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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2023 By: Fetgatter
COMMITTEE SUBSTITUTE
An Act relating to medical marijuana; 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; updating language;
clarifying distance requirements for medical
marijuana dispensaries; amending 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), which relates to the Oklahoma Medical
Marijuana and Patient Protection Act; providing for
the transfer of medi cal marijuana dispensary, medical
marijuana processor and medical marijuana commercial
grower licenses; providing procedures; setting
application fee; prohibiting transfer of license
until approval by the Oklahoma Medical Marijuana
Authority; granting tran sferees the same rights,
privileges and exemptions as the transferor;
directing the Authority to provide certain notice
upon denial of transfer request; directing the
Authority to promulgate rules and procedures; and
declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 6, State Question No. 788,
Initiative Petition No. 412, as last amended by Section 46, Chapter
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161, O.S.L. 2020 (63 O.S. Supp. 2020, Section 425), is a mended 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 c ause the school or landlord the
potential to lose a monetary or licensing -related benefit under
federal law or regulations.
B. Unless a failure to do so would cause an employer the
potential to lose a monetary or licensing -related benefit under
federal law or regulations, an employer may not discriminate against
a person in hiring, termination or imposing any term or condition of
employment or otherwise penalize a person based upon either:
1. The the status of the person as a medical marijuana license
holder patient licensee; or
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 ho urs 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 po sitive for marijuana or its
components.
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C. For the purposes of medical care, including organ
transplants, the authorized use of marijuana by a medical marijuana
license holder patient licensee shall be considered the equivalent
of the use of any other med ication 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 the behavior of the
person creates an unreasonable danger to the safety of the minor
child.
E. No person holding who possesses a medical marijuana license
may unduly be withheld from holding a state -issued license by virtue
of their being a medical marijuana license holder patient licensee
including, but not limited to, a concealed carry permit.
F. 1. No city or local municipality may unduly change or
restrict zoning laws to prevent the opening of a retail medical
marijuana establishment dispensary.
2. For purposes of this subsection, an undue change or
restriction of municipal zoning laws means an ac t which entirely
prevents retail medical marijuana establishments dispensaries from
operating within municipal boundaries as a matter of law.
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Municipalities may follow their standard planning and zoning
procedures to determine if certain zones or district s would be
appropriate for locating marijuana -licensed premises, medical
marijuana businesses or any other premises where marijuana or its
by-products are cultivated, grown, processed, stored or
manufactured.
3. For purposes of this section, "retail marijuana
establishment" "medical marijuana dispensary" means an entity
licensed by the State Department of Health Oklahoma Medical
Marijuana Authority as a medical marijuana dispensary. Retail
marijuana establishment A medical marijuana dispensary does not
include those other entities licensed by the Department as
marijuana-licensed premises, medical marijuana businesses or other
facilities or locations where marijuana or any product containing
marijuana or its by-products are cultivated, grown, processed,
stored or manufactured.
G. The Except as otherwise provided in this subsection, the
location of any retail medical marijuana establishment dispensary is
specifically prohibited within one thousand (1,000) feet of any
public or private school entrance. On and after November 1, 2019,
the prohibited distance shall be measured from the nearest property
line of the medical marijuana dispensary to the nearest property
line of the public or private school. If any public or private
school is established within one thousand (1,000) feet of any
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medical marijuana dispensary after a license has been issued by the
Authority for that location, the prohibited distance between
properties shall not apply as long as the licensed property is
continuously used for its stated pu rpose. The Authority shall not
deny any issuance or renewal of licensure, deny any transfer of
licensure pursuant to a change in ownership or revoke any license
due to a mistake in measurement by the Authority or any change in
public or private school usa ge after an initial license has been
issued at the location. The licensed location shall be
grandfathered by the Authority as long as the property continues to
be used in accordance with the original licensed purpose, regardless
of any change in ownership .
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 license shall be granted, provided the
applicant meets the criteria listed under subsection B of S ection
421 of this title. 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 Authority oversight.
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SECTION 2. 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 laboratory.
B. The Oklahoma Medical Marijuana Authority, with the aid of
the Office of Management and Enterprise Services, shal l develop a
website for medical marijuana business applications.
C. The Authority shall make available on its website in an
easy-to-find location, applications for a medical marijuana
business.
D. The nonrefundable application fee for a medical marijuana
business license shall be Two Thousand Five Hundred Dollars
($2,500.00).
E. All applicants seeking licensure as a medical marijuana
business shall comply with the following general requirements:
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1. All applications for licenses and registrations authori zed
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 comple te application to the
Department Authority before the application may be accepted or
considered;
4. All applications shall be complete and accurate in every
detail;
5. All applications shall include all attachments or
supplemental information required by the forms supplied by the
Authority;
6. All applications shall be accompanied by a full remittance
for the whole amount of the application fees. Application fees are
nonrefundable;
7. All applicants shall be approved for licensing review that,
at a minimum, meets the following criteria:
a. all applicants shall be age twenty -five (25) years of
age or older,
b. any applicant 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 applying as an entity shall show 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 subsectio n,
d. all applying individuals or entities shall be
registered to conduct business in the State of
Oklahoma,
e. all applicants shall disclose all ownership interests
pursuant to this act, and
f. applicants shall not have been convicted of a
nonviolent felony in the last two (2) years, and any
other felony conviction within the last five (5)
years, shall not be current inmates, or currently
incarcerated in a jail or corrections facility;
8. There shall be no limit to the number of medical marijuana
business licenses or categories that an individual or entity can
apply for or receive, although each application and each category
shall require a separate application and application fee. A
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 ;
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9. All applicants for a medical marijuana business license,
research facility lice nse or education facility license authorized
by this act shall undergo an Oklahoma criminal history background
check conducted by the Oklahoma State Bureau of Investigation (OSBI)
within thirty (30) days prior to the application for the license,
including:
a. individual applicants applying on their own 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 Section
427.2 of this title;
10. All applicable fees char ged by 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 appli cation, all applicants 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 t he 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,
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c. a utility bill preceding the date of applicat ion,
excluding cellular telephone and Internet bills,
d. a residential property deed to property in the State
of Oklahoma, and
e. a rental agreement preceding the date of application
for residential property located in the State of
Oklahoma.
Applicants that were issued a medical marijuana business license
prior to the enactment of the Oklahoma Medical Marijuana and Patient
Protection Act are hereby exempt from the two -year or five-year
Oklahoma residence requirement mentioned above;
12. All license applica nts 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 id entity through
submission of a color copy or digital image of one of the following
unexpired documents:
a. front and back of an Oklahoma driver license,
b. front and back of an Oklahoma identification card,
c. a United States passport or other photo identi fication
issued by the United States government,
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d. certified copy of the applicant's birth certificate
for minor applicants who do not possess a document
listed in this section, or
e. a tribal identification card approved for
identification purposes by th e Oklahoma Department of
Public Safety; and
14. All applicants shall submit an applicant photograph.
F. The Authority shall review the medical marijuana business
application, approve or reject the application and mail the
approval, rejection or status -update letter to the applicant within
ninety (90) business days of receipt of the application.
G. 1. The Authority shall review the medical marijuana
business applications and conduct all investigations, inspections
and interviews before approving the appl ication.
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 letters shall
provide a reason for the rejection. Applications may only be
rejected based on the applicant not meeting the standards set forth
in the provisions of this section, improper completion of the
application, or for a reason provided for in this act. If an
application is rejected for failure to provide required information,
the applicant shall have thirty (30) days to submit the required
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information for reconsideration. No additional application fee
shall be charged for such reconsideration.
3. Status-update letters shall provide a reason for delay in
either approval or rejection should a situation arise in which an
application was submitted properly, but a delay in processing the
application occurred.
4. Approval, rejection or status -update letters shall be sent
to the applicant in the same method the applicat ion was submitted to
the Department Authority.
H. A medical marijuana business license shall not be issued to
or held by:
1. A person until all required fees have been paid;
2. A person who has been convicted of a nonviolent felony
within two (2) years of the date of application, or within five (5)
years for any other felony;
3. A corporation, if the criminal history of any of its
officers, directors or stockholders indicates that the officer,
director or stockholder has been convicted of a nonviolent f elony
within two (2) years of the date of application, or within five (5)
years for any other felony;
4. A person under twenty -five (25) years of age;
5. A person licensed pursuant to this section who, during a
period of licensure, or who, at the time of application, has failed
to:
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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 has been revoked by the Department Authority.
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 Authority considers the
criminal history record of the applicant, the Department Authority
shall also consider any information provided by the applicant
regarding such criminal history record, including but not limited to
evidence of rehabilitation, character references and educational
achievements, especially those items pertaining to the period of
time between the last criminal conviction of the applicant and the
consideration of the application for a state license.
J. The failure of an applicant to provide the requested
information by the Authority deadline may be grounds for denial of
the application.
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K. All applicants 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 appl ication
where the applicant made 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 for additional administra tive
action against the applicant. 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 applicable 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.
M. All medical marijuana business lic ensees shall pay the
relevant licensure fees prior to receiving licensure to operate a
medical marijuana business, as defined in this act for each class of
license.
N. 1. Upon the effective date of this act, the license of a
medical marijuana dispensary, medical marijuana processor and
medical marijuana commercial grower may be assigned or otherwise
transferred from one person to another person, from one medical
marijuana business to another, or from one legal entity to another;
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provided, however, a perso n may not transfer a license without first
applying for and receiving approval by the Oklahoma Medical
Marijuana Authority.
2. Prior to transferring the license, the licensee shall submit
an application requesting such transfer and pay an application fee
of Five Hundred Dollars ($500.00) to the Authority. Applications
for the transfer of medical marijuana dispensary licenses, medical
marijuana processor licenses or medical marijuana commercial grower
licenses shall be made upon a form and in a manner pres cribed by the
Authority. Failure to obtain approval of a license transfer request
may result in the suspension or revocation of the license.
3. When the Authority approves an application for a license
transfer, the transferee shall be entitled to the sa me rights,
privileges and exemptions provided in statute including, but not
limited to, medical marijuana business location restrictions,
exercised or enjoyed by the transferor prior to the date of the
transfer, regardless of whether the medical marijuana business
license of the transferor expires pending approval of the transfer
request.
4. If the Authority denies an application for a license
transfer, the Authority shall provide written notice to the
applicant of such denial and shall provide an explanat ion as to why
the request was denied.
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5. The Authority shall promulgate rules to implement the
provisions of this subsection.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergen cy 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.
58-1-7382 GRS 02/04/21