Req. No. 5042 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 58th Legislature (2021) HOUSE BILL 1960 By: Fetgatter AS INTRODUCED An Act relating to medical marijuana; amending Section 2, State Question No. 788, Initiative Petition No. 412 (63 O.S. Supp. 2020, Sec tion 421), which relates to dispensary licensing requirements; updating name of state agency; clarifying dispensary licensing requirements and penalties; authorizing dispensaries to deliver to certain private residences; providing distance restrictions when delivering medical marijuana products; providing an exception; directing dispensaries to verify the identity of patients and caregivers ; requiring patients and caregivers to provide certain identifying information; amending Section 16, Chapter 11, O.S.L. 2019 (63 O.S. Supp. 2020, Section 427.16), which relates to the Oklahoma Medical Marijuana and Patient Protection Act; updating statutory references and name of act; authorizing licensed transporters to deliver marijuana products to licensed patients and licensed caregivers; prohibiting repeat deliveries to same patient, caregiver or location within certain time period; providing for the promulgation of rules; stating restrictions on deliveries made to patients and caregivers to private residences; providing distance restrictions when delivering medical marijuana products; providing an exception; directing transport agents to inspect and verify identity of licensed patients and licensed caregivers prior to transferring marijuana products; requiring inclusion of patients and caregivers on certain inventory manifest document; defining term; and providing an effective date. Req. No. 5042 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY Section 2, State Question No . 788, Initiative Petition No. 412 ( 63 O.S. Supp. 2020, Section 421), is amended to read as follows: Section 421. A. The Oklahoma State Department of Health shall , within thirty (30) days of passage of this initiative, make available, on their its website, in an easy-to-find location, an application for a medical marijuana dispensary license. The application fee shall be Two Thousand Five Hundred Dollars ($2,500.00) and a. A method of payment will shall be provided on the website of the Department. Retail Dispensary applicants must all be residents of the State of Oklahoma state residents. Any entity applying for a retail medical marijuana dispensary license must be owned by an a resident of the State of Oklahoma state resident and must be registered t o do business in Oklahoma. The Oklahoma State Department of Health shall have two (2) weeks to review the application, approve or, reject or deny the application, and mail the approval/rejection approval, rejection or denial letter (if rejected, stating any reasons for rejection ) or denial to the applicant. B. The Oklahoma State Department of Health must shall approve all applications which meet the following criteria: 1. Applicant The applicant must be age twenty-five (25) years of age or older; Req. No. 5042 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. Any The applicant, if applying as an individual, must show residency in the State of Oklahoma; 3. All applying entities must show that all members, managers, and board members are Oklahoma residents; 4. An applying entity may show ownership of non -Oklahoma residents, but that percentage ownership may not exceed twenty -five percent (25%); 5. All applying individuals or entities must be registered to conduct business in the State of Oklahoma; and 6. All applicants must disclose all ownership ;. 7. Applicant(s) Applicants with only a nonviolent felony conviction(s) conviction in the last two (2) years, any other felony conviction in the last five 5 (years) (5) years, inmates in the custody of the Department of Corrections , or any person currently incarcerated may shall not qualify for a medical marijuana dispensary license. C. Retailers will Dispensaries shall be required to complete a monthly sales report to the Oklahoma State Department of Health. This report will shall be due on the 15th fifteenth of each month and provide reporting on the previous month. This report will shall detail the weight of marijuana purchased at wholesale and the weight of marijuana sold to card holders , and account for any waste. The report will shall show total sales in dollars , tax collected in dollars, and tax due in dollars. The Oklahoma State Department of Req. No. 5042 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Health will shall have oversight and auditing responsibilities to ensure that all marijuana being grown is accounted for. A retailer will dispensary shall only be subject to a penalty if a gross discrepancy exists and cannot be explained. Penalties for fraudulent reporting occurring within any 2 year two-year time period will shall be an initial fine of Five Thousand Dollars ($5,000.00) (first) for the first occurrence of fraudulent reporting and revocation of licensing (second) the medical marijuana dispensary license for a second occurrence of fraudulent reporting . D. Only a licensed medical marijuana retailer dispensary may conduct retail sales of marijuana, or marij uana derivatives in the form provided by licensed processors, and these products can shall only be sold to a licensed medical marijuana license holder patients or their caregiver licensed medical marijuana caregivers . Penalties for fraudulent sales occurr ing within any 2 year two-year time period will shall be an initial fine of Five Thousand Dollars ($5,000.00) (first) for the first occurrence of fraudulent sales and revocation of licensing (second) the medical marijuana dispensary license for a second oc currence of fraudulent sales . E. Beginning on a date determined by the State Commissioner of Health, but no later than one hundred eighty (180) days after the effective date of this act, a licensed medical marijuana dispensary may deliver medical marijuan a, medical marijuana concentrate or medical marijuana products to the private residence of a licensed Req. No. 5042 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 medical marijuana patient, the parent or legal guardian of a licensed medical marijuana patient, or a licensed medical marijuana caregiver. Delivery shall only be permitted if the private residence is located within a ten -mile radius of the dispensary. If no dispensary is located within a ten -mile radius of the private residence, a dispensary outside of the ten -mile radius may deliver to the private resid ence if the dispensary is located in the same county as the private residence. When contacted by a licensed medical marijuana patient or licensed caregiver for the purchase and delivery of medical marijuana, medical marijuana concentrate or medical marijuana products, the dispensary shall verify that the patient or caregiver is qualified to purchase and receive a delivery of medical marijuana, medical marijuana concentrate and medical marijuana products. The information to be provided by a patient or caregiver shall, at a minimum, include the following: 1. The name and date of birth of the patient or caregiver; 2. The ten- to twenty-four-character identification number assigned to the medical marijuana patient or caregiver license; 3. If the patient is under eighteen (18) years of age, the name and date of birth of the parent or legal guardian of the patient; 4. The address of the residence where the order will be delivered; and 5. Any other information required by the State Department of Health. Req. No. 5042 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 2. AMENDATORY Section 16, Chapter 11, O.S.L. 2019 (63 O.S. Supp. 2020, Section 427.16), is amended to read as follows: Section 427.16 A. There is hereby created a medical marijuana transporter license as a category of the medic al marijuana business license. B. Pursuant to Section 424 of Title 63 of the Oklahoma Statutes this title, the Oklahoma Medical Marijuana Authority shall issue a medical marijuana transporter license to licensed medical marijuana commercial growers, proce ssors and dispensaries upon issuance of such licenses and upon each renewal. C. A medical marijuana transporter license may also be issued to qualifying applicants who are registered with the Oklahoma Secretary of State and otherwise meet the requirements for a medical marijuana business license set forth in this act the Oklahoma Medical Marijuana and Patient Protection Act and the requirements set forth in this section to provide logistics, distribution and storage of medical marijuana, medical marijuana concentrate and medical marijuana products. D. A medical marijuana transporter license shall be valid for one (1) year and shall not be transferred with a change of ownership. A licensed medical marijuana transporter shall be responsible for all medical marijuana, concentrate and products once the transporter takes control of the product products. Req. No. 5042 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E. A transporter license shall be required for any person or entity to transport or transfer medical marijuana, concentrate or product products from a: 1. A licensed medical marijuana business to another licensed medical marijuana business , or from a; 2. A licensed medical marijuana business to a medical marijuana research facility or medical marijuana education facility ; or 3. A licensed medical marijuana dispensary to a patient or a caregiver who placed the order and who: a. has a valid medical marijuana patient license, is the parent or legal guardian of a patient with a valid medical marijuana patient license or has a valid medical marijuana caregiver lice nse, and b. possesses a current identification card issued by the State of Oklahoma. F. 1. A medical marijuana transporter licensee may contract with multiple licensed medical marijuana businesses. 2. Beginning on a date determined by the State Commissi oner of Health, but no later than one hundred eighty (180) days after the effective date of this act, a medical marijuana transporter licensee may deliver medical marijuana, medical marijuana concentrate and medical marijuana products to a licensed patient , the parent or legal guardian of a licensed patient or a licensed caregiver. A medical marijuana transporter shall be prohibited from delivering Req. No. 5042 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 medical marijuana, medical marijuana concentrate or medical marijuana products more than once per day to the same patient, parent or legal guardian of the patient, caregiver or private residence. The State Commissioner of Health shall adopt rules governing delivery of medical marijuana. Such rules shall, at a minimum, limit the amount of medical marijuana , medical marijuana concentrate and medical marijuana products a delivery vehicle may transport and deliver to a licensed patient or licensed caregiver. 3. When delivering medical marijuana, medical marijuana concentrate or medical marijuana products to a licensed patient, parent or legal guardian of a licensed patient or a licensed caregiver, the medical marijuana transporter shall deliver such products only to the private residence of the patient, parent or legal guardian of the patient, or caregiver. A medical marijuana transporter shall deliver medical marijuana, medical marijuana concentrate or medical marijuana products only to a private residence located within a ten -mile radius of the dispensary from which the medical marijuana, medical marijuana concentrate or medical marijuana products were purchased. If no dispensary is located within a ten -mile radius of the private residence, the transporter may deliver from a dispensary outside of the ten-mile radius to the private residence if the dispensary is located in the same county as the private residence . Req. No. 5042 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 G. A medical marijuana transporter may maintain a licensed premises to temporarily store medical marijuana, concentrate and products and to use as a centralized distribution point. A medical marijuana transporter may store and distribute medical marijuana, concentrate and products from the licensed premises. The licensed premises shall meet all security requirements applicable to a medical marijuana business. H. A medical marijuana transporter licensee shall use the seed- to-sale tracking system developed pursuant to this act the Oklahoma Medical Marijuana and Patient Protection Act to create shipping manifests documenting the transport of medical marijuana, concentrate and products throughout the state. I. A licensed medical marijuana transporter may maintain and operate one or more warehouses in the state to handle medical marijuana, concentrate and products. J. All medical marijuana, concentrate and product shall be transported: 1. In vehicles equipp ed with Global Positioning System (GPS) trackers; 2. In a locked container and clearly labeled "Medical Marijuana or Derivative"; and 3. In a secured area of the vehicle that is not accessible by the driver during transit. Req. No. 5042 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 K. 1. A transporter agent may possess marijuana at any location while the transporter agent is transferring marijuana to or from a licensed medical marijuana business, licensed medical marijuana research facility or, licensed medical marijuana education facility, licensed medical mari juana patient or licensed medical marijuana caregiver. 2. Prior to transferring possession of the medical marijuana, medical marijuana concentrate or medical marijuana products to a licensed patient, a parent or legal guardian of a licensed patient or a licensed caregiver, the transporter agent shall inspect the state-issued identification card of the patient, parent or legal guardian of the patient or caregiver, and the medical marijuana license of the patient or caregiver issued pursuant to Section 420 of this title. The transporter agent shall verify that the information provided at the time of the order matches the name and age on the state-issued identification card of the patient, parent or legal guardian of the patient or caregiver . The Department shall administer and enforce the provisions of this section concerning transportation. L. The Authority shall issue a transporter agent license to individual agents, employees, officers or owners of a transporter license in order for the individual to qual ify to transport medical marijuana, medical marijuana concentrate or medical marijuana product. Req. No. 5042 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 M. The annual fee for a transporter agent license shall be One Hundred Dollars ($100.00) and shall be paid by the transporter license holder or the individual applicant. N. The Authority shall issue each transporter agent a registry identification card within thirty (30) days of receipt of: 1. The name, address and date of birth of the person; 2. Proof of residency as required for a medical marijuana business license; 3. Proof of identity as required for a medical marijuana business license; 4. Possession of a valid Oklahoma driver license; 5. Verification of employment with a licensed transporter; 6. The application and affiliated fee; and 7. A criminal background check conducted by the Oklahoma State Bureau of Investigation, paid for by the applicant. O. If the transporter agent application is denied, the Department shall notify the transporter in writing of the reason for denying the registry identific ation card. P. A registry identification card for a transporter shall expire one (1) year after the date of issuance or upon notification from the holder of the transporter license that the transporter agent ceases to work as a transporter. Q. The Department may revoke the registry identification card of a transporter agent who knowingly violates any provision of this Req. No. 5042 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 section, and the transporter is subject to any other penalties established by law for the violation. R. The Department may revoke or suspe nd the transporter license of a transporter that the Department determines knowingly aided or facilitated a violation of any provision of this section, and the licenseholder is subject to any other penalties established in law for the violation. S. Vehicles used in the transport of medical marijuana , medical marijuana concentrate or medical marijuana product shall be: 1. Insured at or above the legal requirements in Oklahoma; 2. Capable of securing medical marijuana , medical marijuana concentrate or medical marijuana product during transport; and 3. In possession of a shipping container as defined in this act the Oklahoma Medical Marijuana and Patient Protection Act capable of securing all transported product. T. Prior to the transport of any medical ma rijuana, medical marijuana concentrate or products medical marijuana product, an inventory manifest shall be prepared at the origination point of the medical marijuana, medical marijuana concentrate or medical marijuana product. The inventory manifest sha ll include the following information: 1. For the origination point of the medical marijuana , medical marijuana concentrate or medical marijuana products : Req. No. 5042 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 a. the licensee number for the commercial grower, processor or dispensary, b. address of origination of transport, and c. name and contact information for the originating licensee; 2. For the end recipient license holder of the medical marijuana, medical marijuana concentrate or medical marijuana product: a. the license number for the patient, caregiver, dispensary, commercial grower, processor, research facility or education facility destination, b. address of the destination, and c. name and contact information for the destination licensee; 3. Quantities by weight or unit of each type of medical marijuana, medical marijuana concentrate or medical marijuana product contained in transport; 4. The date of the transport and the approximate time of departure; 5. The arrival date and estimated time of arrival; 6. Printed names and signatures of the personn el accompanying the transport; and 7. Notation of the transporting licensee. Req. No. 5042 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 U. 1. A separate inventory manifest shall be prepared for each licensee receiving the medical marijuana , medical marijuana concentrate or medical marijuana product . 2. The transporter agent shall provide the other medical marijuana business with a copy of the inventory manifest at the time the product changes hands and after the other licensee prints his or her name and signs the inventory manifest. 3. An inventory manifest sh all not be altered after departing the originating premises other than in cases where the printed name and signature of receipt by the receiving licensee is necessary. 4. A receiving licensee shall refuse to accept any medical marijuana, medical marijuana concentrate or medical marijuana product that is not accompanied by an inventory manifest. 5. Originating and receiving licensees shall maintain copies of inventory manifests and logs of quantities of medical marijuana , medical marijuana concentrate or m edical marijuana product received for three (3) years from date of receipt. V. As used in this section, "private residence" means the private premises where a person lives, such as a private dwelling place or place of habitation, and specifically excludes any premises located at a public or private school or on the campus of an institution of higher education. Req. No. 5042 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 3. This act shall become effective November 1, 2021. 58-1-5042 GRS 11/18/20