HOW DID WE GET HERE? • Initiative petition backed by a volunteer group called Oklahomans for Health • Gathered enough signatures (around 67k) to have their volunteer-written state question put on the ballot • June 26, 2018: Roughly 57% of Oklahomans who voted, voted Yes on SQ788 (approx. 507k)
TYPES OF LICENSES • Patient license • Temporary license • Caregiver license • Dispensary license • Commercial grower license • Processing license • Transportation license • Special Research License
PATIENT LICENSE • Counties and cities may enact Allows a patient to possess: medical marijuana guidelines • 3 ounces of marijuana on their allowing patients access to person MORE marijuana • 6 mature marijuana plants • 6 seedling plants • 1 ounce of concentrated marijuana • 72 ounces of edible marijuana • 8 ounces of marijuana at home
PATIENT LICENSE • The Dept. of Health regulates licenses through the Oklahoma Medical Marijuana Authority (OMMA) • Cost: $100 (or $20 for individuals on Medicaid) • The OMMA began accepting applications on August 25, 2018 and is given 14 days to approve or reject each application • As of April 8th, the number of licenses approved: • 94,381 patient • 1,048 caregiver • 1,370 dispensary • 2,658 grower • 727 processor
Understanding the Number of Licenses • Oklahoma currently has 1 dispensary license for every 69 patient licenses • 2 growers for every 1 dispensary
Available for people from out-of-state who have a valid license in their home state TEMPORARY Cost: $100 LICENSE Duration: 30 days
CAREGIVER LICENSE Available for caregivers of homebound patients
Cost: $2,500 DISPENSARY Non-Oklahoma residents may have up to a 25% LICENSE ownership interest $5,000 fine or license revocation for selling to people who do not have a patient or caregiver license
PROCESSING LICENSE Distills or processes plants into Sells to retailers or Cost: $2,500 concentrates, edibles, other processors and other forms for consumption Food Safety Standards May process marijuana Board created to set Wholesale, not taxed into concentrated form standards for for patients directly processors
Allows transporter Transported in a TRANSPORTER agents to contract locked container with & store MMJ and clearly labeled LISENCE products in as “Medical warehouses; Marijuana or (changed by HB2612) agents pay a $100 Derivative” annual license fee
Compare to Arkansas: $100,000 license fee + Cost: $2,500 $500,000 performance bond Growers sell marijuana to retailers & processors COMMERCIAL GROWER LICENSE Wholesale, not taxed No limit on how much marijuana can be grown
EMPLOYMENT PROBLEMS
NEW PROTECTED CLASS OF WORKERS Per Section 6(B) of SQ788 : • Patients with a medical marijuana license, even those who work in safety sensitive positions, could avoid consequences of drug testing for marijuana products • Compared to patients who take prescription painkillers – medical marijuana patients were put on an elevated playing field
SQ 788: EMPLOYERS MAY TAKE ACTION AGAINST A LICENSE HOLDER WHO: Uses or possesses marijuana while at work, or during the hours of employment
LEGISLATIVE ACTION TAKEN IN HB 2612: ▪ Addresses drug testing for pre-employment & safety- sensitive positions (see FAQ handout) ▪ Clearly states that federal contractors are exempt from the state medical marijuana law ▪ Addresses loopholes that are leaving employers vulnerable to lawsuits ▪ Clarifies that insurance carriers (Work Comp, Health) aren’t required to cover the cost of marijuana
The following were addressed statutorily, as well: • Laboratory testing Public Health • Child safety guidelines regarding Concerns labeling, packaging, advertising, Addressed in etc. • Addition of marijuana to Smoking HB2612 in Indoor Places and Workplaces Act
TAXATION
Retail tax is 7% of the gross amount received by the seller Collected at the point of sale Sections 7(A) & (B) of SQ788 Applied primarily to finance the regulatory office If proceeds exceed the needed amount to finance the regulatory office, then: 25% goes towards drug and 75% goes to the General Revenue Fund for common education, and alcohol rehab programs
Bills filed this legislative session • Taxation of Medical Marijuana • SB1030 by Sen. Paxton – lowers 7% excise tax to 6% and state sales tax to 1% giving local governments room to add their own taxes • Smoking in Public Places and Indoor Workplace Act to include marijuana smoke: • HB 1389 by Rep. Townley (failed deadline) • Misdemeanor for possessing counterfeit license or using another person’s license • SB 612 by Sen. McCortney and Rep. Echols (failed deadline) • Employment Protections • SB 305 by Sen. Daniels (failed deadline) There are dozens more out there; this will be something that the legislature will address for the next decade at least.
WHAT’S NEXT?
Well, there’s a lawsuit… • On March 19, 2019 Callum v. Bates was filed by Attorney Julie Ezell asking for: • A Declaratory Judgement that HB 2612 is unconstitutional, vague, and void • A Temporary Injunction and Temporary Restraining Order instructing the OSDH and State of Oklahoma to temporarily delay the enforcement of the Unity Bill • A Permanent Injunction asking that the bill is delayed permanently and therefore never enforced
Continuing discussions around: • Prohibiting or limiting homegrow • Prohibiting or limiting smokable marijuana • Requiring qualifying conditions for patient licenses • Including physician training requirements • Requiring pharmacists or other professionals on site • Restricting the amount of THC in products • Reducing possession limits (after 788, ours are 6.5 times the felony limit in Colorado).
Impact of the new industry on Oklahoma In 2018, the new industry created: • 2,107 jobs and brought in almost $2.2 million in state and local taxes, Source: Leafly Special Report: Cannabis Jobs Count As of Feb. 2019: • $13.2 million in license application fees from cannabis businesses & patients Source: OKC Fox 25 March 2019 numbers - $12M in sales, $2M in taxes collected • 6 th straight month of growth from the industry Source: KRMG
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