Industry Updates, Important Changes and Deadlines
I - OMMA
We would like to inform you that the Notice of Rulemaking Intent (NRI) is expected to be announced on or around October 25, 2024. This formal notice from OMMA will outline their intentions to promulgate rules governing the legislation enacted in the previous session. Following the announcement, a thirty-day public comment period will commence, providing a vital opportunity for industry operators to engage. We encourage business owners, managers, employees, and consumers to closely review the suggested rules and submit formal feedback to help shape the regulatory process.
In addition, significant updates regarding ownership changes are anticipated after November 1, 2024. According to OMMA Director Berry and Deputy Brown, entrepreneurs looking to acquire existing businesses will need to apply for a “new” license rather than assume the existing one – while there is currently a moratorium on new licenses, these specific acquisitions will be processed in a way that grants a unique license number to the new owner. We will provide more information as it becomes available.
Last week, Director Berry stated upcoming changes will allow for “changes of ownership” and “changes of location” to be handled simultaneously, streamlining the process for licensees and cutting down the time spent on transfer processing. Again, we will provide more information as it becomes available.
As we await the DEA's rescheduling of cannabis, operators should proactively begin validating their manufacturing processes. In the production of agricultural, pharmaceutical, and cosmetic products, adherence to strict guidelines—formally referred to as current good manufacturing practice (CGMP) and current good agricultural and collection practice (GACP)—is essential. Additionally, current good distribution practices (CGDP) must be followed for storage and distribution. These established measures are designed to protect consumers and ensure product safety. Standardizing these guidelines in the cannabis industry will be critical for joining a national market, particularly as interstate commerce requirements become more stringent.
To assist you in navigating these requirements, we offer comprehensive compliance services tailored to the cannabis industry. Standardizing your practices will be critical for successfully entering the national market, especially as interstate commerce regulations become more stringent. If you need support in this area, please don’t hesitate to reach out.
II - OBNDD
Please be advised that OBNDD registration renewals are due by October 31, 2024, at 11:59 PM. After this deadline, any registrations that are not renewed will be considered expired. Operating without a valid OBNDD registration puts your business at risk of non-compliance, which can lead to significant administrative penalties and potential criminal implications. We have observed an increase in OBNDD seizures and violations recently, underscoring the importance of maintaining your registration.
Dispensary registrations are $300. Grow and Processing registrations are $2,500. Testing laboratory registrations (medical marijuana analytical laboratory) are $150. OMMA-licensed Transportation companies do not need to register with OBNDD.
You can read OBNDD’s Memorandum of licensing transfers here:
https://www.obndd.ok.gov/home/showpublisheddocument/548/638332209238630000
We strongly encourage you to address your renewal promptly. Avoid the last-minute rush—consider allowing us to assist you with the renewal process to ensure compliance and peace of mind. Let us know as soon as possible if we can help.
III - Beneficial Ownership Information; FINCEN
The Financial Crimes Enforcement Network (FINCEN) requires entities to report Beneficial Ownership Information (BOI) as part of efforts to enhance transparency and combat financial crimes, such as money laundering and fraud. Under the Corporate Transparency Act, certain businesses must disclose information about their beneficial owners—individuals who exercise substantial control over the company or own a significant interest. Entities subject to this requirement must file their BOI reports with FINCEN by January 1, 2024. Failure to comply with this mandate can result in significant penalties, including fines of up to $500 per day for noncompliance and potential criminal charges for willfully providing false information. It is crucial for businesses to understand these requirements to avoid legal repercussions and ensure compliance.