THE OKLAHOMA BAR JOURNAL 24 | 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. owned or simply just managed by the seller. Beyond these due diligence concerns, your client will also be responsible for ensuring that two applications are filed: the transfer application with OMMA and the new medical marijuana registration application with the OBN. To file a transfer application, your client must first obtain a “transfer code” from the seller, and the OMMA system will not provide this transfer code until the transfer agreement has been submitted. Once issued, the code is only valid for a 47-hour period. This means the terms of the transaction between the buyer and seller must be finalized and memorialized in a transfer agreement before the transfer process begins, and once this process is started, your client must be ready to submit all the materials needed for the transfer application immediately. These materials are numerous and not simple to put together. Again, carefully consult OMMA regulations. Only after OMMA approves the transfer and places the license in the buyer’s name can your client file an application for a new registration with the OBN. OMMA growers and processors must register as “medical marijuana manufacturers,” while dispensaries must register as “medical marijuana distributors.” The OBN registration application requirements are entirely separate from OMMA’s, and the OBN is particularly concerned with security requirements due to the agency’s core mission to prevent the illegal diversion of CDS into the black market. Your client should thoroughly review OBN regulations, especially the security requirements for both manufacturers15 and distributors,16 and ensure the facility meets those requirements prior to filing their registration application. Upon approval of your client’s OBN registration, three obligations will arise. First, your client will have to provide OMMA with a detailed inventory of all medical marijuana materials in the facility.17 Second, the entire inventory in the seller’s Metrc account will have to be transferred to the buyer’s Metrc account, and this must be done within 15 days of the new OBN registration’s approval.18 Finally, the OBN’s rules provide a special notice procedure when one OBN registrant (here, the seller) desires to discontinue its business activities “by transferring such business activities to another person.”19 The OBN notice procedure requires the seller-transferor to provide the OBN with the following information at least 14 days before custody of the medical marijuana inventory goes to the buyer-transferee: the name, address, registration number and business activity of the seller- transferor20 and the same for the buyer-transferee.21 Other required information includes whether the location is moving and, if so, the new address,22 whether a quota requirement (which would never apply to a medical marijuana business) applies23 and the date of the proposed transfer.24 Even though this is an obligation on the seller, your buyer-client will need to make sure this takes place. Unless the registrant-transferor learns from the OBN prior to the proposed transfer date that the transfer may not occur, the seller can distribute the medical marijuana inventory to the buyer, with two additional recordkeeping requirements imposed on the seller. First, the seller must generate a final pretransfer inventory pursuant to both OMMA and OBN regulations and file a copy with the OBN.25 Second, the seller must provide the buyer with all records the seller was required to maintain for the transferred inventory.26 Note there may be two ways to read this second requirement: one broad (i.e., the seller must
RkJQdWJsaXNoZXIy OTk3MQ==