Oklahoma 2022 Regular Session

Oklahoma House Bill HB2179 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	An Act
2		-	ENROLLED HOUSE
3		-	BILL NO. 2179 By: Fetgatter and McDugle of
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	27	+
	28	+	STATE OF OKLAHOMA
	29	+
	30	+	2nd Session of the 58th Legislature (2022)
	31	+
	32	+	CONFERENCE COMMITTEE
	33	+	SUBSTITUTE
	34	+	FOR ENGROSSED
	35	+	HOUSE BILL NO. 2179 By: Fetgatter and McDugle of
4	36		the House
5	37
6	38		and
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8	40		Garvin and Stephens of the
9	41		Senate
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	47	+
	48	+	CONFERENCE COMMITTEE SUBSTITUTE
15	49
16	50		An Act relating to medical marijuana; amending 63
17	51		O.S. 2021, Sections 421, 422, and 423, which relate
18	52		to licensing requirements for medical marijuana
19	53		dispensaries, commercial growers, and processors;
20	54		modifying application fee for medical marijuana
21	55		dispensaries; providing statutory reference for
22	56		certain application fees; updating language; amending
23	57		63 O.S. 2021, Section 427.14, which relates to the
24	58		Oklahoma Medical Marij uana and Patient Protection
25	59		Act; establishing tiered licensing fees for medical
26	60		marijuana commercial growers and processors;
27	61		modifying application fees for medical marijuana
28	62		dispensaries and laboratories; defining terms;
29	63		updating language; and providing an effective date.
30	64
31	65
32	66
33	67
34		-	~~SUBJECT: Medical marijuana~~
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35	69
36	70		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
37		-
38	71		SECTION 1. AMENDATORY 63 O.S. 2021, Section 421, is
39	72		amended to read as follows:
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41	99		Section 421. A. The State Department of Health Oklahoma
42	100		Medical Marijuana Authority shall, within thirty (30) days of
43	101		passage of this initiative, make available on its website in an
44	102		easy-to-find location an application for a medical marijuana
45	103		dispensary license. The application fee to be paid by the applicant
46		-	shall be Two Thousand Five Hundred Dollars ($2,500.00) in the ~~ENR. H. B. NO. 2179 Page 2~~
	104	+	shall be Two Thousand Five Hundred Dollars ($2,500.00) in the
47	105		amounts provided for in Section 427.14 of this title. A method of
48	106		payment for the application fee shall be provided on the website of
49	107		the Department Authority. Dispensary applicants must all be
50	108		residents of Oklahoma. Any entity applying for a dispensary license
51	109		must be owned by an Oklahoma resi dent and must be registered to do
52	110		business in Oklahoma. The Department Authority shall have ninety
53	111		(90) business days to review the application; approve, reject or
54	112		deny the application; and mail the approval, rejection or denial
55	113		letter stating reasons for the rejection or denial to the applicant.
56		-
57	114		B. The State Department of Health Authority shall approve all
58	115		applications which meet the following criteria:
59		-
60	116		1. The applicant must be twenty-five (25) years of age or
61	117		older;
62		-
63	118		2. The applicant, if applying as an individual, must show
64	119		residency in the State of Oklahoma;
65		-
66	120		3. All applying entities must show that all members, managers,
67	121		and board members are Oklahoma residents;
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69	148		4. An applying entity may show ownership of non -Oklahoma
70	149		residents, but that percentage ow nership may not exceed twenty -five
71	150		percent (25%);
72		-
73	151		5. All applying individuals or entities must be registered to
74	152		conduct business in the State of Oklahoma; and
75		-
76	153		6. All applicants must disclose all ownership interests in the
77	154		dispensary.
78		-
79	155		Applicants with a no nviolent felony conviction in the last two
80	156		(2) years, any other felony conviction in the last five (5) years,
81	157		inmates in the custody of the Department of Corrections o r any
82	158		person currently incarcerated shall not qualify for a medical
83	159		marijuana dispensary license.
84		-
85	160		C. Licensed medical marijuana dispensaries shall be required to
86	161		complete a monthly sales report to the State Department of Health
87	162		Authority. This report shall be due on the fifteenth of each month
88	163		and provide reporting on the previous month. Th is report shall
89	164		detail the weight of marijuana purchased at wholesale and the weight
90	165		of marijuana sold to licensed medical marijuana patients and
91		-	licensed caregivers ~~and~~ account for any waste. The report shall ~~ENR. H. B. NO. 2179 Page 3~~
	166	+	licensed caregivers a nd account for any waste. The report shall
92	167		show total sales in dollars, tax collected in dollars, and tax due
93	168		in dollars. The State Department of Health Authority shall have
94	169		oversight and auditing responsibilities to ensure that all marijuana
95	170		being grown is accounted for.
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96	196
97	197		D. Only a licensed medical marijuana dispensary may conduct
98	198		retail sales of marijuana or marijuana derivatives. Beginning on
99	199		the effective date of this act, licensed medical marijuana
100	200		dispensaries shall be authorized to package and sel l pre-rolled
101	201		marijuana to licensed medical marijuana patients and licensed
102	202		caregivers. The products described in this subsection shall contain
103	203		only the ground parts of the marijuana plant and shall not include
104	204		marijuana concentrates or derivatives. The t otal net weight of each
105	205		pre-roll packaged and sold by a medical marijuana dispensary shal l
106	206		not exceed one (1) gram. These products shall be tested, packaged
107	207		and labeled in accordance with Oklahoma law and rules promulgated by
108	208		the State Commissioner of Hea lth Authority.
109		-
110	209		E. No medical marijuana dispensary shall offer or allow a
111	210		medical marijuana patient licensee, caregiver licensee or other
112	211		member of the public to handle or otherwise have physical contact
113	212		with any medical marijuana not contained in a sealed or separate
114	213		package. Provided, such prohibition shall not preclude an employee
115	214		of the medical marijuana dispensary from handling loose or
116	215		nonpackaged medical marijuana to be placed in packaging consistent
117	216		with the Oklahoma Medical Marijuana and Patient P rotection Act and
118	217		the rules promulgated by the Authority for the packaging of medical
119	218		marijuana for retail sale. Provided, further, such prohibition
120	219		shall not prevent a medical marijuana dispensary from displaying
121	220		samples of its medical marijuana in separ ate display cases, jars or
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122	247		other containers and allowing medical marijuana patient licens ees
123	248		and caregiver licensees the ability to handle or smell the various
124	249		samples as long as the sample medical marijuana is used for display
125	250		purposes only and is not off ered for retail sale.
126		-
127	251		SECTION 2. AMENDATORY 63 O.S. 2021, Secti on 422, is
128	252		amended to read as follows:
129		-
130	253		Section 422. A. The State Department of Health shall, within
131	254		thirty (30) days of passage of this initiative, Oklahoma Medical
132	255		Marijuana Authority shall make available on its website in an easy -
133	256		to-find location an application for a medical marijuana commercial
134	257		grower license. The application fee shall be Two Thousand Five
135	258		Hundred Dollars ($2,500.00) paid by the applicant in the a mounts
136		-	provided for in Section 427.14 of this title. A method of payment ~~ENR. H. B. NO. 2179 Page 4~~
	259	+	provided for in Section 427.14 of this title . A method of payment
137	260		for the application fee shall be provided on the website of the
138	261		Department Authority. The State Department of Health Authority
139	262		shall have ninety (90) days to review the application; approve,
140	263		reject or deny the application; and mail the approval, rejection or
141	264		denial letter stating the reasons for the rejection or denial to the
142	265		applicant.
143		-
144	266		B. The State Department of Health Authority shall approve all
145	267		applications which meet the followi ng criteria:
146		-
147	268		1. The applicant must be twenty -five (25) years of age or
148	269		older;
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150	296		2. The applicant, if applying as an individual, must show
151	297		residency in the State of Oklahoma;
152		-
153	298		3. All applying entities must show that all members, managers,
154	299		and board members are Oklahoma residents;
155		-
156	300		4. An applying entity may show ownership of non -Oklahoma
157	301		residents, but that percentage ownership may not exceed twenty -five
158	302		percent (25%);
159		-
160	303		5. All applying individuals or entities must be registered to
161	304		conduct business in the Stat e of Oklahoma; and
162		-
163	305		6. All applicants must disclose all ownership interests in the
164	306		commercial grower operation.
165		-
166	307		Applicants with a nonviolent felony conviction in the last two
167	308		(2) years, any other felony conviction in the last five (5) years,
168	309		inmates in the custody of the Department of Corrections or any
169	310		person currently incarcerated shall not qualify for a commercial
170	311		grower license.
171		-
172	312		C. A licensed medical marijuana commercial grower may sell
173	313		marijuana to a licensed medical marijuana dispensary or a licensed
174	314		medical marijuana processor. Further, sales by a licensed medical
175	315		marijuana commercial grower shall be considered wholesale sales and
176	316		shall not be subject to taxation. Under no circumstances may a
177	317		licensed medical marijuana commercial grower sell mariju ana directly
178	318		to a licensed medical marijuana patient or licensed medical
179	319		marijuana caregiver. A licensed medical marijuana commercial grower
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180	346		may only sell at the wholesale level to a licensed medical marijuana
181		-	dispensary, a licensed medical marijuana ~~commercial~~ grower or a ~~ENR. H. B. NO. 2179 Page 5~~
	347	+	dispensary, a licensed medical marijuana comm ercial grower or a
182	348		licensed medical marijuana processor. If the federal government
183	349		lifts restrictions on buying and selling marijuana between states,
184	350		then a licensed medical marijuana commercial grower would be allowed
185	351		to sell and buy marijuana wholesale from, or to, an out-of-state
186	352		wholesale provider. A licensed medical marijuana commercial grower
187	353		shall be required to complete a monthly yield and sales report to
188	354		the State Department of Health Authority. This report shall be due
189	355		on the fifteenth of each month and provide reporting on the previous
190	356		month. This report shall detail the amount o f marijuana harvested
191	357		in pounds, the amount of drying or dried marijuana on hand, the
192	358		amount of marijuana sold to licensed processors in pounds, the
193	359		amount of waste in pounds, and the amount of marijuana sold to
194	360		licensed medical marijuana dispensaries in pounds. Additionally,
195	361		this report shall show total wholesale sales in dollars. The State
196	362		Department of Health Authority shall have oversight and auditing
197	363		responsibilities to ensure that all marijuana being grown by
198	364		licensed medical marijuana commercial growers is accounted for.
199		-
200	365		D. There shall be no limits on how much marijuana a licensed
201	366		medical marijuana commercial grower can grow.
202		-
203	367		E. Beginning on the effective da te of this act, licensed
204	368		medical marijuana commercial growers shall be authorized to pack age
205	369		and sell pre-rolled marijuana to licensed medical marijuana
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206	396		dispensaries. The products described in this subsection shall
207	397		contain only the ground parts of the mar ijuana plant and shall not
208	398		include marijuana concentrates or derivatives. The total net weight
209	399		of each pre-roll packaged and sold by licensed medical marijuana
210	400		commercial growers shall not exceed one (1) gram. These products
211	401		must be tested, packaged and labeled in accordance with Oklahoma law
212	402		and rules promulgated by the State Commissioner o f Health Authority.
213		-
214	403		SECTION 3. AMENDATORY 63 O.S. 2021, Section 423, is
215	404		amended to read as follows:
216		-
217	405		Section 423. A. The State Department of Health Oklahoma
218	406		Medical Marijuana Authority shall, within thirty (30) days of
219	407		passage of this initiative, make available on its website in an
220	408		easy-to-find location an application for a medical marijuana
221	409		processing license. The Department Authority shall be authorized to
222	410		issue two types of medical marijuana processor licenses based on the
223	411		level of risk posed by the type of processing conducted:
224		-
225	412		1. Nonhazardous medical marijuana processor license; and
226		-	ENR. H. B. NO. 2179 Page 6
227	413		2. Hazardous medical marijuana processor license.
228		-
229	414		The application fee for a nonhazardous or hazardous medical
230	415		marijuana processor license shall be Two Thousand Five Hundred
231	416		Dollars ($2,500.00) paid by the applicant in the amounts provided
232	417		for in Section 427.14 of this title . A method of payment shall be
233	418		provided on the website of the Department Authority. The State
234	419		Department of Health Authority shall have ninety (90) days to review
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235	446		the application; approve, reject or deny the application; and mail
236	447		the approval, rejection or denial letter stating the reasons for the
237	448		rejection or denial to the applicant.
238		-
239	449		B. The State Department of Health Authority shall approve all
240	450		applications which meet the following criteria:
241		-
242	451		1. The applicant must be twenty -five (25) years of age or
243	452		older;
244		-
245	453		2. The applicant, if applying a s an individual, must show
246	454		residency in the State of Oklahoma;
247		-
248	455		3. All applying entities must show that all members, managers,
249	456		and board members are Oklahoma residents;
250		-
251	457		4. An applying entity may show ownership of non -Oklahoma
252	458		residents, but that percentag e ownership may not exceed twenty -five
253	459		percent (25%);
254		-
255	460		5. All applying individuals or ent ities must be registered to
256	461		conduct business in the State of Oklahoma; and
257		-
258	462		6. All applicants must disclose all ownership interests in the
259	463		processing operation.
260		-
261	464		Applicants with a nonviolent felony conviction in the last two
262	465		(2) years, any other felony conv iction in the last five (5) years,
263	466		inmates in the custody of the Department of Corrections or any
264	467		person currently incarcerated shall not qualify for a medical
265	468		marijuana processing license.
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267	495		C. 1. A licensed processor may take marijuana plants and
268	496		distill or process these plants into concentrates, edibles, and
269	497		other forms for consumption.
270		-	ENR. H. B. NO. 2179 Page 7
271	498		2. As required by subsection D of this section, the State
272	499		Department of Health Authority shall, within sixty (60) days of
273	500		passage of this initiative, make available a set of standards which
274	501		shall be used by licensed processors in the preparation of edible
275	502		marijuana products. The standards should be in line with current
276	503		food preparation guidelines. No excessive or punitive rules may be
277	504		established by the State Department of Health Authority.
278		-
279	505		3. Up to two times a year, the State Department of Health
280	506		Authority may inspect a processing operation and determine its
281	507		compliance with the p reparation standards. If deficiencies are
282	508		found, a written report of the deficiency shal l be issued to the
283	509		licensed processor. The licensed processor shall have one (1) month
284	510		to correct the deficiency or be subject to a fine of Five Hundred
285	511		Dollars ($500.00) for each deficiency.
286		-
287	512		4. A licensed processor may sell marijuana products it creates
288	513		to a licensed dispensary or any other licensed processor. All sales
289	514		by a licensed processor shall be considered wholesale sales and
290	515		shall not be subject to taxation.
291		-
292	516		5. Under no circumstances may a licensed processor sell
293	517		marijuana or any marijuana prod uct directly to a licensed medical
294	518		marijuana patient or licensed caregiver. However, a licensed
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295	545		processor may process cannabis into a concentrated form for a
296	546		licensed medical marijuana patient for a fee.
297		-
298	547		6. Licensed processors shall be required to comp lete a monthly
299	548		yield and sales report to the State Department of Health Authority.
300	549		This report shall be due on the fifteenth of each month and shall
301	550		provide reporting on the previous month. This report shall detail
302	551		the amount of marijuana and medical mar ijuana products purchased in
303	552		pounds, the amount of marijuana cooked or processed in pounds, and
304	553		the amount of waste in pounds. Additionally, this report shall show
305	554		total wholesale sales in dollars. The State Department of Health
306	555		Authority shall have oversight and auditing responsibilities to
307	556		ensure that all marijuana being processed is accounted for.
308		-
309	557		D. The Department Authority shall oversee the inspection and
310	558		compliance of licensed processors producing products with marijuana
311	559		as an additive. The State Department of Health Authority shall be
312	560		compelled to, within thirty (30) days of passage of this initiative,
313	561		appoint twelve (12) Oklahoma residents to the Medical Mari juana
314	562		Advisory Council, who are marijuana industry experts, to create a
315		-	list of food safety standards for processing and handling ~~me dical ENR. H. B. NO. 2179 Page 8~~
	563	+	list of food safety standards for processing and handling medical
316	564		marijuana in Oklahoma. These standards shall be adopted by the
317	565		Department Authority and the Department Authority may enforce these
318	566		standards for licensed processors. The Department Authority shall
319	567		develop a standards review procedure and these standards can be
320	568		altered by calling another council of twelve (12) Oklahoma marijuana
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321	595		industry experts. A signed letter of twen ty operating, licensed
322	596		processors shall constitute a need for a new council and standards
323	597		review.
324		-
325	598		E. If it becomes permissible under federal law, marijuana may
326	599		be moved across state lines.
327		-
328	600		F. Any device used for the processing or consumption of medical
329	601		marijuana shall be considered legal to be sold, manufactured,
330	602		distributed and possessed. No merchant, wholesaler, manufacturer or
331	603		individual may be unduly harassed or prosecuted for selling,
332	604		manufacturing or possessing marijuana paraphernalia.
333		-
334	605		SECTION 4. AMENDATORY 63 O.S. 2021, Section 427.14, is
335	606		amended to read as f ollows:
336		-
337	607		Section 427.14 A. There is hereby created the medical
338	608		marijuana business license, which shall include the following
339	609		categories:
340		-
341	610		1. Medical marijuana commerc ial grower;
342		-
343	611		2. Medical marijuana processor;
344		-
345	612		3. Medical marijuana dispensary;
346		-
347	613		4. Medical marijuana transporter; and
348		-
349	614		5. Medical marijuana testing laboratory.
350		-
351	615		B. The Oklahoma Medical Marijuana Authority, with the aid of
352	616		the Office of Management and Enter prise Services, shall develop a
353	617		website for medical marijuana business applications.
354	618
	619	+	Req. No. 11601 Page 13 1
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	642	+	24
	643	+
355	644		C. The Authority shall make available on its website in an
356	645		easy-to-find location, applications for a medical marijuana
357	646		business.
358		-	ENR. H. B. NO. 2179 Page 9
359	647		D. 1. The annual, nonrefundable application fee for a medical
360	648		marijuana business transporter license shall be Two Thousand Five
361	649		Hundred Dollars ($2,500.00).
362		-
363	650		2. The initial fee for a medical marijuana commercial grower
364	651		license shall be calculated based upon the total amount of square
365	652		feet of canopy or acres the grower estimates will be harvested for
366	653		the year. The annual, nonrefund able license fee shall be based upon
367	654		the total amount of square feet of canopy harvested by the grower
368	655		during the previous twelve (12) months. The amount of the fees
369	656		shall be determined as follows:
370		-
371		-	a. For an indoor, greenhouse, or light deprivation
372		-	medical marijuana grow facility:
373		-
	657	+	a. For an indoor, greenhouse or light deprivation medical
	658	+	marijuana grow facility:
374	659		(1) Tier 1: Up to ten thousand (10,000) square feet
375	660		of canopy, the fee shall be Two Thousand Five
376	661		Hundred Dollars ($2,500.00),
	662	+	(2) Tier 2: Ten thousand and one (10,001) square
	663	+	feet of canopy to twenty thousand (20,000) square
	664	+	feet of canopy, the fee shall be Five Thousand
	665	+	Dollars ($5,000.00),
	666	+	(3) Tier 3: Twenty thousand and one (20,001) square
	667	+	feet of canopy to forty thousand (40,000) square
377	668
378		-	(2) Tier 2: Ten thousand one (10,001) square feet of
379		-	canopy to twenty thousand (20,000) square feet of
380		-	canopy, the fee shall be Five Tho usand Dollars
381		-	($5,000.00),
	669	+	Req. No. 11601 Page 14 1
	670	+	2
	671	+	3
	672	+	4
	673	+	5
	674	+	6
	675	+	7
	676	+	8
	677	+	9
	678	+	10
	679	+	11
	680	+	12
	681	+	13
	682	+	14
	683	+	15
	684	+	16
	685	+	17
	686	+	18
	687	+	19
	688	+	20
	689	+	21
	690	+	22
	691	+	23
	692	+	24
382	693
383		-	(3) Tier 3: Twenty thousand one (20,001) square fee t
384		-	of canopy to forty thousand (40,000) s quare feet
385		-	of canopy, the fee shal l be Ten Thousand Dol lars
386		-	($10,000.00),
387		-
388		-	(4) Tier 4: Forty thousand one (40,001) square feet
389		-	of canopy to sixty thousand (60,000) square feet
390		-	of canopy, the fee shall be Twent y Thousand
	694	+	feet of canopy, the fee shall be Ten Thousand
	695	+	Dollars ($10,000.00),
	696	+	(4) Tier 4: Forty thousand and one (40,001) square
	697	+	feet of canopy to sixty thousand (60,000) square
	698	+	feet of canopy, the fee shall be Twenty Thousand
391	699		Dollars ($20,000.00),
392		-
393		-	(5) Tier 5: Sixty thousand one (60,001) square feet
394		-	of canopy to eighty thousand (80,000) square feet
395		-	of canopy, the fee shall be Thirty Thou sand
	700	+	(5) Tier 5: Sixty thousand and one (60,001) square
	701	+	feet of canopy to eighty thousand (80,000) square
	702	+	feet of canopy, the fee shall be Thirty Thousand
396	703		Dollars ($30,000.00),
397		-
398		-	(6) Tier 6: Eighty thousand one (80,001) square feet
399		-	of canopy to ninety-nine thousand nine hundred
400		-	ninety-nine (99,999) square feet of canopy, the
401		-	fee shall be Forty Thousand Dollars ($40,000.00),
402		-	and
403		-	ENR. H. B. NO. 2179 Page 10
	704	+	(6) Tier 6: Eighty thousand and one (80,001) square
	705	+	feet of canopy to ninety -nine thousand nine
	706	+	hundred and ninety-nine (99,999) square feet of
	707	+	canopy, the fee shall be Forty Thousand Do llars
	708	+	($40,000.00), and
404	709		(7) Tier 7: One hundred thousand (100,000) square
405	710		feet of canopy and beyond, the fee shall be Fifty
406	711		Thousand Dollars ($50,000.00), plus an ad ditional
407	712		twenty-five cents ($0.25) per square foot of
408	713		canopy over one hundred thousand (1 00,000) square
409	714		feet.
	715	+	b. For an outdoor medical marijuana grow facility:
410	716
411		-	b. For an outdoor medical marijuana grow facility:
	717	+	Req. No. 11601 Page 15 1
	718	+	2
	719	+	3
	720	+	4
	721	+	5
	722	+	6
	723	+	7
	724	+	8
	725	+	9
	726	+	10
	727	+	11
	728	+	12
	729	+	13
	730	+	14
	731	+	15
	732	+	16
	733	+	17
	734	+	18
	735	+	19
	736	+	20
	737	+	21
	738	+	22
	739	+	23
	740	+	24
412	741
413	742		(1) Tier 1: Up to two and one -half (2 1/2) acres,
414	743		the fee shall be Two Thousand Five Hundred
415	744		Dollars ($2,500.00),
416		-
417	745		(2) Tier 2: Two and one -half (2 1/2) acres up to
418	746		five (5) acres, the fee shall be Five Thousand
419	747		Dollars ($5,000.00),
420		-
421	748		(3) Tier 3: Five (5) acres up to ten (10) acres, the
422	749		fee shall be Ten Thousand Dollars ($10,000.00),
423		-
424	750		(4) Tier 4: Ten (10) acres up to twenty (20) acres,
425	751		the fee shall be Twenty Thousand Dollars
426	752		($20,000.00),
427		-
428	753		(5) Tier 5: Twenty (20) acres up to thirty (30)
429	754		acres, the fee shall be Thirty Thousand Dollars
430	755		($30,000.00),
431		-
432	756		(6) Tier 6: Thirty (30) acres up to forty (40)
433	757		acres, the fee shall be Forty Thousand Dollars
434	758		($40,000.00),
435		-
436	759		(7) Tier 7: Forty (40) acres up to fifty (50) acres,
437	760		the fee shall be Fifty Thousand Dollars
438	761		($50,000.00), and
439		-
440	762		(8) Tier 8: If the amount of acreage exceeds fifty
441	763		(50) acres, the fee shall be Fifty Thousand
442	764		Dollars ($50,000.00) plus an additional Two
443	765		Hundred Fifty Dollars ($250.00) per acre.
444	766
	767	+	Req. No. 11601 Page 16 1
	768	+	2
	769	+	3
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	771	+	5
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	773	+	7
	774	+	8
	775	+	9
	776	+	10
	777	+	11
	778	+	12
	779	+	13
	780	+	14
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	788	+	22
	789	+	23
	790	+	24
	791	+
445	792		c. For a medical marijuana commercial grower that has a
446	793		combination of both indoor and outdoor growing
447	794		facilities at one location, the medical marijuana
448		-	commercial grower shall be required to obtain a ~~ENR. H. B. NO. 2179 Page 11~~
	795	+	commercial grower shall be required to obtain a
449	796		separate license from the Authority for each typ e of
450	797		grow operation and shall be subject to the licensing
451	798		fees provided for in subparagraphs a and b of this
452	799		paragraph.
453		-
454	800		d. As used in this paragraph:
455		-
456	801		(1) "canopy" means the total surface area within a
457	802		cultivation area that is dedicated to the
458	803		cultivation of flowering marijuana plants. The
459	804		surface area of the plant canopy must be
460	805		calculated in square feet and measured and must
461	806		include all of the area within the boundari es
462	807		where the cultivation of the flowering marijuana
463	808		plants occurs. If the surface of the plant
464	809		canopy consists of noncontiguous areas, each
465	810		component area must be separated by identifiable
466	811		boundaries. If a tiered or shelving system is
467	812		used in the cultivation area, the surface area of
468	813		each tier or shelf must be included in
469	814		calculating the area of the plant canopy.
470	815		Calculation of the area of the plant canopy may
	816	+
	817	+	Req. No. 11601 Page 17 1
	818	+	2
	819	+	3
	820	+	4
	821	+	5
	822	+	6
	823	+	7
	824	+	8
	825	+	9
	826	+	10
	827	+	11
	828	+	12
	829	+	13
	830	+	14
	831	+	15
	832	+	16
	833	+	17
	834	+	18
	835	+	19
	836	+	20
	837	+	21
	838	+	22
	839	+	23
	840	+	24
	841	+
471	842		not include the areas within the cultivation area
472	843		that are used to cultivate immature marijuana
473	844		plants and seedlings, prior to flowering, and
474	845		that are not used at any time to cultivate mature
475	846		marijuana plants. If the flowering plants are
476	847		vertically grown in cylinders, the square footage
477	848		of the canopy shall be measured by the
478	849		circumference of the cy linder multiplied by the
479	850		total length of the cylinder,
480		-
481	851		(2) "greenhouse" means a structure located outdoors
482	852		that is completely covered by a material that
483	853		allows a controlled level of light transmission,
484	854		and
485		-
486	855		(3) "light deprivation" means a structure that has
487	856		concrete floors and the ability to manipulate
488	857		natural light.
489		-
490		-	3. The annual, nonrefundable license fee for a medical
491		-	marijuana processor license shall be determined as follows:
492		-	ENR. H. B. NO. 2179 Page 12
	858	+	3. The annual nonrefundabl e license fee for a medical marijuana
	859	+	processor license shall be determined as follows:
493	860		a. Tier 1: Zero (0) to ten thousand (10,000) pounds of
494	861		biomass or production o r use of up to one hundred
495	862		(100) liters of cannabis concentrate, the annual fee
496	863		shall be Two Thousand Five Hundred Dollars
497	864		($2,500.00),
498	865
	866	+	Req. No. 11601 Page 18 1
	867	+	2
	868	+	3
	869	+	4
	870	+	5
	871	+	6
	872	+	7
	873	+	8
	874	+	9
	875	+	10
	876	+	11
	877	+	12
	878	+	13
	879	+	14
	880	+	15
	881	+	16
	882	+	17
	883	+	18
	884	+	19
	885	+	20
	886	+	21
	887	+	22
	888	+	23
	889	+	24
	890	+
499	891		b. Tier 2: Ten thousand one (10,001) pounds to fifty
500	892		thousand (50,000) pounds of biomass or production or
501	893		use from one hundred one (101) to three hundred fifty
502	894		(350) liters of cannabis concentrate, the annual fee
503	895		shall be Five Thousand Dollars ($5,000.00),
504		-
505	896		c. Tier 3: Fifty thousand one (50,001) pounds to one
506	897		hundred fifty thousand (150,000) pounds of biomass or
507	898		production or use from three hundred fifty -one (351)
508	899		to six hundred fifty (650) liters of cannabis
509	900		concentrate, the annual fee shall be Ten Thousand
510	901		Dollars ($10,000.00),
511		-
512	902		d. Tier 4: One hundred fifty thousand one (150,001)
513	903		pounds to three hundred thousand (300,000) pounds of
514	904		biomass or production or use from six hundred fifty -
515	905		one (651) to one thousand (1,000) liters of cannabis
516	906		concentrate, the annual fee shall be Fifteen Thousand
517	907		Dollars ($15,000.00), and
518		-
519	908		e. Tier 5: More than three hundred thousand one
520	909		(300,001) pounds of biomass or production or use in
521	910		excess of one thousand one (1,001) liters of can nabis
522	911		concentrate, the annual fee shall be Twenty Thousand
523	912		Dollars ($20,000.00).
	913	+	For purposes of this paragraph only, if the cannabis concentrate
	914	+	is in non-liquid form, every one thousand (1,000) grams of
524	915
525		-	For purposes of this paragraph only, if the cannabis concentrate
526		-	is in nonliquid form, every one thousand (1,000) grams of
	916	+	Req. No. 11601 Page 19 1
	917	+	2
	918	+	3
	919	+	4
	920	+	5
	921	+	6
	922	+	7
	923	+	8
	924	+	9
	925	+	10
	926	+	11
	927	+	12
	928	+	13
	929	+	14
	930	+	15
	931	+	16
	932	+	17
	933	+	18
	934	+	19
	935	+	20
	936	+	21
	937	+	22
	938	+	23
	939	+	24
	940	+
527	941		concentrated marijuana shall be calculated as one ( 1) liter of
528	942		cannabis concentrate.
529		-
530	943		4. The initial fee for a medical marijuana dispensary license
531	944		shall be Two Thousand Five Hundred Dollars ($2,500.00). The annual,
532	945		nonrefundable license fee for a medical marijuana dispensary license
533	946		shall be calculated a t ten percent (10%) of the sum of twelve (12)
534	947		calendar months of the combined annual state sales tax and state
535	948		excise tax of the dispensary. The minimum fee shall be not less
536	949		than Two Thousand Five Hundred Dollars ($2,500.00) and the maximum
537		-	fee shall not exceed Ten Thousand Dollars ($10,000.00). ENR. H. B. NO. 2179 Page 13
538		-
	950	+	fee shall not exceed Ten Thousand Dollars ($10,000.00).
539	951		5. The annual, nonrefundable license fee for a medical
540	952		marijuana testing laboratory shall be Twenty Thousand Dollars
541	953		($20,000.00).
542		-
543	954		E. All applicants seeking licensure or licensure renewal as a
544	955		medical marijuana business shall comply with the following general
545	956		requirements:
546		-
547	957		1. All applications for licenses and registrations authorized
548	958		pursuant to this section shall be made up on forms prescribed by the
549	959		Authority;
550		-
551	960		2. Each application shall identify the city or cou nty in which
552	961		the applicant seeks to obtain licensure as a medical marijuana
553	962		business;
554	963
	964	+	Req. No. 11601 Page 20 1
	965	+	2
	966	+	3
	967	+	4
	968	+	5
	969	+	6
	970	+	7
	971	+	8
	972	+	9
	973	+	10
	974	+	11
	975	+	12
	976	+	13
	977	+	14
	978	+	15
	979	+	16
	980	+	17
	981	+	18
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	983	+	20
	984	+	21
	985	+	22
	986	+	23
	987	+	24
	988	+
555	989		3. Applicants shall submit a complete application to the
556	990		Department Authority before the application may be accepted or
557	991		considered;
558		-
559	992		4. All applications shall be complet e and accurate in every
560	993		detail;
561		-
562	994		5. All applications shall include all attachments or
563	995		supplemental information required by the forms supplied by the
564	996		Authority;
565		-
566	997		6. All applications shall be accompanied by a full remittance
567	998		for the whole amount of the appli cation fees. Application fees are
568	999		nonrefundable;
569		-
570	1000		7. All applicants shall be approved for licensing review that,
571	1001		at a minimum, meets the following criteria:
572		-
573	1002		a. twenty-five (25) years of age or older,
574		-
575	1003		b. if applying as an individual, proof that the applica nt
576	1004		is an Oklahoma resident pursuant to paragraph 11 of
577	1005		this subsection,
578		-
579	1006		c. if applying as an entity, proof that seventy -five
580	1007		percent (75%) of all members, managers, ex ecutive
581		-	officers, partners, board members or any other form of ~~ENR. H. B. NO. 2179 Page 14~~
	1008	+	officers, partners, board members or any other form of
582	1009		business ownership are Okl ahoma residents pursuant to
583	1010		paragraph 11 of this subsection,
	1011	+
	1012	+	Req. No. 11601 Page 21 1
	1013	+	2
	1014	+	3
	1015	+	4
	1016	+	5
	1017	+	6
	1018	+	7
	1019	+	8
	1020	+	9
	1021	+	10
	1022	+	11
	1023	+	12
	1024	+	13
	1025	+	14
	1026	+	15
	1027	+	16
	1028	+	17
	1029	+	18
	1030	+	19
	1031	+	20
	1032	+	21
	1033	+	22
	1034	+	23
	1035	+	24
584	1036
585	1037		d. if applying as an individual or entity, proof that the
586	1038		individual or entity is registered to conduct bu siness
587	1039		in the State of Oklahoma,
588		-
589	1040		e. disclosure of all ownership interests pursuant to the
590	1041		Oklahoma Medical Marijuana and Patient Protection Act,
591	1042		and
592		-
593	1043		f. proof that the medical marijuana business, medical
594	1044		marijuana research facility, medical marijuana
595	1045		education facility and medical marijuana waste
596	1046		disposal facility applicant or licensee has not been
597	1047		convicted of a nonviolent felony in the last two (2)
598	1048		years, or any other felony conviction within the last
599	1049		five (5) years, is not a current inmate in the custody
600	1050		of the Department of Corrections, or currently
601	1051		incarcerated in a jail or corrections faci lity;
602		-
603	1052		8. There shall be no limit to the number of medical marijuana
604	1053		business licenses or categories that an individual or entity can
605	1054		apply for or receive, although ea ch application and each category
606	1055		shall require a separate application and application fee . A
607	1056		commercial grower, processor and dispensary, or any combination
608	1057		thereof, are authorized to share the same address or physical
609	1058		location, subject to the restriction s set forth in the Oklahoma
610	1059		Medical Marijuana and Patient Protection Act;
611	1060
	1061	+	Req. No. 11601 Page 22 1
	1062	+	2
	1063	+	3
	1064	+	4
	1065	+	5
	1066	+	6
	1067	+	7
	1068	+	8
	1069	+	9
	1070	+	10
	1071	+	11
	1072	+	12
	1073	+	13
	1074	+	14
	1075	+	15
	1076	+	16
	1077	+	17
	1078	+	18
	1079	+	19
	1080	+	20
	1081	+	21
	1082	+	22
	1083	+	23
	1084	+	24
	1085	+
612	1086		9. All applicants for a medical marijuana business license,
613	1087		research facility license or education facility license authorized
614	1088		by the Oklahoma Medical Marijuana and Patient Protecti on Act, or for
615	1089		a renewal of such license, shall undergo an Oklahoma criminal
616	1090		history background check conducted by the Oklahoma State Bureau of
617	1091		Investigation (OSBI) within thirty (30) days prior to the
618	1092		application for the license, including:
619		-
620	1093		a. individual applicants applying on their own behalf,
621		-
622	1094		b. individuals applying on behalf of an entity,
623		-
624	1095		c. all principal officers of an entity, and
625		-	ENR. H. B. NO. 2179 Page 15
626	1096		d. all owners of an entity as defined by the Oklahoma
627	1097		Medical Marijuana and Patient Protection Act;
628		-
629	1098		10. All applicable fee s charged by the OSBI are the
630	1099		responsibility of the applicant and shall not be higher tha n fees
631	1100		charged to any other person or industry for such background checks;
632		-
633	1101		11. In order to be considered an Oklahoma resident for purposes
634	1102		of a medical marijuana busi ness application, all applicants shall
635	1103		provide proof of Oklahoma residency for at least t wo (2) years
636	1104		immediately preceding the date of application or five (5) years of
637	1105		continuous Oklahoma residency during the preceding twenty -five (25)
638	1106		years immediately preceding the date of application. Sufficient
639	1107		documentation of proof of residency shall i nclude a combination of
640	1108		the following:
641		-
642	1109		a. an unexpired Oklahoma -issued driver license,
643	1110
	1111	+	Req. No. 11601 Page 23 1
	1112	+	2
	1113	+	3
	1114	+	4
	1115	+	5
	1116	+	6
	1117	+	7
	1118	+	8
	1119	+	9
	1120	+	10
	1121	+	11
	1122	+	12
	1123	+	13
	1124	+	14
	1125	+	15
	1126	+	16
	1127	+	17
	1128	+	18
	1129	+	19
	1130	+	20
	1131	+	21
	1132	+	22
	1133	+	23
	1134	+	24
	1135	+
644	1136		b. an Oklahoma identification card,
645		-
646	1137		c. a utility bill preceding the date of appl ication,
647	1138		excluding cellular telephone and Internet bills,
648		-
649	1139		d. a residential property deed to property in the State
650	1140		of Oklahoma, and
651		-
652	1141		e. a rental agreement preceding the date of application
653	1142		for residential property located in the State of
654	1143		Oklahoma.
655		-
656	1144		Applicants that were issued a medical marijuana business license
657	1145		prior to August 30, 2019, are here by exempt from the two -year or
658	1146		five-year Oklahoma residence requirement mentioned above;
659		-
660	1147		12. All license applicants shall be required to submit a
661	1148		registration with th e Oklahoma State Bureau of Narcotics and
662	1149		Dangerous Drugs Control as provided in Sections 2-302 through 2-304
663	1150		of this title;
664		-
665	1151		13. All applicants shall establish their identity through
666	1152		submission of a color copy or digital image of one of the following
667	1153		unexpired documents:
668		-
669	1154		a. front of an Oklahoma driver license,
670		-	ENR. H. B. NO. 2179 Page 16
671	1155		b. front of an Oklahoma identific ation card,
672		-
673	1156		c. a United States passport or other photo identification
674	1157		issued by the United States government, or
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675	1183
676	1184		d. a tribal identification card approved for
677	1185		identification purposes by the Oklahoma Department of
678	1186		Public Safety; and
679		-
680	1187		14. All applicants shall submit an applicant photograph.
681		-
682	1188		F. The Authority shall review the medical marijuana business
683	1189		application; approve, reject or deny the application; and mail the
684	1190		approval, rejection, denial or status -update letter to the applicant
685	1191		within ninety (90) busine ss days of receipt of the application.
686		-
687	1192		G. 1. The Authority shall review the medical marijuana
688	1193		business applications and conduct all investigations, inspections
689	1194		and interviews before approving the application.
690		-
691	1195		2. Approved applicants shall be issued a med ical marijuana
692	1196		business license for the specific category applied under, which
693	1197		shall act as proof of their approved status. Rejection and denial
694	1198		letters shall provide a reason for the rejection or denial.
695	1199		Applications may only be rejected or denied based on the applicant
696	1200		not meeting the standards set forth in the provisions of the
697	1201		Oklahoma Medical Marijuana and Patient Protection Act and Sections
698	1202		420 through 426.1 of this title, improper completion of the
699	1203		application, or for a reason provided for in the O klahoma Medical
700	1204		Marijuana and Patient Protection Act and Sections 420 through 426.1
701	1205		of this title. If an application is rejected for failure to provide
702	1206		required information, the applicant shall have thirty (30) days to
703	1207		submit the required information for reconsideration. No additional
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704	1234		application fee shall be charged for such reconsideration. Unless
705	1235		the Department Authority determines otherwise, an application that
706	1236		has been resubmitted but is still incomplete or contains errors that
707	1237		are not clerical or t ypographical in nature shall be denied.
708		-
709	1238		3. Status-update letters shall provide a reason for delay in
710	1239		either approval, rejection or denial should a situation arise in
711	1240		which an application was submitted properly but a delay in
712	1241		processing the application occ urred.
713		-	ENR. H. B. NO. 2179 Page 17
714	1242		4. Approval, rejection, denial or status -update letters shall
715	1243		be sent to the applicant in the same method the application was
716	1244		submitted to the Department Authority.
717		-
718	1245		H. A license for a medical marijuana business, medical
719	1246		marijuana research facility , medical marijuana education facility or
720	1247		medical marijuana waste disposal facility shall not be issued to or
721	1248		held by:
722		-
723	1249		1. A person until all required fees have been p aid;
724		-
725	1250		2. A person who has been convicted of a nonviolent felony
726	1251		within two (2) years of t he date of application, or within five (5)
727	1252		years for any other felony;
728		-
729	1253		3. A corporation, if the criminal history of any of its
730	1254		officers, directors or stockholders ind icates that the officer,
731	1255		director or stockholder has been convicted of a nonviolent felon y
732	1256		within two (2) years of the date of application, or within five (5)
733	1257		years for any other felony;
734	1258
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735	1284		4. A person under twenty -five (25) years of age;
736		-
737	1285		5. A person licensed pursuant to this section who, during a
738	1286		period of licensure, or who, at the time of app lication, has failed
739	1287		to:
740		-
741	1288		a. file taxes, interest or penalties due related to a
742	1289		medical marijuana business, or
743		-
744	1290		b. pay taxes, interest or penalties due related to a
745	1291		medical marijuana business;
746		-
747	1292		6. A sheriff, deputy sheriff, police officer or prosecuting
748	1293		officer, or an officer or employee of the Authority or municipality;
749		-
750	1294		7. A person whose authority to be a caregiver, as defined in
751	1295		Section 427.2 of this title, has been re voked by the Department
752	1296		Authority; or
753		-
754	1297		8. A person who was involved in the management or operations of
755	1298		any medical marijuana business, medical marijuana research facility,
756	1299		medical marijuana education facility or medical marijuana waste
757	1300		disposal facility th at, after the initiation of a disciplinary
758		-	action, has had a medical marijuana license ~~revoked~~, not renewed, or ~~ENR. H. B. NO. 2179 Page 18~~
	1301	+	action, has had a medical marijuana license re voked, not renewed, or
759	1302		surrendered during the five (5) years preceding submission of the
760	1303		application and for the following violations:
761		-
762	1304		a. unlawful sales or purchases,
763		-
764	1305		b. any fraudulent acts, falsification of records or
765	1306		misrepresentation to the Authority, m edical marijuana
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766	1333		patient licensees, caregiver licensees or medical
767	1334		marijuana business licensees,
768		-
769	1335		c. any grossly inaccurate or fraudulent reporting,
770		-
771	1336		d. threatening or harming any medical marijuana patient,
772	1337		caregiver, medical practitioner or employee of the
773	1338		Department Authority,
774		-
775	1339		e. knowingly or intentionally refusing to permit the
776	1340		Department Authority access to premises or records,
777		-
778	1341		f. using a prohibited, hazardous substan ce for processing
779	1342		in a residential area,
780		-
781	1343		g. criminal acts relating to the operation of a medical
782	1344		marijuana business, or
783		-
784	1345		h. any violations that endanger public health and safety
785	1346		or product safety.
786		-
787	1347		I. In investigating the qualifications of an applicant or a
788	1348		licensee, the Department, Authority and municipalities may have
789	1349		access to criminal histo ry record information furnished by a
790	1350		criminal justice agency subject to any restrictions imposed by such
791	1351		an agency.
792		-
793	1352		J. The failure of an applicant or licensee to prov ide the
794	1353		requested information by the Authority deadline may be grounds for
795	1354		denial of the application.
796		-
797	1355		K. All applicants and licensees shall submit information to the
798	1356		Department and Authority in a full, faithful, truthful and fair
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799	1383		manner. The Department and Authority may recommend denial of an
800	1384		application where the applicant or licensee made misstatements,
801	1385		omissions, misrepresentations or untruths in the application or in
802	1386		connection with the background investigation of the applicant. This
803		-	type of conduct may be grounds for administrative action against the ~~ENR. H. B. NO. 2179 Page 19~~
	1387	+	type of conduct may be grounds for administrative action against the
804	1388		applicant or licensee. Typos and sc rivener errors shall not be
805	1389		grounds for denial.
806		-
807	1390		L. A licensed medical marijuana business premises shall be
808	1391		subject to and responsible for compliance with applicable p rovisions
809	1392		consistent with the zoning where such business is located as
810	1393		described in the most recent versions of the Oklahoma Uniform
811	1394		Building Code, the International Building Code and the International
812	1395		Fire Code, unless granted an exemption by a municipali ty or
813	1396		appropriate code enforcement entity.
814		-
815	1397		M. All medical marijuana business, medical ma rijuana research
816	1398		facility, medical marijuana education facility and medical marijuana
817	1399		waste disposal facility licensees shall pay the relevant licensure
818	1400		fees prior to receiving licensure to operate.
819		-
820	1401		N. A medical marijuana business, medical marijuana resea rch
821	1402		facility, medical marijuana education facility or medical marijuana
822	1403		waste disposal facility that attempts to renew its license after the
823	1404		expiration date of the lic ense shall pay a late renewal fee in an
824	1405		amount to be determined by the Department Authority to reinstate the
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825	1432		license. Late renewal fees are nonrefundable. A license that has
826	1433		been expired for more than ninety (90) days shall not be renewed.
827		-
828	1434		O. No medical marijuana business, medical marijuana research
829	1435		facility, medical marijuana education fac ility or medical marijuana
830	1436		waste disposal facility shall possess, sell or transfer medical
831	1437		marijuana or medical marijuana products without a valid, unexpired
832	1438		license issued by the Department Authority.
	1439	+	SECTION 5. This act shall become effe ctive June 1, 2023.
833	1440
834		-	SECTION 5. This act shall become eff ective June 1, 2023.
835		-	ENR. H. B. NO. 2179 Page 20
	1441	+	58-2-11601 GRS 05/18/22
836	1442
837		-	Passed the House of Representatives the 19th day of May, 2022.
838		-
839		-
840		-
841		-
842		-	Presiding Officer of the House
843		-	of Representatives
844		-
845		-
846		-	Passed the Senate the 20th day of May, 2022.
847		-
848		-
849		-
850		-
851		-	Presiding Officer of the Senate
852		-
853		-
854		-
855		-	OFFICE OF THE GOVERNOR
856		-	Received by the Office of the Governor this ____________________
857		-	day of ___________________, 20_______, at _______ o'clock _______ M.
858		-	By: _________________________________
859		-	Approved by the Governor of the Stat e of Oklahoma this ____ _____
860		-	day of ___________________, 20_______, at _______ o'clock _______ M.
861		-
862		-
863		-	_________________________________
864		-	Governor of the State of Oklahoma
865		-
866		-	OFFICE OF THE SECRETARY OF STATE
867		-	Received by the Office of the Secretary of State thi s __________
868		-	day of ___________________, 20_______, at _______ o'clock _______ M.
869		-	By: _________________________________