THE OKLAHOMA BAR JOURNAL 12 | MAY 2025 Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff. streamlines licensing, safety and reporting requirements Identifying necessary updates to existing laws to reflect evolving industry practices and technology Oklahoma must establish a single regulatory framework that aligns regulations into a streamlined and enforceable structure, reducing burdens on businesses while ensuring compliance. A unified system would eliminate contradictory regulatory interpretations and create a more predictable compliance environment. A dedicated task force would ensure that Oklahoma’s cannabis regulations evolve proactively rather than reactively, providing greater regulatory stability for businesses and consumers alike. Defining Key Industry Terms That Remain Undefined To create a more predictable and enforceable regulatory framework, Oklahoma must define key terms in cannabis processing to eliminate compliance ambiguity and inconsistencies. The lack of clear classifications for concentrates, solvent use and postprocessing techniques leaves processors vulnerable to regulatory uncertainty and inconsistent enforcement. Without standardized terpene labeling, solvent residue limits and cannabinoid classifications, businesses struggle to comply with shifting interpretations of the law, while consumers are left without transparency or enforcement in product labeling. Legislators and regulators must act now to establish precise definitions and uniform standards that provide clarity, promote compliance and foster a stable and sustainable cannabis industry in Oklahoma. Financial Relief and Incentives Beyond compliance standardization, Oklahoma lawmakers must address the financial barriers that hinder the growth and sustainability of cannabis processing businesses. The burdens of high tax rates, limited access to banking and significant compliance costs place an undue strain on processors, particularly small and midsized operators. To foster industry stability, policymakers should consider a range of economic incentives that ease financial pressure while encouraging regulatory adherence. One approach is the introduction of tax incentives for compliance upgrades, allowing processors to offset the costs of facility modifications, safety improvements and new equipment necessary to meet evolving regulatory standards. Providing grants for facility enhancements – particularly for small businesses investing in energy efficiency, security measures or quality control infrastructure – would further encourage long-term compliance. Additionally, state-backed loan programs could provide processors with much-needed access to capital, helping businesses finance operational expansion, safety upgrades or technology investments that improve efficiency and compliance. To create a more equitable tax structure, lawmakers should explore a tiered tax system that scales based on business size and revenue, ensuring that small and mid-sized processors are not disproportionately burdened compared to larger, more established operators. This would help prevent excessive tax liabilities that stifle growth and innovation, allowing smaller businesses to Proactive engagement from the legal community is essential to establishing a fair and sustainable regulatory environment for the cannabis industry in Oklahoma.
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