To protect their legal marijuana programs, California and Oklahoma are tightening laws and ramping up enforcement of illicit actors in marijuana operations.
The March 7 defeat of a voter referendum to legalize adult-use marijuana in Oklahoma was largely viewed as a reaction to the Wild West marketplace that has resulted in nearly 12,000 licensed businesses since medical marijuana was legalized in 2018. Law enforcement says the Sooner State’s low barriers to obtain a license have led to out-of-state investors and organized crime from foreign countries.
In response, numerous bills are winding their way through the legislature to tighten up licensing rules and strengthen law enforcement. The week of March 20, the Senate passed a string of bills:
- SB 264: Authorizes the Oklahoma Medical Marijuana Authority to use secret shoppers to find businesses violating laws and rules.
- SB 437: Directs the Oklahoma Health Care Authority to create a registry of recommending physicians by Jan. 1, 2025; all medical marijuana business employees would be required to complete medical continuing education requirements.
- SB 475: Modifies medical marijuana license registration, suspension and revocation guidelines to address “straw” owners; includes $5,000 daily fine.
- SB 801: Would allow municipalities to prohibit medical marijuana operations.
- SB 806: Requires proof of land ownership for grow operations; restricts business license transfers.
- SB 913: Requires marijuana cultivation businesses hold a $500,000 bond for hazardous materials clean-up if the property is abandoned.
Meanwhile, the House passed HB 2095 on March 21. The bill gives the state attorney general enforcement authority over medical marijuana laws and to subpoena documents identifying ownership interests in businesses.
Earlier in the month, the House also approved HB 1350, which would create a temporary business license program. A new company would be required to pay a $1,000 non-refundable fee for a 180-day license, but they still would not be permitted to grow, cultivate, process or transport marijuana during this period. New and renewing businesses would also have to submit a range of financial documents for review. The temporary business fee would be applied toward the annual license fee, if approved.
California is trying to tackle the illegal marijuana market that has been cutting into the profits of licensed businesses. The state Joint Legislative Audit Committee will be auditing six jurisdictions to review permit approval criteria for fraud and abuse, according to The Los Angeles Times.
Also in March, the California Department of Cannabis Control released statistics for enforcement actions in 2021 and 2022. Last year, the agency led or assisted in executing 299 search warrants that resulted in the confiscation of nearly 440,000 pounds of cannabis valued at more than $736.8 million. The CDCC also led the eradication of 264,196 cannabis plants, a 1,274% increase over 2021. A department spokesperson could not immediately confirm for CRB Monitor whether any of the warrants were served on licensed businesses.
