Oklahoma Senate Bill SB1718

Oklahoma 2022 Regular Session

• Introduced: 2/7/22
• Refer: 2/8/22
• Report Pass: 2/17/22
• Refer: 2/17/22

Caption

Medical marijuana licensing; providing exception for commercial grower operations. Effective date.

Impact

The legislation is expected to have a notable impact on the regulations governing medical marijuana businesses in Oklahoma. By placing new restrictions on how licenses are awarded, it aims to ensure that a majority of individuals involved in these businesses are residents of the state. Proponents argue that this will not only bolster local economies but also enhance accountability and compliance within the industry. However, the bill will delay the approval of new commercial grower applications until the necessary audits are completed, which could impact the operational capacity of existing growers and potential new entrants into the market.

Summary

Senate Bill 1718 aims to amend existing laws governing medical marijuana licenses within Oklahoma, specifically focusing on commercial grower operations. The bill establishes new criteria for the approval of commercial grower licenses, mandating that all applications be suspended until certain conditions are met, such as inspections and financial audits by the Oklahoma Medical Marijuana Authority. The application fees are set at $2,500, and the criteria for license approvals have been updated to require that applicants be Oklahoma residents, with ownership restrictions limiting out-of-state ownership to a maximum of 25%.

Contention

One of the points of contention surrounding SB 1718 is its implications for the speed at which new growers can enter the market. Critics argue that by suspending approval of licenses without clear timelines for the completion of inspections and audits, the bill may inadvertently stifle competition and innovation in the burgeoning medical marijuana sector. Furthermore, there are concerns regarding the potential burden this may place on applicants who may already be navigating a complex regulatory environment. Advocates for the bill defend these measures as necessary to ensure high standards for the state’s commercial growing practices.