4/20: Medical marijuana industry surges in Oklahoma

Leafly’s Annual Jobs Report also says Oklahoma saw more than $800 million in medical cannabis product sales in 2020. The boost seemed at least partly in line with national trends appearing to show increased usage of cannabis to treat medical issues either related to or exacerbated by the pandemic, the report says.

To Beau Zoellner, who operates a processing facility in Okmulgee County for the Dr. Z Leaf business chain, those numbers don’t seem surprising. He pointed to the structure of Oklahoma’s medical cannabis program, which became legal in 2018, as being encouraging for him and other business owners seeking to get into the industry early.

While preparing for Tuesday’s “4/20” cannabis “holiday” at Dr. Z Leaf, Zoellner said he was pleased to see the industry and number of patients continue to grow in its third year of legalization.

The date is known for being popular with recreational marijuana users, but many medical cannabis dispensaries — including Dr. Z Leaf — have product specials and discounts on that date every year.

“When State Question 788 passed, it was extremely exciting,” Zoellner said. “I believe we’ve got one of the fastest growing medical marijuana markets in the world. And the reason why is we’ve got great people who, you know, set it up in such a great way.

“They (government officials) regulated California way stronger, and they thought they were going to increase sales, and what happened was it reduced sales in the legal market.”

The Oklahoma Medical Marijuana Authority reported more than $16.5 million in January to March proceeds from the 7% excise tax outlined in state law, as well as about $20.3 million in state and local sales taxes. The excise tax proceeds are already more than two-thirds of the total recorded statewide during the entirety of 2019.

Meanwhile, more than 360,000 Oklahomans have valid medical cannabis patient licenses — and there are more than 10,000 licensed businesses, though not all entities that have valid licenses are in operation.

“I think the two-year residency rule — I do think that is a great qualifier,” said dispensary manager Eric Peeson, referencing current criteria for business license applicants. Peeson, a manager at The Strain Station Dispensary in west Tulsa, said he was content with the industry’s focus at the moment on medical cannabis patients’ needs.

“As of now I think Oklahoma is one of the top states in the nation for what we provide for patients,” he said. “For example, growers are starting to understand all the different things with moisture and humidity and sunlight — all of those things that are necessary to learn — but it’s not that easy. You have to have trial and error.”

To that end, Peeson said the size of the industry when he joined in 2019 was part of why he chose to excel in one area — dispensary management — rather than try to also become a grower or processor. He said The Strain Station has been successful thus far because of when it opened in west Tulsa and the affordability, as well as variety, of products for sale there.

“What you see with the industry in Oklahoma is when we do something, we do it well,” Peeson said. “There’s definitely enough money for it to go around here.”