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LICENSE MORATORIUM
On August 26, 2022, the Oklahoma Medical Marijuana Authority (OMMA) license moratorium went into place pursuant to HB 3208. This means that the OMMA will not be accepting any new applications for dispensary, grower, or processer licenses. This moratorium is only for new licenses and does not have an impact on renewals. HB 3208 is in effect between August 26, 2022, and August 1, 2024.
During this moratorium, the only way in which you may acquire a license is by purchasing an existing license. Once purchased you will proceed with a change of ownership request with the OMMA. I will always recommend contacting a lawyer when contracting to purchase a license or business entity because there are several factors to consider when purchasing, the most important is having a clear understanding of what you are purchasing and limiting your liability.
This may sound simple but purchasing a dispensary license does not inherently mean you are purchasing the entire company. This distinction could be detrimental to your business. If you are purchasing a business, you must ensure that all of the members are agreeable to selling or that a vote was taken prior to proceeding. Starting off your business with a lawsuit is never ideal. If you are just purchasing the license, not taking over the lease, not using their location, not inheriting any of their employees, etc. your contract will need to make that very clear. If you are purchasing the business entity, your contract will need to clearly define everything that comes with the purchase price. For example, the license, the website, the business name (and all shares), the login information for all accounts and tracking software, any and all existing contracts you are assuming, etc.
Second is the liability. If you purchase a business license you need to be sure to do your due diligence and check the OMMA website and Oklahoma Bureau of Narcotics and Dangerous Drugs to confirm that the license is active and in good standing. You also need to be made aware of any recent inspections and the outcomes, lawsuits, demands, contracts in which payment is due, and outstanding debts and liabilities. If there are any issues with the license, they become your responsibility after purchase. The same is true when you purchase a business entity. Disclosures are very important and can help save you time and money.
