Oklahoma 2022 Regular Session

Oklahoma House Bill HB2179 Latest Draft

Bill / Enrolled Version Filed 05/20/2022

                            An Act 
ENROLLED HOUSE 
BILL NO. 2179 	By: Fetgatter and McDugle of 
the House   
 
  and 
 
  Garvin and Stephens of the 
Senate   
 
 
 
 
 
 
An Act relating to medical marijuana; amending 63 
O.S. 2021, Sections 421, 422, and 423, which relate 
to licensing requirements for m edical 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 Marijuana and Patient Prote ction 
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 . 
 
 
 
 
SUBJECT: Medical marijuana 
 
BE IT ENACTED BY THE PEOPL E OF THE STATE OF OKLAH OMA: 
 
SECTION 1.     AMENDATORY     63 O.S. 2021, Section 421, is 
amended to read as follows: 
 
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  ENR. H. B. NO. 2179 	Page 2 
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 b e 
residents of Oklahoma.  Any entity applying for a dispensary license 
must be owned by an Oklahom a resident and must be registere d 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 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 a ll members, managers, 
and board members are Oklahoma residents; 
 
4.  An applying entity may show ownership of non -Oklahoma 
residents, but that percentage ow nership may not exceed twe nty-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 nonviolent felony conviction in the last two 
(2) years, any other felony conviction i n the last five (5) years, 
inmates in the custody of the Department of Corrections or any 
person currently incarcerate d shall not qualify for a medical 
marijuana dispensary license. 
 
C.  Licensed medical marijuana dispensaries shall be required to 
complete a monthly sal es report to the State Department of Health 
Authority.  This report shall be due on the fifteenth of each month 
and provide reportin g on the previous month .  This report shall 
detail the weight of marijuana purchased at wholesale and the weight 
of marijuana sold to licensed medical marijuana patients and 
licensed caregivers and account for any waste.  The report shall  ENR. H. B. NO. 2179 	Page 3 
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 . 
 
D.  Only a licensed medical marijuan a dispensary may conduct 
retail sales of marijuana or marijuana derivatives.  Beginning on 
the effective date of this act, licens ed medical marijuana 
dispensaries shall be authorized to package and sell pre -rolled 
marijuana to licensed medical marijuana patients and lice nsed 
caregivers.  The products described in t his subsection shall contain 
only the ground parts of the marijuana p lant and shall not include 
marijuana concentrates or derivatives .  The total net weight of each 
pre-roll packaged and sold by a medical mariju ana dispensary shall 
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 Health Authority. 
 
E.  No medical marijuana dispensary shall offer or allow a 
medical marijuana patient licensee, careg iver licensee or other 
member of the public to handle or otherwise h ave physical contact 
with any medical marijuana not contained in a sealed or separate 
package.  Provided, such prohibition shall not preclude an employe e 
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 Protection Act and 
the rules promulgated by the Authority for the packaging of m edical 
marijuana for retail sale.  Provided, further, such prohibition 
shall not prevent a medical marijuana dispensary from displaying 
samples of its medical marijuana in separate display cases, jars or 
other containers and allowing medical marijuana pati ent licensees 
and caregiver licensee s 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 offered for retail sale. 
 
SECTION 2.     AMENDATORY     63 O.S. 2021, Section 422, is 
amended to read as follow s: 
 
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 this title.  A method of payment  ENR. H. B. NO. 2179 	Page 4 
for the application fee shall be provided on the we bsite 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 following criteria: 
 
1.  The applicant must be twenty-five (25) years of age or 
older; 
 
2.  The applicant, if applying as an individua l, 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 ma y 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 
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 licensed medical marijuana 
dispensary, a licensed medical marijuana commercial grower or a  ENR. H. B. NO. 2179 	Page 5 
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 allow ed 
to sell and buy marijuana whol esale from, or to, a n out-of-state 
wholesale provider.  A licensed medical marijuana commercial grower 
shall be required to complet e 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 previo us 
month.  This report shall detail the amount of marijuana harvested 
in pounds, the amount of drying or dried marijuana on hand, t he 
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 th at all marijuana being g rown by 
licensed medical marijuana commercial growers is accounted for.   
 
D.  There shall be no limits on how much marijuana a lic ensed 
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 t he marijuana 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 exc eed one (1) gram.  These products 
must be tested, package d and labeled in accordance with Oklahoma law 
and rules promulgated by the State Commissioner of 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 
  ENR. H. B. NO. 2179 	Page 6 
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 
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 mee t 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; 
 
4.  An applying entity may show ownership of non -Oklahoma 
residents, but that percentage ownership may not exceed t wenty-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 incarcerate d shall not qualify for a medical 
marijuana processing license. 
 
C.  1. A licensed processor may take marijuana plants and 
distill or process these plants into concentrates, edibles, and 
other forms for consumption. 
  ENR. H. B. NO. 2179 	Page 7 
2. As required by subsection D of this section, th e 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 curr ent 
food preparation guidelines .  No excessive or punitive rules may b e 
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 preparation standards .  If deficiencies are 
found, a written report of the deficiency shall 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 pr oducts 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 product directly to a licensed medical 
marijuana patient or licensed caregiver.  However, a licensed 
processor may process cannabis into a concentrated form for a 
licensed medical marijuana patient for a fee.   
 
6.  Licensed processors 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 shall 
provide reporting on the previous month .  This report shall detail 
the amount of marijuana and medical marijuana products purchased in 
pounds, the amount of marijuana cooked or processed in pounds, and 
the amount of waste in pounds .  Additionally, this repor t shall show 
total wholesale sales in dolla rs.  The State Department of Healt h 
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 Marijuana 
Advisory Council, who are marijuana industry experts, to create a 
list of food safety standards for processing and handling me dical  ENR. H. B. NO. 2179 	Page 8 
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 stan dards can be 
altered by calling anothe r council of twelve (12) Oklahoma marijuana 
industry experts.  A signed letter of twent y operating, licensed 
processors shall constitute a need for a ne w council and standards 
review. 
 
E.  If it becomes permissible unde r 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 sellin g, 
manufacturing or possessing marijuana paraphernalia. 
 
SECTION 4.     AMENDATORY     63 O.S. 2021, Section 427. 14, is 
amended to read as follows: 
 
Section 427.14 A.  There is hereby created the medical 
marijuana business license, which shall inc lude the following 
categories: 
 
1.  Medical marijuana commercial grower; 
 
2.  Medical marijuana processor; 
 
3.  Medical marijuana dispensary; 
 
4.  Medical marijuana transporter; and 
 
5.  Medical marijuana testing laboratory. 
 
B.  The Oklahoma Medical Marijuana Authority, with the aid of 
the Office of Management and Enterpris e Services, shall develop a 
website for medical marijuana business applications. 
 
C.  The Authority shall make available on it s website in an 
easy-to-find location, applications for a medical m arijuana 
business. 
  ENR. H. B. NO. 2179 	Page 9 
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 harve sted for 
the year.  The annual, nonrefundable 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 fee s 
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 one (10,001) square feet of 
canopy to twenty thousand (20,000) square feet of 
canopy, the fee shall be Five Tho usand Dollars 
($5,000.00), 
 
(3) Tier 3:  Twenty thousand one (20,001) square fee t 
of canopy to forty thousand (40,000) s quare feet 
of canopy, the fee shal l be Ten Thousand Dol lars 
($10,000.00), 
 
(4) Tier 4:  Forty thousand one (40,001) square feet 
of canopy to sixty thousand (60,000) square feet 
of canopy, the fee shall be Twent y Thousand 
Dollars ($20,000.00), 
 
(5) Tier 5:  Sixty thousand one (60,001) square feet 
of canopy to eighty thousand (80,000) square feet 
of canopy, the fee shall be Thirty Thou sand 
Dollars ($30,000.00), 
 
(6) Tier 6:  Eighty thousand one (80,001) square feet 
of canopy to ninety-nine thousand nine hundred 
ninety-nine (99,999) square feet of canopy, the 
fee shall be Forty Thousand Dollars ($40,000.00), 
and  
  ENR. H. B. NO. 2179 	Page 10 
(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 additional 
twenty-five cents ($0.25) per square foot of 
canopy over one hundred thousand (100,000) square 
feet. 
 
b. For an outdoor medical marijuana grow facility: 
 
(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 Tho usand 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) acre s 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 Do llars 
($50,000.00), and  
 
(8) Tier 8:  If the amount of acreage exceeds fifty 
(50) acres, the fee sha ll be Fifty Thousand 
Dollars ($50,000.00) plus an additio nal Two 
Hundred Fifty Dollars ($250.00) per acre.  
 
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  ENR. H. B. NO. 2179 	Page 11 
separate license from the Authority for each type 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 mea sured 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 no ncontiguous areas, each 
component area must be separat ed 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 
not include the areas within the cult ivation area 
that are used to cultivate immature marijuana 
plants and seedlings, p rior to flowering, and 
that are not used at any time to cultivate mature 
marijuana plants.  If the flowering plants are 
vertically grown in cylinde rs, the square footage 
of the canopy shall be measu red by the 
circumference of the cylinder multiplied by the 
total length of the cylin der, 
 
(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, nonrefundable license fee for a medical 
marijuana processor license shall be determined as follows: 
  ENR. H. B. NO. 2179 	Page 12 
a. Tier 1: Zero (0) to ten thousand (10,000) pounds of 
biomass or production or use of up to one hundred 
(100) liters of cannabis concentrate, the annual fee 
shall be Two Thousand Five Hundred Dollars 
($2,500.00), 
 
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 ($5,000.0 0), 
 
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 thou sand 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 cannabis 
concentrate, the annual fee shall be Twenty Thousand 
Dollars ($20,000.00). 
 
For purposes of this paragraph only, if the cannabis concentrate 
is in nonliquid form, every one thousand (1,000) grams of 
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 at 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 mi nimum fee shall be not l ess 
than Two Thousand Five Hundred Dollars ( $2,500.00) and the maximum 
fee shall not exceed Ten Thousand Dollars ($10,000.00).  ENR. H. B. NO. 2179 	Page 13 
 
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 upon forms prescribed by the 
Authority; 
 
2.  Each application shall identify the city or co unty 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 comple te and accurate in every 
detail; 
 
5.  All applications shal l 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 appl ication 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 applic ant 
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  ENR. H. B. NO. 2179 	Page 14 
business ownership are Ok lahoma 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 
 
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 fac ility; 
 
8.  There shall be no limit to the number of medica l marijuana 
business licenses or categories that an individual or entity can 
apply for or receive, although each application and each category 
shall require a separate application and application fe e.  A 
commercial grower, processor and dispensary, or any combination 
thereof, are authorized to share the same address or physical 
location, subject to the restrictions set forth in 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: 
 
a. individual applicants applying on their own behalf, 
 
b. individuals applying on behalf of an entity, 
 
c. all principal officers of an entity, and 
  ENR. H. B. NO. 2179 	Page 15 
d. all owners of an entity as defined by the Oklahoma 
Medical Marijuana and Patient Protection Act; 
 
10.  All applicable fees charged by the OSBI are the 
responsibility of the applicant and shall 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 le ast 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 sh all 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 
 
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 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 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, 
  ENR. H. B. NO. 2179 	Page 16 
b. front of an Oklahoma identification card, 
 
c. a United States passport or other photo id entification 
issued by the United States 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 
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 marijuana 
business applications and conduct all investigations, inspections 
and interviews before approving the application. 
 
2.  Approved applicants shall be issued a me dical 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 rej ected 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 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 applicant 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 but 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 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 oc curred. 
  ENR. H. B. NO. 2179 	Page 17 
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 facilit y, 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 o f the date of application, or within five (5) 
years for any other felony; 
 
3.  A corporation, if the criminal history of any of its 
officers, directors or stockholders indicates that the officer, 
director or stockholder has been conv icted of a nonviolent f elony 
within two (2) years of the date of application, or wit hin five (5) 
years for any other felony; 
 
4.  A person under twenty-five (25) years of age; 
 
5.  A person licensed pursuant to this section who, during a 
period of licensure, or who, at the time of application, has failed 
to: 
 
a. file taxes, interest or penal ties 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, po lice officer or prosecu ting 
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 man agement 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 initiation of a disciplinary 
action, has had a medical marijuana license revoked, not renewed, or  ENR. H. B. NO. 2179 	Page 18 
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 licensees, 
 
c. any grossly inaccurate or fraudulent reporting, 
 
d. threatening or harming any medical marijuana patient, 
caregiver, medical practitioner or e mployee of the 
Department Authority, 
 
e. knowingly or intentionally refus ing to permit the 
Department Authority access to premises or records, 
 
f. using a prohibited, hazardous substance for processing 
in a residential area, 
 
g. criminal acts relating to t he 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 imposed by such 
an agency. 
 
J. The failure of an applicant or licensee to provide the 
requested information by the Authority deadline may be groun ds 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 appli cant 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  ENR. H. B. NO. 2179 	Page 19 
applicant or licensee.  Typos and scrivener errors shall not be 
grounds for denial. 
 
L.  A licensed medical marijuana business premises shall be 
subject to and responsible for compliance with applicable provisions 
consistent with the zoning where such business is locate d 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 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 receiving licensure to operate. 
 
N.  A medical marijuana business , medical marijuana rese arch 
facility, medical marijuana education facility or med ical marijuana 
waste disposal facility that attempts to renew its license after the 
expiration date of the license shall pay a late renewal fee in an 
amount to be determined by the Department 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 business, medical marijuana research 
facility, medical marijuana education fa cility 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 eff ective June 1, 2023. 
  ENR. H. B. NO. 2179 	Page 20 
 
Passed the House of Representatives the 19th day of May, 2022. 
 
 
 
  
 	Presiding Officer of the House 
 	of Representatives 
 
 
Passed the Senate the 20th day of May, 2022. 
 
 
 
  
 	Presiding Officer of the Senate 
 
 
 
OFFICE OF THE GOVERNOR 
Received by the Office of the Governor this ____________________ 
day of ___________________, 20_______, at _______ o'clock _______ M. 
By: _________________________________ 
Approved by the Governor of the Stat e of Oklahoma this ____ _____ 
day of ___________________, 20_______, at _______ o'clock _______ M. 
 
 
 	_________________________________ 
 	Governor of the State of Oklahoma 
 
OFFICE OF THE SECRETARY OF STATE 
Received by the Office of the Secretary of State thi s __________ 
day of ___________________, 20_______, at _______ o'clock _______ M. 
By: _________________________________