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SENATE FLOOR VERSION
April 7, 2022
AS AMENDED
ENGROSSED HOUSE
BILL NO. 2025 By: Steagall, Davis, Talley,
Fugate, and McDugle of the
House
and
Murdock and Bergstrom of
the Senate
An Act relating to medical marijuana; amending 63
O.S. 2021, Section 427.14, which relates to the
Oklahoma Medical Marijuana and Patient Protection
Act; requiring medical marijuana business licensees
to display their license in a certain manner; a nd
declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 427.14, is
amended to read as follows:
Section 427.14 A. There is hereby created the medica l
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 testin g laboratory.
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B. The Oklahoma Medical Marijuana Authority, with the aid of
the Office of Management and Enterprise Services, shall develop a
website for medical marijuana business applications.
C. The Authority shall make available on its website in an
easy-to-find location, applications for a medical marijuana
business.
D. The annual, nonrefundable 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:
1. All applications for licenses and re gistrations 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 before the application may be accepted or considered;
4. All applications shall be complete and accurate in every
detail;
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5. All applications shall include all attachments or
supplemental information re quired by the forms supplied by the
Authority;
6. All applications shall be accompanied by a full remitta nce
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. twenty-five (25) years of age or older,
b. if applying as an individual, proof that the applicant
is an Oklahoma resident purs uant to paragraph 11 of
this subsection,
c. if applying as an entity, proof that seventy-five
percent (75%) of all members, managers, executive
officers, partners, board members or an y other form of
business ownership are Oklahoma residents pursuant to
paragraph 11 of this subsection,
d. if applying as an individual or entity, proof that the
individual or entity is registered to conduct business
in the State of Oklahoma,
e. disclosure of all ownership interests pursuant to the
Oklahoma Medical Marijuana and Patient Protection Act,
and
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f. proof that the medical marijuana business, medical
marijuana research facility, medical marijuana
education facility and medical marijuana waste
disposal facility applicant or l icensee has not been
convicted of a nonviolent felony in the last two (2)
years, or any other felony conviction within the last
five (5) years, is not a current inmate in the custody
of the Department of Corrections , or currently
incarcerated in a jail or corrections facility;
8. There shall be no lim it to the number of medical marijuana
business licenses or categories that an indi vidual or entity can
apply for or receive, although each application and each category
shall require a separate application and application fee. A
commercial grower, process or and dispensary, or any combination
thereof, are authorized to share the same ad dress or physical
location, subject to the restrictions set forth i n the Oklahoma
Medical Marijuana and Patient Protection Act ;
9. All applicants for a medical marijuana bus iness license,
research facility license or education facility license authorized
by the Oklahoma Medical Marijuana and Patient Protection Act, or for
a renewal of such license, shall undergo an Oklahoma crimi nal
history background check conducted by the O klahoma State Bureau of
Investigation (OSBI) within thirty (30) days prior to the
application for the license, including:
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a. individual applicants applying on their own behalf,
b. individuals applying on behal f of an entity,
c. all principal officers of an entity, and
d. all owners of an entity as defined by the Oklahoma
Medical Marijuana and Patient Protection Act;
10. All applicable fees charged by the OSBI are the
responsibility of the applicant and shall n ot be higher than fees
charged to any other per son or industry for such background checks;
11. In order to be considered an Okla homa resident for purposes
of a medical marijuana business application, all applicants sha ll
provide proof of Oklahoma residenc y for at least two (2) years
immediately preceding the date of application or five (5) years of
continuous Oklahoma residency dur ing the preceding twenty-five (25)
years immediately preceding the date of application . Sufficient
documentation of proof of r esidency shall include a combination of
the following:
a. an unexpired Oklahoma-issued driver license,
b. an Oklahoma identification card,
c. a utility bill preceding the date of application,
excluding cellular telep hone and Internet bills,
d. a residential property deed to property in the State
of Oklahoma, and
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e. a rental agreement preceding the date of application
for residential property located in the State of
Oklahoma.
Applicants that were issued a medical ma rijuana business license
prior to August 30, 2019, are hereby exempt from the two -year or
five-year Oklahoma residence requirement mentioned above;
12. All license applicants shall be required to submit a
registration with the Oklahoma State Bureau of Na rcotics and
Dangerous Drugs Control as provi ded in Sections 2-302 through 2-304
of 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 of an Oklahoma driver license,
b. front of an Oklahoma identification card,
c. a United States passport or other photo identification
issued by the United States government, or
d. a tribal identification card approved for
identification purposes by the Ok lahoma Department of
Public Safety; and
14. All applicants shall submit an applicant photograph .
F. The Authority shall review the medical marijuana business
application; approve, reject or deny the application; and mail the
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approval, rejection, denial or status-update letter to the applicant
within ninety (90) business days of receipt of the appli cation.
G. 1. The Authority shall review the medical marijuana
business applications and conduct all investigations, inspections
and interviews before app roving 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 approv ed status. Rejection and denial
letters shall provide a reason for the r ejection or denial.
Applications may only be rejected or denied based on the applicant
not meeting the standards set forth in the provisions of the
Oklahoma Medical Marijuana and Pat ient Protection Act and Sections
420 through 426.1 of this title , improper completion of the
application, or for a reason provi ded for in the Oklahoma Medical
Marijuana and Patient Protection Act and Sections 420 through 426.1
of this title. If an application is rejected for failure to provide
required information, the applica nt shall have thirty (30) days to
submit the required information for reconsideration . No additional
application fee shall be charged for such reconsideration. Unless
the Department determines otherwise, an application that has been
resubmitted but is st ill incomplete or contains errors that are not
clerical or typographical in nature shall be denied.
3. Status-update letters shall provide a reason for delay in
either approval, rejection or denial should a situation arise in
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which an application was su bmitted properly but a delay in
processing the applicati on occurred.
4. Approval, rejection, denial or status-update letters shall
be sent to the applicant in the same method the appli cation was
submitted to the Department.
H. A license for a medical marijuana business, medical
marijuana research facility, me dical marijuana education facility or
medical marijuana waste disposal facility shall not be issued to or
held by:
1. A person until all required fees have been paid;
2. A person who has been c onvicted of a nonviolent felony
within two (2) years of the d ate of application, or within five (5)
years for any other felony;
3. A corporation, if the criminal history of any of its
officers, directors or stockholders indicates that the officer,
director or stockholder has been convicted of a nonviolent felony
within two (2) years of the date of application, or within five (5)
years for any other felony;
4. A person under twenty-five (25) years of age;
5. A person licensed pursuant to this section w ho, during a
period of licensure, or who, at the time of applica tion, has failed
to:
a. file taxes, interest or penalties due related to a
medical marijuana business, or
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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;
7. A person whose authority to be a caregiver, as defined in
Section 427.2 of this title, has been revoked by the Department ; or
8. A person who was involved in the management or operations of
any medical marijuana business, medical marijua na research facility,
medical marijuana education facility or medical marijuana wa ste
disposal facility that, after the initiation of a disc iplinary
action, has had a medical marijuana license revoked, not ren ewed, 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, falsific ation of records or
misrepresentation to the Authority, medical marijua na
patient licensees, caregiver licensees or me dical
marijuana business licensees,
c. any grossly inaccurate or fraudulent report ing,
d. threatening or harming any medical marijuana p atient,
caregiver, medical practitioner or employee of the
Department,
e. knowingly or intentionally refusing to permit the
Department access to premises or records,
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f. using a prohibited, hazardous sub stance for processing
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 muni cipalities may have
access to criminal history record information furnished by a
criminal justice agency subject to any restr ictions imposed by such
an agency.
J. The failure of an applicant or licensee to provide the
requested information by the Authori ty 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 misstatements,
omissions, misrepresentations or untruths in the application or in
connection with the background investigation of the applicant. This
type of conduct may be grounds for administrative action ag ainst the
applicant or licensee. Typos and scrivener errors shall not be
grounds for denial.
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L. A licensed medical marijuana business premises shall be
subject to and responsible for compliance with applicab le provisions
consistent with the zoning where such business is located as
described in the most recent versions of the Oklahom a Uniform
Building Code, the International Buil ding Code and the International
Fire Code, unless granted an exemption by a municipality or
appropriate code enforcement entity .
M. All medical marijuana business , medical marijuana research
facility, medical marijuana education facility and medical marij uana
waste disposal facility licensees shall pay the relevant licensure
fees prior to receiving licensure to operate.
N. A medical marijuana business, medical marijuana research
facility, medical marijuana ed ucation facility or medical marijuana
waste disposal facility that attempts to renew its license after the
expiration date of the license shall pay a late renewal fee in an
amount to be determined by the Department to reinstate the license .
Late renewal fees are nonrefundable . A license that has been
expired for more than ninety (90) days shall not be renewed.
O. No medical marijuana business, medical marijuana research
facility, medical marijuana education facility or medical marijuana
waste disposal facility shall possess, sell or transfer medical
marijuana or medical marijuana products without a valid, unexpired
license issued by the Department.
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P. All licensed medical marijuana businesses, medical marijuana
research facilities, medical marijuana educ ation facilities, and
medical marijuana waste d isposal facilities shall display their
license issued by the Authority in a conspicuous location or manner
easily visible to any p erson entering the business. For purposes of
this section, "easily visible" for medical marijuan a license holders
operating a commercial grow shall mean viewable from the street
nearest to the entrance of the site of the com mercial grow
operation. The Authority shall promulgate rules as may be ne cessary
to implement the provisions of this subsection.
SECTION 2. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its pas sage and approval.
COMMITTEE REPORT BY: COMMIT TEE ON BUSINESS, COMMERCE AND TOURISM
April 7, 2022 - DO PASS AS AMENDED