Annual Report

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Excise Tax Revenue
Patients pay the 7% State Question 788 excise tax when buying medical marijuana products at a dispensary. In fiscal year 2023, the revenue was handled as proposed in SQ 788:

• It went first to OMMA’s authorized budget.
• Then, 75% of excess revenue was earmarked for education via the general fund, and 25% was earmarked for drug and alcohol rehabilitation via the state Health Department.

NOTE: As of fiscal year 2024 (July 1, 2023-June 30, 2024), OMMA does not directly receive any revenue. Instead, the Legislature appropriates OMMA's funding annually.

State and Local Taxes

• A new state law — Senate Bill 18X (2023) — created two new funds under the Legislature's control. The Medical Marijuana Tax Fund receives medical marijuana excise tax revenue, which funds substance abuse programs and common education administered by other state agencies. The Oklahoma Medical Marijuana Authority Fund receives OMMA’s fee and fine revenue, which funds OMMA’s budget.
• As part of House Bill 1004X (2023), the Legislature set OMMA's fiscal year 2024 budget at $37 million. Any excess money in the Oklahoma Medical Marijuana Authority Fund is appropriated at the Legislature’s discretion.

OMMA Finances
OMMA’s total revenue includes licensing fees and OMMA’s authorized share of the State Question 788 excise tax.

OMMA Expenses
The "Contracts" category includes contracts for a quality assurance laboratory, the seed-to-sale tracking system, data analytics, our licensing portal, license card printing, mail services, office space leases and vehicle leases. The "Information Technology" category includes IT equipment rental, computers, phones, telecommunications equipment rental, data processing software and IT equipment maintenance. The "Other" category includes travel and other minor expenses.

With the support and backing of the Legislature and Gov. Kevin Stitt, many laws were passed and signed into law during fiscal year 2023, empowering OMMA to regulate the medical marijuana industry. The following medical marijuana-related bills became new state laws as part of the Legislature's 2023 regular and special sessions. Special session bill numbers include an X. Visit Legislative Updates for more information.

New State Laws (2023)

• Senate Bill 18X: Creates the Medical Marijuana Tax Fund to receive all monies from sales tax proceeds collected on medical marijuana and the Oklahoma Medical Marijuana Authority Fund to receive all monies from fines and fees; to be used at the discretion of the Legislature. Authored by Sen. Roger Thompson.
• House Bill 1004X: The Legislature set OMMA's fiscal year 2024 budget at $37 million. Authored by Rep. Kevin Wallace.
• Senate Bill 15X: Increases the registration fee for manufacturers of certain controlled dangerous substances. Authored by Sen. Roger Thompson.
• House Bill 2095: Extends the moratorium on processing and issuing new medical marijuana business licenses. Authored by Rep. Jon Echols.
• Senate Bill 813: Authorizes OMMA to operate a quality assurance lab, streamlines implementation of House Bill 2179 (2022) and House Bill 3971 (2022), and adjusts other operational powers of OMMA. Authored by Sen. Jessica Garvin.
• Senate Bill 913: Requires applicants for a commercial grower license to file a bond with their application and deems it unlawful to operate without acquiring a bond. Authored by Sen. Darcy Jech.

Administrative Rulemaking
When lawmakers create new state laws regarding medical marijuana, OMMA enters the rulemaking process to incorporate the new state laws into OMMA’s permanent rules.

Permanent rulemaking involves an extensive public comment period. As part of the permanent rulemaking process in fiscal year 2023, OMMA held a public hearing for comments on proposed rules: In all, OMMA received and reviewed 108 written and 21 oral comments from industry leaders, patients and the general public. OMMA considered the comments received, clarified rules and published a rule report. In May through Senate Joint Resolution 22, the Legislature approved and Gov. Stitt signed OMMA's permanent rules that took effect in the fall.

Visit Rules and Legislation for a copy of OMMA’s rules and to learn more about the rulemaking process.

Constituent Services
In fiscal year 2023, OMMA's Policy Department answered more than 180 constituent requests sent by lawmakers.

Compliance Inspections in FY 2023
OMMA completed 9,566 compliance inspections across all 77 counties in fiscal year 2023.

Administrative Cases
In fiscal year 2023, OMMA filed over 1,000 administrative cases to bring noncompliant entities back into compliance or remove them from Oklahoma’s medical marijuana industry.

Investigations and Enforcement
OMMA’s Office of Investigations and Enforcement conducts investigations and assists other law enforcement agencies. This team has a combined total of 307 years of law enforcement experience, and in fiscal year 2023, they:

• Seized approximately 1,995 pounds of illegal cannabis and 201 plants.
• Embargoed more than 1,667 pounds of illegal cannabis and 10,887 plants.
• Completed 107 requests for assistance from different regulatory agencies and law enforcement partners.

Recalls
In fiscal year 2023, OMMA issued two recalls in the interest of public health and safety.

For details, visit Embargoed and Recalled Products.

An Independent OMMA
On May 11, 2022, Gov. Kevin Stitt signed into law Senate Bill 1543, making OMMA a stand-alone agency. The bill, by Senate President Pro Tempore Greg Treat and House Majority Floor Leader Jon Echols, went into effect Nov. 1, 2022 — right in the middle of fiscal year 2023. Before that day, OMMA worked diligently to complete the work required to become a new agency. OMMA:

• Created a transition team and worked with partners at the Office of Management and Enterprise Services (OMES) to help with the transfer of necessary core functions, like information technology.
• Established and fully staffed departments like human resources, finance, learning and development, project management, and operations — just to name a few.
• Developed department manuals and agency policies, and completed statutorily required training on time as a critical step in outlining OMMA’s independent path forward.
• Relocated closer to the Oklahoma State Capitol and remodeled the space to suit the agency’s needs.

Data-Driven Regulation
OMMA’s approach to regulation is data-driven, leveraging technology to enhance enforcement efforts. By using tools like NCS Analytics and seed-to-sale inventory tracking technology, OMMA allocates compliance resources effectively and focuses enforcement on illicit activities.

OMMA raised the bar in fiscal year 2023 by commissioning and releasing a comprehensive, third-party study of supply-and-demand within Oklahoma’s medical cannabis industry. Its data showed Oklahoma has 32 times more regulated medical cannabis than is necessary to meet demand from licensed patients.  

After the release of the ground-breaking study, OMMA created a strategic plan to address the oversupply issue. OMMA's strategic response to the oversupplied market employs a multi-pronged approach, including strategic partnerships, rigorous oversight, streamlined compliance monitoring, advancements of smart policies and stakeholder engagement.

Find a link to the study and more information at Licensing and Tax Data.

Collaborate to Regulate
Collaboration is key to ensuring a safe, well-regulated medical marijuana industry. OMMA uses partnerships across the state to help regulate Oklahoma’s diverse medical marijuana industry.

OMMA launched two new resource pages designed to enhance collaboration and harmonize the state’s regulatory efforts across various state agencies and local/county governments:

• The Law Enforcement Resources page enhances the connection with local/county law enforcement partners by providing a direct line to OMMA’s Office of Investigations and Enforcement. Visit omma.ok.gov/LEO to view this resource.
• The State and Local Government Resources page creates a one-stop regulatory shop for state, local and county government officials. Visit State and Local Government Resources to see it.

Innovation Station
OMMA strives to be as innovative and dynamic as the industry it regulates. In fiscal year 2023:

• OMMA created a dedicated Project Management Office to deliver results on complex projects including legislative mandates.
• OMMA's Licensing Department created internal quality assurance processes to reduce errors and improve consistency.
• OMMA's Science Department facilitated recurring meetings to discuss and develop recommendations for lab standardization, testing equipment and standard operating procedures.
• OMMA's Call Center developed an escalation tracking system to monitor progress with issue resolutions and reduce follow-up inquiries from licensees.

Town Halls
OMMA hosted four town halls, giving commercial and patient licensees the opportunity to engage and provide feedback. More than 200 licensees attended these first-ever engagement sessions, which OMMA recorded, posted publicly and sent to lawmakers. The recordings received 8,081 total views across our social media channels and are available on OMMA’s YouTube channel at youtube.com/@ommaok.

Veterans Roundtables
OMMA hosted three educational events for veteran patients, veteran business owners and the public. These roundtables covered topics such as product testing and patient safety.

Speaking Engagements and Events
OMMA attended nearly 110 speaking engagements and events across the state.

Website Updates
OMMA’s updated website includes new pages and enhances others, improving the ability to engage with licensees and the public. Specifically, OMMA:

• Created a Disaster Resources page to provide commercial licensees with timely information and updates in case of severe weather or natural disasters. Visit Disaster Resources to view this resource.
• Revamped the Public Comment page to foster engagement. Visit Public Comment to see it.
• Expanded our Embargoed and Recalled Products page to increase transparency. Visit Embargoed and Recalled Products for the latest.
• Developed unique pages for each commercial license type, tailored to meet their unique requirements. Visit Commercial Licenses to explore them.

Communication Stats in FY 2023

Call Center:
OMMA’s Call Center received 95,740 calls — an average of 1,841 calls per week.

Contact Form:
OMMA teams responded to 59,825 emails and contact form messages — an average of 1,150 per week.

Digital Newsletters:
OMMA published 23 digital newsletters for patient and commercial licensees with an average open rate of 65%, far above the government average of 29%. Visit omma.ok.gov/news to read these publications.

Website:
Total Visits: 1,868,651
Average Time on Site: 3:54

Facebook:
Posts: 97
Total Post Impressions: 411,148
Post Shares: 1,400
Inquiries Answered: 427

Visit Contact Us to send us an email or contact our Call Center.

OMMA staff and guest host a Veterans Roundtable at the Oklahoma State Capitol. Photo credit: OMMA

In its first full year as a stand-alone state agency, the Oklahoma Medical Marijuana Authority began to unleash its true potential in 2023 as a dynamic and proactive regulator in an emerging industry. Moving forward, Oklahomans can expect even better results when OMMA’s quality assurance laboratory comes online, a secret shopper program rolls out and new laboratory standardization rules take effect. Here is a look at some of OMMA’s objectives for next year: