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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 2004 By: Fetgatter
AS INTRODUCED
An Act relating to medical marijuana; amending
Section 1, State Question No. 788, Initiative
Petition No. 412, as last amended by Sect ion 44,
Chapter 161, O.S.L. 2020 (63 O.S. Supp. 2020, Section
420), which relates to medical marijuana patient and
caregiver licensing requirements; clarifying
applicability of certain offense; specifying biannual
payment of application fees for patient li censes;
broadening eligibility requirements for temporary
license; extending license period of temporary
license; authorizing the State Department of Health
to deny patient license applications; removing
recordkeeping requirement related to approved medica l
marijuana licenses; clarifying types of records and
information the Department shall seal to protect
privacy; prohibiting the Department from sharing
records with other state agencies or political
subdivisions; providing for the assessment of late
renewal fees under certain circumstances ; making
renewal fees nonrefundable; prohibiting reinstatement
of certain expired licenses; amending Section 2,
State Question No. 788, Initiative Petition No. 412
(63 O.S. Supp. 2020, Section 421), which relates to
dispensary licensing requirements; increasing time
limitation for reviewing medical marijuana dispensary
license applications; authorizing the Department to
deny dispensary license applications; deleting
penalties for gross discrepancy and fraudulent
reporting and fraudulent sales; authorizing the sale
of pre-rolled medical marijuana; amending Section 3,
State Question No. 788, Initiative Petition No. 412
(63 O.S. Supp. 2020, Section 422), which relates to
commercial grower licensing requirements; increasing
time limitation for reviewing medical marijuana
commercial grower license applications; authorizing
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the Department to deny commercial grower license
applications; authorizing commercial growers to
package and sell pre -rolled medical marijuana;
deleting penalties for gross discrepancy and
fraudulent reporting and fraudulent sales; amending
Section 4, State Question No. 788, Initiative
Petition No. 412 (63 O.S. Supp. 2020, Section 423),
which relates to medical marijuana processor
licensing requirements; increasi ng time limitation
for reviewing medical marijuana processing license
applications; authorizing the Department to deny
processing license applications; deleting penalties
for gross discrepancy and fraudulent reporting;
specifying entity that oversees inspe ction and
compliance of processors; amending Section 6, State
Question No. 788, Initiative Petition No. 412, as
last amended by Section 46, Chapter 161, O.S.L. 2020
(63 O.S. Supp. 2020, Section 425), which relates to
protections for medical marijuana licen sees;
clarifying certain protections; providing standard
related to child endangerment; providing certain
exception; specifying manner by which distances
between certain properties shall be measured;
conforming language; amending Section 4, Chapter 509,
O.S.L. 2019 (63 O.S. Supp. 2020, Section 426.1),
which relates to licensure revocation and hearings;
removing certain exception; directing the Department
to make list of marijuana -licensed premises available
to state agencies; requiring certain marijuana -
licensed premises and businesses to submit certain
documentation when requesting a location change;
allowing single certificate of compliance except
under certain conditions; amending Section 2, Chapter
11, O.S.L. 2019, as last amended by Section 48,
Chapter 161, O.S.L. 2020, Section 3, Chapter 11,
O.S.L. 2019, as amended by Section 6, Chapter 477,
O.S.L. 2019, Section 4, Chapter 11, O.S.L. 2019,
Section 6, Chapter 11, O.S.L. 2019, as amended by
Section 7, Chapter 477, O.S.L. 2019, Section 7,
Chapter 11, O.S.L. 2019, as amended by Section 5,
Chapter 509, O.S.L. 2019, Section 9, Chapter 11,
O.S.L. 2019, Section 10, Chapter 11, O.S.L. 2019, as
amended by Section 2, Chapter 390, O.S.L. 2019,
Section 11, Chapter 11, O.S.L. 2019, Section 13,
Chapter 11, O.S.L. 2019, Section 14, Chapter 11,
O.S.L. 2019, as last amended by Section 51, Chapter
161, O.S.L. 2020, Section 16, Chapter 11, O.S.L.
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2019, Section 17, Chapter 11, O.S.L. 2019, as amended
by Section 4, Chapter 312, O.S.L. 2019, Section 18,
Chapter 11, O.S.L. 2019, Section 19, Chapter 11,
O.S.L. 2019, Section 20, Chapter 11, O.S.L. 2019,
Section 22, Chapter 11, O.S.L. 2019 and Section 23,
Chapter 11, O.S.L. 2019, as amended by Section 11,
Chapter 477, O.S.L. 2019 (63 O.S. Supp. 2020,
Sections 427.2, 427.3, 427.4, 42 7.6, 427.7, 427.9,
427.10, 427.11, 427.13, 427.14, 427.16, 427.17,
427.18, 427.19, 427.20, 427.22 and 427.23), which
relate to the Oklahoma Medical Marijuana and Patient
Protection Act; modifying scope of certain
definitions; deleting certain definitions; updating
references to certain named act; clarifying duties
and functions of the Oklahoma Medical Marijuana
Authority; providing for the establishment of a fee
schedule and collection of fees under certain
circumstances; requiring licensees to submit certa in
information; providing statutory citations;
authorizing on-site inspections or investigations of
medical marijuana businesses and certain facilities;
authorizing the State Department of Health to enter
licensed premises and certain facilities; providing
for post-licensure inspections; providing for
additional investigations and inspections under
certain circumstances; authorizing the State
Commissioner of Health to prescribe certain
penalties; defining term; authorizing the review of
licensed medical mar ijuana waste disposal facility
records; removing provision that allows licensees to
secure legal representation prior to interviews
conducted by the Department; providing penalties for
grossly inaccurate or fraudulent reports; authorizing
the Department to issue orders without notice or
hearing under certain circumstances; requiring
compliance with provisions of order; affording
opportunity to apply for a hearing after issuance of
order; clarifying privacy requirements for handling
records of patients and c aregivers; deleting
references to certain federal act; authorizing the
Authority to contact recommending physicians of
licensees; expanding certain protections to
podiatrists; providing for patient license
revocation; allowing patients to request the
withdrawal of a caregiver license; directing
withdrawal of caregiver license without a hearing
under certain circumstances; directing certain
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facilities to keep transaction records and utilize
seed-to-sale tracking system; deleting inventory
tracking recordkeeping requirement; providing certain
exception related to fees; modifying certain business
licensing requirement by including research,
education and waste disposal facility applicants and
licensees; requiring criminal history background
checks for license r enewals; reducing allowed
documentation; providing exemption from residency
requirement for certain medical marijuana business
license applicants; modifying and deleting certain
identification requirements; providing for the denial
of business applications ; prohibiting the issuance of
research, education and waste disposal facility
licenses to certain persons; removing requirement to
consider additional information when considering
criminal histories of business license applicants;
clarifying manner by whic h the Department may seek
administrative action against applicants or
licensees; modifying exemption to certain compliance
requirement; requiring research, education and waste
disposal facility licensees to pay licensure fees
prior to receiving license; pr oviding late renewal
fee for reinstatement of licenses; making fee
nonrefundable; prohibiting reinstatement of certain
expired licenses; prohibiting medical marijuana
businesses, research, education and waste disposal
facilities from operating without a va lid, unexpired
license; providing for the issuance of transporter
licenses to certain entities; removing certain
transport requirements; prohibiting delivery to
certain locations; reducing transporter agent license
fee; providing for the reprint of license s without
charge; stating fee for subsequent license reprints;
modifying and deleting certain qualifications for
issuing transporter agent registry identification
cards; deleting certain inventory manifest
prohibition; increasing amount of time inventory
manifests and logs shall be maintained; removing
ability of the Oklahoma Medical Marijuana Authority
to develop research practices and methods; removing
requirement that prohibits indirect beneficial owners
from owning a laboratory; narrowing scope of testi ng
laboratory licenses; requiring laboratory licensees
to comply with application requirements; authorizing
testing laboratories to accept samples from research
and education facilities; allowing the testing of
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product to be conducted at quality assurance
laboratories; directing the State Department of
Health to develop standards and policies for
validation procedures; specifying type of batches and
samples that must be identified and tracked by an
inventory tracking system; increasing amount of time
required for testing laboratories to retain test
results; removing test batch weight limitation;
removing harvest batch and production batch weight
limitations; increasing number of inspections
required for testing laboratories after licensure;
authorizing additional investigations and inspections
under certain circumstances; authorizing commercial
growers to transfer certain product to processors
under certain conditions; deleting and modifying
certain labeling and packaging requirements; making
payment of research license and education license
fees annual; clarifying application process
requirements for medical marijuana education facility
licenses; authorizing revocation of licenses for
violations of applicable laws, rules and regulations;
specifying the type o f records and information that
are considered confidential and exempt from the
Oklahoma Open Records Act; authorizing the Department
to share certain information with the Oklahoma Tax
Commission; modifying name of entity that recommends
rules to the State Commissioner of Health;
authorizing the State Department of Health to appoint
additional members to the Medical Marijuana Advisory
Council; authorizing the Department to tag or mark
medical marijuana and medical marijuana product under
certain conditions; authorizing the Department to
embargo medical marijuana and medical marijuana
product; making the removal or disposal of embargoed
medical marijuana and medical marijuana product
without permission unlawful; allowing the State
Commissioner of Health to ins titute actions in
district court for the condemnation and destruction
of embargoed medical marijuana and medical marijuana
product that fails to meet certain requirements;
providing for the removal of embargo after certain
determination by the Commissioner ; providing
exemption from liability; providing for the
destruction of medical marijuana and medical
marijuana product upon findings made by the court;
requiring expenses associated with destruction, court
costs and fees to be paid by owner or defendant;
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authorizing courts to order delivery of medical
marijuana and medical marijuana product to owner or
defendant under certain circumstances; directing
expenses for supervision be paid to Commissioner by
certain person; amending Sections 2, 3 and 4, Chapter
337, O.S.L. 2019 (63 O.S. Supp. 2020, Sections 428.1,
429 and 430), which relate to the Oklahoma Medical
Marijuana Waste Management Act; modifying scope of
certain definitions; authorizing the destruction of
marijuana roots and stalks; eliminating limit on
number of licenses; deleting documentation
requirements for entities that engage in the disposal
of medical marijuana waste; removing requirement for
entities to maintain disposal records for certain
period of time; clarifying manner by which distance
requirements shall be measured for waste disposal
facilities; removing alternative financial assurance
option; providing for the annual issuance of permits;
directing deposits into different fund; updating
statutory citations; clarifying language; providing
for codification; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 1, State Question No. 788,
Initiative Petition No. 412, as last amended by Section 44, Chap ter
161, O.S.L. 2020 (63 O.S. Supp. 2020, Section 420), is amended to
read as follows:
Section 420. A. A person in possession of a state -issued
medical marijuana patient license shall be able to:
1. Consume marijuana legally;
2. Legally possess up to t hree (3) ounces of marijuana on their
person;
3. Legally possess six mature marijuana plants;
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4. Legally possess six seedling plants;
5. Legally possess one (1) ounce of concentrated marijuana;
6. Legally possess seventy -two (72) ounces of edible marij uana;
and
7. Legally possess up to eight (8) ounces of marijuana in their
residence.
B. Possession of up to one and one -half (1.5) ounces of
marijuana by persons who can state a medical condition, but are not
in possession of a state -issued without a medical marijuana patient
license, shall constitute a misdemeanor offense not subject to
imprisonment but punishable by a fine not to exceed Four Hundred
Dollars ($400.00) and shall not be subject to imprisonment for the
offense. Any law enforcement officer who comes in contact with a
person in violation of this subsection and who is satisfied as to
the identity of the person, as well as any other pertinent
information the law enforcement officer deems necessary, shall issue
to the person a written citation c ontaining a notice to answer the
charge against the person in the appropriate court. Upon receiving
the written promise of the alleged violator to answer as specified
in the citation, the law enforcement officer shall release the
person upon personal reco gnizance unless there has been a violation
of another provision of law.
C. A regulatory office shall be established under the State
Department of Health which shall receive applications for medical
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marijuana patient and caregiver license recipients, dispe nsaries,
growers, and packagers processors within sixty (60) days of the
passage of this initiative.
D. The State Department of Health shall, within thirty (30)
days of passage of this initiative, make available on its website ,
in an easy-to-find location, an application for a medical marijuana
patient license. The license shall be good for two (2) years. The
biannual application fee shall be One Hundred Dollars ($100.00), or
Twenty Dollars ($20.00) for individuals on Medicaid, Medicare or
SoonerCare. The methods of payment shall be provided on the website
of the Department.
E. A short-term medical marijuana patient license application
shall also be made available on the website of the State Department
of Health. A short-term medical marijuana patient license shall be
granted to any applicant who can meet the requirements for a two-
year medical marijuana patient license, but whose physician
recommendation for medical marijuana is only valid for sixty (60)
days. Short-term medical marijuana patient licenses shall be issued
for sixty (60) days. The fee for a short-term medical marijuana
patient license and the procedure for extending or renewing the
license shall be determined by the Department.
F. A temporary medical marijuana patient license application
shall also be made available on the website of the State Department
of Health for residents of other states . A temporary medical
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marijuana patient license shall be granted to any medical marijuana
license holder from other states, provided that the sta te has a
state-regulated medical marijuana program, and the applicant can
prove he or she is a member of such program applicants who meet all
requirements applicable to medical marijuana patient license
applicants prescribed by law or rule, except the resi dency
requirement provided for in subsection G of this section . Temporary
medical marijuana patient licenses shall be issued for thirty (30)
ninety (90) days. The cost for a temporary medical marijuana
patient license shall be One Hundred Dollars ($100.0 0). Renewal
shall be granted with resubmission of a new application. No
additional criteria shall be required.
G. Medical marijuana patient license applicants shall submit
his or her their applications to the State Department of Health for
approval. The applicant shall be an Oklahoma state resident and
shall prove residency by a valid driver license, utility bills, or
other accepted methods.
H. The State Department of Health shall review the medical
marijuana patient license application, approve or, reject or deny
the application, and mail the approval or, rejection or denial
letter stating any reasons for the rejection or denial to the
applicant within fourteen (14) business days of receipt of the
application. Approved applicants shall be issued a med ical
marijuana patient license which shall act as proof of his or her
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approved status. Applications may only be rejected or denied based
on the applicant not meeting stated criteria or improper completion
of the application.
I. The State Department of He alth shall only keep the following
records for each approved medical marijuana license:
1. A digital photograph of the license holder;
2. The expiration date of the license;
3. The county where the card was issued; and
4. A unique 24-character identification number assigned to the
license.
J. The State Department of Health shall make available, both on
its website and through a telephone verification system, an easy
method to validate the authenticity of the medical marijuana license
by the unique 24-character ten- to twenty-four-character
identification number.
K. J. The State Department of Health shall ensure that all
application medical marijuana patient and caregiver records and
information are sealed to protect the privacy of medical marijuana
license applicants and such records shall not be shared with any
other state agency or political subdivision without a warrant issued
by a court of competent jurisdiction .
L. K. A caregiver license shall be made available for qualified
caregivers of a medica l marijuana patient license holder who is
homebound. As provided in Section 11 of Enrolled House Bill No.
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2612 427.11 of the 1st Session of the 57th Oklahoma Legislature this
title, the caregiver license shall provide the caregiver the same
rights as the medical marijuana patient licensee, including the
ability to possess marijuana, marijuana products and mature and
immature plants pursuant to the Oklahoma Medical Marijuana and
Patient Protection Act, but excluding the ability to use marijuana
or marijuana products unless the caregiver has a medical marijuana
patient license. An applicant for a caregiver license shall submit
proof of the license status and homebound status of the medical
marijuana patient and proof that the applicant is the designee of
the medical marijuana patient. The applicant shall also submit
proof that he or she is eighteen (18) years of age or older and
proof of his or her Oklahoma residency. This shall be the only
criteria for a caregiver license.
M. L. All applicants for a medical marijuana patient license
shall be eighteen (18) years of age or older. A special exception
shall be granted to an applicant under the age of eighteen (18);
however, these applications shall be signed by two physicians and
the parent or legal guardian of the applicant.
N. M. All applications for a medical marijuana patient license
shall be signed by an Oklahoma physician. There are no qualifying
conditions. A medical marijuana patient license must be recommended
according to the accepted standards a reasonable and prudent
physician would follow when recommending or approving any
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medication. No physician may be unduly stigmatized or harassed for
signing a medical marijuana license application.
N. A medical marijuana patient licensee who attempts to r enew
his or her license more than thirty (30) days after the expiration
of the license shall pay a late renewal fee to reinstate the patient
license in an amount to be determined by the State Department of
Health. Late renewal fees are nonrefundable. A m edical marijuana
patient license that has been expired for more than ninety (90) days
shall not be reinstated.
O. Counties and cities may enact medical marijuana guidelines
allowing medical marijuana patient license holders or caregivers
caregiver license holders to exceed the state limits set forth in
subsection A of this section.
SECTION 2. 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 Oklahoma state residents. Any entity applying for a retail
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dispensary license must be owned by an Oklahoma state resident and
must be registered to do business in Oklahoma. The Oklahoma State
Department of Health shall have two (2) weeks ninety (90) business
days to review the application, approve or, reject or deny the
application, and mail the approval/rejection approval, rejection or
denial letter (if rejected, stating reasons for the 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;
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, ma nagers,
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 ; interests in the
dispensary.
7. Applicant(s) Applicants with only a nonviolent felony
conviction(s) conviction in the last two (2) years, any other felony
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conviction in 5 (years) the last five (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 Licensed medical marijuana d ispensaries 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, licensed
medical marijuana patients and licensed medical marijuana caregivers
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 Health will shall have oversight and
auditing responsibilities to ensure that all marijuana being grown
sold is accounted for. A retailer will only be subject to a penalty
if a gross discrepancy exists and cannot be explained. Penalties
for fraudulent reporting occurring within any 2 year time period
will be an initial fine of Five Thousand Dollars ($5,000.00) (first)
and revocation of licensing (second) .
D. Only a licensed medical ma rijuana retailer may dispensary
shall conduct retail sales of marijuana , or marijuana derivatives in
the form provided by licensed processors, and these products can
shall only be sold to a licensed medical marijuana license holder
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patients or their caregiver. Penalties for fraudulent sales
occurring within any 2 year time period will be an initial fine of
Five Thousand Dollars ($5,000.00) (first) and revocation of
licensing (second) licensed medical marijuana caregivers. Beginning
on the effective date o f this act, licensed medical marijuana
dispensaries shall be authorized to package and sell to licensed
medical marijuana patients and licensed medical marijuana caregivers
pre-rolled medical marijuana containing only ground parts of the
marijuana plant excluding any concentrates or derivatives .
SECTION 3. AMENDATORY Section 3, State Question No. 788,
Initiative Petition No. 412 (63 O.S. Supp. 2020, Section 422), is
amended to read as follows:
Section 422. A. The Oklahoma State Department of Health will
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 commercial grower license. The application fee
will shall be Two Thousand Five Hun dred Dollars ($2,500.00) and.
The methods of payment will shall be provided on the website of the
Department. The Oklahoma State Department of Health has two (2)
weeks shall have ninety (90) business days to review the
application, approve or, reject or deny the application, and mail
the approval/rejection approval, rejection or denial letter (if
rejected, stating reasons for rejection) stating reasons for the
rejection or denial to the applicant.
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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;
2. Any The applicant, if applying as an individual, must show
residency in the State of Oklahoma;
3. All applying ent ities 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 ; interests in the
commercial grow operation .
7. Applicant(s) Applicants with only a nonviolent felony
conviction(s) conviction in the last two (2) years, any other felony
conviction in 5 (years) the last five (5) years , inmates in the
custody of the Department of Corrections , or any person currently
incarcerated may shall not qualify for a commercial grower license.
C. 1. A licensed commercial grower may sell marijuana to a
licensed retailer, commercial grower, licensed dispensary or a
licensed packager processor.
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2. Beginning on the effective date of this act, licensed
commercial growers shall be authorized to package and sell to
licensed medical marijuana dispensaries pre -rolled medical marijuana
containing only ground parts of the marijuana plant excluding any
concentrates or derivatives . Further, these
3. All sales will by a licensed commercial grower shall be
considered wholesale sales and shall not be subject to taxation.
4. Under no circumstances may a licensed commercial grower sell
marijuana directly to a licensed medical marijuana license holder
patient or licensed medical marijuana caregiver . A licensed
commercial grower may only sell at the wholesale level to a licensed
retailer commercial grower, licensed dispensary, or a licensed
processor. If the federal government lifts restrictions on buying
and selling marijuana between states, then a licensed commercial
grower would be allowed to sell and buy marijuan a wholesale from, or
to, an out-of-state wholesale provider.
5. A licensed commercial grower will be required to shall, in
the manner and form prescribed by the State Department of Health,
complete a monthly yie ld and 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 The report will shall, among other items prescribed by the
State Department of Health, detail the amount of marijuana harvested
in pounds, the amount of drying or dried marijuana on hand, the
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amount of marijuana sold to processors in pounds , the amount of
waste in pounds, and the amount of marijuana sold to retailers in
lbs. Additionally, this report will show and total wholesale sales
in dollars. The Oklahoma State Department of Health will shall have
oversight and auditing responsibilities to ensure that all marijuana
being grown by the licensed commercial grower is accounted for. A
licensed grower will only be subject to a penalty if a gross
discrepancy exists and cannot be explained. Penalties for
fraudulent reporting or sales occurring within any 2 year time
period will be an initial fine of Five Thousand Dollars ($5,000. 00)
(first) and revocation of licensing (second) .
D. There shall be no limits on how much marijuana a licensed
commercial grower can grow.
SECTION 4. AMENDATORY Section 4, State Question No. 788,
Initiative Petition No. 412 (63 O.S . Supp. 2020, Section 423), is
amended to read as follows:
Section 423. 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 processing license. The
application fee shall be Two Thousand Five Hundred Dollars
($2,500.00) and methods. A method of payment will shall be provided
on the website of the Department. The Oklahoma State Department of
Health shall have two (2) weeks ninety (90) business days to review
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the application, approve or, reject or deny the application, and
mail the approval/rejection approval, rejection or denial letter (if
rejected, stating reasons for the 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;
2. Any The applicant, if applying as an individ ual, 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 ; in the
processing operation .
7. Applicant(s) Applicants with only a nonviolent felony
conviction(s) conviction in the last two (2) years, any other felony
conviction in 5 (years) the last five (5) years , inmates in the
custody of the Department of Corrections , or any person currently
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incarcerated may shall not qualify for a medical marijuana
processing license.
C. 1. A licensed processor may take marijuana plants and
distill or process these marijuana plants into concentrates,
edibles, and other forms for consumption.
2. As required by subsection D of this s ection, the Oklahoma
State Department of Health will shall, within sixty (60) days of
passage of this initiative, make available a set of standards which
will shall be used by licensed processors in the preparation of
edible marijuana products. This shoul d be in line with current food
preparation guidelines and no. No excessive or punitive rules may
be established by the Oklahoma State Department of Health.
3. Once a year, the Oklahoma State Department of Health may
inspect a processing operation and det ermine its compliance with the
preparation standards. If deficiencies are found, a written report
of deficiency will shall be issued to the processor. The processor
will shall have one (1) month to correct the deficiency or be
subject to a fine of Five H undred Dollars ($500.00) for each
deficiency.
4. A licensed processor may sell marijuana products it creates
to a licensed retailer, dispensary or any other licensed processor.
Further, these All sales will by a licensed processor shall be
considered wholesale sales and shall not be subject to taxation.
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5. Under no circumstances may a licensed processor sell
marijuana, or any marijuana product , directly to a licensed medical
marijuana license holder patient or licensed medical marijuana
caregiver. However, a licensed processor may process cannabis into
a concentrated form, for a licensed medical license holder,
marijuana patient or licensed medical marijuana caregiver for a fee.
Processors will be required to
6. Licensed processors shall, in the manne r and form prescribed
by the State Department of Health, complete a monthly yield and
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 The report will
shall, among other items prescribed by the State Department of
Health, detail the amount of marijuana purchased in pounds, the
amount of marijuana cooked or processed in pounds, and, the amount
of waste in pounds. Additionally, this r eport will show and total
wholesale sales in dollars. The Oklahoma State Department of Health
will shall have oversight and auditing responsibilities to ensure
that all marijuana being grown processed is accounted for. A
licensed processor will only be s ubject to a penalty if a gross
discrepancy exists and cannot be explained. Penalties for
fraudulent reporting occurring within any 2 year time period will be
an initial fine of Five Thousand Dollars ($5,000.00) (first) and
revocation of licensing (second) .
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D. The Department shall oversee inspection and compliance of
processors producing products with marijuana as an additive. The
Oklahoma State Department of Health will shall be compelled to,
within thirty (30) days of passage of this initiative, appoint a
board of twelve (12) Oklahoma residents to the Medical Marijuana
Advisory Council, who are marijuana industry experts, to create a
list of food safety standards for processing and handling medical
marijuana in Oklahoma. These standards will shall be adopted by the
agency Department and the agency can Department may enforce these
standards for licensed processors. The agency will Department shall
develop a standards review procedure and these standards can may be
altered by calling another board council of twelve (12) Oklahoma
marijuana industry experts. A signed letter of twenty (20)
operating, licensed processors would shall constitute a need for a
new board council and standard standards review.
E. If it becomes permissible , under federal law, marij uana may
be moved across state lines.
F. Any device used for the processing or consumption of medical
marijuana shall be considered legal to be sold, manufactured,
distributed, and possessed. No merchant, wholesaler, manufacturer,
or individual may unduly be unduly harassed or prosecuted for
selling, manufacturing, or possession of medical possessing
marijuana paraphernalia.
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SECTION 5. AMENDATORY Section 6, State Question No. 788,
Initiative Petition No. 412, as last amended by Section 46, Chapter
161, O.S.L. 2020 (63 O.S. Supp. 2020, Section 425), is amended to
read as follows:
Section 425. A. No school or landlord may refuse to enroll or
lease to and may not otherwise penalize a person solely for his or
her status as a medical m arijuana license holder, unless failing to
do so would cause the school or landlord the potential to lose a
monetary or licensing -related benefit under federal law or
regulations.
B. Unless a failure to do so would cause an employer the
potential to 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 the status of the person as a medical marijuana license
holder; or.
2. Employers may take action against a holder of a medical
marijuana license if the holder uses or possesses marijuana while in
his or her place of employment or during the hours of employme nt.
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.
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C. For the purposes of medical care, including organ
transplants, the authorized use of marijuana by a medical marijuana
license holder shall be considered the equivalent of the use of any
other medication under the direction of a physician and does not
constitute the use of an illicit substance or otherwise disqualify a
registered qualifying patient from medical care.
D. No medical marijuana license holder may be denied custody of
or, visitation or parenting time with a minor child, and there is no
presumption of neglect or child endangerment for conduct allowed
under this law, unless, by clear and convincing evidence, it is
established that the behavior of the person medical marijuana
license holder creates an unreasonable danger a risk of irreparable
harm to the safety of the minor child.
E. No person holding a medical marijuana license may unduly be
withheld from holding be denied or restricted from holding a state-
issued license by virtue of their being a licensed medical marijuana
license holder patient including, but not limited to, a concealed
carry permit.
F. 1. No city or local municipality may unduly change or
restrict zoning laws to prevent the opening of a retail marijuana
establishment medical marijuana dispensary .
2. For purposes of this subsection , an undue change or
restriction of municipal zoning laws means an act which entirely
prevents retail marijuana establishments dispensaries from operating
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within municipal boundaries as a matter of law. Municipalities may
follow their standard planning an d zoning procedures to determine if
certain zones or districts would be appropriate for locating
marijuana-licensed premises, medical marijuana businesses or any
other premises where marijuana or its by -products are cultivated,
grown, processed, stored or manufactured.
3. For purposes of this section, "retail marijuana
establishment" means an entity licensed by the State Department of
Health as a medical marijuana dispensary. Retail marijuana
establishment a medical marijuana dispensary does not include those
other entities licensed by the Department as marijuana -licensed
premises, medical marijuana businesses or other facilities or
locations where marijuana or any product containing marijuana or its
by-products are cultivated, grown, processed, stored or
manufactured.
G. The location of any retail marijuana establishment medical
marijuana dispensary is specifically prohibited within one thousand
(1,000) feet of any public or private school entrance unless the
dispensary was granted a medical marijuana dis pensary license by the
State Department of Health for that location prior to the effective
date of this act. Upon the effective date of this act, the distance
indicated in this subsection shall be measured from the nearest
property line of the public or p rivate school to the nearest
property line of the dispensary. If a public or private school is
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established within one thousand (1,000) feet of a medical marijuana
dispensary after such dispensary has been licensed, the provisions
of this section shall not be a deterrent to the renewal of such
license or warrant revocation of the license .
H. Research shall be provided for under this law. A researcher
may apply to the State Department of Health for a special research
license. The research license shall be granted, provided the
applicant meets the criteria listed under subsection B of Section
421 of this title provided for in the Oklahoma Medical Marijuana and
Patient Protection Act . Research license holders shall be required
to file monthly consumption re ports to the State Department of
Health with amounts of marijuana used for research. Biomedical and
clinical research which is subject to federal regulations and
institutional oversight shall not be subject to State Department of
Health oversight.
SECTION 6. AMENDATORY Section 4, Chapter 509, O.S.L.
2019 (63 O.S. Supp. 2020, Section 426.1), is amended to read as
follows:
Section 426.1 A. Except for revocation hearings concerning
licensed patients, as As defined in Section 2 427.2 of Enrolled
House Bill No. 2612 of the 1st Session of the 57th Oklahoma
Legislature this title, all licensure revocation hearings conducted
pursuant to marijuana licenses established in the Oklahoma Statutes
shall be recorded. A party may request a copy of the recording of
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the proceedings. Copies shall be provided to local law enforcement
if the revocation was based on alleged criminal activity .
B. The State Department of Health shall assist any law
enforcement officer in the performance of his or her duties upon
such request by the law enforcement officer or the request of other
local officials having jurisdiction. Except for license information
concerning licensed patients, as defined in Section 2 427.2 of
Enrolled House Bill No. 2612 of the 1st Sess ion of the 57th Oklahoma
Legislature this title, the Department shall share information with
law enforcement agencies upon request without a subpoena or search
warrant.
C. The State Department of Health shall make available all
information displayed on me dical marijuana licenses, as well as
whether or not the license is valid , to law enforcement
electronically through the Oklahoma Law Enforcement
Telecommunications System.
D. The Department shall make available to Oklahoma state
agencies and political subdivisions a list of marijuana -licensed
premises, medical marijuana businesses or any other premises where
marijuana or its by-products are licensed to be cultivated, grown,
processed, stored or manufactured to aid Oklahoma state, county and
municipal governments in identifying locations within their
jurisdiction and ensure ensuring compliance with local applicable
laws, rules and regulations.
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E. All If located within the incorporated boundaries of any
city or town, all marijuana-licensed premises, medical marijuana
businesses or any other premises where marijuana or its by -products
are licensed to be cultivated, grown, processed, stored or
manufactured shall submit with their the application or request to
change location, after notifying the political subdi vision of their
intent, a certificate of compliance from the political subdivision
where the facility of the applicant or use licensee is to be located
and its use certifying compliance with zoning classifications,
applicable municipal ordinances and all a pplicable safety,
electrical, fire, plumbing, waste, construction and building
specification codes. Once a certificate of compliance has been
submitted to the Oklahoma Medical Marijuana Authority showing full
compliance as outlined in this section, no add itional certificate of
compliance shall be required for license renewal unless a change of
use or occupancy occurs, or there is any change concerning the
facility or location that would by law require additional
inspection, licensure, or permitting by the state or municipal
government.
SECTION 7. AMENDATORY Section 2, Chapter 11, O.S.L.
2019, as last amended by Section 48, Chapter 161, O.S.L. 2020 (63
O.S. Supp. 2020, Section 427.2), is amended to read as follows:
Section 427.2 As used in this act the Oklahoma Medical
Marijuana and Patient Protection Act :
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1. "Advertising" means the act of providing consideration for
the publication, dissemination, solicitation, or circulation , of
visual, oral, or written communication to induce di rectly or
indirectly any person to patronize a particular medical marijuana
business, or to purchase particular medical marijuana or a medical
marijuana product. Advertising includes marketing, but does not
include packaging and labeling;
2. "Authority" means the Oklahoma Medical Marijuana Authority;
3. "Batch number" means a unique numeric or alphanumeric
identifier assigned prior to testing to allow for inventory tracking
and traceability;
4. "Cannabinoid" means any of the chemical compounds that are
active principles of marijuana;
5. "Caregiver" means a family member or assistant who regularly
looks after a medical marijuana license holder whom a physician
attests needs assistance;
6. "Child-resistant" means special packaging that is:
a. designed or constructed to be significantly difficult
for children under five (5) years of age to open and
not difficult for normal adults to use properly as
defined by 16 C.F.R. 1700.15 (1995) and 16 C.F.R.
1700.20 (1995),
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b. opaque so that the outermost packaging d oes not allow
the product to be seen without opening the packaging
material, and
c. resealable to maintain its child -resistant
effectiveness for multiple openings for any product
intended for more than a single use or containing
multiple servings;
7. "Clone" means a nonflowering plant cut from a mother plant
that is capable of developing into a new plant and has shown no
signs of flowering;
8. "Commissioner" means the State Commissioner of Health;
9. "Complete application " means a document prepared in
accordance with the provisions set forth in this act the Oklahoma
Medical Marijuana and Patient Protection Act , rules promulgated
pursuant thereto, and the forms and instructions provided by the
Department, including any supporting documentation required and the
applicable license application fee;
10. "Department" means the State Department of Health;
11. "Director" means the Executive Director of the Oklahoma
Medical Marijuana Authority;
12. "Dispense" means the selling of medical marijuana or a
medical marijuana product to a qualified patient or the designated
caregiver of the patient that is packaged in a suitable container
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appropriately labeled for subsequent administration to or use by a
qualifying patient;
13. "Dispensary" means a medical marijuana d ispensary, an
entity that has been licensed by the Department pursuant to this act
the Oklahoma Medical Marijuana and Patient Protection Act to
purchase medical marijuana or medical marijuana products from a
licensed medical marijuana commercial grower , medical marijuana
dispensary, or medical marijuana processor, to prepare and package
non-infused, pre-rolled medical marijuana, and to sell medical
marijuana or medical marijuana products to licensed patients and
caregivers as defined under in this act section, or sell or transfer
products to another dispensary;
14. "Edible medical marijuana product " means any medical-
marijuana-infused product for which the intended use is oral
consumption including, but not limited to, any type of food, drink
or pill;
15. "Entity" means an individual, general partnership, limited
partnership, limited liability company, trust, estate, association,
corporation, cooperative, or any other legal or commercial entity;
16. "Flower" means the reproductive organs of the marijuana o r
cannabis plant referred to as the bud or parts of the plant that are
harvested and used to consume for consumption in a variety of
medical marijuana products;
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17. "Flowering" means the reproductive state of the marijuana
or cannabis plant in which there are physical signs of flower or
budding out of the nodes of the stem;
18. "Food-based medical marijuana concentrate " means a medical
marijuana concentrate that was produced by extracting cannabinoids
from medical marijuana through the use of propylene gl ycol,
glycerin, butter, olive oil, coconut oil or other typical food -safe
cooking fats;
19. "Good cause" for purposes of an initial, renewal or
reinstatement license application, or for purposes of discipline of
a licensee, means:
a. the licensee or appli cant has violated, does not meet,
or has failed to comply with any of the terms,
conditions or provisions of the act, any rules
promulgated pursuant thereto, or any supplemental
relevant state or local law, rule or regulation,
b. the licensee or applicant has failed to comply with
any special terms or conditions that were placed upon
the license pursuant to an order of the State
Department of Health, Oklahoma Medical Marijuana
Authority or the municipality, or
c. the licensed premises of a medical marijuana business
or applicant have been operated in a manner that
adversely affects the public health or welfare or the
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safety of the immediate vicinity in which the
establishment is located;
20. "Harvest batch" means a specifically identified quantity of
medical marijuana that is uniform in strain, cultivated utilizing
the same cultivation practices, harvested at the same time from the
same location and cured under uniform conditions;
21. 20. "Harvested marijuana" means post-flowering medical
marijuana not including trim, concentrate or waste;
22. 21. "Heat- or pressure-based medical marijuana concentrate "
means a medical marijuana concentrate that was produced by
extracting cannabinoids from medical marijuana through the use of
heat or pressure;
23. 22. "Immature plant" means a nonflowering marijuana plant
that has not demonstrated signs of flowering;
24. 23. "Inventory tracking system " means the required tracking
system that accounts for the entire life span of medical marijuana,
from either the seed or immature plant stage until the medical
marijuana or medical marijuana product is sold to a patient at a
medical marijuana dispensary, transferred to a medical marijuana
research facility, consumed, used, disposed of or otherwise
destroyed by a medical marijuan a business or used in a research
project by a medical marijuana research facility ;
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25. 24. "Licensed patient" or "patient" means a person who has
been issued a medical marijuana patient license by the State
Department of Health or Oklahoma Medical Marijua na Authority;
26. 25. "Licensed premises" means the premises specified in an
application for a medical marijuana business license, medical
marijuana research facility license or medical marijuana education
facility license pursuant to this act the Oklahoma Medical Marijuana
and Patient Protection Act that are owned or in possession of the
licensee and within which the licensee is authorized to cultivate,
manufacture, distribute, sell, store, transport, test or research
medical marijuana or medical marijuan a products in accordance with
the provisions of this act the Oklahoma Medical Marijuana and
Patient Protection Act and rules promulgated pursuant thereto;
27. 26. "Manufacture" means the production, propagation,
compounding or processing of a medical mari juana product, excluding
marijuana plants, either directly or indirectly by extraction from
substances of natural or synthetic origin, or independently by means
of chemical synthesis, or by a combination of extraction and
chemical synthesis;
28. 27. "Marijuana" shall have the same meaning as such term is
defined in Section 2 -101 of Title 63 of the Oklahoma Statutes this
title;
29. 28. "Material change" means any change that would require a
substantive revision to the standard operating procedures of a
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affect the qualifications for licensure of an applicant or licensee
for the cultivation or production of medical marijuana, medical
marijuana concentrate or medical marijuana products ;
30. 29. "Mature plant" means a harvestable female marijuana
plant that is flowering;
31. 30. "Medical marijuana business (MMB) " means a licensed
medical marijuana dispensary, medical marijuana processor, medical
marijuana commercial grower, medical marijuana laboratory, medical
marijuana business operator, or a medical marijua na transporter;
32. 31. "Medical marijuana concentrate " or "concentrate" means
a specific subset of medical marijuana that was produced by
extracting cannabinoids from medical marijuana. Categories of
medical marijuana concentrate include water -based medical marijuana
concentrate, food-based medical marijuana concentrate, solvent -based
medical marijuana concentrate, and heat - or pressure-based medical
marijuana concentrate;
33. 32. "Medical marijuana commercial grower " or "commercial
grower" means an entity licensed to cultivate, prepare and package
medical marijuana, package pre-rolled medical marijuana, and
transfer or contract for transfer of medical marijuana and pre-
rolled medical marijuana to a medical marijuana dispensary, medical
marijuana processor, any other medical marijuana commercial grower,
medical marijuana research facility , or medical marijuana education
facility and pesticide manufacturers . A commercial grower may sell
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seeds, flower or clones to commercial growers pursuant to this act
the Oklahoma Medical Marijuana and Patient Protection Act ;
34. 33. "Medical marijuana education facility " or "education
facility" means a person or entity approved pursuant to this act the
Oklahoma Medical Marijuana and Patient Protection Act to operate a
facility providing training and education to individuals involving
the cultivation, growing, harvesting, curing, preparing, packaging
or testing of medical marijuana, or the production, manufacture,
extraction, processing, packaging or creation of medical -marijuana-
infused products or medical marijuana products as described in this
act the Oklahoma Medical Marijuana and Patient Protection Act ;
35. 34. "Medical-marijuana-infused product" means a product
infused with medical marijuana including, but not limit ed to, edible
products, ointments and tinctures , except pre-rolled medical
marijuana that does not contain medical marijuana concentrate shall
not constitute a medical -marijuana-infused product;
36. 35. "Medical marijuana product " or "product" means a
product that contains cannabinoids that have been extracted from
plant material or the resin therefrom by physical or chemical means
and is intended for administration to a qualified patient including,
but not limited to, oils, tinctures, edibles, pills, topi cal forms,
gels, creams, vapors, patches, liquids, and forms administered by a
nebulizer, excluding live plant forms which are considered medical
marijuana;
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37. 36. "Medical marijuana processor " means a person or entity
licensed pursuant to this act the Oklahoma Medical Marijuana and
Patient Protection Act to operate a business including the
production, manufacture, extraction, processing, packaging or
creation of concentrate, medical -marijuana-infused products or
medical marijuana products as described in this act the Oklahoma
Medical Marijuana and Patient Protection Act ;
38. 37. "Medical marijuana research facility " or "research
facility" means a person or entity approved pursuant to this act the
Oklahoma Medical Marijuana and Patient Protection Act to conduct
medical marijuana research. A medical marijuana research facility
is not a medical marijuana business;
39. 38. "Medical marijuana testing laboratory " or "laboratory"
means a public or private laboratory licensed pursuant to this act,
the Oklahoma Medical Marijuana and Patient Protection Act to conduct
testing and research on medical marijuana and medical marijuana
products;
40. 39. "Medical marijuana transporter " or "transporter" means
a person or entity that is licensed pursuant to this act the
Oklahoma Medical Marijuana and Patient Protection Act . A medical
marijuana transporter does not include a medical marijuana business
that transports its own medical marijuana, medical marijuana
concentrate or medical marijuana products to a property or fac ility
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adjacent to or connected to the licensed premises if the property is
another licensed premises of the same medical marijuana business;
41. 40. "Medical marijuana waste " or "waste" means unused,
surplus, returned or out -of-date marijuana, plant debri s of the
plant of the genus Cannabis, including dead plants and all unused
plant parts and roots , except the term shall not include roots,
stems, stalks and fan leaves ;
42. 41. "Medical use" means the acquisition, possession, use,
delivery, transfer or tr ansportation of medical marijuana, medical
marijuana products, medical marijuana devices or paraphernalia
relating to the administration of medical marijuana to treat a
licensed patient;
43. 42. "Mother plant" means a marijuana plant that is grown or
maintained for the purpose of generating clones, and that will not
be used to produce plant material for sale to a medical marijuana
processor or medical marijuana dispensary;
44. 43. "Oklahoma physician" or "physician" means a physician
licensed by and in go od standing with the State Board of Medical
Licensure and Supervision, the State Board of Osteopathic Examiners
or the Board of Podiatric Medical Examiners;
45. 44. "Oklahoma resident" means an individual who can provide
proof of residency as required by this act the Oklahoma Medical
Marijuana and Patient Protection Act ;
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46. 45. "Owner" means, except where the context otherwise
requires, a direct beneficial owner including, but not limited to,
all persons or entities as follows:
a. all shareholders owning an interest of a corporate
entity and all officers of a corporate entity,
b. all partners of a general partnership,
c. all general partners and all limited partners that own
an interest in a limited partnership,
d. all members that own an interest in a li mited
liability company,
e. all beneficiaries that hold a beneficial interest in a
trust and all trustees of a trust,
f. all persons or entities that own an interest in a
joint venture,
g. all persons or entities that own an interest in an
association,
h. the owners of any other type of legal entity, and
i. any other person holding an interest or convertible
note in any entity which owns, operates or manages a
licensed facility or entity which contracts for or
receives more than ten percent (10%) of the gro ss
monthly income or profit of the medical marijuana
business or which is compensated, in whole or in part,
based on an allocation of a percentage of sales,
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income, or profit of the medical marijuana business if
such allocation exceeds ten percent (10%) of the gross
monthly sales or income of the medical marijuana
business. For purposes of this subparagraph, any
person or entity who receives such compensation from a
medical marijuana business that was issued a license
prior to the effective date of this ac t shall not be
considered an owner of that medical marijuana business
but shall disclose such financial interest in the
medical marijuana business to the State Department of
Health upon request and as prescribed by the
Department. This exception applies o nly to persons or
entities who received such compensation or entered
into contracts for such compensation prior to the
effective date of this act ;
47. 46. "Package" or "packaging" means any container or wrapper
that may be used by a medical marijuana busi ness to enclose or
contain medical marijuana;
48. 47. "Person" means a natural person, partnership,
association, business trust, company, corporation, estate, limited
liability company, trust or any other legal entity or organization,
or a manager, agent, owner, director, servant, officer or employee
thereof, except that "person" does not include any governmental
organization;
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49. 48. "Pesticide" means any substance or mixture of
substances intended for preventing, destroying, repelling or
mitigating any pest or any substance or mixture of substances
intended for use as a plant regulator, defoliant or desiccant,
except that the term "pesticide" shall not include any article that
is a "new animal drug" as designated by the United States Food and
Drug Administration;
50. 49. "Production batch" means:
a. any amount of medical marijuana concentrate of the
same category and, produced using the same extraction
methods, and standard operating procedures and an
identical group of harvest batch of medical marijuana ,
or
b. any amount of medical marijuana product of the same
exact type, produced using the same ingredients,
standard operating procedures and the same production
batch of medical marijuana concentrate;
51. 50. "Public institution" means any entity establ ished or
controlled by the federal government, state government, or a local
government or municipality including, but not limited to,
institutions of higher education or related research institutions;
52. 51. "Public money" means any funds or money obtain ed by the
license holder from any governmental entity including, but not
limited to, research grants;
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53. 52. "Recommendation" means a document that is signed or
electronically submitted by a physician on behalf of a patient for
the use of medical marijua na pursuant to this act the Oklahoma
Medical Marijuana and Patient Protection Act ;
54. 53. "Registered to conduct business " means a person that
has provided proof that the business applicant or commercial
licensee is in good standing with the Oklahoma Sec retary of State
and:
a. is in good standing with the Oklahoma Tax Commission,
or
b. in the case of dispensaries only, is in good standing
with or has entered into a mutually agreeable payment
plan with the Oklahoma Tax Commission;
55. 54. "Remediation" means the process by which the medical
marijuana flower or trim, which has failed microbial testing, is
processed into solvent -based medical marijuana concentrate and a
harvest batch or production batch undergoes a procedure, prior to
laboratory testing or a fter the batch has failed laboratory testing,
to remedy the harvest batch or production batch and is retested as
required by this act in accordance with Oklahoma laws, rules and
regulations;
56. 55. "Research project" means a discrete scientific endeavor
to answer a research question or a set of research questions related
to medical marijuana and is required for a medical marijuana
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research license. A research project shall include a description of
a defined protocol, clearly articulated goals, defined me thods and
outputs, and a defined start and end date. The description shall
demonstrate that the research project will comply with all
requirements in this act the Oklahoma Medical Marijuana and Patient
Protection Act and rules promulgated pursuant thereto . All research
and development conducted by a medical marijuana research facility
shall be conducted in furtherance of an approved research project;
57. 56. "Revocation" means the final decision by the Department
that any license issued pursuant to this act the Oklahoma Medical
Marijuana and Patient Protection Act is rescinded because the
individual or entity does not comply with the applicable
requirements set forth in this act the Oklahoma Medical Marijuana
and Patient Protection Act or rules promulgated pursuant thereto;
58. 57. "School" means a public or private preschool or a
public or private elementary or secondary school used for school
classes and instruction. A homeschool, daycare or child -care
facility shall not be considered a "school" as used in this act the
Oklahoma Medical Marijuana and Patient Protection Act ;
59. 58. "Shipping container" means a hard-sided container with
a lid or other enclosure that can be secured in place. A shipping
container is used solely for the transport of medica l marijuana,
medical marijuana concentrate, or medical marijuana products between
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medical marijuana businesses, a medical marijuana research facility,
or a medical marijuana education facility;
60. 59. "Solvent-based medical marijuana concentrate " means a
medical marijuana concentrate that was produced by extracting
cannabinoids from medical marijuana through the use of a solvent
approved by the Department;
61. 60. "State Question" means Oklahoma State Question No. 788,
Initiative Petition No. 412, approv ed by a majority vote of the
citizens of Oklahoma on June 26, 2018;
62. "Strain" means the classification of marijuana or cannabis
plants in either pure sativa, indica, afghanica, ruderalis or hybrid
varieties;
63. 61. "THC" means tetrahydrocannabinol, w hich is the primary
psychotropic cannabinoid in marijuana formed by decarboxylation of
naturally tetrahydrocannabinolic acid, which generally occurs by
exposure to heat;
64. "Test batch" means with regard to usable marijuana, a
homogenous, identified quan tity of usable marijuana by strain, no
greater than ten (10) pounds, that is harvested during a seven -day
period from a specified cultivation area, and with regard to oils,
vapors and waxes derived from usable marijuana, means an identified
quantity that is uniform, that is intended to meet specifications
for identity, strength and composition, and that is manufactured,
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packaged and labeled during a specified time period according to a
single manufacturing, packaging and labeling protocol;
65. 62. "Transporter agent" means a person who transports
medical marijuana or medical marijuana products for a licensed
transporter and holds a transporter agent license pursuant to this
act the Oklahoma Medical Marijuana and Patient Protection Act ;
66. 63. "Universal symbol" means the image established by the
State Department of Health or Oklahoma Medical Marijuana Authority
and made available to licensees through its website indicating that
the medical marijuana or the medical marijuana product contains THC;
67. 64. "Usable marijuana" means the dried leaves, flowers,
oils, vapors, waxes and other portions of the marijuana plant and
any mixture or preparation thereof, excluding seed seeds, roots,
stems, stalks and fan leaves ; and
68. 65. "Water-based medical marijuana concentrate" means a
concentrate that was produced by extracting cannabinoids from
medical marijuana through the use of only water, ice, or dry ice.
SECTION 8. AMENDATORY Section 3, Chapter 11, O.S.L.
2019, as amended by Section 6 , Chapter 477, O.S.L. 2019 (63 O.S.
Supp. 2020, Section 427.3), is amended to read as follows:
Section 427.3 A. There is hereby created the Oklahoma Medical
Marijuana Authority within the State Department of Health which
shall address issues related to t he medical marijuana program in
Oklahoma including, but not limited to, the issuance of patient
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licenses and medical marijuana business licenses, and the
dispensing, cultivating, processing, testing, transporting, storage,
research, and the use of and sale of medical marijuana pursuant to
this act the Oklahoma Medical Marijuana and Patient Protection Act .
B. The Department shall provide support staff to perform
designated duties of the Authority. The Department shall also
provide office space for meetings of the Authority.
C. The Department shall implement the provisions of this act
the Oklahoma Medical Marijuana and Patient Protection Act
consistently with the voter -approved State Question No. 788,
Initiative Petition No. 412, subject to the provisions o f this act
the Oklahoma Medical Marijuana and Patient Protection Act .
D. The Department shall exercise its respective powers and
perform its respective duties and functions as specified in this act
the Oklahoma Medical Marijuana and Patient Protection Act and Title
63 of the Oklahoma Statutes this title including, but not limited
to, the following:
1. Determine steps the state shall take, whether administrative
or legislative in nature, to ensure that research on marijuana and
marijuana products is being conducted for public purposes, including
the advancement of:
a. public health policy and public safety policy,
b. agronomic and horticultural best practices, and
c. medical and pharmacopoeia best practices;
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2. Contract with third -party vendors and other g overnmental
entities in order to carry out the respective duties and functions
as specified in this act the Oklahoma Medical Marijuana and Patient
Protection Act;
3. Upon complaint or upon its own motion and upon a completed
investigation, levy fines as p rescribed in this act applicable laws,
rules and regulations and suspend or, revoke or not renew licenses
pursuant to this act applicable laws, rules and regulations ;
4. Issue subpoenas for the appearance or production of persons,
records and things in co nnection with disciplinary or contested
cases considered by the Department;
5. Apply for injunctive or declaratory relief to enforce the
provisions of this section and any applicable laws, rules
promulgated pursuant to this section and regulations;
6. Inspect and examine, with notice provided in accordance with
this act, all licensed premises of medical marijuana businesses,
research facilities and, education facilities and waste disposal
facilities in which medical marijuana is cultivated, manufactured,
sold, stored, transported, tested or, distributed or disposed;
7. Upon action by the federal government by which the
production, sale and use of marijuana in Oklahoma does not violate
federal law, work with the Oklahoma State Banking Department and the
State Treasurer to develop good practices and standards for banking
and finance for medical marijuana businesses;
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8. Establish internal control procedures for licenses including
accounting procedures, reporting procedures and personnel policies;
9. Establish a fee schedule and collect fees for performing
background checks as the Commissioner deems appropriate. The fees
charged pursuant to this paragraph shall not exceed the actual cost
incurred for each background check; and
10. Require verification for s ources of finance for medical
marijuana businesses Establish a fee schedule and collect fees for
material changes requested by the licensee .
SECTION 9. AMENDATORY Section 4, Chapter 11, O.S.L. 2019
(63 O.S. Supp. 2020, Section 427.4), is amended to read as follows:
Section 427.4 A. The Oklahoma Medical Marijuana Authority, in
conjunction with the State Department of Health, shall employ an
Executive Director and other personnel as necessary to assist the
Authority in carrying out its duties.
B. The Authority shall not employ an individual if any of the
following circumstances exist:
1. The individual has a direct or indirect interest in a
licensed medical marijuana business; or
2. The individual or his or her spouse, parent, ch ild, spouse
of a child, sibling, or spouse of a sibling has an application for a
medical marijuana business license pending before the Department or
is a member of the board of directors of a medical marijuana
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business, or is an individual financially inte rested in any licensee
or medical marijuana business.
C. All officers and employees of the Authority shall be in the
exempt unclassified service as provided for in Section 840 -5.5 of
Title 74 of the Oklahoma Statutes.
D. The Commissioner may delegate to any officer or employee of
the Department any of the powers of the Executive Director and may
designate any officer or employee of the Department to perform any
of the duties of the Executive Director.
E. The Executive Director shall be authorized to sugg est rules
governing the oversight and implementation of this act the Oklahoma
Medical Marijuana and Patient Protection Act .
F. The Department is hereby authorized to create employment
positions necessary for the implementation of its obligations
pursuant to this act, the Oklahoma Medical Marijuana and Patient
Protection Act including, but not limited to, Authority
investigators and a senior director of enforcement. The Department
and the Authority, the senior director of enforcement, the Executive
Director, and Department investigators shall have all the powers of
any peace officer to:
1. Investigate violations or suspected violations of this act
the Oklahoma Medical Marijuana and Patient Protection Act and any
rules promulgated pursuant thereto;
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2. Serve all warrants, summonses, subpoenas, administrative
citations, notices or other processes relating to the enforcement of
laws regulating medical marijuana, concentrate, and medical
marijuana product;
3. Assist or aid any law enforcement officer in the pe rformance
of his or her duties upon such law enforcement officer 's request or
the request of other local officials having jurisdiction;
4. Require As provided in Section 427.6 of this title, require
any business applicant or licensee, upon twenty-four (24) hours
notice or upon a showing of necessity, to permit an inspection of
licensed premises during business hours or at any time of apparent
operation, marijuana equipment, and marijuana accessories, or books
and records; and to permit the testing of or examination of medical
marijuana, concentrate, or product; and
5. Require applicants and licensees to submit complete and
current applications, submit information and fees required by this
act and fees, the Oklahoma Medical Marijuana and Patient Protection
Act and the Oklahoma Medical Marijuana Waste Management Act, and
approve material changes made by the applicant or licensee.
SECTION 10. AMENDATORY Section 6, Chapter 11, O.S.L.
2019, as amended by Section 7, Chapter 477, O.S.L. 20 19 (63 O.S.
Supp. 2020, Section 427.6), is amended to read as follows:
Section 427.6 A. The State Department of Health shall address
issues related to the medical marijuana program in Oklahoma
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including, but not limited to, monitoring and disciplinary ac tions
as they relate to the medical marijuana program.
B. 1. The Department or its designee may perform on -site
assessments inspections or investigations of a licensee or applicant
for any medical marijuana business license issued pursuant to this
act, research facility, education facility or waste disposal
facility to determine compliance with this act applicable laws,
rules and regulations or submissions made pursuant to this section.
The Department may enter the licensed premises of a medical
marijuana business licensee or applicant , research facility,
education facility or waste disposal facility to assess or monitor
compliance or ensure qualifications for licensure .
2. Inspections Post-licensure inspections shall be limited to
twice per calendar yea r and twenty-four (24) hours of notice shall
be provided to a medical marijuana business applicant or licensee
prior to an on-site assessment. However, investigations and
additional inspections may occur without notice when the Department
shows that believes an investigation or additional inspection is
necessary due to a possible violation of this act. Such inspection
may be without notice if the Department believes that such notice
will result in the destruction of evidence the applicable laws,
rules or regulations. The State Commissioner of Health may adopt
rules imposing penalties including, but not limited to, monetary
penalties and revocation of license for failure to allow the
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Department reasonable access to the licensed premises for purposes
of conducting an inspection. As used in this paragraph, "reasonable
access" shall include, but not be limited to, access during normal
business hours of operation after twenty -four (24) hours of notice
has been provided or, for investigations or additional insp ections,
access during normal business hours of operation .
3. The Department may review relevant records of a licensed
medical marijuana business, licensed medical marijuana research
facility or, licensed medical marijuana education facility or
licensed medical marijuana waste disposal facility , and may require
and conduct interviews with such persons or entities and persons
affiliated with such entities, for the purpose of determining
compliance with Department requirements and applicable laws .
However, prior to conducting any interviews with the medical
marijuana business, research facility or education facility, the
licensee shall be afforded sufficient time to secure legal
representation during such questioning if requested by the business
or facility or any of its agents or employees or contractors , rules
and regulations.
4. The Department shall refer complaints alleging criminal
activity that are made against a licensee to appropriate Oklahoma
state or local law enforcement authorities.
C. Disciplinary action may be taken against an applicant or
licensee under this act for not adhering to the law applicable laws,
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rules and regulations pursuant to the terms, conditions and
guidelines set forth in this act the Oklahoma Medical Marijuana and
Patient Protection Act.
D. Disciplinary actions may include revocation, suspension or
denial of an application, license or final authorization and other
action deemed appropriate by the Department.
E. Disciplinary actions may be imposed upon a medical marijuana
business licensee for:
1. Failure to comply with or satisfy any provision of this
section applicable laws, rules or regulations ;
2. Falsification or misrepresentation of any material or
information submitted to the Department;
3. Failing to allow or impedi ng a monitoring visit entry by
authorized representatives of the Department;
4. Failure to adhere to any acknowledgement, verification or
other representation made to the Department;
5. Failure to submit or disclose information required by this
section applicable laws, rules or regulations or as otherwise
requested by the Department;
6. Failure to correct any violation of this section cited as a
result of a review or audit of financial records or other materials;
7. Failure to comply with requested acce ss by the Department to
the licensed premises or materials;
8. Failure to pay a required monetary penalty;
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9. Diversion of medical marijuana or any medical marijuana
product, as determined by the Department;
10. Threatening or harming a patient, a medic al practitioner or
an employee of the Department; and
11. Any other basis indicating a violation of the applicable
laws, rules and regulations as identified by the Department.
F. Disciplinary actions against a licensee may include the
imposition of monetary penalties, which may be assessed by the
Department.
G. Penalties for sales or purchases by a medical marijuana
business to persons other than those allowed by law occurring within
any two-year time period may include an initial fine of up to One
Thousand Dollars ($1,000.00) for a first violation and a fine of up
to Five Thousand Dollars ($5,000.00) for any subsequent violation.
Penalties for grossly inaccurate or fraudulent reporting occurring
within any two-year time period may include an initial fin e of One
Thousand Dollars ($1,000.00) for a first violation and a fine of
Five Thousand Dollars ($5,000.00) for any subsequent violation. The
medical marijuana business may be subject to a revocation of any
license granted pursuant to this act the Oklahoma Medical Marijuana
and Patient Protection Act upon a showing that the violation was
willful or grossly negligent.
H. 1. First offense for intentional and impermissible
diversion of medical marijuana, concentrate , or products by a
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patient or caregiver licensee to an unauthorized person shall not be
punished under a criminal statute but may be subject to a fine of
Two Hundred Dollars ($200.00).
2. The second offense for impermissible diversion of medical
marijuana, concentrate , or products by a patient or caregiver
licensee to an unauthorized person shall not be punished under a
criminal statute but may be subject to a fine of not up to exceed
Five Hundred Dollars ($500.00) and may result in revocation of the
license upon a showing that the violation was w illful or grossly
negligent.
I. The following persons or entities may request a hearing to
contest an action or proposed action of the Department:
1. A medical marijuana business, research facility or education
facility licensee whose license has been su mmarily suspended or who
has received a notice of contemplated action to suspend or revoke a
license or take other disciplinary action; and
2. A patient or caregiver licensee whose license has been
summarily suspended or who has received notice of contemp lated
action to suspend or revoke a license or take other disciplinary
action.
J. Whenever the Department finds, upon clear and convincing
evidence, that an emergency exists requiring immediate action in
order to protect the public health or welfare, the Department may
issue an order, without notice or hearing, stating the existence of
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the emergency and requiring that action be taken as the Department
deems necessary to meet the emergency. The order shall be effective
immediately upon issuance. Any perso n to whom the order is directed
shall comply immediately with the provisions of the order but shall
be offered a hearing within ten (10) days of the issuance of the
order. On the basis of the hearing, the Department shall continue
the order in effect, rev oke or modify the order.
K. All hearings held pursuant to this section shall be in
accordance with the Oklahoma Administrative Procedures Act , Section
250 et seq. of Title 75 of the Oklahoma Statutes .
SECTION 11. AMENDATORY Sectio n 7, Chapter 11, O.S.L.
2019, as amended by Section 5, Chapter 509, O.S.L. 2019 (63 O.S.
Supp. 2020, Section 427.7), is amended to read as follows:
Section 427.7 A. The Oklahoma Medical Marijuana Authority
shall create a medical marijuana use registry of licensed patients
and caregivers as provided under this section. The handling of any
records maintained in the registry shall comply with all relevant
applicable state and federal privacy laws including, but not limited
to, the Health Insurance Portabili ty and Accountability Act of 1996
(HIPAA).
B. The medical marijuana use registry shall be accessible to:
1. Oklahoma-licensed medical marijuana dispensaries to verify
the license of a patient or caregiver by the ten- to twenty-four-
character identifier; and
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2. Any court in this state.
C. All other records regarding a medical marijuana patient or
caregiver licensee shall be maintained by the Authority and shall be
deemed confidential. The handling of any records maintained by the
Authority shall comply with all relevant applicable state and
federal privacy laws including, but not limited to, the Health
Insurance Portability and Accountability Act of 1996 (HIPAA) . Such
records shall be marked as confidential, shall not be made available
to the public, and shall only be made available to the licensee,
designee of the licensee, any physician of the licensee or the
caregiver of the licensee.
D. A log shall be kept with the file of the licensee to record
any event in which the records of the licensee were ma de available
and to whom the records were provided.
E. The Department shall ensure that all application medical
marijuana patient and caregiver records and information are sealed
to protect the privacy of medical marijuana patient and caregiver
license applicants and licensees.
SECTION 12. AMENDATORY Section 9, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.9), is amended to read as
follows:
Section 427.9 A. The Authority may contact the recommending
physician of a licensee or an applicant for a medical marijuana
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patient license to verify the need of the applicant or licensee for
the license and the information submitted with the application .
B. An applicant for a medical marijuana patient license who can
demonstrate his or her status as a one -hundred-percent-disabled
veteran as determined by the U.S. Department of Veterans Affairs and
codified at 38 C.F.R., Section 3.340(a)(2013) shall pay a reduced
biannual application fee of Twenty Dollars ($20.00). The methods of
payment, as determined by the Authority, shall be provided on the
website. However, the Authority shall ensure that all applicants
have an option to submit the license application and payment by
means other than solely by submission of the application and f ee
online.
C. The medical marijuana patient license shall be valid for up
to two (2) years from the date of issuance, unless the
recommendation of the physician is terminated pursuant to this act
Section 427.10 of this title or revoked by the Department.
SECTION 13. AMENDATORY Section 10, Chapter 11, O.S.L.
2019, as amended by Section 2, Chapter 390, O.S.L. 2019 (63 O.S.
Supp. 2020, Section 427.10), is amended to read as follows:
Section 427.10 A. Only licensed Oklahoma allopathi c,
osteopathic and podiatric physicians may provide a medical marijuana
recommendation for a medical marijuana patient license under this
act the Oklahoma Medical Marijuana and Patient Protection Act .
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B. A physician who has not completed his or her first residency
shall not meet the definition of "physician" under this section and
any recommendation for a medical marijuana patient license shall not
be processed by the Authority.
C. No physician shall be subject to arrest, prosecution or
penalty in any manner or denied any right or privilege under
Oklahoma state, municipal or county statute, ordinance or
resolution, including without limitation a civil penalty or
disciplinary action by the State Board of Medical Licensure and
Supervision or, the State Board of Osteopathic Examiners or the
Board of Podiatric Medical Examiners or by any other business,
occupation or professional licensing board or bureau, solely for
providing a medical marijuana recommendation for a patient or for
monitoring, treating or presc ribing scheduled medication to patients
who are medical marijuana licensees. The provisions of this
subsection shall not prevent the relevant professional licensing
boards from sanctioning a physician for failing to properly evaluate
the medical condition of a patient or for otherwise violating the
applicable physician -patient standard of care.
D. A physician who recommends use of medical marijuana shall
not be located at the same physical address as a dispensary.
E. If the physician determines the conti nued use of medical
marijuana by the patient no longer meets the requirements set forth
in this act the Oklahoma Medical Marijuana and Patient Protection
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Act, the physician shall notify the Department and the Authority
shall immediately revoke the license Department shall notify the
patient of the revocation and provide the patient thirty (30) days
to submit a new recommendation. If the patient fails to supply the
Department with a new physician recommendation within thirty (30)
days, the patient license s hall be immediately voided without a
right to an individual hearing .
SECTION 14. AMENDATORY Section 11, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.11), is amended to read as
follows:
Section 427.11 A. The caregiver license shall provide the
caregiver the same rights as the medical marijuana patient licensee,
including the ability to possess marijuana, marijuana products, and
mature and immature plants pursuant to this act the Oklahoma Medical
Marijuana and Patient Pr otection Act, but excluding the ability to
use marijuana or marijuana products unless the caregiver has a
medical marijuana patient license. Caregivers shall be authorized
to deliver marijuana and products to their authorized patients.
Caregivers shall be authorized to possess medical marijuana and
medical marijuana products up to the sum of the possession limits
for the patients under his or her their care pursuant to this act
the Oklahoma Medical Marijuana and Patient Protection Act .
B. An individual caregiver shall be limited to exercising the
marijuana cultivation rights of no more than five licensed patients
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as prescribed by this act the Oklahoma Medical Marijuana and Patient
Protection Act.
C. The license of a caregiver shall not extend beyond the
expiration date of the underlying patient license regardless of the
issue date.
D. A medical marijuana patient licensee may request, at any
time, to withdraw his or her caregiver license. In the event that
such a request is made or upon the expiration of the license of the
patient, the caregiver license shall be immediately withdrawn by the
Department without a right to a hearing.
SECTION 15. AMENDATORY Section 13, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.13), is a mended to read as
follows:
Section 427.13 A. All medical marijuana and medical marijuana
products shall be purchased solely from an Oklahoma -licensed medical
marijuana business, and shall not be purchased from any out -of-state
providers.
B. 1. The Authority shall have oversight and auditing
responsibilities to ensure that all marijuana being grown in
Oklahoma is accounted for and shall implement an inventory tracking
system. Pursuant to these duties, the Authority shall require that
each medical marijuana business, research facility, education
facility and waste disposal facility keep records for every
transaction with another medical marijuana business, patient or
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caregiver. Inventory shall be tracked and updated after each
individual sale and reporte d to the Authority.
2. The inventory tracking system licensees use shall allow for
integration of other seed -to-sale systems and, at a minimum, shall
include the following:
a. notification of when marijuana seeds are planted,
b. notification of when marij uana plants are harvested
and destroyed,
c. notification of when marijuana is transported, sold,
stolen, diverted or lost,
d. a complete inventory of all marijuana, seeds, plant
tissue, clones, plants, usable marijuana or trim,
leaves and other plant matte r, batches of extract, and
marijuana concentrates,
e. all samples sent to a testing laboratory, an unused
portion of a sample returned to a licensee, all
samples utilized by licensee for purposes of
negotiating a sale, and
f. all samples used for quality t esting by a licensee.
3. Each medical marijuana business , research facility,
education facility and waste disposal facility shall develop written
standard operating procedures outlining the full operation of the
business as prescribed by the Department an d shall use a seed-to-
sale tracking system or integrate its own seed -to-sale tracking
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system with the seed -to-sale tracking system established by the
Authority.
4. These records shall include, but not be limited to, the
following:
a. the name and license number of the medical marijuana
business that cultivated, manufactured or sold the
medical marijuana or medical marijuana product,
b. the address and phone number of the medical marijuana
business that cultivated, manufactured or sold the
medical marijuana or medical marijuana product,
c. the type of product received during the transaction,
d. the batch number of the marijuana plant used,
e. the date of the transaction,
f. the total spent in dollars,
g. all point-of-sale records,
h. marijuana excise tax rec ords, and
i. any additional information as may be reasonably
required by the Department.
5. All inventory tracking records containing patient
information shall comply with all relevant state and federal laws
including, but not limited to, the Health Insur ance Portability and
Accountability Act of 1996 (HIPAA), and shall not be retained by any
medical marijuana business for more than sixty (60) days.
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SECTION 16. AMENDATORY Section 14, Chapter 11, O.S.L.
2019, as last amended by Section 51, Chapter 161, O.S.L. 2020 (63
O.S. Supp. 2020, Section 427.14), is amended to read as follows:
Section 427.14 A. There is hereby created the medical
marijuana business license, which shall include the following
categories:
1. Medical marijuana co mmercial grower;
2. Medical marijuana processor;
3. Medical marijuana dispensary;
4. Medical marijuana transporter; and
5. Medical marijuana testing laboratory.
B. The Oklahoma Medical Marijuana Authority, with the aid of
the Office of Management and Enterprise Services, shall develop a
website for medical marijuana business applications.
C. The Authority shall make available on its website in an
easy-to-find location, applications for a medical marijuana
business.
D. The annual nonrefundable applica tion fee for a medical
marijuana business license shall be Two Thousand Five Hundred
Dollars ($2,500.00).
E. All applicants seeking licensure or licensure renewal as a
medical marijuana business shall comply with the following general
requirements:
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1. All applications for licenses and registrations authorized
pursuant to this section shall be made upon forms prescribed by the
Authority;
2. Each application shall identify the city or county in which
the applicant seeks to obtain licensure as a medical mar ijuana
business;
3. Applicants shall submit a complete application to the
Department before the application may be accepted or considered;
4. All applications shall be complete and accurate in every
detail;
5. All applications shall include all attachme nts or
supplemental information required by the forms supplied by the
Authority;
6. All applications shall be accompanied by a full remittance
for the whole amount of the application fees. Application fees ,
unless otherwise prescribed by the Department, are nonrefundable;
7. All applicants Licensing review shall be approved for
licensing review that all applicants who, at a minimum, meets meet
the following criteria:
a. all applicants shall be age twenty-five (25) years of
age or older,
b. any applicant if applying as an individual shall show,
proof that the applicant is an Oklahoma resident
pursuant to paragraph 11 of this subsection,
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c. any applicant if applying as an entity shall show,
proof that seventy-five percent (75%) of all members,
managers, executive officers, partners, board members
or any other form of business ownership are Oklahoma
residents pursuant to paragraph 11 of this subsection,
d. all if applying individuals or entities shall be as an
entity, proof that the entity is registered to conduct
business in the State of Oklahoma this state,
e. all applicants shall disclose disclosure of all
ownership interests pursuant to this act the Oklahoma
Medical Marijuana and Patient Protection Act , and
f. applicants shall verification that the medical
marijuana business, research facility, education
facility and waste disposal facility applicant or
licensee has not have been convicted of a nonviolent
felony in the last two (2) years, and or any other
felony conviction within the last five (5) years,
shall is not be a current inmates inmate, or currently
incarcerated in a jail or corrections facility;
8. There shall be no limit to the number of medical marijuana
business licenses or categories that an individual or entity can
apply for or receive, altho ugh each application and each category
shall require a separate application and application fee. A
commercial grower, processor and dispensary, or any combination
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thereof, are authorized to share the same address or physical
location, subject to the restr ictions set forth in this act the
Oklahoma Medical Marijuana and Patient Protection Act ;
9. All applicants for a medical marijuana business license,
research facility license or education facility license authorized
by this act or the renewal of such lice nse shall undergo an Oklahoma
criminal history background check conducted by the Oklahoma State
Bureau of Investigation (OSBI) within thirty (30) days prior to the
application for the license, including:
a. individual applicants applying on their own behal f,
b. individuals applying on behalf of an entity,
c. all principal officers of an entity, and
d. all owners of an entity as defined by this act the
Oklahoma Medical Marijuana and Patient Protection Act ;
10. All applicable fees charged by the OSBI are the
responsibility of the applicant and shall not be higher than fees
charged to any other person or industry for such background checks;
11. In order to be considered an Oklahoma resident for purposes
of a medical marijuana business application, all applica nts shall
provide proof of Oklahoma residency for at least two (2) years
immediately preceding the date of application or five (5) years of
continuous Oklahoma residency during the preceding twenty -five (25)
years immediately preceding the date of applicat ion. Sufficient
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documentation of proof of residency shall include a combination of
the following:
a. an unexpired Oklahoma -issued driver license,
b. an Oklahoma voter identification card,
c. a utility bill preceding the date of application,
excluding cellular telephone and Internet bills,
d.
c. a residential property deed to property in the State
of Oklahoma, and
e.
d. a rental agreement preceding the date of application
for residential property located in the State of
Oklahoma.
Applicants that were issued a medical marijuana business license
prior to the enactment of the Oklahoma Medical Marijuana and Patient
Protection Act August 30, 2019, applicants who submitted a complete
medical marijuana business license application to the Authority
prior to August 30, 2019, and were granted a medical marijuana
business license after August 30, 2019, and medical marijuana
testing laboratories that were licensed by the Oklahoma State Bureau
of Narcotics and Dangerous Drugs Control prior to August 30, 2019,
are hereby exempt from the two-year or five-year Oklahoma residence
residency requirement mentioned above provided by this paragraph.
Upon the effective date of this act, a transporter agent shall be
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exempt from the two-year or five-year Oklahoma residency requiremen t
provided by this paragraph ;
12. All license applicants shall be required to submit a
registration with the Oklahoma State Bureau of Narcotics and
Dangerous Drugs Control as provided in Sections 2-302 through 2-304
of Title 63 of the Oklahoma Statutes this title;
13. All applicants shall establish their identity through
submission of a color copy or digital image of one of the following
unexpired documents:
a. front and back of an Oklahoma a state-issued driver
license,
b. front and back of an Oklahoma a state-issued
identification card,
c. a United States passport or other photo identification
issued by the United States government, or
d. certified copy of the applicant 's birth certificate
for minor applicants who do not possess a document
listed in this section, or
e. a tribal identification card approved for
identification purposes by the Oklahoma Department of
Public Safety; and
14. All applicants shall submit an applicant photograph.
F. The Authority shall review the medical marijuana business
application, approve or, reject or deny the application and mail the
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approval, rejection, denial or status-update letter to the applicant
within ninety (90) business days of receipt of the application.
G. 1. The Authority shall review the medical marijuana
business applications and conduct all investigations, inspections
and interviews before approving the application.
2. Approved applicants shall be issued a medical marijuana
business license for the specific category applied under which shall
act as proof of their approved status. Rejection and denial letters
shall provide a reason for the rejection or denial. Applications
may only be rejected or denied based on the applicant not meeting
the standards set forth in the provisions of this section the
Oklahoma Medical Marijuana and Patient Protection Act and Sections
420 through 426.1 of this title , improper completion of the
application, or for a reason provided for in this act the Oklahoma
Medical Marijuana and Patient Protection Act and Sections 420
through 426.1 of this title. If an application is rejected or
denied for failure to provide required information, the applicant
shall have thirty (30) days to submit the required information for
reconsideration. No additional application fee shall be charged fo r
such reconsideration.
3. Status-update letters shall provide a reason for delay in
either approval or, rejection or denial should a situation arise in
which an application was submitted properly, but a delay in
processing the application occurred.
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4. Approval, rejection, denial or status-update letters shall
be sent to the applicant in the same method the application was
submitted to the Department.
H. A medical marijuana business , research facility, education
facility or waste disposal facility license shall not be issued to
or held by:
1. A person until all required fees have been paid;
2. A person who has been convicted of a nonviolent felony
within two (2) years of the date of application, or within five (5)
years for any other felony;
3. A corporation, if the criminal history of any of its
officers, directors or stockholders indicates that the officer,
director or stockholder has been convicted of a nonviolent felony
within two (2) years of the date of application, or within five (5)
years for any other felony;
4. A person under twenty -five (25) years of age;
5. A person licensed pursuant to this section who, during a
period of licensure, or who, at the time of application, has failed
to:
a. file taxes, interest or penalties due related to a
medical marijuana business, or
b. pay taxes, interest or penalties due related to a
medical marijuana business;
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6. A sheriff, deputy sheriff, police officer or prosecuting
officer, or an officer or employee of the Authority or municipality;
or
7. A person whose authority to be a caregiver , as defined in
this act Section 427.2 of this title , has been revoked by the
Department; or
8. A person who was involved in the management or operations of
any medical marijuana business, research facility, education
facility or waste disposal facility that has had a medical marijuana
business license revoked by the Department at any time during the
five (5) years preceding submission of the application .
I. In investigating the qualifications of an applicant or a
licensee, the Department, Authority and municipalities may have
access to criminal history record information furnished by a
criminal justice agency subject to any restrictions imposed by such
an agency. In the event the Department considers the criminal
history record of the applicant, the Department shall also consider
any information provided by the applicant regarding such criminal
history record, including but not limited to evidence of
rehabilitation, character references and educational achievements,
especially those items pertaining to the period of time between the
last criminal conviction of the applicant and the consideration of
the application for a state license .
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J. The failure of an applicant or licensee to provide the
requested information by the Aut hority deadline may be grounds for
denial of the application.
K. All applicants and licensees shall submit information to the
Department and Authority in a full, faithful, truthful and fair
manner. The Department and Authority may recommend denial of an
application where the applicant or licensee made material
misstatements, omissions, misrepresentations or untruths in the
application or in connection with the background investigation of
the applicant. This type of conduct may be considered as the basis
grounds for additional administrative action against the applicant
or licensee. Typos and scrivener errors shall not be grounds for
denial.
L. A licensed medical marijuana business premises shall be
subject to and responsible for compliance with applicab le provisions
for medical marijuana business facilities as described in the most
recent versions of the Oklahoma Uniform Building Code, the
International Building Code and the International Fire Code, unless
granted an exemption by the Authority or municip ality entity
responsible for enforcement of the applicable code .
M. All medical marijuana business , research facility, education
facility and waste disposal facility licensees shall pay the
relevant licensure fees prior to receiving licensure to operate a
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medical marijuana business, as defined in this act for each class of
license.
N. A medical marijuana business, research facility, education
facility or waste disposal facility that attempts to renew its
license more than thirty (30) days after expiration of the license
shall pay a late renewal fee in an amount to be determined by the
Department to reinstate the license. Late renewal fees are
nonrefundable. A license that has been expired for more than ninety
(90) days shall not be reinstated.
O. No medical marijuana business, research facility, education
facility or waste disposal facility shall operate without a valid,
unexpired license issued by the Department.
SECTION 17. 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 medical marijuana business
license.
B. Pursuant to Section 424 of Title 63 of the Oklaho ma Statutes
this title, the Oklahoma Medical Marijuana Authority shall issue a
medical marijuana transporter license to licensed medical marijuana
commercial growers, processors and dispensaries upon issuance of
such licenses and upon each renewal. Transporter licenses shall
also be issued to licensed research facilities, education facilities
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and testing laboratories 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 sec tion 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 o f
ownership. A licensed medical marijuana transporter shall be
responsible for all medical marijuana, concentrate and products once
the transporter takes control of the product.
E. A transporter license shall be required for any person or
entity to transport or transfer medical marijuana, concentrate or
product from a licensed medical marijuana business to another
medical marijuana business, or from a medical marijuana business to
a medical marijuana research facility or medical marijuana education
facility:
1. A licensed medical marijuana business to another medical
marijuana business; or
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2. A medical marijuana business to a medical marijuana research
facility or medical marijuana education facility .
F. A medical marijuana transporter licensee may cont ract with
multiple licensed medical marijuana businesses.
G. A medical marijuana transporter may maintain a licensed
premises to temporarily store medical marijuana, medical marijuana
concentrate and medical marijuana products and to use as a
centralized distribution point. A medical marijuana transporter may
store and distribute medical marijuana, medical marijuana
concentrate and medical marijuana 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, medical
marijuana concentrate and medical marijuana 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, medical marijuana concentrate and
product medical marijuana products shall be transported :
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1. In vehicles equipped 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 in a manner prescribed by the Department .
K. 1. A transporter agent may possess marijuana at any
location while the transporte r agent is transferring marijuana to or
from a licensed medical marijuana business, licensed medical
marijuana research facility or licensed medical marijuana education
facility.
2. The delivery of medical marijuana, medical marijuana
concentrate or medic al marijuana products to a public or private
school, the campus of any institution of higher education or any
other public property is hereby prohibited.
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 qualify to transport medical
marijuana, medical marijuana concentrate, or product medical
marijuana products.
M. The annual fee for a transporter agent license shall be One
Hundred Dollars ($100.00) Twenty-five Dollars ($25.00) and shall be
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paid by the transporter license holder or the individual applicant.
One license reprint within the lice nsure period shall be granted
free of charge. All subsequent license reprints shall incur a fee
of Twenty Dollars ($20.00).
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 current Oklahoma 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 state-issued driver license;
5. Verification of employment with a licensed transporter; and
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 identification 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.
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Q. The Department may revoke the registry identification card
of a transporter agent who knowingly violates any provision of this
section, and the transporter is subject to any other penalties
established by law for the violation.
R. The Department may revoke or suspend the transporter license
of a transporter that the Department determines knowingly aided or
facilitated a violation of any provision of this section, and the
license holder 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 products shall
be:
1. Insured at or above the legal requirements in Oklahoma;
2. Capable of securing medical marijuana , medical marijuana
concentrate or medical marijuana products during transport; and
3. In possession of a shipping container , as defined in this
act Section 427.2 of this title, capable of securing all transported
product products.
T. Prior to the transport of any medical marijuana , medical
marijuana concentrate or medical marijuana products, an inventory
manifest shall be prepared at the origination point of the medical
marijuana. The inventory manifest shall include the following
information:
1. For the origination point of the medical marijuana:
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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:
a. the license number for the dispensary, commercial
grower, processor, research facility or educa tion
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 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 personnel accompanying
the transport; and
7. Notation of the transporting licensee.
U. 1. A separate inventory manifest shall be prepared for each
licensee receiving the medical marijuana.
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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 shall 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. 4. Originating and receiving licensees shall maintain copies
of inventory manifests a nd logs of quantities of medical marijuana
received for three (3) seven (7) years from date of receipt.
SECTION 18. AMENDATORY Section 17, Chapter 11, O.S.L.
2019, as amended by Section 4, Chapter 312, O.S.L. 2019 (63 O.S.
Supp. 2020, Section 427.17), is amended to read as follows:
Section 427.17 A. There is hereby created a medical marijuana
testing laboratory license as a category of the medical marijuana
business license. The Oklahoma Medical Marijuana Authority is
hereby enabled to monitor, inspect and audit a licensed testing
laboratory under this act the Oklahoma Medical Marijuana and Patient
Protection Act.
B. The Authority is hereby authorized to contract with a
private laboratory for the purpose of conducting compliance testing
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of medical marijuana testing laboratories licensed in this state.
Any such laboratory under contract for compliance testing shall be
prohibited from conducting any other commercial medical marijuana
testing in this state.
C. The Authority shall have the authority be authorized to
develop acceptable testing and research practices, including, but
not limited to, testing, standards, quality control analysis,
equipment certification and calibration , and chemical and substance
identification and substances used in bona fide research methods so
long as it complies with this act .
D. A person who is a direct beneficial owner or an indirect
beneficial owner of a medical marijuana dispensary, medical
marijuana commercial grower, or medical marijuana process or shall
not be an owner of a laboratory.
E. A laboratory and a laboratory applicant shall comply with
all applicable local ordinances, including but not limited to
zoning, occupancy, licensing and building codes.
F. A separate license shall be required for each specific
laboratory.
G. A medical marijuana testing laboratory license may be issued
to a person who performs testing and research on medical marijuana
and medical marijuana products for medical marijuana businesses,
medical marijuana research fa cilities, medical marijuana education
facilities, and testing and research on marijuana and marijuana
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products grown or produced by a patient or caregiver on behalf of a
patient, upon verification of registration. No state -approved
medical marijuana testi ng facility shall operate unless a medical
laboratory director is on site during operational hours.
H. A laboratory applicant Laboratory applicants and licensees
shall comply with the application requirements of this section and
shall submit such other in formation as required for a medical
marijuana business applicant, in addition to any information the
Authority may request for initial approval and periodic evaluations
during the approval period.
I. A medical marijuana testing laboratory may accept sampl es of
medical marijuana, medical marijuana concentrate or medical
marijuana product from a medical marijuana business , research
facility or education facility for testing and research purposes
only, which purposes may include the provision of testing servi ces
for samples submitted by a medical marijuana business for product
development. The Department may require a medical marijuana
business to submit a sample of medical marijuana, medical marijuana
concentrate or medical marijuana product to a medical mar ijuana
testing or quality assurance laboratory upon demand.
J. A medical marijuana testing laboratory may accept samples of
medical marijuana, medical marijuana concentrate or medical
marijuana product from an individual person for testing only under
the following conditions:
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1. The individual person is a patient or caregiver pursuant to
this act the Oklahoma Medical Marijuana and Patient Protection Act
or is a participant in an approved clinical or observational study
conducted by a research facility; an d
2. The medical marijuana testing laboratory shall require the
patient or caregiver to produce a valid patient license and current
and valid photo identification.
K. A medical marijuana testing laboratory may transfer samples
to another medical marijuan a testing laboratory for testing. All
laboratory reports provided to or by a medical marijuana business or
to a patient or caregiver shall identify the medical marijuana
testing laboratory that actually conducted the test.
L. A medical marijuana testing laboratory may utilize a
licensed medical marijuana transporter to transport samples of
medical marijuana, medical marijuana concentrate and medical
marijuana product for testing, in accordance with this act the
Oklahoma Medical Marijuana and Patient Prote ction Act and the rules
adopted pursuant thereto, between the originating medical marijuana
business requesting testing services and the destination laboratory
performing testing services.
M. The medical marijuana testing laboratory shall establish
policies to prevent the existence of or appearance of undue
commercial, financial or other influences that may diminish the
competency, impartiality and integrity of the testing processes or
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results of the laboratory, or that may diminish public confidence in
the competency, impartiality and integrity of the testing processes
or results of the laboratory. At a minimum, employees, owners or
agents of a medical marijuana testing laboratory who participate in
any aspect of the analysis and results of a sample are p rohibited
from improperly influencing the testing process, improperly
manipulating data, or improperly benefiting from any ongoing
financial, employment, personal or business relationship with the
medical marijuana business that provided the sample.
N. The Department, pursuant to rules promulgated by the State
Commissioner of Health, shall develop standards, policies and
procedures as necessary for:
1. The cleanliness and orderliness of a laboratory premises and
the location of the laboratory in a secure location, and inspection,
cleaning and maintenance of any equipment or utensils used for the
analysis of test samples;
2. Testing procedures, testing standards for cannabinoid and
terpenoid potency and safe levels of contaminants, and remediation
procedures and validation procedures ;
3. Controlled access areas for storage of medical marijuana and
medical marijuana product test samples, waste and reference
standards;
4. Records to be retained and computer systems to be utilized
by the laboratory;
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5. The possession, storage and use by the laboratory of
reagents, solutions and reference standards;
6. A certificate of analysis (COA) for each lot of reference
standard;
7. The transport and disposal of unused marijuana, marijuana
products and waste;
8. The mandatory use by a laboratory of an inventory tracking
system to ensure all test harvest and production batches or samples
containing medical marijuana, medical marijuana concentrate or
medical marijuana products are identified and tracked from the point
they are transferred from a medical marijuana business, a patient or
a caregiver through the point of transfer, destruction or disposal.
The inventory tracking system reporting shall include the results of
any tests that are conducted on medical marijuana, medical marijuana
concentrate or medical marijuana product;
9. Standards of performance;
10. The employment of laboratory personnel;
11. A written standard operating procedure manual to be
maintained and updated by the laboratory;
12. The successful p articipation in a Department -approved
proficiency testing program for each testing category listed in this
section, in order to obtain and maintain certification;
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13. The establishment of and adherence to a quality assurance
and quality control program to ensure sufficient monitoring of
laboratory processes and quality of results reported;
14. The establishment by the laboratory of a system to document
the complete chain of custody for samples from receipt through
disposal;
15. The establishment by the l aboratory of a system to retain
and maintain all required records, including business records, and
processes to ensure results are reported in a timely and accurate
manner; and
16. Any other aspect of laboratory testing of medical marijuana
or medical marijuana product deemed necessary by the Department.
O. A medical marijuana testing laboratory shall promptly
provide the Department or designee of the Department access to a
report of a test and any underlying data that is conducted on a
sample at the request of a medical marijuana business or qualified
patient. A medical marijuana testing laboratory shall also provide
access to the Department or designee of the Department to laboratory
premises and to any material or information requested by the
Department to determine compliance with the requirements of this
section.
P. A medical marijuana testing laboratory shall retain all
results of laboratory tests conducted on marijuana or products for a
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period of at least two (2) seven (7) years and shall make them
available to the Department upon request.
Q. A medical marijuana testing laboratory shall test samples
from each harvest batch or product batch, as appropriate, of medical
marijuana, medical marijuana concentrate and medical marijuana
product for each of the following categories of testing, consistent
with standards developed by the Commissioner:
1. Microbials;
2. Mycotoxins;
3. Residual solvents;
4. Pesticides;
5. Tetrahydrocannabinol (THC) and other cannabinoid potency;
6. Terpenoid potency; and
7. Heavy metals.
R. A test batch shall not exceed ten (10) pounds of usable
marijuana or medical marijuana product, as appropriate. A grower
shall separate each harvest lot of usable marijuana into harvest
batches containing no more than ten (10) pounds. A processor shall
separate each medical marijuana production lot into production
batches containing no more than ten (10) pounds.
S. Medical marijuana testing laboratory licensure shall be
contingent upon successful on -site inspection, successful
participation in proficiency testing and ongoing compliance with the
applicable requirements in this section.
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T. S. A medical marijuana testing laboratory shall be inspected
prior to initial licensure and annually up to two times per year
thereafter by an inspe ctor approved by the Authority Department.
The Department may enter the licensed premises of a testing
laboratory to conduct investigations and additional inspections when
the Department believes an investigation or additional inspection is
necessary due to a possible violation of applicable laws, rules or
regulations.
U. T. Beginning on a date determined by the Commissioner, not
later than January 1, 2020 2021, medical marijuana testing
laboratory licensure shall be contingent upon accreditation by the
NELAC Institute (TNI), ANSI/ASQ ANAB National Accreditation Board or
another accrediting body approved by the Commissioner, and any
applicable standards as determined by the Department.
V. A U. 1. Unless otherwise authorized by this section, a
commercial grower shall not transfer or sell medical marijuana and a
processor shall not transfer, sell or process into a concentrate or
product any medical marijuana, medical marijuana concentrate or
medical marijuana product unless samples from each harvest batch or
production batch from which that medical marijuana, medical
marijuana concentrate or medical marijuana product was derived has
been tested by a medical marijuana testing facility for contaminants
and passed all contaminant tests required by this act the Oklahoma
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Medical Marijuana and Patient Protection Act and applicable laws,
rules and regulations.
2. A commercial grower may transfer medical marijuana that has
failed testing to a processor only for the purposes of remediation
and only in accordance wit h the Oklahoma Medical Marijuana and
Patient Protection Act and the rules and regulations of the
Department.
3. Growers and processors who achieve process validation under
the rules and regulations set forth by the Department may transfer,
sell or process medical marijuana and medical marijuana products in
accordance with those rules and regulations .
SECTION 19. AMENDATORY Section 18, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.18), is amended to read as
follows:
Section 427.18 A. An Oklahoma medical marijuana business shall
not sell, transfer or otherwise distribute medical marijuana or
medical marijuana product that has not been packaged and labeled in
accordance with this section and rules promulgated by the State
Commissioner of Health.
B. A medical marijuana dispensary shall return medical
marijuana and medical marijuana product that does not meet packaging
or labeling requirements in this section or rules promulgated
pursuant thereto to the entity who transferre d it to the dispensary.
The medical marijuana dispensary shall document to whom the item was
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returned, what was returned and the date of the return or dispose of
any usable marijuana that does not meet these requirements in
accordance with this act the Oklahoma Medical Marijuana and Patient
Protection Act.
C. 1. Medical marijuana packaging shall be packaged to
minimize its appeal to children and shall not depict images other
than the business name logo of the medical marijuana producer and
image of the product.
2. A medical marijuana business shall not place any content on
a container in a manner that reasonably appears to target
individuals under the age of twenty -one (21), including but not
limited to cartoon characters or similar images.
3. Labels on a container shall not include any false or
misleading statements.
4. No container shall be intentionally or knowingly labeled so
as to cause a reasonable patient confusion as to whether the medical
marijuana, medical marijuana concentrate or medical mari juana
product is a trademarked product or labeled in a manner that
violates any federal trademark law or regulation.
5. The label on the container shall not make any claims
regarding health or physical benefits to the patient.
6. All medical marijuana, m edical marijuana concentrate and
medical marijuana products sold at a medical marijuana dispensary
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shall be packaged in a child-resistant container at the point of
transfer to the patient or caregiver .
D. The State Department of Health shall develop minim um
standards for packaging and labeling of medical marijuana and
medical marijuana products. Such standards shall include, but not
be limited to, the required contents of labels to be affixed to all
medical marijuana and medical marijuana products prior t o transfer
to a licensed patient or caregiver, which shall include, at a
minimum:
1. A universal symbol indicating that the product contains
tetrahydrocannabinol (THC);
2. THC and other cannabinoid potency, and terpenoid potency;
3. 2. A statement indicating that the product has been tested
for contaminants;
4. 3. One or more product warnings to be determined by the
Department; and
5. 4. Any other information the Department deems necessary.
SECTION 20. AMENDATORY Section 19, Ch apter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.19), is amended to read as
follows:
Section 427.19 A. A medical marijuana research license may be
issued to a person to grow, cultivate, possess and transfer, by sale
or donation, marijuana pursuant to this act the Oklahoma Medical
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Marijuana and Patient Protection Act for the limited research
purposes identified in this section.
B. The annual fee for a medical marijuana research license
shall be Five Hundred Dollars ($500.00) and shall be payable by an
applicant for a medical marijuana research license upon submission
of his or her application to the Authority.
C. A medical marijuana research license may be issued for the
following research purposes:
1. To test chemical potency and composition level s;
2. To conduct clinical investigations of marijuana -derived
medicinal products;
3. To conduct research on the efficacy and safety of
administering marijuana as part of medical treatment;
4. To conduct genomic, horticultural or agricultural research;
and
5. To conduct research on marijuana -affiliated products or
systems.
D. 1. As part of the application process for a medical
marijuana research license, an applicant shall submit to the
Authority a description of the research that the applicant intends
to conduct and whether the research will be conducted with a public
institution or using public money. If the research will not be
conducted with a public institution or with public money, the
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Authority shall grant the application if it determines that t he
applicant meets the criteria in this section.
2. If the research will be conducted with a public institution
or public money, the Department shall review the research project of
the applicant to determine if it meets the requirements of this
section and to assess the following:
a. the quality, study design, value or impact of the
project,
b. whether the applicant has the appropriate personnel,
expertise, facilities, infrastructure, funding and
human, animal or other approvals in place to
successfully conduct the project, and
c. whether the amount of marijuana to be grown by the
applicant is consistent with the scope and goals of
the project.
3. If the Authority determines that the research project does
not meet the requirements of this section or assess es the criteria
to be inadequate, the application shall be denied.
E. A medical marijuana research licensee may only transfer, by
sale or donation, marijuana grown within its operation to other
medical marijuana research licensees. The Department may rev oke a
medical marijuana research license for violations of this section
and any other violation of this act the Oklahoma Medical Marijuana
and Patient Protection Act .
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F. A medical marijuana research licensee may contract to
perform research in conjunction with a public higher education
research institution or another medical marijuana research licensee.
G. The growing, cultivating, possessing or transferring, by
sale or donation, of marijuana in accordance with this section and
the rules promulgated pursu ant thereto, by a medical marijuana
research licensee shall not be a criminal or civil offense under
state law. A medical marijuana research license shall be issued in
the name of the applicant and shall specify the location in Oklahoma
at which the medical marijuana research licensee intends to operate.
A medical marijuana research licensee shall not allow any other
person to exercise the privilege of the license.
H. If the research conducted includes a public institution or
public money, the Authority shall review any reports made by medical
marijuana research licensees under state licensing authority rule
and provide the Authority with its determination on whether the
research project continues to meet research qualifications pursuant
to this section.
SECTION 21. AMENDATORY Section 20, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.20), is amended to read as
follows:
Section 427.20 A. There is hereby created a medical marijuana
education facility license.
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B. A medical marijuana education facility license may be issued
to a person to possess or cultivate marijuana for the limited
education and research purposes identified in this section.
C. A medical marijuana education facility license may only be
granted to a not-for-profit organization structured under Section
501(c)(3) of the Internal Revenue Code, operating as an Oklahoma
not-for-profit registered organization with the Office of the
Secretary of State.
D. A medical marijuana education facility license may only be
granted upon the submission of a an annual fee of Five Hundred
Dollars ($500.00) to the Authority.
E. A medical marijuana education facility license may be issued
for the following education and research purposes:
1. To test cultivation techniques, st rategies, infrastructure,
mediums, lighting and other related technology;
2. To demonstrate cultivation techniques, strategies,
infrastructure, mediums, lighting and other related technology;
3. To demonstrate the application and use of product
manufacturing technologies;
4. To conduct genomic, horticultural or agricultural research;
and
5. To conduct research on marijuana -affiliated products or
systems.
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F. As part of the application process for a medical marijuana
education facility license, an applic ant shall submit to the
Authority a description of the project and curriculum that the
applicant intends to conduct and whether the project and curriculum
will be conducted with a public institution or using public money.
If the research project and curriculum will not be conducted with a
public institution or with public money, the Authority shall grant
the application. If the research will be conducted with a public
institution or public money, the Authority shall review the research
project of the applicant to determine if it meets the requirements
of this section and to assess the following:
1. The quality, study design, value or impact of the project;
2. Whether the applicant has the appropriate personnel,
expertise, facilities, infrastructure, fund ing, and human, animal or
other approvals in place to successfully conduct the project; and
3. Whether the amount of marijuana to be grown by the applicant
is consistent with the scope and goals of the project.
If the Authority determines that the educati on project does not meet
the requirements of this section or assesses the criteria to be
inadequate, the application shall be denied.
G. A medical marijuana education facility licensee may only
transfer, by sale or donation, marijuana grown within its ope ration
to medical marijuana research licensees. The Department may revoke
a medical marijuana education facility license for violations of
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this section and any other violation of this act applicable laws,
rules and regulations .
H. A medical marijuana edu cation facility licensee may contract
to perform research in conjunction with a public higher education
research institution or another research licensee.
I. The growing, cultivating, possessing or transferring, by
sale or donation, of marijuana in accord ance with this section and
the rules and regulations promulgated pursuant thereto, by a medical
marijuana education facility licensee shall not be a criminal or
civil offense under state law. A medical marijuana education
facility license shall be issued in the name of the applicant and
shall specify the location in Oklahoma at which the medical
marijuana education facility licensee intends to operate. A medical
marijuana education facility licensee shall not allow any other
person to exercise the privile ge of the license.
SECTION 22. AMENDATORY Section 22, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.22), is amended to read as
follows:
Section 427.22 A. An All patient and caregiver records and
information, including, without limitation, an application or
renewal and supporting information submitted by a qualifying patient
or designated caregiver under the provisions of this act including,
without limitation, the Oklahoma Medical Marijuana and Patient
Protection Act and information regarding the physician of the
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qualifying patient, shall be considered confidential medical records
that are exempt from the Oklahoma Open Records Act.
B. The dispensary records with patient information shall be
treated as confidential recor ds that are exempt from the Oklahoma
Open Records Act.
C. All financial information provided by an applicant in its
application to the Authority or licensee shall be treated as
confidential records that are exempt from the Oklahoma Open Records
Act.
D. All information provided by an applicant or licensee that
constitutes private business information shall be treated as
confidential records that are exempt from the Oklahoma Open Records
Act.
E. As used in this section, "private business information "
means information that, if disclosed, would give advantage to
competitors or bidders including, but not limited to, information
related to the planning, site location, operations, strategy, or
product development and marketing of an applicant, unless approval
for release of those records is granted by the business.
F. All monthly reports, inventory tracking and seed -to-sale
information, data and records submitted to the Oklahoma Medical
Marijuana Authority shall be treated as confidential and are exempt
from the Oklahoma Open Records Act.
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G. Except for license information concerning licensed patients,
the Authority may share confidential information with the Oklahoma
Tax Commission to assist the Oklahoma Tax Commission in ensuring
compliance with applicable law s, rules and regulations.
SECTION 23. AMENDATORY Section 23, Chapter 11, O.S.L.
2019, as amended by Section 11, Chapter 477, O.S.L. 2019 (63 O.S.
Supp. 2020, Section 427.23), is amended to read as follows:
Section 427.23 A. The S tate Commissioner of Health, the
Oklahoma Tax Commission, the State Treasurer, the Secretary of State
and the Director of the Office of Management and Enterprise Services
shall promulgate rules to implement the provisions of this act the
Oklahoma Medical Marijuana and Patient Protection Act .
B. The Food Safety Standards Board Medical Marijuana Advisory
Council, in addition to the powers and duties granted in Section 423
of Title 63 of the Oklahoma Statutes this title, may recommend to
the State Commissione r of Health rules relating to all aspects of
the safe cultivation and manufacture manufacturing of medical
marijuana products. In addition to the twelve members required in
Section 423 of this title, the State Department of Health may
appoint up to eight additional members. The makeup of the Medical
Marijuana Advisory Council shall include medical marijuana industry
representation.
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SECTION 24. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 427.24 of Title 63, unless there
is created a duplication in numbering, reads as follows:
A. Whenever an authorized agent of the State Department of
Health finds, in whole or in part, that:
1. Any medical marijuana or medical marijuana product fails to
meet the requirements of Sections 420 through 426.1 of Title 63 of
the Oklahoma Statutes and the Oklahoma Medical Marijuana and Patient
Protection Act, as it relates to health and safety;
2. The medical marijuana or medical marijuana product is
handled in violation of applicable laws or rules and regulations of
the Department; or
3. The medical marijuana or medical marijuana product may be
poisonous, deleterious t o health or is otherwise unsafe,
a tag or other appropriate marking shall be affixed to the medical
marijuana or medical marijuana product. The tag or other
appropriate marking shall give notice that the medical marijuana or
medical marijuana product is or is suspected of being manufactured,
produced, transferred, sold or offered for sale in violation of
applicable laws or rules and regulations of the Department. The tag
or other appropriate marking shall also give notice that the medical
marijuana or medical marijuana product is embargoed and shall
provide a warning that all persons shall be prohibited fro m removing
or disposing of the medical marijuana or medical marijuana product
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until permission for removal or disposal is given by the State
Commissioner of Health. It shall be unlawful for any person to
remove or dispose of the embargoed medical marijuan a or medical
marijuana product without permission.
B. 1. If the Commissioner finds that medical marijuana or
medical marijuana product embargoed pursuant to subsection A of this
section does not meet the requirements of applicable laws or rules
and regulations of the Department, or is poisonous, deleterious to
health or otherwise unsafe, the Commissioner may institute an action
in the district court, in whose jurisdiction the medical marijuana
or medical marijuana product is embargoed, for the condemnatio n and
destruction of the medical marijuana or medical marijuana product.
2. If the Commissioner later finds that the embargoed medical
marijuana or medical marijuana product does meet the requirements of
applicable laws and rules and regulations of the De partment and is
not poisonous, deleterious to health or otherwise unsafe, the
Commissioner shall remove the embargo.
3. In any court proceeding regarding an embargo, the State
Department of Health, the Oklahoma Medical Marijuana Authority and
the State Commissioner of Health shall not be held liable if the
court finds reasonable belief for the embargo.
C. If the court finds that the embargoed medical marijuana or
medical marijuana product, in whole or in part, is in violation of
any applicable laws or Dep artment rules or regulations or is
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poisonous, deleterious to health, or otherwise unsafe, the medical
marijuana or medical marijuana product shall be destroyed under the
supervision of the Commissioner and at the expense of the owner or
defendant. All court costs, fees, cost of storage and other proper
expenses shall be paid by the owner or defendant of the medical
marijuana or medical marijuana product. The court may order that
the medical marijuana or medical marijuana product be delivered to
the owner or defendant for appropriate labeling or processing under
the supervision of the Commissioner if:
1. The violation can be corrected by proper processing of the
medical marijuana or medical marijuana product;
2. All costs, fees and expenses have been paid ; and
3. A sufficient bond is executed and conditioned for
appropriate labeling or processing as the court may require.
The expense of supervision shall be paid to the Commissioner by the
person obtaining release of the medical marijuana or medical
marijuana product under bond.
SECTION 25. AMENDATORY Section 2, Chapter 337, O.S.L.
2019 (63 O.S. Supp. 2020, Section 428.1), is amended to read as
follows:
Section 428.1 As used in this act the Oklahoma Medical
Marijuana Waste Manageme nt Act:
1. "Authority" shall mean the Oklahoma Medical Marijuana
Authority, or successor agency;
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2. "Commercial licensee" shall mean any person or entity issued
a license by the Oklahoma Medical Marijuana Authority, or successor
agency, to conduct commer cial business in this state;
3. "Disposal" shall mean the final disposition of medical
marijuana waste by either a process which renders the waste unusable
and unrecognizable through physical destruction or a recycling
process;
4. "Facility" shall mean a location the licensed or permitted
premises where the disposal of medical marijuana waste takes place
by a licensee;
5. "License" shall mean a medical marijuana waste disposal
license;
6. "Licensee" shall mean the holder of a medical marijuana
waste disposal license;
7. "Medical marijuana waste " shall mean:
a. unused, surplus, returned or out -of-date marijuana and
plant debris of the plant of the genus Cannabis,
including dead plants and all unused plant parts,
except the term shall not include seeds, roots, stems,
stalks and fan leaves ,
b. all product which is deemed to fail laboratory testing
and cannot be remediated, and
c. all product and inventory from commercial licensees,
medical marijuana research facilities and medical
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marijuana education facili ties that have gone out of
business and are not subject to the provisions of
Section 1560 of Title 12 of the Oklahoma Statutes ; and
8. "Medical marijuana waste disposal license " shall mean a
license issued by the Oklahoma Medical Marijuana Authority, or
successor agency.
SECTION 26. AMENDATORY Section 3, Chapter 337, O.S.L.
2019 (63 O.S. Supp. 2020, Section 429), is amended to read as
follows:
Section 429. A. Medical marijuana waste shall be subject to
the provisions of this act the Oklahoma Medical Marijuana Waste
Management Act and shall not be subject to the provisions of the
Uniform Controlled Dangerous Substances Act. Nothing in this act
the Oklahoma Medical Marijuana Waste Management Act shall alter or
affect the jurisdicti onal areas of environmental responsibility of
the Department of Environmental Quality as provided for in Title 27A
of the Oklahoma Statutes.
B. Commercial licensees, medical marijuana research facilities
and medical marijuana education facilities shall be authorized to
destroy the following marijuana plant parts without being required
to utilize the services of a medical marijuana waste disposal
facility:
1. Root balls Roots;
2. Stems;
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3. Fan leaves; and
4. Seeds; and
5. Stalks.
Unless restricted by l ocal ordinance, commercial licensees,
medical marijuana research facilities and medical marijuana
education facilities shall be authorized to destroy the above -listed
marijuana plant parts on -site by open burning, incineration,
burying, mulching, compostin g or any other technique approved by the
Department of Environmental Quality.
C. Commercial licensees, medical marijuana research facilities
and medical marijuana education facilities engaged in the disposal
of medical marijuana waste shall create and mai ntain documentation
on a form prescribed by the Oklahoma Medical Marijuana Authority
that includes precise weights or counts of medical marijuana waste
and the manner in which the medical marijuana waste is disposed.
Such documentation shall contain a wit ness affidavit and signature
attesting to the lawful disposal of the medical marijuana waste
under penalty of perjury. All disposal records shall be maintained
by commercial licensees, medical marijuana research facilities and
medical marijuana educationa l facilities for a period of five (5)
years and shall be subject to inspection and auditing by the
Authority.
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SECTION 27. AMENDATORY Section 4, Chapter 337, O.S.L.
2019 (63 O.S. Supp. 2020, Section 430), is amended to read as
follows:
Section 430. A. There is hereby created and authorized a
medical marijuana waste disposal license. A person or entity in
possession of a medical marijuana waste disposal license shall be
entitled to possess, transport and dispose of medical marijuan a
waste. No person or entity shall possess, transport or dispose of
medical marijuana waste without a valid medical marijuana waste
disposal license. The Oklahoma Medical Marijuana Authority shall
issue licenses upon proper application by a licensee and
determination by the Authority that the proposed site and facility
are physically and technically suitable. Upon a finding that a
proposed medical marijuana waste disposal facility is not physically
or technically suitable, the Authority shall deny the li cense. The
Authority may, upon determining that public health or safety
requires emergency action, issue a temporary license for treatment
or storage of medical marijuana waste for a period not to exceed
ninety (90) days. The Authority shall not, for the first year of
the licensure program until November 1, 2021, issue more than ten
licenses. Upon the conclusion of the first year, the Authority
shall assess the need for additional licenses and shall, if
demonstrated, increase Beginning November 1, 2021 , there shall be no
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limit to the number of medical marijuana waste disposal licenses as
deemed necessary issued by the Authority.
B. Entities applying for a medical marijuana waste disposal
license shall undergo the following screening process:
1. Complete an application form, as prescribed by the
Authority, which shall include:
a. an attestation that the applicant is authorized to
make application on behalf of the entity,
b. full name of the organization,
c. trade name, if applicable,
d. type of business organization,
e. complete mailing address,
f. an attestation that the commercial entity will not be
located on tribal land,
g. telephone number and email address of the entity, and
h. name, residential address and date of birth of each
owner and each member , manager and board member, if
applicable;
2. The application for a medical marijuana waste disposal
license made by an individual on his or her own behalf shall be on
the form prescribed by the Authority and shall include, but not be
limited to:
a. the first, middle and last name of the applicant and
suffix, if applicable,
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b. the residence address and mailing address of the
applicant,
c. the date of birth of the applicant,
d. the preferred telephone number and email address of
the applicant,
e. an attestation that the information provided by the
applicant is true and correct, and
f. a statement signed by the applicant pledging not to
divert marijuana to any individual or entity that is
not lawfully entitled to possess marijuana; and
3. Each application sh all be accompanied by the following
documentation:
a. a list of all persons or entities that have an
ownership interest in the entity,
b. a certificate of good standing from the Oklahoma
Secretary of State, if applicable,
c. an Affidavit of Lawful Presence for each owner,
d. proof that the proposed location of the disposal
facility is at least one thousand (1,000) feet from a
public or private school. The distance indicated in
this subparagraph shall be measured from any entrance
the nearest property line of the public or private
school to the nearest property line point front
entrance of the disposal facility. If any public or
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private school is established within one thousand
(1,000) feet of any disposal facility after such
disposal facility has been lice nsed, the provisions of
this subparagraph shall not be a deterrent to the
renewal of such license or warrant revocation of the
license, and
e. documents establishing the applicant, the members,
managers and board members, if applicable, and
seventy-five percent (75%) of the ownership interests
are Oklahoma residents as established in Section 420
et seq. of Title 63 of the Oklahoma Statutes of this
title, as it relates to proof of residency.
C. No license shall be issued except upon proof of sufficient
liability insurance and financial responsibility. Liability
insurance shall be provided by the applicant and shall apply to
sudden and nonsudden bodily injury or property damage on, below or
above the surface, as required by the rules of the Authority. Such
insurance shall be maintained for the period of operation of the
facility and shall provide coverage for damages resulting from
operation of the facility during operation and after closing . In
lieu of liability insurance required by this subsection, an
equivalent amount of cash, securities, bond or alternate financial
assurance, of a type and in an amount acceptable to the Authority,
may be substituted; provided, that such deposit shall be maintained
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for a period of five (5) years after the date of last op eration of
the facility.
D. Submission of an application for a medical marijuana waste
disposal license shall constitute permission for entry to and
inspection of the facility of the licensee during hours of operation
and other reasonable times. Refusal to permit such entry of
inspection shall constitute grounds for the nonrenewal, suspension
or revocation of a license. The Authority may perform an annual
unannounced on-site inspection of the operations and any facility of
the licensee. If the Authority receives a complaint concerning
noncompliance by a licensee with the provisions of this act the
Oklahoma Medical Marijuana Waste Management Act, the Authority may
conduct additional unannounced, on -site inspections beyond an annual
inspection. The Author ity shall refer all complaints alleging
criminal activity that are made against a licensed facility to
appropriate state or local law enforcement authorities.
E. The Authority shall issue a an annual permit for each
medical marijuana waste disposal facili ty operated by a licensee. A
permit shall be issued only upon proper application by a licensee
and determination by the Authority that the proposed site and
facility are physically and technically suitable. Upon a finding
that a proposed medical marijuan a waste disposal facility is not
physically or technically suitable, the Authority shall deny the
permit. The Authority shall have the authority to revoke a permit
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upon a finding that the site and facility are not physically and
technically suitable for p rocessing. The Authority may, upon
determining that public health or safety requires emergency action,
issue a temporary permit for treatment or storage of medical
marijuana waste for a period not to exceed ninety (90) days.
F. The cost of a medical mari juana waste disposal license shall
be Five Thousand Dollars ($5,000.00) for the initial license. The
cost of a medical marijuana waste disposal facility permit shall be
Five Hundred Dollars ($500.00). A medical marijuana waste disposal
facility permit that has been revoked shall be reinstated upon
remittance of a reinstatement fee of Five Hundred Dollars ($500.00)
to restore the facility permit. All license and permit fees shall
be deposited into the Public Health Special Fund Oklahoma Medical
Marijuana Authority Revolving Fund as provided in Section 1-107
427.5 of Title 63 of the Oklahoma Statutes this title.
G. The holder of a medical marijuana waste disposal license
shall not be required to obtain a medical marijuana transporter
license provided for i n the Oklahoma Medical Marijuana and Patient
Protection Act for purposes of transporting medical marijuana waste.
H. All commercial licensees, as defined in Section 2 428.1 of
this act title, shall utilize a licensed medical marijuana waste
disposal service to process all medical marijuana waste generated by
the licensee.
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I. The State Commissioner of Health shall promulgate rules for
the implementation of this act the Oklahoma Medical Marijuana Waste
Management Act. Promulgated rules shall address dispos al process
standards, site security and any other subject matter deemed
necessary by the Authority.
SECTION 28. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
58-1-5041 GRS 12/30/20