Oklahoma City Law Firm Of Brown & Gould

2 Ways SB806 Affects Oklahoma’s Cannabis Industry


SB806 was signed into law by the Oklahoma Senate in 2023. What it means for the Oklahoma cannabis industry is a crackdown on the illegal medical marijuana practice for growers.  This can have effects on people within the cannabis business industry.

1 The Possessory Right

Under SB-806 a licensed cannabis business must have the possessory right to the property listed on the business license application. That aspect of SB-806 changes a number of things within the OK cannabis industry.

First, it stops the practice of “borrowing” a site. Growers can no longer allow other growers to “borrow” their business address. That move helps OK to cut down on how illegal medical cannabis makes its way into the marketplace.

Further, a single business address may only hold one medical cannabis business. SB806 prevents cooperative land sharing for medical marijuana growers. The exception to this rule is when a business has both indoor and outdoor cannabis grows. In that case, a single business may have a business license, or two businesses owned by the same person may list the same address for both when, and only when one is an indoor grow and the other is an outdoor grow.

Possessory right means that the business owner must have the right to access the property, such as under a lease or rental agreement. By limiting the number of businesses at one address, the cannabis law helps to prevent a legal cannabis business from accepting products grown in other locations. The premise works because there is only so much cannabis that a single property can produce.

2. SB806-Beyond Growing

SB806 impacts all cannabis businesses in Oklahoma. By making it a cannabis law that only one cannabis business can be in place at one address, all business owners of a legal business are known. That means that cannabis growers and distributors are licensed by the state to own the cannabis business. The process makes it more difficult for those growers or distributors who are not licensed to conduct legal business with any cannabis business in Oklahoma City or within the state.

The implementation of cannabis laws in Oklahoma, especially SB806 reduces the opportunities for illegal cannabis businesses to do business with legal medical cannabis businesses. By limiting one business to one address SB806 separates legal cannabis from illegal marijuana. It helps those agencies that regulate and enforce the laws to see the difference between what might be legal and illegal.

Owning and operating a legal medical marijuana business in Oklahoma can be challenging. Laws are constantly changing and developing as it slowly shifts from an illegal market into one that is highly regulated and limited, but legal. Starting a legal medical cannabis business is not easy and there are pitfalls along the way that can prove daunting. A business lawyer can help navigate the myriad of laws and regulations.

Contact Brown & Gould For More Information Regarding The Legal Cannabis Business

Brown & Gould serves the greater Oklahoma City community by offering business-oriented legal services that include those of the cannabis industry. If you are a cannabis business that needs legal help reach out to our team. We can help you understand your legal environment and your options under Oklahoma law.


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Brown & Gould, PLLC,
136 NW 10th Street
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Oklahoma City, OK 73103
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The Oklahoma City, Oklahoma, law office of Brown & Gould, PLLC, serves the nearby cities of Moore, Norman, Edmond, Nichols Hills, Midwest City, Del City, Yukon, Mustang, El Reno, Shawnee, Tulsa and other areas, including Oklahoma County, Cleveland County, Canadian County, McClain County, Pottawatomie County, Tulsa County, Logan County and throughout the state of Texas in the cities of Dallas, Fort Worth, Houston, San Antonio, El Paso and Austin.