in the Oklahoma Medical Marijuana and Patient Protection Act and Sections 420 through 427.28 of this title. If an application is rejected for failure to provide required information, the applicant shall have thirty (30) days to submit the required information for reconsideration. Unless the Authority determines otherwise, an application that has been resubmitted but is still incomplete or contains errors that are not clerical or typographical in nature shall be denied. 3. Status-update letters shall provide a reason for delay in either approval, rejection or denial should a situation arise in which an application was submitted properly but a delay in processing the application occurred. 4. Approval, rejection, denial or status-update letters shall be sent to the applicant in the same method the application was submitted to the Authority. H. A license for a medical marijuana business, medical marijuana research facility, medical marijuana education facility or medical marijuana waste disposal facility shall not be issued to or held by: 1. A person until all required fees have been paid; 2. A person who has been convicted of a nonviolent felony within two (2) years of the date of application, or within five (5) years for any other felony; 3. A corporation, if the criminal history of any of its officers, directors or stockholders indicates that the officer, director or stockholder has been convicted of a nonviolent felony within two (2) years of the date of application, or within five (5) years for any other felony; 4. A person under twenty-five (25) years of age; 5. A person licensed pursuant to this section who, during a period of licensure, or who, at the time of application, has failed to: a. file taxes, interest or penalties due related to a medical marijuana business, or b. pay taxes, interest or penalties due related to a medical marijuana business; 6. A sheriff, deputy sheriff, police officer or prosecuting officer, or an officer or employee of the Authority or municipality; 7. A person whose authority to be a caregiver, as defined in Section 427.2 of this title, has been revoked by the Authority; or 8. A person who was involved in the management or operations of any medical marijuana business, medical marijuana research facility, medical marijuana education facility or medical marijuana waste disposal facility that, after the initiation of a disciplinary action, has had a medical marijuana license revoked, not renewed, or surrendered during the five (5) years preceding submission of the application and for the following violations: a. unlawful sales or purchases, b. any fraudulent acts, falsification of records or misrepresentation to the Authority, medical marijuana patient licensees, caregiver licensees or medical marijuana business licensees, c. any grossly inaccurate or fraudulent reporting, d. threatening or harming any medical marijuana patient, caregiver, medical practitioner or employee of the Authority, e. knowingly or intentionally refusing to permit the Authority access to premises or records, f. using a prohibited, hazardous substance for processing in a residential area, g. criminal acts relating to the operation of a medical marijuana business, or h. any violations that endanger public health and safety or product safety. I. In investigating the qualifications of an applicant or a licensee, the Authority and municipalities may have access to criminal history record information furnished by a criminal justice agency subject to any restrictions imposed by such an agency. J. The failure of an applicant or licensee to provide the requested information by the Authority deadline may be grounds for denial of the application. K. All applicants and licensees shall submit information to the Authority in a full, faithful, truthful and fair manner. The Authority may recommend denial of an application where the applicant or licensee made misstatements, omissions, misrepresentations or untruths in the application or in connection with the background investigation of the applicant. This type of conduct may be grounds for administrative action against the applicant or licensee. Typos and scrivener errors shall not be grounds for denial. L. A licensed medical marijuana business premises shall be subject to and responsible for compliance with applicable provisions consistent with the zoning where such business is located as described in the most recent versions of the Oklahoma Uniform Building Code, the International Building Code and the International Fire Code, unless granted an exemption by a municipality or appropriate code enforcement entity. M. All medical marijuana business, medical marijuana research facility, medical marijuana education facility and medical marijuana waste disposal facility licensees shall pay the relevant licensure fees prior to receiving licensure to operate. Applicants and licensees shall remit all required license and application fees, including any additional licensing fees, if applicable, in full within forty-five (45) days of notification by the Authority. Failure to remit such fees shall result in the denial of the application. N. A medical marijuana business, medical marijuana research facility, medical marijuana education facility or medical marijuana waste disposal facility that attempts to renew its license after the expiration date of the license shall pay a late renewal fee of Five Hundred Dollars ($500.00) per week that the license is expired. Late renewal fees are nonrefundable. A license that has been expired for more than sixty (60) calendar days shall not be renewed. Only license renewal applications submitted at least sixty (60) calendar days prior to the expiration date shall be considered timely submitted and subject to the provisions of subsection F of this section. A medical marijuana business license shall remain unexpired during the pendency of the application for renewal provided that such application was timely submitted. The Authority shall allow renewal applications to be submitted at least one hundred twenty (120) calendar days prior to the expiration date of a medical marijuana business license. O. Except as provided by this section, immediately upon expiration of a license, any medical marijuana business, medical marijuana research facility, medical marijuana education facility, or medical marijuana waste disposal facility shall cease all possession, transfer, or sale of medical marijuana or medical marijuana products. Any continued possession, sale, or transfer shall subject the business owners and operators to felony prosecution pursuant to the Uniform Controlled Dangerous Substances Act. P. A medical marijuana business license holder shall require all individuals employed under his or her license to be issued a credential pursuant to the provisions of Section 427.14b of this title prior to employment. Q. An original medical marijuana business license issued on or after June 26, 2018, by the Authority, for a medical marijuana commercial grower, a medical marijuana processor or a medical marijuana dispensary shall be deemed to have been grandfathered into the location on the date the original license was first issued for purposes of determining the authority of the business to conduct and continue the same type of business at that location under a license issued by the Authority, except as may be provided in Sections 425 and 426.1 of this title. Any change in ownership after the original medical marijuana business license has been issued by the Authority shall be construed by the Authority to be a continuation of the same type of business originally licensed at that location. Nothing shall authorize the Authority to deny issuance or renewal of a license or transfer of license due to a change in ownership for the same business location previously licensed, except when a revocation is otherwise authorized by law or a protest is made under the municipal compliance provisions of Section 426.1 of this title. R. A medical marijuana business license holder shall require all individuals employed under their license to be issued a credential pursuant to the provisions of Section 427.14b of this title prior to employment. S. The Executive Director of the Authority may promulgate rules to implement the provisions of this section including, but not limited to, required application materials to be submitted by the applicant and utilized by the Authority to determine medical marijuana business licensing fees pursuant to this section.

Legislative History

Added by Laws 2019, c. 11, § 14. Amended by Laws 2019, c. 509, § 6; Laws 2020, c. 161, § 51, emerg. eff. May 21, 2020; Laws 2021, c. 553, § 17, eff. Nov. 1, 2021; Laws 2022, c. 332, § 4, eff. June 1, 2023; Laws 2023, c. 168, § 5, eff. Nov. 1, 2023; Laws 2023, c. 322, § 7, emerg. eff. June 1, 2023; Laws 2024, c. 182, § 27, emerg. eff. April 26, 2024; Laws 2024, c. 342, § 1, eff. Nov. 1, 2024; Laws 2025, c. 494, § 2, eff. Nov. 1, 2025. NOTE: Laws 2019, c. 477, § 9 repealed by Laws 2020, c. 161, § 52, emerg. eff. May 21, 2020.