Senate Bill 1939: License Transfers & Renewal Application Time Frames
Effective Nov. 1, 2024, Senate Bill 1939 will change commercial license renewal application time frames and the license transfer process.
For renewal applications, there will be a 120-day grace period for licensees with expiration dates between Nov. 1, 2024, and March 1, 2025. Under this grace period, applications must be submitted before their expiration dates to be considered “timely.” All other licensees with expiration dates post-March 1, 2025, must submit renewal applications pursuant to the graphic below:
A license transfer application differs from a renewal application.
Licensees intending to transfer or sell any percentage of a business must undergo the new license transfer process required by Senate Bill 1939. New definitions forchange of ownership request, license transfer application, location change request and name change request are added to OMMA Rules at OAC 442:10-1-4. The new license transfer requirements have been added to OMMA Rules at OAC 442:10-5-2(f). License transfer applications or other material change applications that affect a licensee’s qualifications for licensure must not occur during the renewal application and must be submitted in a separate application.
The seller is responsible for ensuring the license remains active throughout the transfer process. 63 O.S. § 427.14c(C). This includes the timely submission of the renewal application and payment of the renewal application and tier fees. 63 O.S. 427.14c(C). Upon submission of the transfer application, the new owner is responsible for paying an application fee of $2,500 plus the tier fee. 63 O.S. § 427.14c(H). The tier fee paid by the new owner is calculated based on the seller’s use of the license during the previous 12 months. 63 O.S. § 427.14.
When both a renewal and a transfer application are pending, OMMA prioritizes processing the renewal application first. Once all fees associated with the renewal application are paid, OMMA processes the transfer application. 63 O.S. 427.14(G)(1). Upon approval of the new owner’s OBNDD registration, the license term for the newly transferred license will begin. 63 O.S. § 427.14c(B). The fee for location change requests remains $500. OAC 442:10-5-2(e)(2)(A).
Note: Pursuant to 63 O.S. § 427.14(N), a renewal application is only considered timely if submitted between 120 and 60 days before the license expiration date. An application submitted less than 60 days before expiration is not considered a timely renewal submission; however, a renewal application submitted less than 60 days before expiration but before the license expires will not incur a late fee. In this case, the license will expire on its expiration date and remain expired until OMMA approves the renewal application. A renewal application submitted after the license has expired incurs a late fee of $500 per week, and the licensee cannot operate while the license is in expired status. The license may not be used until OMMA approves the renewal application. A license that has been expired for more than 60 calendar days cannot be renewed.
Find helpful information regarding the license transfer process in the OMMA Medportal user guide.
OBNDD Registration:
If OMMA approves your application, you must submit a new OBNDD registration application. You’ll receive next steps from OBNDD regarding your registration application. You will not own the OMMA license and cannot operate under the license until the OBNDD registration is approved.
If OBNDD denies your registration application, the license transfer will be canceled, and the license will revert back to the ownership structure that existed prior to the attempted change. If the OBNDD registration is approved, you’ll receive a new 12-month OMMA license period in accordance with the approval date.
There is a 15-business day windoOw after the approval of the OBNDD registration to transfer product in Metrc. After that period of time, the prior owner will be removed from the license.
For all questions about timelines, please refer to SB 1939 for clarification. This bill was passed during the 2024 legislative session, mandating OMMA to implement this new license transfer process starting November 1, 2024
Common Questions
Q: What is considered a transfer agreement?
A: A document that conveys complete or partial ownership of a license from one individual or entity to another. View the list of required documents in the Commercial Application Checklist.
Q: Is obtaining written approval a separate action from the ownership transfer application?
A: Written approval is an email from the licensing vendor indicating the OMMA license transfer application has been approved. This email notification is standard practice for notifying applicants of their application status.
Q: What documentation is required to obtain written approval for the transfer?
A: All documentation necessary to meet licensure requirements must be uploaded within the transfer application in the licensing portal. View the full list of requirements in the Commercial Application Checklist.
