Oklahoma Medical Marijuana Authority cuts staff, citing short allocation, lower licensing

The Oklahoma Medical Marijuana Authority cut its staff Tuesday by 10%, letting go between 25 and 30 employees, a reflection of the shrinking industry.

"With commercial license numbers decreasing, it was imperative we find efficiencies in our operations to ensure we are nimble and ready for future endeavors," Executive Director Adria Berry said in a prepared statement released after meetings with employees.

Berry also cited a "limited appropriated budget."

The state Legislature set the agency's budget for fiscal year 2024 at $37 million. The OMMA requested a 23.7% increase for 2025, or $45.8 million. The Legislature agreed to allocate $41.9 million.

It wasn't long ago that OMMA had a desperate need for more employees, mostly field inspectors, to clear an administrative backlog caused by strict new regulations on owning a cannabis business. The newly independent state agency has also been a source of frustration for some working in the industry, who criticize it for being inefficient and opaque .

OMMA has been a stand-alone state agency reliant on appropriations from the Legislature for less than two years. It was part of the Oklahoma Department of Health from the legalization of medical marijuana in 2018 until Oct. 31, 2022.

OMMA does not directly receive any revenue from sales taxes, the 7% excise tax on retail medical marijuana sales or license application fees or fines.

RELATED: Is Oklahoma over its legal marijuana high? Maybe. Here's why, and how one dispensary copes

Oklahoma medical marijuana license numbers still in a near freefall

License numbers continue to plunge with a moratorium on new growers, processors and dispensaries remaining in place until 2026.

At midyear, Oklahoma had 6,615 licensed medical marijuana businesses, down another 22.4% since the first of the year, according to OMMA.

The year started with 8,522 businesses licensed − dispensaries, growers, processors, and transporters − which was down 27.4% compared with the first of 2023.

Oklahoma Medical Marijuana Authority needs more help, not less, industry group leader says

The agency apparently didn't have the staff it needed even before the job cuts, said Jed Green, director of Oklahomans for Responsible Cannabis Action . He pointed to an "extreme backlog of license renewals" and ownership transfer approvals that he said is contributing to the plunge in licenses.

"We fully support OMMA's efforts to rightsize the agency, reduce the size of government, and encourage industry input into that process," Green said. "We hope that any reduction in the OMMA workforce does not make the licensing issues worse. It's killing our industry and revenue for education and mental health services. When licenses aren't being renewed, no license fees are being collected."

Berry said the decision to cut staff didn't come easily.

"We are undergoing a restructuring and reduction of our workforce," she said. "This decision was made with deep consideration for the future of our organization, the services we provide, and our mandate to regulate and license medical cannabis businesses and patients."

She said positions that "no longer serve the needs of the agency" were eliminated. The agency did not say what kind of positions were cut. No further staff reductions are planned, and a new organizational structure will be put in place in coming weeks, she said.

Laid-off employees were offered several weeks of severance pay and continuing health insurance coverage.

"We are focusing on a positive restructuring, enhancing our capabilities and efficiency. This is an opportunity to innovate and grow, ensuring that our agency remains a leading force in regulating cannabis and serving our community," Berry said.

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This article originally appeared on Oklahoman: Oklahoma Medical Marijuana Authority cuts staff, citing short allocation, lower licensing