How Oklahoma’s Cannabis Business Could Change If Recreational Weed Is Legalized.

In the year Things were a bit chaotic in 2018 when Oklahoma voters passed State Question 788.

People had questions about how pot businesses thrive in the market. And a very small rule, no Marijuana businesses It exploded. In 2020, Oklahoma had it. More businesses licensed to sell pot From any state of the country.

“There was a lot of early confusion about what was allowed, what wasn’t,” said Blake Cantrell, CEO of Peak Distribution in Oklahoma City. “Of course, he came with much joy. Everyone, including the patients, was excited about the new program, and couldn’t wait to see how it improved.

Now, the same questions are coming. Voters will head to the polls on March 7 to make a decision. State question 820. The state proposal would make it legal for people over the age of 21 to use pot recreationally, grow up to six cannabis plants and create a way to avoid some marijuana offenses.

It’s an exciting time to be in the business, Cantrell says.

“What we’re doing today is shaping what this industry will look like forever, at least in Oklahoma,” Cantrell said. “So to have the opportunity to do what that looks like, to set the rules that will be followed forever, is a really special and wonderful opportunity.”

Changing from medicine to entertainment

Cantrell says the last four years have allowed the industry, businesses and the state to have a base to work on — and he says businesses like his are ready to serve more customers.

“We’re excited for him,” Cantrell said. “We see this as a great benefit to the industry and the government.”

At a virtual town hall meeting on State Question 820 organized by the ACLU in January, panelists said legalizing cannabis would help businesses in the state compete with the illegal market.

Ryan Kiesel, former state legislator and director of the ACLU of Oklahoma, was a consultant on State Question 820 and a speaker at the ACLU Virtual Town Hall.

“[By passing SQ820] We currently conduct businesses that follow the law…. More competitive with the illegal market and operators who are not fully compliant with laws and regulations,” Kissel said. “I think a lot of it is driving. [illicit] Market outside of Oklahoma.

And how? Kissel says having more passion is one of the answers.

“You know, the simple economics of it, we have a lot of supply that’s produced in Oklahoma, but we have a limited number of people that we can sell that supply to and … I think that’s a real issue,” he said. Kissel.

According to the Oklahoma Medical Marijuana Authority — the state agency that regulates Oklahoma’s cannabis industry — There are over 373,000 medical marijuana patients. in the state. In addition, there are more than 7,000 growers and more than 2,700 distributors.

last year’s account, HB3208Passed by the state Legislature and signed by Gov. Kevin Stitt, it freezes the application process for new dispensary, grower and processor licenses for up to two years starting last August.

And lawmakers said the 2018 voter SQ788 — legalizing medical marijuana — would be difficult to rule in the industry.

SQ788 imposes a 7% excise tax on medical marijuana consumers. That money goes into two places: first, the authorized budget for OMMA, and then 75% of excess revenue from tax collections goes into Oklahoma’s general revenue fund, which is used exclusively for co-education. The remaining 25% goes to state health departments to fund drug and alcohol rehabilitation and prevention.

(Xcaret Nuñez / KOSU Radio)

What have businesses built?

Arshad Lacy, 23, CEO of Tulsa-based Nirvana Group, has been selling weed products for four years.

The Nirvana Group operates a warehouse that is one of the largest smoke shop, glass, paper, vaporizer and packaging distributors in Oklahoma, serving more than 500 dispensaries. The business operates a 30-acre cultivation and extraction facility and several of its own distributors.

Lacy said there has been significant innovation and product development following the passage of SQ788, and Oklahoma has become one of the largest cannabis markets in the country.

“We feel we’ve reached a point of maturity where the industry is ready to take on entertainment and whatever complexity it brings,” Lacy said.

But even though he thinks Oklahoma’s cannabis market is ready for adults, Lacy says there’s still some hesitancy among medical users who’ve been using it for the past four years.

“There are consumers who are afraid of what could happen,” Lacy said. “Maybe you think the price will go up or the quality will go down, or the recreational or adult users will get more preferential treatment because that market is a little bit bigger.”

Lacy, who said there are customers unhappy with the way the medical market is operating, said the uncertainty of what will come to reopening recreational users and weed tourism could also cause some business owners to worry.

“I think there are some business owners who think that when adult use or entertainment goes away, out-of-state — multistate operators or national brands will come in and dominate the market. , will be profitable, “said Lacy.

But he disagrees with some of these concerns.

I think adult use increases market share for everybody and when they do things right and people who have successfully started here in Oklahoma and built their businesses here like we have, they will see the benefits.

SQ820 also contains a provision allowing Oklahoma business owners to have two years to obtain a new license through OMMA to serve recreational customers. And while many businesses want to open for entertainment, Lacy thinks not everyone will be able to in the future.

Meanwhile, at The Peak in Oklahoma City, Blake Cantrell said he’s not worried about out-of-state companies taking interest in Oklahoma and taking over the market because of the new marijuana business license.

“Even if they want it, it should be like a backyard. And most of the major MSOs, the multistate operators, have no interest in doing anything but the book,” he said.

Cantrell, president of the Oklahoma Cannabis Industry Association, is working with the state to ensure a smooth transition if SQ820 passes.

And for those worried about more dispensaries scattered across the city, the current ban is a disincentive to that as well.

Cantrell says, “If you’re one of those people who rush to get a permit at the last second before the deadline.” “Those licenses are not eligible to sell to Rick. So, not only does it not increase the number of dispensaries, but it also encourages new entrants to try to game the system.

Editor’s Note: Ryan Kiesel is a political analyst on KOSU’s This Week in Oklahoma Politics podcast.

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