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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2004 By: Fetgatter
COMMITTEE SUBSTITUTE
An Act relating to medical marijuana; amending
Section 1, State Question No. 788, Initiative
Petition No. 412, as last amended by Section 44,
Chapter 161, O.S.L. 2020 (63 O.S. Supp. 2020, Section
420), which relates to medical marijuana patient and
caregiver licensing requirements; specifying
marijuana amounts in grams; allowing for the
possession of additional mature plants; deleting
seedling plants from list of allowable marijuana
products; clarifying elements of certain offense;
specifying biannual payment of application fees for
patient licenses; providing discounted patient
license fee for certain veterans; providing for
license reprints; stating fee; broadening eligibility
requirements for temporary license; extending license
period of temporary license; providing physician
recommendation requirements for renewal applications;
authorizing the Oklahoma Medic al Marijuana Authority
to promulgate certain rules; authorizing the
Authority to deny patient license applications;
removing recordkeeping requirement related to
approved medical marijuana licenses; clarifying types
of records and information the Authority shall seal
to protect privacy; prohibiting the Authority from
sharing records with other state agencies or
political subdivisions; providing cultivation
restrictions for caregiver licensees; requiring
applications to be signed by certain physicians who
are licensed and in good standing with their
respective boards; prohibiting the assessment of fee
by counties, cities or political subdivisions;
amending Section 2, State Question No. 788,
Initiative Petition No. 412 (63 O.S. Supp. 2020,
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Section 421), which relates to dispensary licensing
requirements; increasing time limitation for
reviewing medical marijuana dispensary license
applications; authorizing the Authority to deny
dispensary license applications; increasing
percentage amount for nonresident owners hip; deleting
penalties for gross discrepancy and fraudulent
reporting and fraudulent sales; authorizing the sale
of pre-rolled marijuana; providing specifications for
pre-rolled products; requiring certain testing,
packaging and labeling; 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; authori zing
the Authority to deny commercial grower license
applications; authorizing commercial growers to
package and sell pre -rolled marijuana; providing
specifications for pre -rolled products; directing the
Authority to promulgate rules to govern sales across
state lines; 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; increasing time
limitation for reviewing medical marijuana processing
license applications; authorizing the Authority to
deny processing license applications; providing for
twice yearly inspections; exempting processors from
obtaining sales tax permit for licensure; providing
sales and excise tax exemption; deleting penalties
for gross discrepancy and fraudulent reporting;
specifying entity that oversees inspection 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 patient licensees;
clarifying certain protections for patient licensees
and business licensees; providing standard related to
child endangerment; providing certain exception;
clarifying zoning restrictions; establishing distance
requirement after certain date; deleting definition;
specifying manner by which distances between certain
properties shall be measured; conforming language;
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amending Section 7, State Question 788, Initiative
Petition No. 412 (63 O.S. Supp. 2020, Section 426),
which relates to taxes on retail sales of medical
marijuana; authorizing certain veterans to apply for
an excise tax waiver; providing procedures for waiver
requests; modifying manner by which certain funds are
apportioned; 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 Authority
to make certain information available through an
online verification system; directing the Authority
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, S ection 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.
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, S ection 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, 427. 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; replacing references to the State
Department of Health with the Oklahoma Medical
Marijuana Authority; modifying scope of certain
definitions; deleting and adding certain definitions;
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updating references to certain named act; adding and
clarifying duties and functions of the Authority;
requiring licensees to submit certain info rmation;
requiring licensees to submit samples or units to
testing laboratories under certain circumstances;
authorizing on-site inspections or investigations of
medical marijuana businesses and certain facilities;
authorizing the Authority to enter licens ed premises
and certain facilities; providing for post -licensure
inspections; deleting notice requirement; providing
for investigations and additional inspections under
certain circumstances; authorizing the Executive
Director of the Authority to prescribe certain
penalties; defining term; authorizing the review of
licensed medical marijuana waste disposal facility
records; removing provision that allows licensees to
secure legal representation prior to interviews
conducted by the Authority; authorizing the
suspension or revocation of business license for
nonpayment of monetary penalties; providing penalties
for grossly inaccurate or fraudulent reports;
providing procedures for issuing certain written
orders; authorizing the Authority to issue orders
without notice or hearing under certain
circumstances; requiring compliance with provisions
of order; providing for the assessment of monetary
penalties; affording opportunity to apply for a
hearing after issuance of order; clarifying privacy
requirements for han dling records of licensed
patients and caregivers; deleting references to
certain federal act; authorizing the Authority to
contact recommending physicians of applicants or
licensees; expanding certain protections to
podiatrists; providing for patient lice nse
revocation; allowing patients to request the
withdrawal of a caregiver license; directing
withdrawal of caregiver license without a hearing
under certain circumstances; directing certain
facilities to keep transaction records and utilize
seed-to-sale tracking system; deleting inventory
tracking recordkeeping requirement; adding medical
marijuana wholesaler license; providing certain
exception related to fees; modifying certain business
licensing requirements by including medical marijuana
research facility, education facility and waste
disposal facility applicants and licensees; requiring
criminal history background checks for license
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renewals; modifying documentation requirement for
proof of residency; 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 medical marijuana research facility,
education facility and wa ste disposal facility
licenses to certain persons; removing requirement to
consider additional information when considering
criminal histories of business license applicants;
clarifying manner by which the Authority may seek
administrative action against a pplicants or
licensees; modifying exemption to certain compliance
requirement; requiring medical marijuana research
facility, education facility and waste disposal
facility licensees to pay licensure fees prior to
receiving license; providing late renewal fee for
reinstatement of licenses; making fee nonrefundable;
prohibiting reinstatement of certain expired
licenses; prohibiting medical marijuana businesses,
medical marijuana research facilities, education
facilities and waste disposal facilities from
operating without a valid, unexpired license;
providing for the issuance of transporter licenses to
certain entities; providing construing provision;
providing for the issuance of medical marijuana
wholesaler licenses; modifying certain transporter
and wholesaler requirements for contracting with
other businesses, security, seed -to-sale tracking and
warehousing products; deleting certain transporting
requirements; prohibiting delivery to certain
locations; reducing transporter agent license fee;
providing for the reprint of licenses 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 amou nt of time inventory
manifests and logs shall be maintained; clarifying
authorization of the Authority to develop certain
practices and methods; removing requirement that
prohibits indirect beneficial owners from owning a
laboratory; narrowing scope of tes ting laboratory
licenses; allowing laboratory licensees to conduct
certain research; requiring laboratory licensees to
comply with application requirements; authorizing
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testing laboratories to accept samples from licensed
medical marijuana research facilit ies and education
facilities; allowing the testing of product to be
conducted at testing laboratories for quality
assurance purposes; directing the Authority to
develop standards and policies for validation
procedures; specifying type of batches and sample s
that must be identified and tracked by an inventory
tracking system; providing for the immediate recall
of certain products; 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; directing the Authority to establish
regulations for determining batch sizes; increasing
number of inspections required for testing
laboratories after licensure; authorizing
investigations and addit ional inspections under
certain circumstances; modifying certain date;
authorizing commercial growers to transfer certain
product to processors under certain conditions;
directing the Authority to establish process
validation requirements; deleting and mod ifying
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 of records and information that
are considered confidential and exempt from the
Oklahoma Open Records Act; authorizing the Authority
to share certain information with the Oklahoma Ta x
Commission; modifying name of entity that recommends
rules to the Executive Director of the Authority;
authorizing the Authority to appoint additional
members to the Medical Marijuana Advisory Council;
authorizing the Authority to tag or mark medical
marijuana, medical marijuana concentrate and medical
marijuana product under certain conditions;
authorizing the Authority to embargo medical
marijuana, medical marijuana concentrate and medical
marijuana product; making the removal or disposal of
embargoed medical marijuana, medical marijuana
concentrate and medical marijuana product without
permission unlawful; allowing the Executive Director
of the Authority to institute actions in district
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court for the condemnation and destruction of
embargoed medical mar ijuana, medical marijuana
concentrate and medical marijuana product that fails
to meet certain requirements; providing for the
removal of embargo after certain determination by the
Executive Director; providing exemption from
liability; providing for the d estruction of medical
marijuana, medical marijuana concentrate 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;
authorizing courts to order delivery of medical
marijuana, medical marijuana concentrate and medical
marijuana product to owner or defendant under certain
circumstances; directing expenses for supervision be
paid to the Authority by certain person; amending
Sections 2, 3 and 4, Chap ter 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 limi t 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;
providing for the unlimited issuanc e of medical
marijuana waste disposal licenses; 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 depos its 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 Qu estion No. 788,
Initiative Petition No. 412, as last amended by Section 44, Chapter
161, O.S.L. 2020 (63 O.S. Supp. 2020, Section 420), is amended to
read as follows:
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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 three (3) ounces or eighty-four and
nine-tenths (84.9) grams of marijuana on their his or her person;
3. Legally possess six twelve mature marijuana plants;
4. Legally possess six seedling plants;
5. Legally possess one (1) ounce or twenty-eight and three-
tenths (28.3) grams of concentrated marijuana;
6. 5. Legally possess seventy -two (72) ounces or two thousand
thirty-seven and six-tenths (2,037.6) grams of edible marijuana; and
7. 6. Legally possess up to eight (8) ounces or two hundred
twenty-six and four-tenths (226.4) grams of marijuana in their his
or her residence.
B. Possession of up to one and one -half (1.5) ounces or forty-
two and forty-five one-hundredths (42.45) grams 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 an offense not subject to imprisonment,
punishable by a fine and court costs 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
shall verify the identity of the person, as well as any other
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pertinent information the law enforcement officer deems necessary,
shall and upon such verification, issue to the person a written
citation containing a notice to answer the charge citation against
the person in the ap propriate 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 recognizance unless there has been a violation of another
provision of law.
C. A regulatory office , to be known as the Oklahoma Medical
Marijuana Authority, shall be established under the State Department
of Health which shall receive applications for medical marijuana
patient and caregiver license recipients, dispensaries, g rowers, 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 the
website, of the Oklahoma Medical Marijuana Authority in an easy-to-
find location, an application for a medical marijuana patient
license. The license shall be good valid for two (2) years. The
biannual application fee shall be One Hundred Dollars ($100.00), or
Twenty Dollars ($20.00) for veterans, as defined in Section 2 of
Title 72 of the Oklahoma Statutes, with a disability rating at or in
excess of fifty percent (50%) and individuals on Medicaid, Medicare
or SoonerCare. The methods of payment shall be provided on the
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website of the Department. Reprints of the medical marijuana
patient license shall incur a fee of Twenty Dollars ($20.00).
E. A short-term medical marijuana patient license application
shall also be made available on the website of the State Department
of Health Authority. 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
valid for sixty (60) days. The fee for a short -term medical
marijuana patient license, reprints of the short -term medical
marijuana patient license and the procedure for extending or
renewing the license shall be determined by the Department
Authority.
F. A temporary medical marijuana patient license application
shall also be made available on the website of the Department
Authority for residents of other states . A temporary medical
marijuana patient license shall be granted to any medical marijuana
license holder from other states, provided that the state 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 residency
requirement provided for in subsection G of this section . Temporary
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medical marijuana patient licenses issued pursuant to this
subsection shall be issued valid for thirty (30) one hundred twenty
(120) days. The cost for a temporary medical marijuana patient
license issued pursuant to this subsection shall be One Hundred
Dollars ($100.00). Renewal of the license shall be granted with
resubmission of a new renewal application. Such renewal application
shall not require a new physician recommendation unless:
1. One (1) year has elapsed from the date of the original
physician recommendation; or
2. The originally submitted physician recommendatio n limited
the recommendation to a specified time period of less than one (1)
year.
No additional criteria shall be required. The Authority shall be
authorized to promulgate rules related to the manner in which the
Authority will extend a temporary medical marijuana patient license
issued upon a renewal application as authorized by this subsection.
G. Medical marijuana patient license applicants shall submit
his or her their applications to the State Department of Health
Authority for approval. The applic ant shall be an Oklahoma state
resident and shall prove residency by a valid driver license,
utility bills, or other accepted methods by such other method as
authorized by the Authority to verify residency .
H. The State Department of Health Authority shall review the
medical marijuana patient license application,; approve or, reject
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or deny the application,; and mail the approval or, rejection or
denial letter stating any the reasons for rejection or denial to the
applicant within fourteen (14) business da ys of receipt of the
application. Approved applicants shall be issued a medical
marijuana patient license which shall act as proof of his or her
approved status. Applications may only be rejected or denied based
on the applicant not meeting stated criter ia or improper completion
of the application.
I. The State Department of Health 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 Authority shall make
available, both on its website and through a telephone verification
system, an easy method to validate the authenticity of the medical
marijuana patient license by the unique 24-character ten- to twenty-
four-character identification number.
K. J. The State Department of Health Authority 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
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with any other state agency or political subdivision without a
warrant issued by a court of compete nt jurisdiction.
L. K. A caregiver license shall be made available for qualified
caregivers of a medical marijuana license holder patient licensee
who is homebound. As provided in Section 11 of Enrolled House Bill
No. 2612 427.11 of the 1st Session of th e 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 medical marijuana, medical marijuana products and
mature and immature plan ts or cultivate medical marijuana pursuant
to the Oklahoma Medical Marijuana and Patient Protection Act, but
excluding the ability to use medical marijuana or medical marijuana
products unless the caregiver has a medical marijuana patient
license. An applicant All applicants 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. A licensed caregiver shall not
cultivate medical marijuana for more than five medical marijuana
patient licensees and shall not charge a medical marijuana patient
licensee for cultivating medical marijuana in excess of the actual
costs incurred in cultivating said medical marijuana.
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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 licensed by and in good
standing with the State Board of Medical Licensure, the State Board
of Osteopathic Examiners or the Board of Podiatric Medical
Examiners. There are no qualifying conditions. A medical marijuana
patient license must shall be recommended according to the accepted
standards a reasonable and prudent physician would follow when
recommending or approving any medication. No physician may be
unduly stigmatized, penalized, subjected to discipline, sanctioned,
reprimanded or harassed for signing a medical marijuana patient
license application; provided, that the physician acted in
accordance with the provisions of this subsection and all other
rules governing the medical license of the physician in this state .
O. N. Counties and, cities and other political subdivisions in
this state may enact medical marijuana guidelines allowing medical
marijuana license holders patient licensees or caregivers caregiver
licensees to exceed the state limits set forth in subsection A of
this section. No county, city or other political subdivision in
this state shall have the authority to charge any fee to a medical
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marijuana patient licensee residing in its jurisdiction for the use
of medical marijuana or for the cultivation of medical marijuana by
a medical marijuana patient licensee or caregiver licensee as
authorized herein.
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 the website, of the Oklahoma Medic al Marijuana
Authority 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 Authority.
Retail Dispensary applicants must all be Oklahoma state residents of
Oklahoma. Any entity applying for a retail 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
Authority 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 the reasons for rejection ) or
denial to the applicant.
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B. The Oklahoma State Department of Health must Authority 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, 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%) forty-nine percent (49%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma; and
6. All applicants must disclo se 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
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 dispensaries
shall, in the manner and form prescribed by the Authority, be
required to complete a monthly sales report to the Oklahoma
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Department of Health Authority. 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 Authority 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 discrepan cy
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 marijuana 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 medical marijuana license holder patient
licensees 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) caregiver licensees. Beginning on the effective
date of this act, licensed medi cal marijuana dispensaries shall be
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authorized to package and sell pre -rolled marijuana to medical
marijuana patient licensees and caregiver licensees. The products
described in this subsection shall contain only the ground parts of
the marijuana plant an d shall not include concentrates, hash or
derivatives. These products shall be tested, packaged and labeled
in accordance with Oklahoma law and rules promulgated by the
Authority.
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 the website, of the Oklahoma Medical Marijuana
Authority in an easy-to-find location, an application for a
commercial grower license. The application fee will 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 Authority. The
Oklahoma State Department of Health has two (2) weeks Authority
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 the reasons for
rejection or denial to the applicant.
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B. The Oklahoma State Department of Health must Authority 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, 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 grower 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 pre -
rolled marijuana containing only ground parts of the marijuana
plant, excluding any concentrates, hash or derivatives, to licensed
medical marijuana dispensaries . 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 medical marijuana license holder patient
licensee or caregiver licensee . 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
shall be allowed to sell and buy marijuana wholesale from, or to, an
out-of-state wholesale provider. The Authority shall promulgate
rules to govern the sale of medical marijuana across state lines
within thirty (30) days of becoming federally legal to do so.
5. A licensed Licensed commercial grower will be required to
growers shall, in the manner and form prescribed by the Authority,
complete a monthly yield and sales report to the Oklahoma Department
of Health Authority. This report will shall be due on the 15th
fifteenth of each month and provide repor ting on the previous month.
This The report will shall, among other items prescribed by the
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Authority, detail the amount of marijuana harvested in pounds, the
amount of drying or dried marijuana on hand, the amount of marijuana
sold to processors in pound s, 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 Authority 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 pass age of this initiative, make
available, on their the website, of the Oklahoma Medical Marijuana
Authority in an easy-to-find location, an application for a medical
marijuana processing license. The application fee shall be Two
Thousand Five Hundred Dollar s ($2,500.00) and methods. A method of
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payment will shall be provided on the website of the Authority. The
Oklahoma State Department of Health Authority 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 the
reasons for rejection ) or denial to the applicant.
B. The Oklahoma State Department of Health must Authority shall
approve all applicatio ns 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 tha t 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
processing operation.
7. Applicant(s) Applicants with only a nonviolent felony
conviction(s) conviction in the last two (2) year s, any other felony
conviction in 5 (years) the last five (5) years , inmates in the
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custody of the Department of Corrections , or any person currently
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 section, the Oklahoma
State Department of Health will Authority 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 should 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 Authority.
3. Once a Up to two times per year, the Oklahoma State
Department of Health Authority may inspect a processing operation
and determine its compliance with the preparation standards. If any
deficiencies are found, a written report of deficiency will the
deficiencies shall be issued to the processor. The processor will
shall have one (1) month thirty (30) business days to correct the
deficiency deficiencies or be subject to a fine of Five Hundred
Dollars ($500.00) for each deficiency.
4. A licensed medical marijuana processor may sell marijuana
products it creates to a licensed retailer, medical marijuana
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dispensary or any other licensed medical marijuana processor.
Further, these All sales will by a licensed medical marijuana
processor shall be considered wholesale sales and shall not be
subject to taxation. A licensed medical marijuana processor shall
not be required to obtain an Oklahoma sales tax permit in order to
apply for or renew a medical marijuana processor license.
5. Under no circumstances may a licensed medical marijuana
processor sell medical marijuana, or any medical marijuana product,
directly to a medical marijuana license holder patient licensee or
caregiver licensee. However, a licensed processor may process
cannabis marijuana into a concentrated form , for a medical license
holder, marijuana patient licensee or caregiver licensee for a fee
and such fee shall constitute a service that shall n ot be subject to
any sales tax or excise tax . Processors will be required to
6. Licensed medical marijuana processors shall, in the manner
and form prescribed by the Authority, complete a monthly yield and
sales report to the Oklahoma State Department o f Health Authority.
This report will shall be due on the 15th fifteenth of each month
and shall provide reporting on the previous month. This The report
will shall detail the amount of medical marijuana and medical
marijuana products purchased in pounds, the amount of marijuana
cooked or processed in pounds, and the amount of waste in pounds.
Additionally, this report will shall show total wholesale sales in
dollars. The Oklahoma State Department of Health will Authority
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shall have oversight and auditin g responsibilities to ensure that
all marijuana being grown processed is accounted for. A licensed
processor 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. The Authority shall oversee inspection and compliance of
processors producing products with marijuana as an additive. The
Oklahoma State Department of Health will Authority 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 Authority and the agency can Authority may
enforce these standards for licensed processors. The agency will
Authority 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, marijuana may
be moved across state lines.
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F. Any device used for the processing or consumption of medical
marijuana shall be con sidered legal to be sold, manufactured,
distributed, and possessed. No merchant, wholesaler, manufacturer,
or individual may unduly be unduly harassed, cited or prosecuted for
selling, manufacturing, or possession of medical possessing
marijuana paraphernalia.
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 marijuana license holder patient licensee,
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 discrim inate 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 patient licensee; or
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2. Employers provided, however, employers may take action
against a holder of a medical marijuana license patient licensee if
the holder licensee uses or possesses marijuana while in his or her
place of employment or during the hours of employment. Employers
may not take action against the holder of a medical marijuana
license patient licensee solely based upon the status of an employee
as a medical marijuana license holder patient licensee or the
results of a drug test showing positive for marijuana or its
components.
C. For the purposes of medical care, including organ
transplants, the authorized use of marijuana by a medical marijuana
license holder patient licensee 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 patient licensee 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 patient licensee creates an unreasonable danger a risk of
irreparable harm to the safety of the minor child.
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E. No person holding who possesses a medical marijuana patient
license may unduly be withheld from holding be denied or restricted
from holding a state-issued license by virtue of their b eing a
licensed medical marijuana license holder patient including, but not
limited to, a concealed carry permit.
F. 1. No city or local municipality political subdivision in
this state may unduly change or restrict zoning laws to prevent the
opening of a retail marijuana establishment medical marijuana
business. Any city or political subdivision in this state enacting
zoning requirements related to a medical marijuana business shall
treat such business as it does other businesses lawfully engaged in
similar business activities; provided, however, the city or
political subdivision may restrict medical marijuana dispensaries
opening after September 1, 2021, from being located within one
thousand (1,000) feet of an existing 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 from operating within
municipal boundaries as a matter of law. Municipalities Except as
provided in paragraph 1 of this subsection, cities and political
subdivisions may follow their standard planning and 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
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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 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 priva te school entrance unless the
dispensary was granted a medical marijuana dispensary license by the
Oklahoma Medical Marijuana Authority 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 private school to the nearest
property line of the dispensary. If a public or private school is
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 .
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H. Research shall be provided for under this law. A researcher
may apply to the State Department of Health Authority 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
licensees shall be required to file monthly consumption reports to
the State Department of Health Authority 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 by the Authority.
SECTION 6. AMENDATORY Section 7, State Question No. 788,
Initiative Petition No. 412 (63 O.S. Supp. 2020, Section 426), is
amended to read as follows:
Section 426. A. 1. The tax on retail medical marijuana sales
will shall be established at seven percent (7%) of the gross amount
received by the seller.
2. All veterans, as defined in Section 2 of Title 72 o f the
Oklahoma Statutes, with a disability rating of twenty -five percent
(25%) or more may apply to the Oklahoma Tax Commission for a medical
marijuana excise tax waiver. Upon receipt of the application and
verification of the disability status of the vet eran, the Oklahoma
Tax Commission shall issue an exception authorization to the
Oklahoma Medical Marijuana Authority which shall note on the license
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of the medical marijuana patient that he or she is not required to
pay any excise tax on the purchase of me dical marijuana. The
Oklahoma Tax Commission and Oklahoma Medical Marijuana Authority are
hereby authorized to promulgate any rules necessary to implement the
provisions of this paragraph.
B. This The excise tax will shall be collected at the point of
sale. Tax proceeds will be applied primarily to finance the
regulatory office.
C. If proceeds from the levy authorized by subsection A of this
section exceed the budgeted amount for running the regulatory office
Oklahoma Medical Marijuana Authority , any surplus shall be
apportioned with seventy -five percent (75%) going to the General
Revenue Fund and may only be expended for common education . Twenty-
five percent (25%) shall be apportioned to the Oklahoma State
Department of Health and earmarked for drug an d alcohol
rehabilitation and prevention.
SECTION 7. 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 defined in Section 2 of Enrolled House Bill
No. 2612 of the 1st Session of the 57th Oklahoma Legislature, all
All licensure revocation hearings conducted pursuant to marijuana
licenses established in the Oklahoma Statutes shall be recor ded. A
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party may request a copy of the recording of 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 Oklahoma Medical Marijuana
Authority 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
medical marijuana patients and caregivers, as defined in Section 2
427.2 of Enrolled House Bill No. 2612 of the 1st Session of the 57th
Oklahoma Legislature this title, the Department Authority shall
share information with law enforcement agencies upon request without
a subpoena or search warrant.
C. The State Department of Health Authority shall make
available all information displayed on a medical marijuana licenses
business license and medical marijuana transporter agent license , as
well as whether or not the business or transporter agent license is
valid, to law enforcement electronically through the Oklahoma Law
Enforcement Telecommunications System an online verification system .
D. The Department Authority 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 by a medical
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marijuana business to aid county and municipal governments Oklahoma
state agencies and political subdivisions in identifying locations
within their jurisdiction jurisdictions and ensure ensuring
compliance with local applicable laws, rules and regulations.
E. All If located within the in corporated boundaries of any
municipality, 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 subdivision
municipality of their intent, a certificate of compliance from the
political subdivision municipality where the facility of the
applicant or use licensee is to be located, and its intended use,
certifying compliance with zoning classifications, applicable
municipal ordinances and all applicable safety, electrical, fire,
plumbing, waste, construction and building specification codes .
Once a certificate of compliance h as been submitted to the Oklahoma
Medical Marijuana Authority showing full compliance as outlined in
this section, no additional certificate of compliance shall be
required for license renewal unless a change of use or occupancy
occurs, or there is any cha nge concerning the facility or location
that would by law require additional inspection, licensure or
permitting by the state or municipality .
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SECTION 8. 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 :
1. "Advertising" means the act of providing consideration for
the publication, dissemination, solicitation, or circulation , of
visual, oral, or written communication to induce directly 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 t o 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
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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),
b. opaque so that the outermost packaging does 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 Authority, including any supporting documentation
required and the applicable license application fee;
10. "Department" means the State Department of Health;
11. "Director" means the Executive D irector of the Oklahoma
Medical Marijuana Authority;
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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
appropriately labeled for subsequent administration to or use by a
qualifying patient;
13. "Dispensary" means a medical marijuana dispensary, an
entity that has been licensed by the Department Authority pursuant
to this act the Oklahoma Medical Marijuana and Patien t Protection
Act to purchase medical marijuana or medical marijuana products from
a licensed medical marijuana commercial grower or licensed medical
marijuana processor, to prepare and package pre -rolls, and to sell
medical marijuana or medical marijuana p roducts to licensed patients
and caregivers as defined under in this act section, or sell or
transfer products to another licensed 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 leg al or commercial entity;
16. "Flower" means the reproductive organs of the marijuana or
cannabis plant referred to as the bud or parts of the plant that are
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harvested and used to consume for consumption in a variety of
medical marijuana products;
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 pro duced by extracting cannabinoids
from medical marijuana through the use of propylene glycol,
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 ap plication, or for purposes of discipline of
a licensee, means:
a. the licensee or applicant 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 supp lemental
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 Mari juana
Authority or the municipality, or
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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
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 substantially consistent cultivation practices, harvested
at the same time from the same location an d 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 wa s 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 re quired 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 and medical marijuana product is sold to a patient at a
medical marijuana dispensary, transferred to a medical marijuana
research facility, destroyed by a medical marijuana business or used
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in a research project by a medical marijuana research facility
products, including any testing samples thereof and medical
marijuana waste;
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 Marijuana Authority;
26. 25. "Licensed premises" means the premises specified in an
application for a medical ma rijuana 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 marijuana 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 marijuana 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 not include seeds but shall otherwise
have the same meaning as such term is defined in Sectio n 2-101 of
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Title 63 of the Oklahoma Statutes this title and shall also include
any plant or material containing delta -8 or delta-10
tetrahydrocannabinol which is not grown, processed or sold pursuant
to the provisions of the Oklahoma Industrial Hemp Progra m;
29. 28. "Material change" means any change that would require a
substantive revision to the standard operating procedures of a
affect the qualifications for licensure of an applicant or licensee
for the cultivation or production of medical marijuana, m edical
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 p rocessor, medical
marijuana commercial grower, medical marijuana laboratory, medical
marijuana business operator, medical marijuana wholesaler or a
medical marijuana 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;
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33. 32. "Medical marijuana commercial grower" or "commercial
grower" means an entity licensed to cultivate, prepare and package
medical marijuana, package pre-rolled marijuana, and transfer or
contract for the transfer of medical marijuana and pre-rolled
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 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, c uring, 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 Mar ijuana and Patient Protection Act ;
35. 34. "Medical-marijuana-infused product" means a product
infused with medical marijuana including, but not limited to, edible
products, ointments and tinctures , except pre-rolled marijuana that
does not contain medica l marijuana concentrate shall not constitute
a medical-marijuana-infused product;
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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 o r chemical means
and is intended for administration to a qualified patient including,
but not limited to, oils, tinctures, edibles, pills, topical forms,
gels, creams, vapors, patches, liquids, and forms administered by a
nebulizer, excluding live plant fo rms which are considered medical
marijuana;
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 facilit y" 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
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testing and research on medical marijuana and medical mar ijuana
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 facility
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 debris 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;
41. "Medical marijuana wholesaler" or "wholesaler" means an
entity licensed by the Oklahoma Medical Marijuana Authority to
acquire, possess, sell and distribute medical marijuana or medical
marijuana products on behalf of another licensed medical marijuana
business in the State of Oklahoma. A medical marijuana wholesaler
does not include a medical marijuana business which grows, produces
and sells its own medical marijuana, medical marijuana concentr ate
or medical marijuana products;
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42. "Medical use" means the acquisition, possession, use,
delivery, transfer or transportation of medical marijuana, medical
marijuana products, medical marijuana devices or paraphernalia
relating to the administration o f medical marijuana to treat a
licensed patient;
43. "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. "Oklahoma physician" or "physician" means a physician
licensed by and in good standing with the State Board of Medical
Licensure and Supervision, the State Board of Osteopathic Examiners
or the Board of Podiatric Medical Examiners;
45. "Oklahoma resident" means an individual who can provide
proof of residency as required by this act the Oklahoma Medical
Marijuana and Patient Protection Act ;
46. "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 limit ed partners that own
an interest in a limited partnership,
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d. all members that own an interest in a limited
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 manage s a
licensed facility or entity which contracts for or
receives more than ten percent (10%) of the gross
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 sale s,
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 compensati on from a
medical marijuana business that was issued a license
prior to the effective date of this act shall not be
considered an owner of that medical marijuana business
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but shall disclose such financial interest in the
medical marijuana business to the O klahoma Medical
Marijuana Authority upon request or otherwise as
prescribed by the Authority. This exception applies
only to persons or entities who received such
compensation or entered into contracts for such
compensation prior to the effective date of this act;
47. "Package" or "packaging" means any container or wrapper
that may be used by a medical marijuana business to enclose or
contain medical marijuana;
48. "Person" means a natural person, partnership, association,
business trust, company, corpor ation, 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;
49. "Pesticide" mea ns 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. "Production batch" means:
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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 p roduction
batch of medical marijuana concentrate;
51. "Public institution" means any entity established 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. "Public money" means any funds or money obtained by the
license holder from any governmental entity including, but not
limited to, research grants;
53. "Recommendation" means a document that is signed or
electronically submitted by a physician on behalf of a patient for
the use of medical marijuana pursuant to this act the Oklahoma
Medical Marijuana and Patient Protection Act ;
54. "Registered to conduct business" means a person that has
provided proof that the business applicant or business licensee is
in good standing with the Oklahoma Secretary of State , if such
registration is required under Oklahoma law and, if the business is
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a medical marijuana dispensary proof that the medical marijuana
dispensary is in good standing with the Oklahoma Tax Commission. In
the event the medical marijuana dispensary is not in good standing
with the Oklahoma Tax Commission, the business applicant or business
licensee shall provide proof that it has entered into a mutually
agreeable payment plan with the Oklahoma Tax Commission;
55. "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, production batch or other medical marijuana or
medical marijuana product produced pursuant to the Oklahoma Medical
Marijuana and Patient Protection Act undergoes a procedure, prior to
laboratory testing or after the medical marijuana or medical
marijuana product has failed laboratory testing for any reason, to
remedy any deficiencies or failures and is retested as required by
this act in accordance with Oklahoma laws, rules and regulations ;
56. "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 research
license. A research project shall include a description of a
defined protocol, clearly articulated goals, defined meth ods 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
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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. "Revocation" means the final decision by the Department
Authority 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. "School" means a state-licensed public or private preschool
or a public or private elementary, middle or secondary high school
which is primarily used for school classes and classroom
instruction. A An athletic field, 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. "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 medical marijuana,
medical marijuana concentrate, or medical marijuana products between
medical marijuana businesses, a medical marijuana research facility,
or a medical marijuana education facility;
60. "Solvent-based medical marijuana concentrate" means a
medical marijuana concentrate that was produced by extracting
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cannabinoids from medical marijuana through the use of a solvent
approved by the Department Authority;
61. "State Question" means Oklahoma State Question No. 788,
Initiative Petition No. 412, approved by a majority vote of the
citizens of Oklahoma on June 26, 2018;
62. "Strain" means the classification name given to a
particular variety of medical marijuana or cannabis plants in either
pure sativa, indica, afghanica, ruderalis or hybrid varieties that
is based on a combination of factors which may include, but are not
limited to, botanical lineage, appearance, chemical profile and
accompanying effects. An example of a strain o f medical marijuana
would be "OG Kush" or "Pineapple Express" ;
63. "THC" means tetrahydrocannabinol, which 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 quantity 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 w ith 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 specif ied time period according to a
single manufacturing, packaging and labeling protocol;
65. "Transporter agent" means a person who transports medical
marijuana or medical marijuana products for as an employee of a
licensed transporter medical marijuana busi ness and holds a
transporter agent license specific to that business pursuant to this
act the Oklahoma Medical Marijuana and Patient Protection Act ;
66. 65. "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. 66. "Usable marijuana" means the dried leaves, flowers,
oils, vapors, waxes and other porti ons of the marijuana plant and
any mixture or preparation thereof, excluding seed seeds, roots,
stems, stalks and fan leaves; and
68. 67. "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 9. 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 the medical marijuana program in
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Oklahoma including, but not limited to, the issuance o f patient and
caregiver 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 Marijuan a 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 Authority shall implement the prov isions 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 of this act
the Oklahoma Medical Marijuana and Patient Protecti on Act.
D. The Department Authority 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 medical
marijuana and medical marijuana products is being conducted for
public purposes, inclu ding the advancement of:
a. public health policy and public safety policy,
b. agronomic and horticultural best practices, and
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c. medical and pharmacopoeia best practices;
2. Contract with third -party vendors and other governmental
entities in order to car ry 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 prescribed 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 connection with disciplinary or contes ted
cases considered by the Department Authority;
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,
medical marijuana research facilities and, medical marijuana
education facilities and medical marijuana waste disposal facilities
in which medical marijuana i s 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 B anking Department and the
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State Treasurer to develop good practices and standards for banking
and finance for medical marijuana businesses;
8. Establish internal control procedures for licenses including
accounting procedures, reporting procedures and per sonnel policies;
9. Establish a fee schedule and collect fees for performing
background checks as the Commissioner Executive Director deems
appropriate. The fees charged pursuant to this paragraph shall not
exceed the actual cost incurred for each backgr ound check; and
10. Require verification for sources of finance for medical
marijuana businesses Establish a fee schedule and collect fees for
material changes requested by the licensee; and
11. Establish regulations which require a medical marijuana
business to submit information to the Oklahoma Medical Marijuana
Authority deemed reasonably necessary to assist the Authority in the
prevention of diversion of medical marijuana by a licensed medical
marijuana business. Such information required by the Auth ority may
include, but is not limited to:
a. the square footage of a licensed premises,
b. a diagram of a licensed premises,
c. the number and type of lights at a licensed medical
marijuana commercial grower business,
d. the number, type, and production c apacity of equipment
located at a medical marijuana processing facility,
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e. the names, addresses and telephone numbers of
employees or agents of a medical marijuana business,
f. employment manuals and standard operating procedures
for a medical marijuana business, and
g. such other information as the Authority reasonably
deems necessary.
The disclosure of this information shall not constitute a
prerequisite of licensure, and the Authority shall not require
disclosure of the financial information of any owner for any purpose
related to obtaining or renewing a medical marijuana business
license.
SECTION 10. 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, child, spouse
of a child, sibling, or spouse of a sibling has an application for a
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medical marijuana business license pending before the Department
Authority or is a member of the board of directors of a medical
marijuana business, or is an individual financially interested in
any licensee or medical mari juana 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 suggest 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 Mari juana 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:
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1. Investigate violations or suspected violations of this act
the Oklahoma Medical Marijuana and Patient Protection Act and any
rules promulgated pursuant thereto;
2. Serve all warrants, summonses, subpoenas, administrative
citations, notices or other processes relating to the enforcement of
laws regulating medical marijuana, medical marijuana concentrate,
and medical marijuana product;
3. Assist or aid any law enforcement officer in the performance
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 or any other information required by the Oklahoma
Medical Marijuana and Patient Protection Act or regulation of the
Authority required to be on -site of the medical marijuana business ;
and to permit the testing of or examination of medical marijuana,
medical marijuana concentrate, or medical marijuana 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
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Act and the Oklahoma Medical Marijuana Waste Management Act, and
approve material changes made by the applicant or licensee ;
6. Require medical marijuana business licensees to submit
samples or units of medical marijuana or medical marijuana products
to the medical marijuana testing laboratory when the Authori ty has
reason to believe the medical marijuana or medical marijuana
products may be unsafe for patient consumption or inhalation or have
not been tested in accordance with the provisions of the Oklahoma
Medical Marijuana and Patient Protection Act and the rules and
regulations of the Authority. The licensee shall provide the
samples or units of medical marijuana or medical marijuana products
at its own expense but shall not be responsible for the costs of
testing; and
7. Require medical marijuana business licensees to periodically
submit samples or units of medical marijuana or medical marijuana
products to the testing laboratory for quality assurance purposes.
Licensed medical marijuana commercial growers, medical marijuana
processors, medical marijuana dispensaries and medical marijuana
transporters shall not be required to submit samples or units of
medical marijuana or medical marijuana products more than twice a
year. The medical marijuana business licensee shall provide the
samples or units of medic al marijuana or medical marijuana products
at its own expense but shall not be responsible for the costs of
testing.
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SECTION 11. AMENDATORY Section 6, Chapter 11, O.S.L.
2019, as amended by Section 7, Chapter 477, O.S.L. 2019 (63 O .S.
Supp. 2020, Section 427.6), is amended to read as follows:
Section 427.6 A. The State Department of Health Oklahoma
Medical Marijuana Authority shall address issues related to the
medical marijuana program in Oklahoma including, but not limited to,
monitoring and disciplinary actions as they relate to the medical
marijuana program.
B. 1. The Department Authority 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, medical marijuana research facility, medical marijuana
education facility or medical marijuana waste disposal facility to
determine compliance with this act applicable laws, rules and
regulations or submissions made pu rsuant to this section. The
Department Authority may enter the licensed premises of a medical
marijuana business licensee or applicant , medical marijuana research
facility, medical marijuana education facility or medical marijuana
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 year 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
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additional inspections may occur when the Department shows that
Authority 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 applicable laws, rules or
regulations. The Executive Director of the Authority may adopt
rules imposing penalties including, but not limited to, monetary
penalties and revocation of license, for failure to allow the
Authority reasonable access to the licensed premises for purposes of
conducting an inspection. As used in this paragraph, "reasonable
access" shall include, but not be limi ted to, access during normal
business hours of operation after twenty -four (24) hours of notice
has been provided or, for investigations or additional inspections,
access during normal business hours of operation .
3. The Department Authority 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 Authority 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
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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 Authority may 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,
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, suspe nsion or
denial of an application, license or final authorization and other
action deemed appropriate by the Department Authority.
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 Authority;
3. Failing to allow or impeding a monitoring visit entry by
authorized representatives of the Department Authority;
4. Failure to adhere to any acknowledgement, verification or
other representation made to the Department Authority;
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5. Failure to submit or disclose information required by this
section applicable laws, rules or re gulations or as otherwise
requested by the Department Authority;
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 access by the Department
Authority to the licensed premises or materials;
8. Failure to pay a required monetary penalty;
9. Diversion of medical marijuana or any medical marijuana
product, as determined by the Department Authority;
10. Threatening or harming a medical marijuana patient
licensee, caregiver licensee , a medical practitioner or an employee
of the Department Authority; and
11. Any other basis indicating a violation of the applicable
laws, rules and regulations as identified by the Department
Authority.
F. Disciplinary actions against a licensee may include the
imposition of monetary penalties, which may be assessed by the
Department Authority. The Authority may suspend or revoke a medical
marijuana business license for failure to pay any monetary penalty
lawfully assessed by the Authority against a medical marijuana
business licensee.
G. Penalties for sales or purchases by a medical marijuana
business to persons other than those allowed by law occurring within
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any two-year time period may include an initial fin e 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 in clude an initial fine 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 The first offense for intentional and
impermissible diversion of medical marijuana, medical marijuana
concentrate, or medical marijuana 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 Two Hundred Dollars
($200.00).
2. The second offense for impermissible divers ion of medical
marijuana, medical marijuana concentrate, or medical marijuana
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 willful or grossly negligent.
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I. The following persons or entities may request a hearing In
addition to contest an action or proposed action of any other
remedies provided by law, the Department: Authority, pursuant to its
rules and regulations, may issue a written order to any medical
marijuana business licensee the Authority has reason to believe has
violated the Oklahoma Medical Marijuana and Patient Pro tection Act,
the Oklahoma Medical Marijuana Waste Management Act, or any rules
promulgated by the Executive Director of the Authority and to whom
the Authority has served, not less than thirty (30) days previously,
a written notice of violation of such sta tutes or rules.
1. A medical marijuana business, research facility or education
facility licensee whose license has been summarily suspended or who
has received a notice of contemplated action to suspend or revoke a
license or take other The written order shall state with specificity
the nature of the violation. The Authority may impose any
disciplinary action; and authorized under the provisions of this
section including, but not limited to, the assessment of monetary
penalties.
2. A patient or caregive r licensee whose license has been
summarily suspended or who has received notice of contemplated
action to suspend or revoke a license or take other disciplinary
action Any order issued pursuant to the provisions of this section
shall become a final order unless, not more than thirty (30) days
after the order is served to the medical marijuana business
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licensee, the licensee requests an administrative hearing in
accordance with the rules and regulations of the Authority. Upon
such request, the Authority sh all promptly initiate administrative
proceedings.
J. Whenever the Authority finds, upon clear and convincing
evidence, that an emergency exists requiring immediate action in
order to protect the public health or welfare, the Authority may
issue an order, without notice or hearing, stating the existence of
the emergency and requiring that action be taken as the Authority
deems necessary to meet the emergency. The order shall be effective
immediately upon issuance. Any licensee to whom the order is
directed shall comply immediately with the provisions of the order.
The Authority may assess a penalty not to exceed Ten Thousand
Dollars ($10,000.00) per day for noncompliance with the order. In
assessing such a penalty, the Authority shall consider the
seriousness of the violation and any efforts to comply with
applicable requirements. Upon application to the Authority, the
licensee shall be offered a hearing within ten (10) days of the
issuance of the order. No order issued pursuant to this subsection
may prohibit a licensed medical marijuana commercial grower from
continuing to care for, grow, cure or store medical marijuana plants
or medical marijuana until such time as a hearing occurs. On the
basis of the hearing, the Authority shall continue the order in
effect or revoke or modify the order .
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J. 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 12. AMENDATORY Section 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 mariju ana 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 Portability 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
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
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records shall be marked as confidential, shall not be made availabl e
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 t he licensee were made available
and to whom the records were provided.
E. The Department Authority shall ensure that all application
medical marijuana patient and caregiver records and information are
sealed to protect the privacy of medical marijuana pat ient and
caregiver license applicants and licensees.
SECTION 13. 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 Oklahoma Medical Marijuana Authority may
contact the recommending physician of an applicant for a medical
marijuana patient license or current medical marijuana patient
licensee to verify the need of the applicant or licensee for the
license and the information submitted with the appl ication.
B. An applicant for a medical marijuana patient license who can
demonstrate his or her status as a one-hundred-percent-disabled
twenty-five-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
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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 o ption to submit
the license application and payment by means other than solely by
submission of the application and fee 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 Authority.
SECTION 14. 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 allopathic,
osteopathic and podiatric physicians may provide a medical marijuana
recommendation for a medical marijuana patient license un der this
act the Oklahoma Medical Marijuana and Patient Protection Act .
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 withou t limitation a civil penalty or
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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 licens ing board or bureau, solely for
providing a medical marijuana recommendation for a patient or for
monitoring, treating or prescribing scheduled medication to patients
who are medical marijuana patient 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 recommend s use of medical marijuana shall
not be located at the same physical address as a medical marijuana
dispensary.
E. If the physician determines the continued use of medical
marijuana by the patient no longer meets the requirements set forth
in this act the Oklahoma Medical Marijuana and Patient Protection
Act, the physician shall notify the Department Authority and the
Authority shall immediately revoke the license, 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 Authority
with a new physician recommendation within thirty (30) days, the
patient license shall be immediately voided without a right to an
individual hearing.
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SECTION 15. 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 licensee the same rights as the medical marijuana patient
licensee, including the ability to possess medical marijuana,
medical marijuana products, and mature and immature plants pursuant
to this act the Oklahoma Medical Marijuana and Patient Protection
Act, but excluding the ability to use medical marijuana or medical
marijuana products unless the caregiver licensee has a medical
marijuana patient license. Caregivers Licensed caregivers shall be
authorized to deliver medical marijuana and medical marijuana
products to their authorized patients. Caregivers Licensed
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 licensee shall be limited to
exercising the marijuana cultivation rights of no more than five
licensed medical marijuana patients as prescribed by this act the
Oklahoma Medical Marijuana and Patient Protection Act .
C. The license of a careg iver shall not extend beyond the
expiration date of the underlying patient license regardless of the
issue date.
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D. A medical marijuana patient licensee may request, at any
time, to withdraw the license of his or her caregiver. 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 Authority without a right to a hearing.
SECTION 16. AMENDATORY Section 13, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.13), is amended 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 o ut-of-state
providers.
B. 1. The Oklahoma Medical Marijuana 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 licensed medical marijuana business , medical
marijuana research facility, medical marijuana education facility
and medical marijuana waste disposal facility keep records for every
transaction with another licensed medical marijuana business,
medical marijuana patient or medical marijuana caregiver licensee.
Inventory shall be tracked and updated after each individual sale
and reported to the Authority.
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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 marijuana plants are harvested
and destroyed,
c. notification of when marijuan a is transported, sold,
stolen, diverted or lost,
d. a complete inventory of all marijuana, seeds, plant
tissue, clones, marijuana plants, usable marijuana or
trim, leaves and other plant matter, batches of
extract, products and marijuana concentrates,
e. all samples of marijuana or marijuana products 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 testing by a license e.
3. Each medical marijuana business , medical marijuana research
facility, medical marijuana education facility and medical marijuana
waste disposal facility shall develop written standard operating
procedures outlining the manner in which they operate a s prescribed
by the Authority and shall use a seed-to-sale tracking system or
integrate its own seed -to-sale tracking system with the seed -to-sale
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tracking system established by the Authority in accordance with the
limitations set forth herein .
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 me dical 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 records, and
i. any additional information as may be reasonably
required by the Department Authority.
5. All inventory tracking records containing patient
information shall comply with all relevant state and federal laws
including, but not limited to, the Health Insurance 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 17. 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 commercial grower;
2. Medical marijuana processor;
3. Medical marijuana dispensary;
4. Medical marijuana transporter; and
5. Medical marijuana testing laborator y; and
6. Medical marijuana wholesaler .
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 avail able on its website in an
easy-to-find location, applications for a medical marijuana
business.
D. The annual nonrefundable application 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 marijuana
business;
3. Applicants shall submit a complete application to the
Department Authority before the application may b e accepted or
considered;
4. All applications shall be complete and accurate in every
detail;
5. All applications shall include all attachments or
supplemental information required by the forms supplied by the
Authority;
6. All applications shall be acc ompanied by a full remittance
for the whole amount of the application fees. Application fees ,
unless otherwise prescribed by the Authority, are nonrefundable;
7. All applicants shall be approved for licensing review that,
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
individual or entity, proof that the individual or
entity is registered to conduct business in the State
of Oklahoma,
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 proof that the medical marijuana
business, medical marijuana research facility, medical
marijuana education facility and medical marijuana
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 in the custody of the
Department of Corrections , 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
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apply for or receive, although each application and each category
shall require a separate application and application fee. A
licensed medical marijuana commercial grower, processor and
dispensary, or any combination thereof, are authorized to share the
same address or physical location, subject to the restrictions set
forth in this act the Oklahoma Medical Marijuana and Patient
Protection Act;
9. All applicants for a medical marijuana business license,
medical marijuana research facility license or medical marijuana
education facility license authorized by this act or the renewal of
such license 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 or
renewal of such license , including:
a. individual applicants applying on their own behalf,
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 license application, all applicants
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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 application. Sufficient
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 lo cated 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 busi ness 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
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of Narcotics and Dan gerous 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, an applicant for a medical
marijuana transporter agent license shall be exempt from the two -
year or five-year Oklahoma residency requirement 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
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e. a tribal identification card approved for
identification purposes by the Oklahoma Department of
Public Safety; and
14. All applicants sha ll submit an applicant photograph.
F. The Authority shall review the medical marijuana business
application, approve or, reject or deny the application and mail the
approval, rejection, denial or status-update letter to the applicant
within ninety (90) bu siness days of receipt of the application.
G. 1. The Authority shall review the medical marijuana
business applications application 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 (3 0) days to submit the required information for
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reconsideration. No additional application fee shall be charged for
such reconsideration. Unless the Authority determines otherwise, an
application that has been resubmitted but is still incomplete or
contains errors that are not clerical or typographical in nature
shall be denied and the application fee refunded.
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.
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 Authority.
H. A medical marijuana business , medical marijuana research
facility, medical marijuana education facility or medical marijuana
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 office r,
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;
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4. A person under twenty -five (25) years of age;
5. A person licensed pursuant to this se ction 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 ;
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 t he
Department Authority; or
8. A person who was involved in the management or operations of
any medical marijuana business, medical marijuana research facility,
medical marijuana education facility or medical marijuana waste
disposal facility that, after the initiation of a disciplinary
action, has had a medical marijuana business license revoked, not
renewed or surrendered, during the five (5) years preceding
submission of the application and for the following violations:
a. unlawful sales or purchases,
b. any fraudulent acts, falsification of records or
misrepresentation to the Authority, medical marijuana
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patient or caregiver licensees or medical marijuana
business licensees,
c. any grossly inaccurate or fraudulent reporting,
d. threatening or harming an y medical marijuana patient
licensee, caregiver licensee, medical practitioner or
employee of the Authority,
e. knowingly or intentionally refusing to permit the
Authority access to the premises or records,
f. using a prohibited, hazardous substance for pr ocessing
in a residential area,
g. criminal acts relating to the operation of a medical
marijuana business, or
h. any violations that endanger public health and safety
or product safety.
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
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last criminal conviction of the applicant and the consideration of
the application for a state license .
J. The failure of an applicant or licensee to provide the
requested information by the Au thority 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 applica ble 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 municipality entity
responsible for enforcement of the applicable code .
M. All medical marijuana business , medical marijuana research
facility, medical marijuana education facility and medical marijuana
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waste disposal facility licensees shall pay the relevant l icensure
fees prior to receiving licensure to operate a medical marijuana
business, as defined in this act for each class of license .
N. A medical marijuana business, medical marijuana research
facility, medical marijuana education facility or medical mar ijuana
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 Authority to
reinstate the license. Late renewal fees are nonref undable. A
license that has been expired for more than ninety (90) days shall
not be reinstated.
O. No medical marijuana business, medical marijuana research
facility, medical marijuana education facility or medical marijuana
waste disposal facility shal l possess, sell or transfer medical
marijuana, medical marijuana concentrate or medical marijuana
products without a valid, unexpired license issued by the Authority,
unless a renewal application has been submitted to the Authority.
SECTION 18. 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 bus iness
license.
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B. Pursuant to Section 424 of Title 63 of the Oklahoma Statutes
this title, the Oklahoma Medical Marijuana Authority shall issue a
medical marijuana transporter license to licensed medical marijuana
commercial growers, processors and dispen saries upon issuance of
such licenses and upon each renewal. Transporter licenses shall
also be issued to licensed medical marijuana research facilities,
medical marijuana education facilities and medical marijuana testing
laboratories upon issuance of su ch licenses and upon each renewal.
Nothing in this section shall be construed as prohibiting or
otherwise limiting a medical marijuana business from selling,
storing, marketing or otherwise engaging in the transportation of
any medical marijuana, medical marijuana concentrate or medical
marijuana products it produces pursuant to any valid license issued
by the Authority.
C. A Aside from the medical marijuana transporter license
issued to a licensed medical marijuana dispensary, medical marijuana
commercial grower, medical marijuana processor, medical marijuana
research facility or medical marijuana education facility in
conjunction with its business license, a medical marijuana
transporter license may also be issued to qualifying applicants who
are registered with the Oklahoma Secretary of State and otherwise
meet the requirements for a medical marijuana business license set
forth in this act the Oklahoma Medical Marijuana and Patient
Protection Act and the requirements set forth in this section to
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provide logistics, distribution and storage of medical marijuana,
medical marijuana concentrate and medical marijuana products. The
license, when not issued in conjunction with a medical marijuana
dispensary, medical marijuana commercial grower, medical marijuana
processor, medical marijuana research facility or medical marijuana
education facility license, shall be known as a "medical marijuana
wholesaler license" or "wholesaler license".
D. A medical marijuana transporter license or wholesaler
license shall be valid for one (1) year and shall not be transferred
with a change of ownership. A licensed medical marijuana
transporter or wholesaler shall be responsible for all medical
marijuana, concentrate and products once the transporter or
wholesaler takes control of the product.
E. A transporter or wholesaler license shall be required for
any person or entity to transport or transfer medical marijuana,
medical marijuana concentrate or medical marijuana product from a
licensed medical marijuana business to anothe r 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 licensed
medical marijuana business; or
2. A licensed medical marijuana business to a licensed medical
marijuana research facility or licensed medical marijuana education
facility.
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F. A Only a medical marijuana transporter wholesaler licensee
may contract with multiple licensed medical marijuana businesses to
package, store and transport medical marijuana, medical marijuana
concentrate and medical marijuana products on its behalf in the
State of Oklahoma.
G. A medical marijuana transporter wholesaler may maintain a
licensed premises to temporarily store medical marijuana, medical
marijuana concentrate and medical marijuana products and to use as a
centralized packaging and distribution point. A Except for a
medical marijuana business using its own owners or employees, only a
medical marijuana transporter wholesaler and its employees may
broker, package, store, market and distribute medical marijuana,
medical marijuana concentrate and medical marijuana products from
the licensed premises in the State of Oklahoma on behalf of another
medical marijuana business licensee. The licensed wholesaler
premises shall meet all security requirements applicable to a
medical marijuana business.
H. A medical marijuana transporter wholesaler licensee shall
use the seed-to-sale tracking system developed pursuant to this act
the Oklahoma Medical Marijuana and Patient Protection Act to track
all medical marijuana, medical marijuana concentrate and medical
marijuana products received, packaged, stored and distributed by a
wholesaler and to create shipping manifests documenting t he
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transport of medical marijuana, medical marijuana concentrate and
medical marijuana products throughout the state.
I. A licensed medical marijuana transporter wholesaler may
maintain and operate one or more warehouses in the state to handle
medical marijuana, medical marijuana concentrate and medical
marijuana products. Each location shall be registered and inspected
by the Authority prior to its use.
J. All medical marijuana, medical marijuana concentrate and
product medical marijuana products shall be transported:
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 tr ansit in a manner prescribed by the Authority .
K. 1. A transporter agent may possess marijuana at any
location while the transporter agent is transferring marijuana to or
from a licensed medical marijuana business, licensed medical
marijuana research fac ility or licensed medical marijuana education
facility.
2. The delivery of medical marijuana, medical marijuana
concentrate or medical marijuana products to a public or private
elementary, middle or high school, the campus of any institution of
higher education or any other public property is hereby prohibited.
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The Department Authority 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 or
wholesaler license in order for the individual employees, officers
or owners 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
paid by the transporter license holder or wholesaler licensee or the
individual applicant. One license reprint within the licensure
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 d ate of birth of the person;
2. Proof of residency as required for a medical marijuana
business license;
3. Proof of identity as required for a medical marijuana
business license;
4. 3. Possession of a valid Oklahoma state-issued driver
license;
5. 4. Verification of employment with a licensed transporter;
and
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6. 5. 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 appli cation is denied, the
Department Authority shall notify the transporter or wholesaler in
writing of the reason for denying the registry identification card.
P. A registry identification card for a transporter agent shall
expire one (1) year after the date of issuance or upon notification
from the holder of the transporter or wholesaler license that the
transporter agent ceases to work as a transporter.
Q. The Department Authority may revoke the registry
identification card of a transporter agent who knowi ngly violates
any provision of this section, and the transporter or wholesaler is
subject to any other penalties established by law for the violation.
R. The Department Authority may revoke or suspend the
transporter license of a transporter or wholesaler that the
Department Authority 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 medi cal marijuana, medical
marijuana concentrate or medical marijuana product products shall
be:
1. Insured at or above the legal requirements in Oklahoma;
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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. However, for purposes of this subsection,
products shall not include plants or clone s.
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 follow ing
information:
1. For the origination point of the medical marijuana:
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 medical marijuana
dispensary, medical marijuana commercial grower,
medical marijuana processor, medical marijuana
research facility or medical marijuana education
facility destination,
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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 th e 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.
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.
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5. 4. Originating and receiving licensees shall maintain copies
of inventory manifests and logs of quantities of medical marijuana
received for three (3) seven (7) years from date of receipt.
SECTION 19. 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 tes ting
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 .
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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 processor 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 facil ities, medical marijuana education
facilities, and testing and research on marijuana and marijuana
products grown or produced by a patient or caregiver on behalf of a
patient, upon verification of registration. A medical marijuana
testing laboratory may a lso conduct research related to the
development and improvement of its testing practices and procedures.
No state-approved medical marijuana testing 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 information as required for a medical
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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 samples of
medical marijuana, medical marijuana concentrate or medical
marijuana product from a medical marijuana business, medical
marijuana research facility or medical marijuana education facility
for testing and research purposes only, which purposes may include
the provision of testing services for samples submitted by a medical
marijuana business for product dev elopment. The Department
Authority may require a medical marijuana business to submit a
sample of medical marijuana, medical marijuana concentrate or
medical marijuana product to a medical marijuana testing 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:
1. The individual person is a medical marijuana patient
licensee or caregiver licensee 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; and
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2. The medical marijuana testing laboratory s hall require the
medical marijuana patient licensee or caregiver licensee to produce
a valid patient or caregiver license and current and valid photo
identification.
K. A medical marijuana testing laboratory may transfer samples
to another medical marijua na 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 or wholesaler to transport
samples of medical marijuana, medical marijuana concentrate and
medical marijuana product for testing, in accordance with this act
the Oklahoma Medical Marijuana an d Patient Protection 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 e stablish
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
results of the laboratory, or that may diminish public c onfidence in
the competency, impartiality and integrity of the testing processes
or results of the laboratory. At a minimum, employees, owners or
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agents of a medical marijuana testing laboratory who participate in
any aspect of the analysis and results of a sample are prohibited
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 Authority, pursuant to rules promulgated by
the State Commissioner of Health Executive Director, 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 leve ls 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 system s to be utilized
by the laboratory;
5. The possession, storage and use by the laboratory of
reagents, solutions and reference standards;
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6. A certificate of analysis (COA) for each lot of reference
standard;
7. The transport and disposal of unused marij uana, 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 participation in a Department-approved an
Authority-approved proficiency testing program for each testing
category listed in this section, in order to obtain and maintain
certification;
13. The establishment of a nd adherence to a quality assurance
and quality control program to ensure sufficient monitoring of
laboratory processes and quality of results reported;
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14. The establishment by the laboratory of a system to document
the complete chain of custody for samp les from receipt through
disposal;
15. The establishment by the laboratory 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
Authority; and
17. The immediate recall of medical marijuana or medical
marijuana products that test above allowable thresholds or are
otherwise determined to be unsafe .
O. A medical marijuana testing laboratory shall promptly
provide the Department Authority or designee of the Department
Authority access to a report of a test and any underlying data that
is conducted on a sample at the requ est of a medical marijuana
business or qualified patient. A medical marijuana testing
laboratory shall also provide access to the Department Authority or
designee of the Department Authority to laboratory premises and to
any material or information reques ted by the Department Authority 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 Authority 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 a nd medical marijuana
product for each of the following categories of testing, consistent
with standards developed by the Commissioner Authority:
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 harves t
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 The Authority shall
establish reasonable regulations, after consultation wi th and input
from medical marijuana businesses, specifying what shall constitute
a batch size for testing purposes for all types of medical
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marijuana, medical marijuana concentrate and medical marijuana
products.
S. Medical marijuana testing laboratory li censure shall be
contingent upon successful on -site inspection, successful
participation in proficiency testing and ongoing compliance with the
applicable requirements in this section.
T. A medical marijuana testing laboratory shall be inspected
prior to initial licensure and annually up to two times per year
thereafter by an inspector approved by the Authority. The Authority
may enter the licensed premises of a testing laboratory to conduct
investigations and additional inspections when the Authority
believes an investigation or additional inspection is necessary due
to a possible violation of applicable laws, rules or regulations.
U. Beginning on a date determined by the Commissioner Executive
Director, not later than January 1, 2020 2022, medical marijuana
testing laboratory licensure shall be contingent upon accreditation
by the NELAC Institute (TNI), ANSI/ASQ ANSI National Accreditation
Board (ANAB) or another accrediting body approved by the
Commissioner Executive Director, and any applicable standar ds as
determined by the Department Authority.
V. A 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
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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
Medical Marijuana and Patient Protection Act and applicable laws,
rules and regulations.
2. A licensed medical marijuana commercial grower may transfer
medical marijuana that has failed testing to a licensed medical
marijuana processor only for the purposes of remediation and only in
accordance with the Oklahoma Medical Marijuana and Patient
Protection Act and the rules and regulations of the Authority.
3. The Authority shall establish process validation
requirements related to testing, and all growers and processors who
achieve process validation under the rules and regulations set forth
by the Authority may transfer, sell or process medical marijuana,
medical marijuana concentrate and medical marijuana products in
accordance with those rules and regulations related to batch
testing.
SECTION 20. 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 ,
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medical marijuana concentrate 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 Oklahoma
Medical Marijuana Authority .
B. A medical marijuana dispensary shall return medical
marijuana, medical marijuana concentrate and medical marijuana
product products that does do not meet packaging or labeling
requirements in this section or rules promulgated pursuant thereto
to the entity who transferred it to the dispensary. The medical
marijuana dispensary shall document to whom the item was 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 s hall 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.
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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 marijuana
product is a trademarked product or labeled in a manner that
violates any federal tr ademark law or regulation.
5. The label on the container shall not make any claims
regarding health or physical benefits to the medical marijuana
patient licensee.
6. All medical marijuana, medical marijuana concentrate and
medical marijuana products sold at a licensed medical marijuana
dispensary shall be packaged in a child-resistant container at the
point of transfer to the patient or caregiver .
D. The State Department of Health Oklahoma Medical Marijuana
Authority shall develop minimum standards for packaging and labeling
of medical marijuana , medical marijuana concentrate 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, medical marijuana conce ntrate and medical
marijuana products prior to transfer to a licensed medical marijuana
patient licensee or caregiver licensee, 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;
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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 Authority; and
5. 4. Any other information the Department Authority deems
necessary.
SECTION 21. AMENDATORY Section 19, Chapter 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
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 Oklahoma Medical Marijuana
Authority.
C. A medical marijuana research license may be issued for the
following research purposes:
1. To test chemical potency and composition levels;
2. To conduct clinical investigations of marijuana -derived
medicinal products;
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3. To conduct research on the efficacy and s afety 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 no t be
conducted with a public institution or with public money, the
Authority shall grant the application if it determines that the
applicant meets the criteria in this section.
2. If the research will be conducted with a public institution
or public money, the Department Authority 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
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c. whether the amount of marijuana to be grown by the
applicant is consistent with the scope an d goals of
the project.
3. If the Authority determines that the research project does
not meet the requirements of this section or assesses 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 Authority may
revoke 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 .
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 pursuant 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 an y other
person to exercise the privilege of the license.
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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 22. AMENDATORY Section 20, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Sec tion 427.20), is amended to read as
follows:
Section 427.20 A. There is hereby created a medical marijuana
education facility license.
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 Okl ahoma
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 Oklahoma Medical Marijuana Authority.
E. A medical marijuana education facility license may be issued
for the following education and research purposes:
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1. To test cultivation techniques, strategies, 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.
F. As part of the application process for a medical marijuana
education facility license, an applicant shall submit to the
Authority a description of the project and curriculum tha t 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 A uthority 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;
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2. Whether the applicant has the appropriate personnel,
expertise, facilities, infrastructure, funding, and human, animal or
other approvals in place to successfully conduct the pr oject; 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 education project does not meet
the requirements of this section or assesses the criteri a 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 operation
to medical marijuana research licensees. The Department Authority
may revoke a medical marijuana education facility license for
violations of this section and any other violation of this act
applicable laws, rules and regulations .
H. A medical marijuana education facility licensee may contract
to perform research in conjunctio n 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 accordance 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
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marijuana education facility licensee intends to operate. A medical
marijuana education facility licensee shall not allow any other
person to exercise the privilege of the license.
SECTION 23. AMENDATORY Sect ion 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 medical marijuana patient and
caregiver licensee records and information, including, without
limitation, an application or renew al 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 qualifying patient, shall be
considered confidential medical records that are exempt from the
Oklahoma Open Records Act.
B. The licensed medical marijuana dispensary records with
patient information shall be treated as confidential records that
are exempt from the Oklahoma Open Records Act.
C. All financial information provided by an applicant or
licensee in its application to the Authority shall be treated as
confidential records that are exempt from the Oklahoma Open Records
Act.
D. All information pr ovided by an applicant or licensee that
constitutes private business information shall be treated as
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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 or licensee,
unless approval for re lease 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.
G. Except for license information concerning licensed medical
marijuana patients or licensed caregivers, the Authority may share
confidential information with the Oklahoma Tax Commission to assist
the Oklahoma Tax Commission in ens uring compliance with applicable
laws, rules and regulations.
SECTION 24. 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 a s follows:
Section 427.23 A. The State Commissioner of Health Executive
Director of the Oklahoma Medical Marijuana Authority , the Oklahoma
Tax Commission, the State Treasurer, the Secretary of State and the
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Director of the Office of Management and Enterp rise 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 Commissioner of Health Executive Director of the Authority
rules relating to all aspects of the safe cultivation and
manufacture manufacturing of medical marijuana prod ucts. In
addition to the twelve members required in Section 423 of this
title, the Authority may appoint up to eight additional members.
The makeup of the Medical Marijuana Advisory Council shall include
medical marijuana industry representation.
SECTION 25. 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 Oklahoma Medical
Marijuana Authority finds, in whole or in part, that:
1. Any medical marijuana, medical marijuana concentrate 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;
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2. The medical marijuana, medical marijuana concentrate or
medical marijuana product is handled in violation of applicable laws
or rules and regulations of the Authority; or
3. The medical marijuana, medical marijuana concentrate or
medical marijuana product may be poisonous, deleterious to health or
is otherwise unsafe,
a tag or other appropriate marking shall be affixed to the medical
marijuana, medical marijuana concentrate or medical marijuana
product. The tag or other appropriate marking shall give notice
that the medical marijuana, medical marijuana concentrate or medical
marijuana product is or is suspected of being manufactured,
produced, transferred, sold or offered f or sale in violation of
applicable laws or rules and regulations of the Authority. The tag
or other appropriate marking shall also give notice that the medical
marijuana, medical marijuana concentrate or medical marijuana
product is embargoed and shall pr ovide a warning that all persons
shall be prohibited from removing or disposing of the medical
marijuana, medical marijuana concentrate or medical marijuana
product until permission for removal or disposal is given by the
Executive Director of the Authorit y. It shall be unlawful for any
person to remove or dispose of the embargoed medical marijuana,
medical marijuana concentrate or medical marijuana product without
permission.
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B. 1. If the Executive Director finds that the medical
marijuana, medical mari juana concentrate 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 Authority, or is poisonous, deleterious to health or otherwise
unsafe, the Executive Director may institute an action in the
district court, in whose jurisdiction the medical marijuana, medical
marijuana concentrate or medical marijuana product is embargoed, for
the condemnation and destruction of the medical marijuana, medical
marijuana concentrate or medical marijuana product.
2. If the Executive Director later finds that the embargoed
medical marijuana or medical marijuana product does meet the
requirements of applicable laws or rules and regulations of the
Authority and is not poisonous, deleterious to health or otherwise
unsafe, the Executive Director shall remove the embargo.
3. In any court proceeding regarding an embargo, the State
Department of Health, the Oklahoma Medical Marijuana Authority, the
State Commissioner of He alth and the Executive Director of the
Authority shall not be held liable if the court finds reasonable
belief for the embargo.
C. If the court finds that the embargoed medical marijuana,
medical marijuana concentrate or medical marijuana product, in whol e
or in part, is in violation of any applicable laws or rules and
regulations of the Authority or is poisonous, deleterious to health,
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or otherwise unsafe, the medical marijuana, medical marijuana
concentrate or medical marijuana product shall be destroyed under
the supervision of the Executive Director 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, medical marijuana concentrate or medical
marijuana product. The court may order that the medical marijuana,
medical marijuana concentrate or medical marijuana product be
delivered to the owner or defendant for appropriate labeling or
processing under the supervision of the Executive Director if:
1. The violation can be corrected by proper processing of the
medical marijuana, medical marijuana concentrate or medical
marijuana product;
2. All costs, fees and expenses have been paid; and
3. A sufficient bond is executed and conditione d for
appropriate labeling or processing as the court may require.
The expense of supervision shall be paid to the Authority by the
person obtaining release of the medical marijuana, medical marijuana
concentrate or medical marijuana product under bond.
SECTION 26. 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 Management Act :
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1. "Authority" shall mean the Oklahoma Medical Marijuana
Authority, or successor agency;
2. "Commercial licensee" shall mean any person or entity issued
a license by the Oklahoma Medical Marijuana Authority, or successor
agency, to conduct commercial business in this stat e;
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
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c. all product and inventory from commercial licensees,
medical marijuana research facilities and medical
marijuana education facilities 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 27. 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 Marij uana 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 jurisdictional areas of environmenta l 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:
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1. Root balls Roots;
2. Stems;
3. Fan leaves; and
4. Seeds; and
5. Stalks.
Unless restricted by local 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, composting or any other technique a pproved 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 maintain 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 witness affidavit and signatu re
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 educational facilities for a period of five (5)
years and shall be subject to inspection and auditing by the
Authority.
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SECTION 28. 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. Ther e 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 marijuana
waste. No person or ent ity 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 Autho rity 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 license. 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 p rescribed 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 shall 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 elementary, middle or high school.
The distance indicated in this subparagraph shall be
measured from any entrance the nearest property line
of the public or private elementary, middle or high
school to the nearest property line point front
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entrance of the disposal facility. If any public or
private elementary, middle or high school is
established within one thousand (1,000) feet of any
disposal facility after such disposal facility has
been licensed, 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,
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may be substituted; provided, that such deposit shall be maintained
for a period of five (5) years after the date of last operation 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 h ours 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 operati ons 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 Authority 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 facility 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 sui table. Upon a finding
that a proposed medical marijuana waste disposal facility is not
physically or technically suitable, the Authority shall deny the
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permit. The Authority shall have the authority to revoke a permit
upon a finding that the site and fac ility are not physically and
technically suitable for processing. 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 marijuana 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 in 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 Oklahoma Medical Marijuana
Authority shall promulgate rules for the implementation of this act
the Oklahoma Medical Marijuana Waste Management Act . Promulgated
rules shall address disposal process standards, site security and
any other subject matter deemed necessary by the Authority.
SECTION 29. It being immediately necessary for t he 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.
58-1-7804 JL 02/26/21