State officials are celebrating resolution of a “ghost ownership” investigation into a marijuana farm that submitted fraudulent information in its license renewal application to the Oklahoma Medical Marijuana Authority.
An administrative law judge’s ruling last week clears the way for OMMA to remove the business from Oklahoma’s medical marijuana industry, according to a news release stating “more wins are likely on the way.”
At least 75% of every medical marijuana business must be owned by an Oklahoma resident or residents, according to OMMA rules and state statute. The judge’s ruling found a cultivation licensee in Sayre, Sun Light Farm, submitted documentation identifying an Oklahoma resident who “is not the real owner — a practice sometimes known as straw ownership or ghost ownership.”
In the Tuesday news release, OMMA and state officials called the ruling “a significant victory in the ongoing fight to eliminate bad actors in Oklahoma’s cannabis industry.”
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The Sun Light Farm fraud was OMMA’s first opportunity to take on a case of suspected straw ownership since becoming an independent state agency Nov. 1, Director Adria Berry said in the release.
“This is a preview of what’s coming from OMMA as we continue to build our legal and investigative teams and capabilities. … This was a clear case of fraudulent ownership where non-Oklahoma residents tried to illegally work their way into our state,” Berry said.
More than 70 business license applications are under review for suspected fraudulent ownership documentation, according to OMMA investigators. Some of the cases involve new applicants who submitted late last summer, just before a two-year moratorium went into effect on new grower, processor and dispensary licenses.
Oklahoma Attorney General Gentner Drummond said his office is working with law enforcement agencies to help restore order, saying “medical marijuana has been a Trojan horse for organized criminals.”
As many as half of the state’s 6,000-plus licensed marijuana grow operations could be illegal, according to Oklahoma Bureau of Narcotics and Dangerous Drugs Control estimates.
State lawmakers have also been making efforts to support law enforcement related to illegal marijuana operations, Drummond said in a news release pointing at several pending bills.
House Bill 2095 would allow for unannounced on-site inspections by the AG’s Office, as well as extend the moratorium on grow licenses until 2026. Senate Bill 806 would tighten OMMA license transfers, as well as prohibit multiple same-category licenses from being registered under one address.
“More potential referrals for investigation are in the pipeline as OMMA scrutinizes every application,” Berry said. “We’re just getting started.”
Investigators have access to an automated analysis of the state’s seed-to-sale inventory tracking system, which authorities say can also help identify bad actors.
“I look forward to many more wins like this one as we work to crack down hard on illegal operations,” Gov. Kevin Stitt said in a statement. “Drug cartels, organized crime and foreign nationals working for the Chinese Communist Party have no place in Oklahoma, and we will continue to do everything we can to bring these bad actors to justice.”
Video: Oklahomans tired of seeing dispensaries on every corner, Gov. Kevin Stitt says
He was asked how the rejection of a recreational marijuana measure might affect the state’s legal medical cannabis program.
10 things that are still illegal under Oklahoma’s medical marijuana laws
Can’t get a prescription for marijuana
Marijuana is listed as a schedule 1 controlled substance in federal law, so it cannot be prescribed, only “recommended.”
A Ninth Circuit Court ruling ensures protection for doctors who issue recommendations to patients who may benefit from cannabis-based treatments, but federal law precludes doctors from “aiding and abetting” patients obtaining marijuana. This means doctors and patients cannot discuss dosages, strains or specific cannabis products for treating a specific ailment. Doctors instead fill out a form indicating they have discussed the risks of marijuana use with the patient and feel the benefits are worth the treatment.
Some patients who see physicians for pain and are treated with opioids also may not be able to do so and use medical marijuana as a licensed patient.
Can’t use marijuana in the workplace or be impaired on the job
State Question 788 says only that an employer may not discriminate against an employee simply because of their status as a medical marijuana patient. This means that simply having a license cannot be grounds for termination or discipline. That employer can still, however, write and enforce rules that restrict the use of marijuana by employees just like any other controlled substance. No patients would be protected if they come to work high, use marijuana in the workplace or attempt to do their job while impaired.
Can’t transport marijuana across state lines
Patients who obtain medical marijuana cards in other states may purchase from dispensaries there, but the products may not be brought back to Oklahoma. Nor could a patient travel to a state with a recreational marijuana law and bring any legally obtained products back to Oklahoma. Those patients who plan to cultivate marijuana at their own homes would also not be permitted to obtain seeds from another state.
Can’t get a doctor’s recommendation inside a dispensary
A change to the law made it illegal to post a physician inside a medical marijuana dispensary, as this one did, for customers to sign up as patients inside the retail business operation.
Can’t try the product while shopping
The use of any cannabis product is prohibited inside a licensed medical marijuana business, so patients should not expect samples like what some CBD shops have been able to offer.
Can’t smoke marijuana where tobacco also prohibited
The law makes cannabis like tobacco when it comes to public consumption by falling under the Smoking in Public Places and Indoor Workplaces Act.
Can’t give marijuana away
Nothing in the law allows for patients to transfer ownership of marijuana. Patients cannot donate or sell marijuana, even to other patients. Licensed patients may cultivate marijuana on their own residential property or, with written permission, on rented property. They cannot grow outdoors unless the plants are surrounded by a locked 6-foot fence. If the yield of the plants at harvest surpasses the legal amount that may be in a patient’s possession, the marijuana must be either processed or destroyed. Patients may process their own marijuana for concentrates or edibles but would not be permitted to perform extractions using butane.
Can’t drive while impaired on marijuana
Although it is legal for patients to have a certain amount of marijuana on their person, if that patient is behind the wheel, a law enforcement officer will evaluate whether the person is at all impaired. Driving while under the influence remains illegal even for medical marijuana patients.
Can’t possess an excessive amount of marijuana
A patient remains within the legal guidelines if they possess no more than 3 ounces of marijuana on their person and 8 ounces at their residence, 1 ounce of concentrated marijuana, and 72 ounces of edible marijuana. If caught exceeding those limitations, a patient would lose their license and could face criminal charges including intent to distribute or trafficking.
Can’t smoke where you’re told not to
Renters have no legal right to smoke medical marijuana, even with a patient card, if the landlord/owner issues rules for residents that prohibit smoking.
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