Dozens of marijuana businesses in Oklahoma are taking legal action against the state’s narcotics enforcement agency. They allege they are being unfairly penalized by a regulatory system that has set them up for failure. This conflict was first reported by The Oklahoman. It shows a significant disconnect between state requirements and the government’s ability to facilitate them, threatening the livelihood of numerous licensed operators.
At the heart of the issue is a state law requiring marijuana growers to secure a certificate of occupancy for their facilities. This serves as proof that all structures comply with established building and fire safety codes. It must be submitted to the Oklahoma Bureau of Narcotics (OBN).
The resulting lawsuits, filed in Oklahoma County District Court, are seeking an injunction to prevent the OBN from revoking business licenses. They need this while operators work to meet the state’s demands. For these businesses, losing their registration is a devastating blow. It prohibits them from buying or selling products and requires the destruction of all existing marijuana inventory.
A System Overwhelmed by its Own Demands
The path to obtaining a certificate of occupancy has proven to be a bottleneck for the industry. Businesses located in municipalities with established code enforcement can obtain a certificate locally. However, many growers operate in counties lacking such procedures. In these common instances, the responsibility for inspections and plan approvals falls to the Oklahoma State Fire Marshal.
According to attorneys representing the marijuana businesses, the State Fire Marshal’s office was not equipped to handle a sudden influx of thousands of applications.
This created a massive backlog, leaving compliant business owners unable to get the required paperwork before the state’s deadline.
Despite spending significant time and money to follow the law, many growers faced the revocation of their licenses. This happened simply because the state agency responsible for inspections could not keep up.
This regulatory failure has trapped legitimate businesses in a difficult position. As one attorney for an affected business explained, many of these operators are doing everything right. However, they are being tripped up by administrative hurdles.
The situation has forced some to pursue legal action. They need more time to dispose of their products or to allow the fire marshal to finally complete their review.
One business in Love County, Medileaf, via The Oklahoman, stated in court documents that it spent thousands of dollars and hundreds of hours attempting to secure its certificate. Yet, it still did not have it in time to avoid the threat of being shut down.
Questions of Fairness and Regulation
The crackdown on safety compliance follows concerns raised years before about fires and other hazards at marijuana businesses. Oklahoma’s Attorney General pointed to a “culture of rampant noncompliance” with building codes within the industry, which promoted this push for certificate of occupancy. However, the legal challenges argue that the current certificate requirement is being applied unfairly.
An attorney for Medileaf pointed out the perceived double standard, questioning why the marijuana industry is held to this requirement. Other healthcare-related businesses, like pharmacies and dental offices, are not held to it.
This sentiment raises a larger question about regulatory consistency: if the goal is public safety, shouldn’t all relevant industries be held to the same standard?
“I have never seen a state so willfully sabotage its cannabis providers. The OMMA is as corrupt as any criminal organization.” Said Jayson “Giddy Up” Emo a former Oklahoma cannabis license holder.
Faced with a flood of nearly 50 lawsuits in just a few weeks, state officials have begun to negotiate. The OBN has agreed to temporarily delay license revocations for many of the businesses involved. This pushes the compliance deadline back to November.
An OBN spokesperson said this resolution achieves the agency’s goal of promoting public safety. It ensures businesses cease operations until a valid certificate is obtained, while also avoiding costly and time-consuming litigation.
Finding a Path Forward for Oklahoma Marijuana Businesses
The ongoing legal battles in Oklahoma serve as a case study in the challenges of regulating a new and rapidly growing industry. While ensuring public safety is a valid and necessary goal for state agencies, regulations must be implemented with a realistic understanding of the government’s capacity to support them.
When the state imposes a requirement but fails to provide resources for businesses to comply, it creates an environment of frustration and economic hardship for those trying to operate within the law.
For now, the temporary delay offers a brief reprieve for the affected growers. It allows them more time to navigate the bureaucratic process. It also allows the State Fire Marshal’s office to work through its backlog.
However, this situation highlights the need for a more sustainable and equitable regulatory framework that supports both public safety and the viability of Oklahoma’s legal marijuana industry.
