The Oklahoma Senate passes legislation against the illegal cannabis industry

The Oklahoma Senate on Tuesday passed legislation targeting the illicit cannabis industry by requiring medical marijuana companies to provide proof that they legally occupy the property on which their operations are located. The measure, Senate Bill 806, was approved by the Senate by a 41-1 vote Tuesday and now goes to the state House of Representatives for consideration.

The legislation is one of dozens of bills designed to rule Oklahoma’s medical marijuana industry that were introduced after the defeat of a balloting initiative to legalize adult-use cannabis earlier this month. Senator Brent Howard, the author of Senate Bill 806, said the bill is intended to help law enforcement regulate medical marijuana, which was legalized in 2018 with the passage of a statewide ballot measure. If passed by the House of Representatives and signed by Gov. Kevin Stitt, the law would limit the number of medical marijuana businesses that can list the same physical address in their license applications.

“Those who regulate our medical marijuana industry run into trouble when they raid a facility only to find that there are numerous licensees using this one address and all stock product there,” Howard said of Senate Bill 806 “This makes it almost impossible for law enforcement to know which product is actually illegal and to properly investigate the case.” This action would limit the number of licenses that can be listed at one address to improve regulation and discourage illegal business activities.”

Under the bill, applicants for medical marijuana business licenses would need to prove they own or lease ownership of the address listed on the application. Such proof could consist of a copy of a executed deed of transfer or a signed rental agreement for the property. An address or physical location cannot have multiple licenses within the same medical marijuana license category. The bill is intended to help the Oklahoma Medical Marijuana Authority (OMMA) and the State Bureau of Narcotics (OBN) identify medical marijuana businesses operating without a required state license.

“By requiring full disclosure of ownership, OMMA and OBN can ensure that no illegal operations or bad foreign actors are abusing Oklahoma lands and citizens,” Howard said. “This law would also ensure that we know there are no straw buyers for illegal foreign owners after the initial application.”

Oklahoma’s recreational weed measure failed this month

Senate Bill 806 is one of several bills introduced to regulate medical marijuana, which was legalized in Oklahoma with the passage of State Quest 788 in 2018. With low barriers to entry, including cannabis company licensing fees as low as $2,500 and unlimited in terms of the number of cannabis dispensaries, Oklahoma’s medical marijuana industry quickly grew to become one of the largest in the country.

The state’s Question 788 also had few restrictions to qualify for a medical marijuana card, and the number of registered patients now represents nearly 10% of the state’s population. According to a local media report, as of November 2022, Oklahoma had more than 2,300 medical marijuana dispensaries, more than the number of gas stations in the state.

Earlier this month, the state’s Republican governor said Oklahoma’s medical marijuana program was largely responsible for the failure of a ballot measure to legalize recreational marijuana in a March 7 special election. The proposal, State Question 820, was rejected by nearly 62% of voters.

“I’ve been told that enough marijuana is grown in Oklahoma to supply the entire United States. It shouldn’t be,” Stitt said after the state issue failed in the 820 elections. “This was supposed to be for medical purposes in the state of Oklahoma and it’s gotten out of hand.”

“As I traveled across the state, I knew the Oklahomans didn’t want it,” Stitt added. “They were so sick of the pharmacy on every corner.”

Since then, state legislatures have tabled dozens of cannabis-related bills for this year’s legislature. This week, Attorney General Gentner Drummond commended the Oklahoma legislature for passing three of the measures, including Senate Bill 806.

“Illegal marijuana cultivation in Oklahoma poses a serious threat to public safety, particularly in rural communities that are being invaded by organized criminals from China and Mexico,” Drummond said in a statement Tuesday. “As the chief law enforcement official for the state, I am committed to working arm-in-arm with Oklahoma’s law enforcement agencies to bring justice and restore peaceful order.”