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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2179 By: Fetgatter
COMMITTEE SUBSTITUTE
An Act relating to medical marijuana; amending 63
O.S. 2021, Section 422, which relates to licensing
requirements for medical marijuana commercial
growers; providing statutory reference for
application fee; updating language; amending 63 O.S.
2021, Section 427.14, which relates to the Oklah oma
Medical Marijuana and Patient Prote ction Act;
establishing tiered licensing fee schedule for
medical marijuana commercial growers; defining term s;
updating language; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAH OMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 422, is
amended to read as follows:
Section 422. A. The State Department of Healt h shall, within
thirty (30) days of passag e of this initiative, Oklahoma Medical
Marijuana Authority shall make available on its website in an easy-
to-find location an application for a medical marijuana commercial
grower license. The application fee shall be Two Thousand Five
Hundred Dollars ($2,500.00) paid by the applicant in the amounts
provided for in Section 427.14 of th is title. A method of payment
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for the application fee shall be provided on the website of the
Department Authority. The State Department of Health Authority
shall have ninety (90) days to review the application; approve,
reject or deny the application; and mail the approval, rejection or
denial letter stating the reasons for the rejection or denial to the
applicant.
B. The State Department of Healt h Authority shall approve all
applications which meet the following criteria:
1. The applicant must be twenty-five (25) years of age or
older;
2. 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 resi dents;
4. An applying entity may show owner ship 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 owner ship interests in the
commercial grower operation.
Applicants with a nonviolent felony conviction in the last two
(2) years, any other felony conviction in the last five (5) years,
inmates in the custody of the D epartment of Corrections or any
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person currently incarcerated shall not qualify for a commercial
grower license.
C. A licensed medical marijuana commercial grower may sell
marijuana to a licensed medical marijuana dispensary or a licensed
medical marijuana processor. Further, sales by a licensed medical
marijuana commercial grower shall be considered wholesale sales and
shall not be subject to taxation. Under no circumstances may a
licensed medical marijuana commercial grower sell marijuana directly
to a licensed medical marijuana patient or licensed medical
marijuana caregiver. A licensed medical marijuana commercial grower
may only sell at the wholesale level to a license d medical marijuana
dispensary, a licensed medical marijuana commercial grower or a
licensed medical marijuana processor. If the federal government
lifts restrictions on buying and selling mariju ana between states,
then a licensed medical marijuana commercial grower would be allow ed
to sell and buy marijuana wholesale from, or to, a n out-of-state
wholesale provider. A licensed medical marijuana commercial grower
shall be required to complete a monthly yield and sales report to
the State Department of Health Authority. This report shall be due
on the fifteenth of each month and provide reporting on the previous
month. This report shall detail the amount of marijuana harvested
in pounds, the amount of drying or dried marijuana on hand, the
amount of marijuana sold to licensed processors in pounds, the
amount of waste in pounds, and the amount of marijuana sold t o
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licensed medical marijuana dispensaries in pounds. Additionally,
this report shall show total wholesale sales in dollars . The State
Department of Health Authority shall have oversight and auditing
responsibilities to ensure th at all marijuana being grown by
licensed medical marijuana commercial growers is accounted for.
D. There shall be no limits on how much marijuana a licensed
medical marijuana commercial grower can grow.
E. Beginning on the effective date of this act, l icensed
medical marijuana commercial growers shall be authorized to package
and sell pre-rolled marijuana to licensed medical marijuana
dispensaries. The products described in this subsection shall
contain only the ground parts of the mari juana plant and shall not
include marijuana conc entrates or derivatives. The total net weight
of each pre-roll packaged and sold by licensed medical marijuana
commercial growers shall not exc eed one (1) gram. These products
must be tested, packaged and labeled in accordance with Oklahoma law
and rules promulgated by the State Commissioner of Health Authority.
SECTION 2. 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 inc lude the following
categories:
1. Medical marijuana commercial grower;
2. Medical marijuana processor;
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3. Medical marijuana dispensary;
4. Medical marijuana transporter; and
5. Medical marijuana testin g laboratory.
B. The Oklahoma Medical Marijuana A uthority, 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 m arijuana
business.
D. The 1. Except as provided in paragraph 2 of this
subsection, the annual, nonrefundable application fee for a medical
marijuana business license shall be Two Thousand Five Hundred
Dollars ($2,500.00).
2. The annual, nonrefundable application fee for a medical
marijuana commercial grower shall be as follows:
a. For an indoor medical marijuana grow facility:
(1) Tier 1: Up to one thousand six hundred sixty -
seven (1,667) square feet of canopy, the fee
shall be Two Thousand Five Hundred Dollars
($2,500.00),
(2) Tier 2: One thousand six hundred sixty -eight
(1,668) square feet of canopy to two thousand
four hundred ninety-nine (2,499) square feet of
canopy, the fee shall be cal culated at One Dollar
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and fifty cents ($1.50) per square foot of
canopy,
(3) Tier 3: Two thousand five hundred (2,500) squa re
feet of canopy to four thousand nine hundred
ninety-nine (4,999) square feet of canopy, the
fee shall be calculated at One Dollar and fifty
cents ($1.50) per square foot of canopy,
(4) Tier 4: Five thousand (5,000) square feet of
canopy to nine thousand nine hundred ninety-nine
(9,999) square feet of canopy, the fee shall be
calculated at One Dollar and fifty cents ($1.50)
per square foot of canopy,
(5) Tier 5: Ten thousand (10,000) square f eet of
canopy to nineteen thousand nine hundred ninety-
nine (19,999) square feet of canopy, the fee
shall be calculated at One Dollar and fifty cents
($1.50) per square foot of canopy,
(6) Tier 6: Twenty thousan d (20,000) square feet of
canopy to twenty-nine thousand nine hundred
ninety-nine (29,999) square feet of canopy, the
fee shall be calculated at One Dollar and fifty
cents ($1.50) per square foot of canopy ,
(7) Tier 7: Thirty thousand (30,000) square feet of
canopy to forty-nine thousand nine hundred
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ninety-nine (49,999) square feet of canopy , the
fee shall be calculated at One Dollar and fifty
cents ($1.50) per square foot of canopy, and
(8) Tier 8: Fifty thousand (50,000) squ are feet of
canopy and beyond, the fee shall be calculated at
One Dollar and fifty cents ($1.50) per square
foot of canopy,
b. For a greenhouse or a light deprivation medical
marijuana grow facility:
(1) Tier 1: Up to one thousand six hundred sixty-
seven (1,667) square feet of canop y, the fee
shall be Two Thousand Five Hun dred Dollars
($2,500.00),
(2) Tier 2: One thousand six hundred sixty-eight
(1,668) square feet of canopy to two thousand
four hundred ninety-nine (2,499) square feet of
canopy, the fee shall be cal culated at One Dollar
and fifty cents ($1.50) per square foot of
canopy,
(3) Tier 3: Two thousand five hundred (2,500) square
feet of canopy to four th ousand nine hundred
ninety-nine (4,999) square feet of canopy, the
fee shall be calculated at One Dollar and fifty
cents ($1.50) per square foot of canopy ,
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(4) Tier 4: Five thousand (5,000) square feet of
canopy to nine thousand nine hundred ninety-nine
(9,999) square feet of canopy, the fee shall be
calculated at One Dollar and fifty cents ($1.50)
per square foot of canopy ,
(5) Tier 5: Ten thousand (10,000) square feet of
canopy to nineteen thousand nine hundred ninety -
nine (19,999) square feet of canopy, the fee
shall be calculated at One Dollar and fifty cents
($1.50) per square foot of canopy ,
(6) Tier 6: Twenty thousa nd (20,000) square feet of
canopy to twenty-nine thousand nine hundred
ninety-nine (29,999) square feet of canopy, the
fee shall be calculated at One Dollar and fifty
cents ($1.50) per square foot of canopy ,
(7) Tier 7: Thirty thousand (30,000) square fee t of
canopy to forty-nine thousand nine hund red
ninety-nine (49,999) square feet of canopy, the
fee shall be calculated at One Dollar and fifty
cents ($1.50) per square foot of canopy, and
(8) Tier 8: Fifty thousand ( 50,000) square feet of
canopy and beyond, the fee shall be calculated at
One Dollar and fifty cents ($1.50) per square
foot of canopy,
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c. For an outdoor medical marijuana grow fac ility:
(1) Tier 1: Up to eighty-three thousand three
hundred thirty-four (83,334) square feet of
canopy, the fee shall be Two Thousand Five
Hundred Dollars ($2,500.00),
(2) Tier 2: Eighty-three thousand three hundred
thirty-five (83,335) square feet of canopy to two
hundred seventeen thousand seven hundred ninety-
nine (217,799) square feet of canopy, the fee
shall be calculated at three cents ($0.03) per
square foot of canopy,
(3) Tier 3: Two hundred sevente en thousand eight
hundred (217,800) square feet of c anopy to four
hundred thirty-five thousand five hundre d ninety-
nine (435,599) square feet of canopy, the fee
shall be calculated at three cents ($0.03) per
square foot of canopy,
(4) Tier 4: Four hundred thirty-five thousand six
hundred (435,600) square feet of canopy to ei ght
hundred seventy-one thousand one hundred ninety -
nine (871,199) square feet of canopy, the fee
shall be calculated at three cents ($0.03) per
square foot of canopy,
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(5) Tier 5: Eight hundred seventy-one thousand two
hundred (871,200) square feet of canopy to one
million three hundred six thousand seven hundred
ninety-nine (1,306,799) square feet of canopy,
the fee shall be calculat ed at three cents
($0.03) per square foot of canopy,
(6) Tier 6: One million three hundred six thousand
eight hundred (1,306,800) square feet of canopy
to one million seven hun dred forty-two thousand
three hundred ninety-nine (1,742,399) square feet
of canopy, the fee shall be calculated at three
cents ($0.03) per square foot of canopy,
(7) Tier 7: One million seven hundred forty-two
thousand four hundred (1,742,400) square feet of
canopy to two million one hundre d seventy-seven
thousand nine hundred ninety-nine (2,177,999)
square feet of canopy , the fee shall be
calculated at three cents ($0.03) per square foot
of canopy, and
(8) Tier 8: Two million one hun dred seventy-eight
thousand (2,178,000) square fe et of canopy and
beyond, the fee shall be cal culated at three
cents ($0.03) per square foot of canopy, or
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d. For a medical marijuana grow facility that produces
clones from nonflowering plants for retail sale, the
fee shall be Two Thousand Five Hundred Dollars
($2,500.00).
3. As used in this subsection:
a. "canopy" means the total surface area within a
cultivation area that is de dicated to the cultivation
of flowering marijuana plants. The surface area of
the plant canopy must be cal culated in square feet and
measured and must include all of the area within the
boundaries where the cultivation of the flowering
marijuana plants occurs. If the surface of the plant
canopy consists of noncontiguous areas, each co mponent
area must be separated by identifiable boundar ies. If
a tiered or shelving system i s used in the cultivation
area, the surface area of each tier or shelf must be
included in calculating the area of the plant canopy.
Calculation of the are a of the plant canopy may not
include the areas within the cult ivation area that are
used to cultivate immature marijuana plants and
seedlings, prior to flowering, and that are not used
at any time to cultivate mature marijuana plants . If
the flowering plants are vertically grown in
cylinders, the square foot age of the canopy shall be
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measured by the circumference of the cylinder
multiplied by the total length of the cylinder,
b. "greenhouse" means a structure located outdoors that
is completely covered by a material that allows a
controlled level of li ght transmission, and
c. "light deprivation" means a structure that has
concrete floors and the abilit y to manipulate natural
light.
E. All applicants seeking licensure or licensure renewal as a
medical marijuana business shall comply with the following general
requirements:
1. All applications for licens es and registrations authorized
pursuant to this section shall be made upon forms prescribed b y 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 be accepted or
considered;
4. All applications shall be complete and accurate in every
detail;
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5. All applications shal l include all attachments or
supplemental information required by the forms supplied by the
Authority;
6. All applications shall b e accompanied by a full remittance
for the whole amount of the application fees . Application fees are
nonrefundable;
7. All applicants shall be approved for lic ensing review that,
at a minimum, meets the following criteria:
a. twenty-five (25) years of a ge or older,
b. if applying as an individual, proof that the applicant
is an Oklahoma resident pursuant 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 any other form of
business ownership are Oklahoma residents pursuant to
paragraph 11 of this subsecti on,
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 t o the
Oklahoma Medical Marijuana and Patient Protection Act ,
and
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f. proof that the medical marijuan a business, medical
marijuana research facility, medical marijuana
education facility and medi cal marijuana waste
disposal facility applicant or licensee has not been
convicted of a nonviolent felony in the last two (2)
years, or any other felony convictio n 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 limit to the number of medica l marijuana
business licenses or cate gories that an individual or entity can
apply for or receive, although each application and ea ch category
shall require a separate application and application fee . A
commercial grower, processor and dispensary, or any combination
thereof, are authorized t o share the same address 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 business 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 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:
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a. individual applicants applying o n 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 b y 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 b ackground checks;
11. In order to be considered an Oklahoma resident for purposes
of a medical marijuana business application, all applicants shall
provide proof of Oklahoma residency for at least two (2) years
immediately preceding the date of applicatio n 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 identification card,
c. a utility bill preceding the date of application,
excluding cellular telephone 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 applicat ion
for residential property located in the State of
Oklahoma.
Applicants that were issued a m edical marijuana business license
prior to August 30, 2019, are hereby exempt from the two -year or
five-year Oklahoma residen ce requirement mentioned above;
12. All license applicants shall be required to submit a
registration with the Oklahoma State Bure au of Narcotics and
Dangerous Drugs Control as provided 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 id entification
issued by the United Sta tes government, or
d. a tribal identification card approved for
identification purposes by the Oklahoma Department of
Public Safety; and
14. All applicants shall submit an applicant photograph.
F. The Authority shall review the medical marijuana business
application; approve, reject or deny the application; and mail the
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approval, rejection, denial or status-update letter to the applicant
within ninety (90) business days of receipt of the application.
G. 1. The Authority shall review the medical marijuan a
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 approved 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 Patient Protection Act and Sections
420 through 426.1 of this title , improper completion of the
application, or for a reason provided for i n 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 Authority determines otherwise, an application that
has been resubmitted b ut is still incomplete or contains errors that
are not clerical or typographical in nature shall be denied.
3. Status-update letters shall provide a reason for d elay in
either approval, rejection or denial should a situation arise in
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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 license for a medical marijuana business, medical
marijuana research facility, medical 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 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 offic er,
director or stockholder has been convicted of a nonviolent felony
within two (2) years of the date of application, or wit hin five (5)
years for any other felo ny;
4. A person under twenty-five (25) years of age;
5. A person licensed pursuant to this s ection who, during a
period of licensure, or who, at the time of application, has failed
to:
a. file taxes, interest or penal ties due related to a
medical marijuana business, or
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b. pay taxes, interest or penalties due related to a
medical marijuana busines s;
6. A sheriff, deputy sheriff, police officer or prosecuting
officer, or an officer or employee of the Authority or munici pality;
7. A person whose authority to be a caregiver, as defined in
Section 427.2 of this title, has been revoked by the Department
Authority; or
8. A person who was involved in the management or operations of
any medical marijuana business, medical mar ijuana research facility,
medical marijuana education facility or medical marijuana waste
disposal facility that, after the initiat ion of a disciplinary
action, has had a medical marijuana license revoked, not renewed, or
surrendered during the five (5) ye ars 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
patient licensees, caregiver licensees o r medical
marijuana business licensee s,
c. any grossly inaccurate or fraudulent reporting,
d. threatening or harming any medical ma rijuana patient,
caregiver, medical practitioner or employee of the
Department Authority,
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e. knowingly or intentionally refus ing to permit the
Department Authority access to premises or records,
f. using a prohibited, hazardous substance for p rocessing
in a residential area,
g. criminal acts relating to the operation of a medical
marijuana business, or
h. any violations that end anger 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 age ncy subject to any restrictions impos ed by such
an agency.
J. The failure of an applicant or licensee to provide the
requested information by the Authority 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 b e grounds for administrative action against the
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applicant or licensee. Typos and scrivener errors shall not be
grounds for denial.
L. A licensed medical marijuana business prem ises shall be
subject to and responsible for compliance with applicable provision s
consistent with the zoning where such business is located 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 b y a municipality or
appropriate code enforcement entity.
M. All medical marijuana business , medical marijuana research
facility, medical marijuana education fa cility and medical marijuana
waste disposal facility licensees shall pay the relevant licensure
fees prior to receivin g licensure to operate.
N. A medical marijuana business, medical marijuana research
facility, medical marijuana education facility or med ical marijuana
waste disposal facilit y that attempts to renew its license after the
expiration date of the license sh all pay a late renewal fee in an
amount to be determined by the Department Authority to reinstate the
license. Late renewal fees are nonre fundable. A license that has
been expired for more than ninety (90) days shall not be renewed.
O. No medical marijuana busine ss, medical marijuana research
facility, medical marijuana education facility or medical marijuana
waste disposal facility shall possess, sell or transfer medical
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marijuana or medical marijuana products without a valid, unexpired
license issued by the Department Authority.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
58-2-11120 LRB 03/15/22