Oklahoma’s free market approach to medical cannabis may have backfired, reports Politico, where authorities say they’re overwhelmed by the number of illicit cultivators and dispensaries operating in the state. Some advocates blame the “apathy” of regulators.
“The word went out on the black market that Oklahoma was a place that you could come set up shop, and they weren’t going to come enforce the law, and you could do what you wanted,” said Chip Paul, a libertarian legalization advocate.
Staggering numbers
The state legalized medical cannabis three years ago, and in that time almost 10 per cent of the population — about 380,000 people — have registered. There are no limits on business license numbers, which cost just $2,500. There are a staggering 9.000 cultivators in the state. As for dispensaries, it’s estimated there’s one for every 150 people enrolled in the medical program.
‘Ghost owners’
Those with a 75 per cent or higher stake in a company has to have been a resident in Oklahoma for at least two years, according to licensing rules. But legal teams and consultants are accused of assisting foreign entrepreneurs find ways to circumvent the law. In one case, a law firm’s secretary in her 60s was the name on multiple licenses found to trace back to illicit operations. She is now facing multiple charges — and is suing her former employer.
How to crack down
Regulators aren’t yet sure how to weed out the bad actors quite yet. When a seed-to-sale tracking system was proposed, for example, retailers advocated against its implementation. The state has also raked in significant tax revenue, which is expected to exceed $150 million this year. Republican state Rep. Scott Fetgatter said some wish they’d never legalized it.
“It used to be daily, but it’s kind of weekly now, somebody talks to me in my district about how frustrated they are with the program, about how they would not vote for it again had they known what it was going to turn into.”
