OKLAHOMA CITY – The temperature isn’t the only thing that’s dropped recently.
The heated growth during the first two and a half years of Oklahoma’s medical marijuana industry has been cooling off in recent months.
The $4.92 million in tax receipts generated last month from the 7% excise tax on purchases of medical marijuana products marked the sixth decline in the last seven months, and the seventh dip in the last nine months.
In southwest Oklahoma, 11 towns recorded slumps in medical marijuana sales last month compared to the same month a year ago, while seven others experienced increases. (See accompanying chart.)
MJ initiative petition
filed and challenged
In a related matter, an initiative petition pertaining to marijuana regulation has been filed with the Secretary of State’s office and a challenge is pending with the state Supreme Court.
Initiative Petition #434, State Question 820, would create the Adult Use Marijuana Regulation Act. If approved by Oklahoma voters, it would authorize recreational marijuana use. That petition was filed January 4 and was challenged on January 24.
If Petition #434 survives the challenge and passes judicial muster, promoters will have 90 days to circulate the document in order to secure a sufficient number of signatures to get the SQ 820 on a statewide ballot.
According to Oklahoma City attorney Melani Wilson Rughani, the petition would require signatures of 94,911 registered voters, equivalent to 8% of the total votes cast for Governor in the 2018 general election.
Rughani filed the petition on behalf of proponents Michelle Tilley Nichols of Edmond and Michelle Anne Jones of Broken Arrow.
The gist of the proposition is that SQ 820 would “generally legalize, regulate and tax adult-use marijuana” but would not affect the state’s medical marijuana program. If SQ 820 were adopted, anyone 21 or older could buy marijuana products in Oklahoma.
State voters authorized medical marijuana when they approved State Question 788, by a margin of 56.86% to 43.14%, in a statewide election almost four years ago, on June 26, 2018.
SQ 788 legalized medical marijuana by amending state statutes, not the Oklahoma Constitution. SQ 820 also proposes to amend the statutes but not the Constitution.
Under the proposed new law, an adult 21 or older could possess, purchase, use, ingest, inhale, process, transport, deliver or distribute one ounce or less of marijuana, or eight grams or less of marijuana in a concentrated form.
An adult would be allowed to possess, plant, cultivate, harvest, dry, process or manufacture up to six mature marijuana plants and six seedlings, and possess the marijuana produced by them. No more than 12 plants and a dozen seedings could be kept in or on the grounds of a private residence at one time.
Disbursement of
MJ tax proceeds
An excise tax of 15% would be collected on the gross receipts of all sales of marijuana sold by an adult-use marijuana dispensary to its customers. A 7% excise tax is collected on sales of medical marijuana products to licensed patients and caregivers.
Tax receipts from the 15% levy would be deposited in the Oklahoma Marijuana Revenue Trust Fund.
Those proceeds would first pay for any “reasonably necessary” costs incurred by the Oklahoma Medical Marijuana Authority to implement the new law. Any revenues exceeding that amount would be disbursed in the following manner:
10% would be allocated to municipalities (or counties, for unincorporated areas) where the retail sales occurred.
10% would be sent to the State Judicial Revolving Fund.
30% would be deposited in the state’s General Revenue Fund, for appropriation by the Legislature.
30% would be earmarked for grants awarded by the State Department of Education to public schools “to develop and support programs designed to prevent and reduce substance abuse and improve student retention and performance,” by supporting students who are at risk of dropping out of school, promoting alternatives to suspension or expulsion that focus on student retention, remediation, and professional care, and providing afterschool support and enrichment programs for students in kindergarten through 12th grade that include art, music, athletics and academics.
20% would be used by the state Department of Mental Health and Substance Abuse Services to provide grants to agencies and nonprofit organizations to increase access to evidence-based low-barrier drug addiction treatment.