Officials, dispensaries explain medical marijuana industry compliance | News

With Tahlequah having 25-licensed medical marijuana dispensaries, owners say it’s a competitive industry that’s only going to grow.

Oklahomans voted to legalize medical marijuana in June 2018. The industry has grown so fast that even locals working in it are surprised when more facilities opens its doors.

The state has roughly 2,000 dispensaries and Tahlequah has 25 licensed dispensaries. City officials said there is no limit on how many dispensaries there can be in Tahlequah but some municipalities are already taking that step.

Primetime Buds Manager Blaine Mooney said he believes there will have to be some type of ordinance in place with how fast dispensaries are opening up.

“It’s extremely competitive and that’s all it is. That is why the market is so beat up right now is because everyone is trying to beat each other’s prices,” Mooney said.

The Oklahoma Medical Marijuana Authority is responsible for annual compliance inspections and audits for every licensed business. Inspections are conducted at random and Mooney said they’ve been inspected at least three times.

OMMA uses Metrc for seed-to-sale inventory tracking system and all licensed businesses are to be Metrc-compliant.

“With me, they chose three products: a flower, an edible, and a wax. They want labs, or testing, and the transport manifest,” said Mooney. “It takes up to two weeks for them to process it through.”

Some dispensaries barely stay in compliance with OMMA whereas several others are kept up to par. Mooney said that’s a major reason why several establishments end up closing.

“We’re seeing a lot of that right now and that’s why a lot of those new ones are popping up because the other ones are going out of business due to that exact reason,” said Mooney.

Applicants for a commercial license must get sales tax permits before OMMA issues a license.

“Dispensaries will be required to report two sources of tax to the Oklahoma Tax Commission: sales tax and the 7 percent gross receipts tax,” the OMMA stated.

Proceeds from the state tax on medical marijuana fell nearly half a million dollars between June and July. The 7 percent excise tax generated $4.2 million in July whereas it generated $33.11 million since January, compared to the $40.47 million during that same time last year.

“The revenue goes first to OMMA’s authorized budget, which is up to $57 million this fiscal year. Then, 75 percent of excess revenue is earmarked for education via the State of Oklahoma’s general fund, and 25 percent is earmarked for drug and alcohol rehabilitation via the Oklahoma State Department of Health,” the OMMA stated.

Sales tax revenue is funded to local governments and OMMA does not receive sales tax money.

It’s required by law that growers, processors, dispensaries, laboratories, and research facilities applicant are to register with the Oklahoma Bureau of Narcotics and Dangerous Drugs Control after receiving a license from OMMA.

As far as the number of dispensaries out in Cherokee County, Glenda Cobb with the county commissioner’s office, said that’s something they don’t keep track of.

“We give them a letter saying we have no zoning. The process is pretty simple here and we have tried to get it more complex,” Cobb said.

The Daily Press reached out to OMMA in regard to how many people in Cherokee County were licensed to purchase medical marijuana. They advised that information couldn’t be released due to confidentiality laws.