Oklahoma Medicinal Marijuana Facility Regulations

The Medicinal Marijuana industry is booming in Oklahoma. The state has issued more than 6,500 business licenses1. This is due to the barriers to entry for cannabis entrepreneurs being much lower compared to other states. One common barrier to entry for any entrepreneur is the initial cost of security implementation.

Oklahoman legislators were vague in their description for physical security requirements:

This may seem preferable to a business owner, but the opposite may be true. Without guidance in regards to security implementation, a business may face unexpected costs down the line:

  1. If the regulatory agency (Oklahoma Medicinal Marijuana Authority, in this case) does not approve a proposed security plan within an application, the applicant will need to revise and supplement the plan.  This will affect deadlines and possible construction timelines.
  2. When cannabis is eventually legalized at the federal level, stricter regulations will be established. A business would incur profit losses from closure to modify the building to meet these standards as well as the cost of the security products themselves.
  3. In the worst-case scenario, criminals have assailed your business. They were able to obtain product, cash, and in the process have seriously injured your employees and/or customers. Not only did you accumulate loss immediately due to the stolen product and money, but there are additional costs:
    • Lost income from closing business for repairs/investigation
    • Fines imposed (if state-mandated guidelines were not employed)
    • Implementation of additional safeguards to prevent reoccurrence
    • Civil lawsuits incurred due to the injury of employees & customers

How’s the health & well-being of your operational protocols to deter diversion?

At KL Security, we have a proven track record for compliance with state laws and security requirements. Utilizing the Total Harvest Coverage methodology for security plans as well as cannabis business operation improvements, we have successful projects in facilities in multiple states, helping leaders in the cannabis industry drive revenue and stay compliant with state laws.

Information has been gathered from sources deemed reliable but not guaranteed and is subject to change without notice.

Legal information obtained from: http://omma.ok.gov/

  1. Dishman, David. (2019, August 11). Oklahoma’s young marijuana industry’s growth exceeds expectations. The Oklahoman. Retrieved from: https://oklahoman.com/article/5638256/oklahomas-young-marijuana-industrys-growth-exceeds-expectations

The Oklahoma Obstacle: Cash Management and Marijuana Sales

“Oklahoma is the fastest-growing medical marijuana market in the average number of daily patient increases, and MMJ patients represent 4.1% of the state’s total population – one of the highest rates in the nation.” [1]

Image Source from: https://mjbizdaily.com/medical-marijuana-market-growth-with-oklahoma-and-florida-leading/ 

Who would have thought? Oklahoma is the fastest growing market for medical marijuana sales. Their legislation, whether consciously or not, is set up to do primarily just this. The barriers to entry for cannabis businesses are fairly easy and obtainable (as far as marijuana establishment regulations go). The license application is a mere $2,500 for medical marijuana dispensaries, commercial growers, and processors (Okl. Title 63, Ch. 15, Medical Marijuana). This should make it possible for smaller mom and pop retail dispensary, grower or cash in transit (Oklahoma legislation also dictates that a separate ‘transportation’ license must be obtained to “to transport marijuana from an Oklahoma licensed medical marijuana retailer, licensed growing Facility, or licensed processor Facility to an Oklahoma licensed medical marijuana retailer, licensed growing Facility, or licensed processing Facility.” Okla Stat tit. 63, 424) establishments to do business in the marketplace.  Also, there’s no list of required medical conditions for patients to suffer from prior to obtaining their medical license; it would appear that if an Oklahoman ‘patient’ applies for a medical marijuana license for use, they will probably be approved.  

This is all great news for Oklahoman entrepreneurs planning to set up shop and open legal cannabis establishments. Millions of dollars will be pouring in to these establishments from card carrying patients, but these patients will be paying in cash. Marijuana is still considered an illegal drug as per Federal law. Most credit card companies will not allow transactions at marijuana establishments, Visa has explicitly stated they will not permit any transactions involving marijuana on their credit network [2]. This means Oklahoman businesses are going to be faced with the challenge of handling mass amounts of cash.  

SSPOS Smart Safe point-of-sale-The SecureCash smart safes are a state-of-the-art solution designed specifically for cannabis dispensary cash management. Focused on simplicity and security, the unit is ideal for cannabis point-of-sale and under-counter installations. Retail businesses experience up to 55% savings in time spent on cash counting, tills & daily cash deposits with Smart Cash Safes

The marijuana industry is estimated at nearly $9 billion in sales, and “…expected to grow to $50 billion in just a few years…” [3] most of those sales being completed in cash. The amount of cash exchanging hands presents abundant opportunities for security issues. A standard old-fashioned till is not going to suffice in a successful Oklahoma cannabis dispensary. 

In addition to security concerns, business owners must adhere to state regulations. The state of Oklahoma requires all marijuana establishments to keep business records (including those pertaining to cash transactions) for seven years for auditing purposes (2018 OK Regulation Text 19159). Cash management software will be the easiest way to meet this requirement. 

When properly implemented, a cannabis security plan utilizing SSPOS and intelligent video surveillance can help drive revenue and create opportunities for a cannabis dispensary to become more profitable. As a premier partner of Total Harvest Coverage, we help cannabis growers, processors, transportation and dispensaries with integrated security that maintains compliance.

Cash Management Software for Retail Cash Management Safes  Dispensary

Cash levels can be monitored in real time and end-of-day accounting is performed automatically without the need for employees to manually count cash. Retailers can even monitor the amount of cash collected by CIT across a chain of stores. CashControl’s reporting tools help optimize performance and ensure that in-store security routines are being followed. In addition, technicians can use the application to remotely maintain, update and service SafeCash Retail machines, which means increased uptime and a more reliable closed cash handling process. 

Setting the Standards for Cannabis Facility Design Security & Operational Protocols

When you’re ready to begin the process of securing your facility, the consultants at KL Security are available to assist. Well versed in government regulations and recent legal mandates, we are prepared to ensure your business will pass requirements for DEA federal guidelines for Vaults, Safes and retail cash management.

 

TOLL FREE 1-866-867-0306

[email protected]

Information has been gathered from sources deemed reliable but not guaranteed and is subject to change without notice. All license information and security measures taken directly from Oklahoma legislation: OAC 310:681 & Okl. Title 63, Ch. 15, Medical Marijuana & Okla Stat tit. 63, 424.

Sources: 

[1] Cowee, Maggie. (2019, August 13). Marijuana Business Daily. Medical marijuana markets expanding at varying rates, with Oklahoma, Florida setting the pace.

Retrieved from: https://mjbizdaily.com/medical-marijuana-market-growth-with-oklahoma-and-florida-leading/

[2] Sommer, Constance & Mims Caitlin. (2019, June 18) Paying with cards at marijuana dispensaries? It’s complicated.

Retrieved from: https://www.creditcards.com/credit-card-news/marijuana-dispensaries-pay-with-credit-cards.php

[3] Murphy, Kevin. (2018, September 6). Forbes. Legal Marijuana: The $9 Billion Industry That Most Banks Won’t Touch.  Retrieved from: https://www.forbes.com/sites/kevinmurphy/2018/09/06/legal-marijuana-the-9-billion-industry-that-most-banks-wont-touch/#6a3d49013c68

Helpful Links:
Code of Federal Regulations: Title 21

https://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfCFR/CFRSearch.cfm?fr=205.50

OMMA: Oklahoma Medical Marijuana Authority

http://omma.ok.gov/

Legislation: 

http://omma.ok.gov/rules-regulations