Oklahoma’s medical marijuana laws have been called one of the most liberal ones in the U.S. But it’s still a regulated industry. And, not paying attention to those regulations can be costly. Tulsa medical marijuana attorney Stephen Cale discusses eight things medical marijuana businesses need to know about record keeping, monthly reports, and audits.
Tulsa medical marijuana attorney Stephen Cale is a Legal Committee member of the National Organization for the Reform of Marijuana Laws (NORML). The content in this article is for informational purposes only, and not legal advice.
1. WHO HAS TO KEEP RECORDS
Every entity operating as a dispensary, grower, processor, and researcher has to keep certain records to be in compliance. The Oklahoma Medical Marijuana Authority (OMMA), through the State Department of Health, calls these entities “commercial establishments” or “commercial licensees,” said Tulsa medical marijuana attorney Stephen Cale.
2. WHAT RECORDS MUST BE KEPT
Commercial establishments must keep a copy of the following records:
- Business records, such as manual computerized records of assets and liabilities, monetary transactions, journals, ledgers, and supporting documents, including agreements, checks, invoices, and vouchers;
- Documentation of every instance in which marijuana was sold. This must include:
- Identification number associated with receiving license; and
- The quantity and type of marijuana sold;
- Documentation of every instance in which marijuana was purchased. This must include:
- The license number of the selling entity; and
- The quantity and type of marijuana purchased.
If the commercial establishment is a researcher, it must keep documentation of every instance in which medical marijuana was used for research, said Tulsa medical marijuana attorney Stephen Cale. This includes the quantity and type of marijuana used.
3. HOW LONG THE RECORDS MUST BE KEPT
Commercial establishments must keep copies of the records for at least seven years from the date the record was created.
4. THE INVENTORY TRACKING SYSTEM
Under the Oklahoma medical marijuana regulations, commercial licensees must also maintain an electronic inventory management system. The system must do the following:
- Document the chain of custody of all marijuana and marijuana products;
- Establish ongoing inventory controls and procedures for inventory reviews and comprehensive inventories of marijuana and marijuana products. This so that marijuana and marijuana products can be traced and enable the licensee to detect any diversion, theft, or loss in a timely manner;
- Identify and track a licensee’s stock of marijuana and marijuana products from the time the marijuana is propagated to the time it is sold to a patient or caregiver;
- In the event of a serious adverse incident or recall, track marijuana or marijuana product from a patient back to the source of the marijuana or product; and
- Track marijuana using an assigned batch number and barcode.
MONTHLY REPORTING TO THE STATE DEPARTMENT OF HEALTH
5. WHO HAS TO SUBMIT REPORTS
Each commercial licensee must submit monthly reports to the state Department of Health through the OMMA. These reports are due by the 15th “of each month for the preceding month.” For example, a report for the month of September would be due by October 15th.
6. WHAT MUST BE INCLUDED IN THE REPORT
What must be included in the report depends on whether the licensee is a dispensary, grower, processor, or researcher.
Dispensary reports must include:
- The amount marijuana purchase from a licensed processor;
- The amount of marijuana purchase from a licensed grower;
- The amount of marijuana sold to licensees and the type of licensee;
- If necessary, a detailed explanation of why any marijuana product purchased by the licensee cannot be accounted for as having been sold or still remaining in inventory;
- The total dollar amount of all sales to medical marijuana patients and caregivers; and
- The total dollar amount of all taxes collected from sales to medical marijuana patients and caregivers.
The amount of marijuana purchased and/or sold is expressed in pounds.
For growers, the reports must include:
- The amount of marijuana harvested;
- The amount of marijuana sold to processor licensees;
- The amount marijuana sold to researcher, dispensary, and processor licensees;
- The amount of drying or dried marijuana on hand;
- The amount of marijuana waste;
- If needed, a detailed explanation of why any marijuana cannot be accounted for as having been sold, disposed of, or maintained in current inventory; and
- Total dollar amount of all sales to processor, dispensary, and researcher licensees.
The amount of marijuana harvested and sold, and the amount of waste, is expressed in pounds.
Processor reports must include the following:
- The amount marijuana purchased from grower licensee;
- The amount of marijuana to sold to dispensary, processor, and researcher licensees;
- The amount of marijuana manufactured or processed;
- If necessary, detailed explanation of why any marijuana cannot be accounted for as having been purchased, sold, process, or maintained in current inventory; and
- The amount of marijuana waste.
Amounts are expressed in pounds.
Researcher reports must include:
- The amount of marijuana purchase from commercial establishments;
- The amount of marijuana used for research:
- The amount of marijuana waste; and
- If necessary, detailed explanation of why any marijuana cannot be accounted for as having been purchased, used for research, or maintained in current inventory.
Amounts are reported in pounds.
AUDITS BY THE DEPARTMENT OF HEALTH
Under State law, the Oklahoma Department of Health has oversite and auditing responsibilities to ensure that marijuana is accounted for, said Tulsa medical marijuana attorney Stephen Cale. Consequently, under the State medical marijuana regulations, the Department may perform on-site audits of all commercial licensees to ensure the accuracy of the monthly reports.
7. WHAT THE HEALTH DEPARTMENT CAN DO
The Department may review all records of the commercial licensee. The Department may also require the licensee, or anyone affiliated with the licensee, to submit to an interview. But the interview must be done to determine compliance with Department regulations and State law.
If requested by the Department, a commercial licensee must provide the Department access to any material and information necessary in a reasonable amount of time. That amount of time cannot go beyond 15 days.
If the Department identifies a violation of law during the inspection commercial licensee, the Department must provide a written notice to the licensee. The notice must include the rule or statute it believes the licensee violated.
8. PITFALLS TO AVOID
- Refusing to allow a Department agent to inspect all books and records will constitute grounds to suspend, revoke, or not renew a license.
- If the Department receives a complaint concerning a research license holder’s noncompliance with regulations, it may conduct additional on-site audits. The Department must refer all complaints against a commercial licensee that allege criminal activity to appropriate state or local law enforcement authorities.
- If the Department discovers what it reasonably believes to be criminal activity during an audit, the Department must refer the matter to the appropriate state or local law enforcement authorities for further investigation.
CALL FOR REPRESENTATION OR MORE INFORMATION
The Cale Law Office is dedicated to the practice of criminal defense and medical marijuana law. Our mission is to achieve the best possible results for our clients through hard work, attention to detail, and aggressive representation.
This is done while maintaining the highest level of professionalism, integrity, and ethical standards. If you or someone you know has been charged with a crime or is looking for a Tulsa medical marijuana attorney, call the Cale Law Office at 918-771-7314. Your initial consultation is free.
Serving clients throughout Oklahoma and Northeastern Oklahoma, including Tulsa County, Jenks, Glenpool, Bixby, Collinsville, Owasso, Sand Springs, Sapulpa, Skiatook, Rogers County, Catoosa, Claremore, Mayes County, Adair, Chouteau, Disney, Grand Lake, Langley, Locust Grove, Pensacola, Salina, Spavinaw, Wagoner County, Coweta, Muskogee County, Webbers Falls, Okmulgee County, Pawnee County, Keystone Lake, Osage County, Pawhuska, Hominy, Nowata County, Coffeyville, Craig County, Vinita, Big Cabin, Washington County, Bartlesville, Copan, and Dewey.