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201 NE 23rd Street
Oklahoma City, OK, 73105
United States

(405) 528-7515 or (800) 324-6651

The Oklahoma Municipal League (OML) represents Oklahoma cities and towns working together for their mutual benefit. The OML acts as a central clearinghouse for information and services for its member municipalities.  

State Question 788 Information

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After recently being approved by voters, State Question 788 will go into effect July 26, 2018.  OML has created this website to keep municipal officials apprised of current policy information and provide sample ordinances from municipalities across the state.

Included below is policy information from Colorado and Washington.  While these states’ marijuana laws are quite different, they can provide valuable insight. Additionally, Elk City has provided OML with their ordinance as an example. OML will continue to update this site as more information becomes available.

Oklahoma SQ 788 Municipal Concepts

Taxation: 

SQ 788 creates a 7% sales tax paid to the state for marijuana sales. Municipalities may collect a sales tax on purposes the state also collects a tax on, unless specifically prohibited by law. See Oklahoma Statutes, Title 68 Section 2701. On the surface SQ788 appears to provide municipalities the same ability as the state to collect a sales tax on medical marijuana purchases. Due to the absence of specific langue addressing municipal sales tax in SQ 788, the League is currently working with the Oklahoma Tax Commission to verify municipalities ability to immediately collect sales tax once SQ 788 becomes effective. OML will update this section of the Web site as new information is available.  

Zoning & Land Use:

  • 788 limits municipal zoning of marijuana in section 6(F). It reads “no city or local municipality may unduly change or restrict zoning laws to prevent the opening of a retail marijuana establishment” (emphasis added).

  • There is only one buffer restriction outlined in the proposed law, which is a 1,000-foot buffer from any public or private school entrance.

    • Again, this is only applied to retail marijuana establishments, and is silent to other uses. See Section 6(G).

    • Washington, for example, has a state statute with a much broader buffer list to include playgrounds, recreation centers, parks, public transit, libraries, or arcades with many applying to growth and wholesale facilities (not just retail).

  • Municipal officials have voiced concern over the general language used in SQ788. As a result, several issues addressed in other states have failed to be addressed in Oklahoma SQ788. For example:

    • Common practices in marijuana states are fences of 8 feet for security and aesthetic/sight proof purposes. Additionally, marijuana odors in some locations are regulated using traditional nuisance laws.
    • Washington also regulates outdoor growing to prevent unauthorized access to the plants.
    • Some states have access and security requirements included in state law.

Employment

SQ 788 prohibits employers from discriminating against an employee for holding a marijuana license.  Action may be taken against  these employees if the holder of the license uses or possesses marijuana in his or her place of employment or during hours of employment.  Action may not be taken against a marijuana license holder due to results of a drug test showing positive for marijuana or its components.  For complete details see the applicable portion of the state question below.

Section 6

B. Unless a failure to do so would cause an employer to imminently lose a monetary or licensing related benefit under federal law or regulations, an employer may not discriminate against a person in hiring, termination or imposing any term or condition of employment or otherwise penalize a person based upon either:

1. The person's status as a medical marijuana license holder; or

2. Employers may take action against a holder of a medical marijuana license holder if the holder uses or possesses marijuana while in the holder's place of employment or during the hours of employment. Employers may not take action against the holder of a medical marijuana license solely based upon the status of an employee as a medical marijuana license holder or the results of a drug test showing positive for marijuana or its components.”

Please See the Following Pages for More Information