Req. No. 11601 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
CONFERENCE COMMITTEE
SUBSTITUTE
FOR ENGROSSED
HOUSE BILL NO. 2179 By: Fetgatter and McDugle of
the House
and
Garvin and Stephens of the
Senate
CONFERENCE COMMITTEE SUBSTITUTE
An Act relating to medical marijuana; amending 63
O.S. 2021, Sections 421, 422, and 423, which relate
to licensing requirements for medical marijuana
dispensaries, commercial growers, and processors;
modifying application fee for medical marijuana
dispensaries; providing statutory reference for
certain application fees; updating language; amending
63 O.S. 2021, Section 427.14, which relates to the
Oklahoma Medical Marij uana and Patient Protection
Act; establishing tiered licensing fees for medical
marijuana commercial growers and processors;
modifying application fees for medical marijuana
dispensaries and laboratories; defining terms;
updating language; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 421, is
amended to read as follows:
Req. No. 11601 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Section 421. A. The State Department of Health Oklahoma
Medical Marijuana Authority shall, within thirty (30) days of
passage of this initiative, make available on its website in an
easy-to-find location an application for a medical marijuana
dispensary license. The application fee to be paid by the applicant
shall be Two Thousand Five Hundred Dollars ($2,500.00) in the
amounts provided for in Section 427.14 of this title. A method of
payment for the application fee shall be provided on the website of
the Department Authority. Dispensary applicants must all be
residents of Oklahoma. Any entity applying for a dispensary license
must be owned by an Oklahoma resi dent and must be registered to do
business in Oklahoma. The Department Authority shall have ninety
(90) business days to review the application; approve, reject or
deny the application; and mail the approval, rejection or denial
letter stating reasons for the rejection or denial to the applicant.
B. The State Department of Health 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 residents;
Req. No. 11601 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
4. An applying entity may show ownership of non -Oklahoma
residents, but that percentage ow nership may not exceed twenty -five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma; and
6. All applicants must disclose all ownership interests in the
dispensary.
Applicants with a no nviolent felony conviction in the last two
(2) years, any other felony conviction in the last five (5) years,
inmates in the custody of the Department of Corrections o r any
person currently incarcerated shall not qualify for a medical
marijuana dispensary license.
C. Licensed medical marijuana dispensaries shall be required to
complete a monthly 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. Th is report shall
detail the weight of marijuana purchased at wholesale and the weight
of marijuana sold to licensed medical marijuana patients and
licensed caregivers a nd account for any waste. The report shall
show total sales in dollars, tax collected in dollars, and tax due
in dollars. The State Department of Health Authority shall have
oversight and auditing responsibilities to ensure that all marijuana
being grown is accounted for.
Req. No. 11601 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
D. Only a licensed medical marijuana dispensary may conduct
retail sales of marijuana or marijuana derivatives. Beginning on
the effective date of this act, licensed medical marijuana
dispensaries shall be authorized to package and sel l pre-rolled
marijuana to licensed medical marijuana patients and licensed
caregivers. The products described in this subsection shall contain
only the ground parts of the marijuana plant and shall not include
marijuana concentrates or derivatives. The t otal net weight of each
pre-roll packaged and sold by a medical marijuana dispensary shal l
not exceed one (1) gram. These products shall be tested, packaged
and labeled in accordance with Oklahoma law and rules promulgated by
the State Commissioner of Hea lth Authority.
E. No medical marijuana dispensary shall offer or allow a
medical marijuana patient licensee, caregiver licensee or other
member of the public to handle or otherwise have physical contact
with any medical marijuana not contained in a sealed or separate
package. Provided, such prohibition shall not preclude an employee
of the medical marijuana dispensary from handling loose or
nonpackaged medical marijuana to be placed in packaging consistent
with the Oklahoma Medical Marijuana and Patient P rotection Act and
the rules promulgated by the Authority for the packaging of medical
marijuana for retail sale. Provided, further, such prohibition
shall not prevent a medical marijuana dispensary from displaying
samples of its medical marijuana in separ ate display cases, jars or
Req. No. 11601 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
other containers and allowing medical marijuana patient licens ees
and caregiver licensees the ability to handle or smell the various
samples as long as the sample medical marijuana is used for display
purposes only and is not off ered for retail sale.
SECTION 2. AMENDATORY 63 O.S. 2021, Secti on 422, is
amended to read as follows:
Section 422. A. The State Department of Health shall, within
thirty (30) days of passage 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 a mounts
provided for in Section 427.14 of this title . A method of payment
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 Health Authority shall approve all
applications which meet the followi ng criteria:
1. The applicant must be twenty -five (25) years of age or
older;
Req. No. 11601 Page 6 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 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 Stat e of Oklahoma; and
6. All applicants must disclose all ownership 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 Department of Corrections or any
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 mariju ana directly
to a licensed medical marijuana patient or licensed medical
marijuana caregiver. A licensed medical marijuana commercial grower
Req. No. 11601 Page 7 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
may only sell at the wholesale level to a licensed medical marijuana
dispensary, a licensed medical marijuana comm ercial grower or a
licensed medical marijuana processor. If the federal government
lifts restrictions on buying and selling marijuana between states,
then a licensed medical marijuana commercial grower would be allowed
to sell and buy marijuana wholesale from, or to, an 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 o f 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 to
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 that 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 da te of this act, licensed
medical marijuana commercial growers shall be authorized to pack age
and sell pre-rolled marijuana to licensed medical marijuana
Req. No. 11601 Page 8 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
dispensaries. The products described in this subsection shall
contain only the ground parts of the mar ijuana plant and shall not
include marijuana concentrates or derivatives. The total net weight
of each pre-roll packaged and sold by licensed medical marijuana
commercial growers shall not exceed one (1) gram. These products
must be tested, packaged and labeled in accordance with Oklahoma law
and rules promulgated by the State Commissioner o f Health Authority.
SECTION 3. AMENDATORY 63 O.S. 2021, Section 423, is
amended to read as follows:
Section 423. A. The State Department of Health Oklahoma
Medical Marijuana Authority shall, within thirty (30) days of
passage of this initiative, make available on its website in an
easy-to-find location an application for a medical marijuana
processing license. The Department Authority shall be authorized to
issue two types of medical marijuana processor licenses based on the
level of risk posed by the type of processing conducted:
1. Nonhazardous medical marijuana processor license; and
2. Hazardous medical marijuana processor license.
The application fee for a nonhazardous or hazardous medical
marijuana processor license shall be Two Thousand Five Hundred
Dollars ($2,500.00) paid by the applicant in the amounts provided
for in Section 427.14 of this title . A method of payment shall be
provided on the website of the Department Authority. The State
Department of Health Authority shall have ninety (90) days to review
Req. No. 11601 Page 9 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 Health 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 a s 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 percentag e ownership may not exceed twenty -five
percent (25%);
5. All applying individuals or ent ities must be registered to
conduct business in the State of Oklahoma; and
6. All applicants must disclose all ownership interests in the
processing operation.
Applicants with a nonviolent felony conviction in the last two
(2) years, any other felony conv iction in the last five (5) years,
inmates in the custody of the Department of Corrections or any
person currently incarcerated shall not qualify for a medical
marijuana processing license.
Req. No. 11601 Page 10 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
C. 1. A licensed processor may take marijuana plants and
distill or process these plants into concentrates, edibles, and
other forms for consumption.
2. As required by subsection D of this section, the State
Department of Health Authority shall, within sixty (60) days of
passage of this initiative, make available a set of standards which
shall be used by licensed processors in the preparation of edible
marijuana products. The standards should be in line with current
food preparation guidelines. No excessive or punitive rules may be
established by the State Department of Health Authority.
3. Up to two times a year, the State Department of Health
Authority may inspect a processing operation and determine its
compliance with the p reparation standards. If deficiencies are
found, a written report of the deficiency shal l be issued to the
licensed processor. The licensed processor shall have one (1) month
to correct the deficiency or be subject to a fine of Five Hundred
Dollars ($500.00) for each deficiency.
4. A licensed processor may sell marijuana products it creates
to a licensed dispensary or any other licensed processor. All sales
by a licensed processor shall be considered wholesale sales and
shall not be subject to taxation.
5. Under no circumstances may a licensed processor sell
marijuana or any marijuana prod uct directly to a licensed medical
marijuana patient or licensed caregiver. However, a licensed
Req. No. 11601 Page 11 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
processor may process cannabis into a concentrated form for a
licensed medical marijuana patient for a fee.
6. Licensed processors shall be required to comp lete 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 shall
provide reporting on the previous month. This report shall detail
the amount of marijuana and medical mar ijuana products purchased in
pounds, the amount of marijuana cooked or processed in pounds, and
the amount of waste 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 that all marijuana being processed is accounted for.
D. The Department Authority shall oversee the inspection and
compliance of licensed processors producing products with marijuana
as an additive. The State Department of Health Authority shall be
compelled to, within thirty (30) days of passage of this initiative,
appoint twelve (12) Oklahoma residents to the Medical Mari juana
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 shall be adopted by the
Department Authority and the Department Authority may enforce these
standards for licensed processors. The Department Authority shall
develop a standards review procedure and these standards can be
altered by calling another council of twelve (12) Oklahoma marijuana
Req. No. 11601 Page 12 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
industry experts. A signed letter of twen ty operating, licensed
processors shall constitute a need for a new council and standards
review.
E. If it becomes permissible under federal law, marijuana may
be moved across state lines.
F. Any device used for the processing or consumption of medical
marijuana shall be considered legal to be sold, manufactured,
distributed and possessed. No merchant, wholesaler, manufacturer or
individual may be unduly harassed or prosecuted for selling,
manufacturing or possessing marijuana paraphernalia.
SECTION 4. AMENDATORY 63 O.S. 2021, Section 427.14, is
amended to read as f ollows:
Section 427.14 A. There is hereby created the medical
marijuana business license, which shall include the following
categories:
1. Medical marijuana commerc ial 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 Enter prise Services, shall develop a
website for medical marijuana business applications.
Req. No. 11601 Page 13 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
C. The Authority shall make available on its website in an
easy-to-find location, applications for a medical marijuana
business.
D. 1. The annual, nonrefundable application fee for a medical
marijuana business transporter license shall be Two Thousand Five
Hundred Dollars ($2,500.00).
2. The initial fee for a medical marijuana commercial grower
license shall be calculated based upon the total amount of square
feet of canopy or acres the grower estimates will be harvested for
the year. The annual, nonrefund able license fee shall be based upon
the total amount of square feet of canopy harvested by the grower
during the previous twelve (12) months. The amount of the fees
shall be determined as follows:
a. For an indoor, greenhouse or light deprivation medical
marijuana grow facility:
(1) Tier 1: Up to ten thousand (10,000) square feet
of canopy, the fee shall be Two Thousand Five
Hundred Dollars ($2,500.00),
(2) Tier 2: Ten thousand and one (10,001) square
feet of canopy to twenty thousand (20,000) square
feet of canopy, the fee shall be Five Thousand
Dollars ($5,000.00),
(3) Tier 3: Twenty thousand and one (20,001) square
feet of canopy to forty thousand (40,000) square
Req. No. 11601 Page 14 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
feet of canopy, the fee shall be Ten Thousand
Dollars ($10,000.00),
(4) Tier 4: Forty thousand and one (40,001) square
feet of canopy to sixty thousand (60,000) square
feet of canopy, the fee shall be Twenty Thousand
Dollars ($20,000.00),
(5) Tier 5: Sixty thousand and one (60,001) square
feet of canopy to eighty thousand (80,000) square
feet of canopy, the fee shall be Thirty Thousand
Dollars ($30,000.00),
(6) Tier 6: Eighty thousand and one (80,001) square
feet of canopy to ninety -nine thousand nine
hundred and ninety-nine (99,999) square feet of
canopy, the fee shall be Forty Thousand Do llars
($40,000.00), and
(7) Tier 7: One hundred thousand (100,000) square
feet of canopy and beyond, the fee shall be Fifty
Thousand Dollars ($50,000.00), plus an ad ditional
twenty-five cents ($0.25) per square foot of
canopy over one hundred thousand (1 00,000) square
feet.
b. For an outdoor medical marijuana grow facility:
Req. No. 11601 Page 15 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
(1) Tier 1: Up to two and one -half (2 1/2) acres,
the fee shall be Two Thousand Five Hundred
Dollars ($2,500.00),
(2) Tier 2: Two and one -half (2 1/2) acres up to
five (5) acres, the fee shall be Five Thousand
Dollars ($5,000.00),
(3) Tier 3: Five (5) acres up to ten (10) acres, the
fee shall be Ten Thousand Dollars ($10,000.00),
(4) Tier 4: Ten (10) acres up to twenty (20) acres,
the fee shall be Twenty Thousand Dollars
($20,000.00),
(5) Tier 5: Twenty (20) acres up to thirty (30)
acres, the fee shall be Thirty Thousand Dollars
($30,000.00),
(6) Tier 6: Thirty (30) acres up to forty (40)
acres, the fee shall be Forty Thousand Dollars
($40,000.00),
(7) Tier 7: Forty (40) acres up to fifty (50) acres,
the fee shall be Fifty Thousand Dollars
($50,000.00), and
(8) Tier 8: If the amount of acreage exceeds fifty
(50) acres, the fee shall be Fifty Thousand
Dollars ($50,000.00) plus an additional Two
Hundred Fifty Dollars ($250.00) per acre.
Req. No. 11601 Page 16 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
c. For a medical marijuana commercial grower that has a
combination of both indoor and outdoor growing
facilities at one location, the medical marijuana
commercial grower shall be required to obtain a
separate license from the Authority for each typ e of
grow operation and shall be subject to the licensing
fees provided for in subparagraphs a and b of this
paragraph.
d. As used in this paragraph:
(1) "canopy" means the total surface area within a
cultivation area that is dedicated to the
cultivation of flowering marijuana plants. The
surface area of the plant canopy must be
calculated in square feet and measured and must
include all of the area within the boundari es
where the cultivation of the flowering marijuana
plants occurs. If the surface of the plant
canopy consists of noncontiguous areas, each
component area must be separated by identifiable
boundaries. If a tiered or shelving system is
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 area of the plant canopy may
Req. No. 11601 Page 17 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
not include the areas within the cultivation 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 footage
of the canopy shall be measured by the
circumference of the cy linder multiplied by the
total length of the cylinder,
(2) "greenhouse" means a structure located outdoors
that is completely covered by a material that
allows a controlled level of light transmission,
and
(3) "light deprivation" means a structure that has
concrete floors and the ability to manipulate
natural light.
3. The annual nonrefundabl e license fee for a medical marijuana
processor license shall be determined as follows:
a. Tier 1: Zero (0) to ten thousand (10,000) pounds of
biomass or production o r use of up to one hundred
(100) liters of cannabis concentrate, the annual fee
shall be Two Thousand Five Hundred Dollars
($2,500.00),
Req. No. 11601 Page 18 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
b. Tier 2: Ten thousand one (10,001) pounds to fifty
thousand (50,000) pounds of biomass or production or
use from one hundred one (101) to three hundred fifty
(350) liters of cannabis concentrate, the annual fee
shall be Five Thousand Dollars ($5,000.00),
c. Tier 3: Fifty thousand one (50,001) pounds to one
hundred fifty thousand (150,000) pounds of biomass or
production or use from three hundred fifty -one (351)
to six hundred fifty (650) liters of cannabis
concentrate, the annual fee shall be Ten Thousand
Dollars ($10,000.00),
d. Tier 4: One hundred fifty thousand one (150,001)
pounds to three hundred thousand (300,000) pounds of
biomass or production or use from six hundred fifty -
one (651) to one thousand (1,000) liters of cannabis
concentrate, the annual fee shall be Fifteen Thousand
Dollars ($15,000.00), and
e. Tier 5: More than three hundred thousand one
(300,001) pounds of biomass or production or use in
excess of one thousand one (1,001) liters of can nabis
concentrate, the annual fee shall be Twenty Thousand
Dollars ($20,000.00).
For purposes of this paragraph only, if the cannabis concentrate
is in non-liquid form, every one thousand (1,000) grams of
Req. No. 11601 Page 19 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
concentrated marijuana shall be calculated as one ( 1) liter of
cannabis concentrate.
4. The initial fee for a medical marijuana dispensary license
shall be Two Thousand Five Hundred Dollars ($2,500.00). The annual,
nonrefundable license fee for a medical marijuana dispensary license
shall be calculated a t ten percent (10%) of the sum of twelve (12)
calendar months of the combined annual state sales tax and state
excise tax of the dispensary. The minimum fee shall be not less
than Two Thousand Five Hundred Dollars ($2,500.00) and the maximum
fee shall not exceed Ten Thousand Dollars ($10,000.00).
5. The annual, nonrefundable license fee for a medical
marijuana testing laboratory shall be Twenty Thousand Dollars
($20,000.00).
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 registrations authorized
pursuant to this section shall be made up on forms prescribed by the
Authority;
2. Each application shall identify the city or cou nty in which
the applicant seeks to obtain licensure as a medical marijuana
business;
Req. No. 11601 Page 20 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
3. Applicants shall submit a complete application to the
Department Authority before the application may be accepted or
considered;
4. All applications shall be complet e 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 appli cation 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 applica nt
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, ex ecutive
officers, partners, board members or any other form of
business ownership are Okl ahoma residents pursuant to
paragraph 11 of this subsection,
Req. No. 11601 Page 21 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
d. if applying as an individual or entity, proof that the
individual or entity is registered to conduct bu siness
in the State of Oklahoma,
e. disclosure of all ownership interests pursuant to the
Oklahoma Medical Marijuana and Patient Protection Act,
and
f. 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 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 faci lity;
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 ea ch 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 restriction s set forth in the Oklahoma
Medical Marijuana and Patient Protection Act;
Req. No. 11601 Page 22 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
9. All applicants for a medical marijuana business license,
research facility license or education facility license authorized
by the Oklahoma Medical Marijuana and Patient Protecti on 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:
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 the Oklahoma
Medical Marijuana and Patient Protection Act;
10. All applicable fee s charged by the OSBI are the
responsibility of the applicant and shall not be higher tha n 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 busi ness application, all applicants shall
provide proof of Oklahoma residency for at least t wo (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 i nclude a combination of
the following:
a. an unexpired Oklahoma -issued driver license,
Req. No. 11601 Page 23 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
b. an Oklahoma identification card,
c. a utility bill preceding the date of appl ication,
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 August 30, 2019, are here by 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 th e Oklahoma State Bureau 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 identific ation card,
c. a United States passport or other photo identification
issued by the United States government, or
Req. No. 11601 Page 24 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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
approval, rejection, denial or status -update letter to the applicant
within ninety (90) busine ss days of receipt of the application.
G. 1. The Authority shall review the medical marijuana
business applications and conduct all investigations, inspections
and interviews before approving the application.
2. Approved applicants shall be issued a med ical 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 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 the O klahoma 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 applicant shall have thirty (30) days to
submit the required information for reconsideration. No additional
Req. No. 11601 Page 25 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
application fee shall be charged for such reconsideration. Unless
the Department Authority determines otherwise, an application that
has been resubmitted but is still incomplete or contains errors that
are not clerical or t ypographical 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
which an application was submitted properly but a delay in
processing the application occ urred.
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 p aid;
2. A person who has been convicted of a nonviolent felony
within two (2) years of t he 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 ind icates that the officer,
director or stockholder has been convicted of a nonviolent felon y
within two (2) years of the date of application, or within five (5)
years for any other felony;
Req. No. 11601 Page 26 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 app lication, 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;
7. A person whose authority to be a caregiver, as defined in
Section 427.2 of this title, has been re voked by the 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 th at, after the initiation of a disciplinary
action, has had a medical marijuana license re voked, 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, m edical marijuana
Req. No. 11601 Page 27 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
patient licensees, caregiver licensees or medical
marijuana business licensees,
c. any grossly inaccurate or fraudulent reporting,
d. threatening or harming any medical marijuana patient,
caregiver, medical practitioner or employee of the
Department Authority,
e. knowingly or intentionally refusing to permit the
Department Authority access to premises or records,
f. using a prohibited, hazardous substan ce 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 municipalities may have
access to criminal histo ry record information furnished by a
criminal justice agency subject to any restrictions imposed by such
an agency.
J. The failure of an applicant or licensee to prov ide 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
Req. No. 11601 Page 28 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 against the
applicant or licensee. Typos and sc rivener errors shall not be
grounds for denial.
L. A licensed medical marijuana business premises shall be
subject to and responsible for compliance with applicable p rovisions
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 by a municipali ty or
appropriate code enforcement entity.
M. All medical marijuana business, medical ma rijuana research
facility, medical marijuana education facility and medical marijuana
waste disposal facility licensees shall pay the relevant licensure
fees prior to receiving licensure to operate.
N. A medical marijuana business, medical marijuana resea rch
facility, medical marijuana education facility or medical marijuana
waste disposal facility that attempts to renew its license after the
expiration date of the lic ense shall pay a late renewal fee in an
amount to be determined by the Department Authority to reinstate the
Req. No. 11601 Page 29 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 fac ility 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 Authority.
SECTION 5. This act shall become effe ctive June 1, 2023.
58-2-11601 GRS 05/18/22