The Oklahoma Bar Journal May 2025

pressure while encouraging regu latory adherence. One approach is the introduction of tax incentives for compliance upgrades, allowing processors to offset the costs of facility modifica tions, safety improvements and new equipment necessary to meet evolv ing regulatory standards. Providing grants for facility enhancements – particularly for small businesses investing in energy efficiency, security measures or quality control infrastructure – would further encourage long-term compliance. Additionally, state-backed loan programs could provide processors with much-needed access to capital, helping businesses finance opera tional expansion, safety upgrades or technology investments that improve efficiency and compliance. To create a more equitable tax structure, lawmakers should explore a tiered tax system that scales based on business size and revenue, ensuring that small and mid-sized processors are not disproportionately burdened compared to larger, more estab lished operators. This would help prevent excessive tax liabilities that stifle growth and innovation, allowing smaller businesses to

use and postprocessing techniques leaves processors vulnerable to regulatory uncertainty and incon sistent enforcement. Without standardized terpene labeling, solvent residue limits and canna binoid classifications, businesses struggle to comply with shifting interpretations of the law, while consumers are left without trans parency or enforcement in product labeling. Legislators and regulators must act now to establish precise definitions and uniform standards that provide clarity, promote compliance and foster a stable and sustainable cannabis industry in Oklahoma. Financial Relief and Incentives Beyond compliance standard ization, Oklahoma lawmakers must address the financial barriers that hinder the growth and sus tainability of cannabis processing businesses. The burdens of high tax rates, limited access to banking and significant compliance costs place an undue strain on proces sors, particularly small and mid sized operators. To foster industry stability, policymakers should consider a range of economic incentives that ease financial

streamlines licensing, safety and reporting requirements Identifying necessary

updates to existing laws to reflect evolving industry practices and technology

Oklahoma must establish a single regulatory framework that aligns regulations into a stream lined and enforceable structure, reducing burdens on businesses while ensuring compliance. A unified system would eliminate contradictory regulatory interpre tations and create a more predict able compliance environment. A dedicated task force would ensure that Oklahoma’s cannabis regu lations evolve proactively rather than reactively, providing greater regulatory stability for businesses and consumers alike. To create a more predictable and enforceable regulatory framework, Oklahoma must define key terms in cannabis processing to eliminate compliance ambiguity and incon sistencies. The lack of clear classi fications for concentrates, solvent Defining Key Industry Terms That Remain Undefined

Proactive engagement from the legal community is essential to establishing a fair and sustainable regulatory environment for the cannabis industry in Oklahoma.

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

12 | MAY 2025

THE OKLAHOMA BAR JOURNAL