The Oklahoma Medical Marijuana Authority (OMMA) is cutting staff as the total number of licenses in the state plummets amid a crackdown of illicit operators.
“To maximize taxpayer dollars, we identified around 10% of our staff that could be reduced,” said OMMA spokesperson Porsha Riley.
On July 16, OMMA Director Adria Berry sent an email to staff announcing the cuts, noting that part of the need for downsizing was the reduction in licenses across the state.
“We are undergoing a restructuring and reduction of our workforce. This decision was made with deep consideration for the future of our organization, the services we provide, and our mandate to regulate and license medical cannabis businesses and patients,” she said. “This change is a part of our continued commitment to adapt and provide excellent service to the citizens we serve. With commercial license numbers decreasing, it was imperative we find efficiencies in our operations to ensure we are nimble and ready for future endeavors.”
OMMA requested a $45.8 million operating budget for fiscal year 2025, but the state legislature gave the agency only $41.9 million. Still, this was a jump from the $37 million allocated for fiscal year 2024. OMMA also generates revenue from annual license renewals that range from $2,500 to $50,000, based on how large the operation is.
The drop in licenses has been a long time coming in a state that gained an early reputation as a place to easily obtain a cannabis license.
The state placed a moratorium on new licenses on Aug. 26, 2022, which extends to 2026.
Oklahoma had 3,011 cultivation licenses as of July 26, according to the CRB Monitor licensing database, marking a significant drop over the last few years. The state went from about 9,400 cultivators in 2021 to 6,400 in 2022, before dropping to around 3,000, to which the Oklahoma Bureau of Narcotics credits the increased enforcement.
“Oklahoma’s marijuana program is no longer viewed nationally as the so-called ‘wild west of weed,’” said OBN Director Donnie Anderson in a released statement. “Oklahoma now has gained a proud reputation for having some of the most efficient and effective regulatory oversight and criminal enforcement of any medical marijuana state. The industry, itself, has expressed continued support and appreciation for our efforts to protect the legitimate businesses and cut off the black market.”
The OMMA has been cracking down on license holders since 2022 when a series of violent crimes took place on licensed grow sites, including a quadruple homicide in December of that year. Late last year, the state also started enforcing improper signage, with 165 growers facing petitions for license revocation.
Since then, OMMA has continued to cite businesses that may be contributing to product diversion.
Most recently, on July 23, law enforcement shut down a grow site in Ardmore, Okla.., that they described as a major trafficking operation. They seized over 1,000 pounds of processed cannabis along with over 100,000 plants.
“Additionally, we determined the operators of this marijuana farm were loading as much as 1,000 pounds of marijuana at a time into refrigerated semi-trucks that would transport the product to the black market in places such as New York City, Chicago, and parts of Florida,” said Oklahoma Bureau of Narcotics spokesperson Mark Woodward in a statement on Facebook.
Much of the early influx of licensees included operators that moved in from other states using nominee or “ghost” owners to meet Oklahoma’s 75% resident ownership requirement, according to Woodward.