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ENGROSSED HOUSE
BILL NO. 2272 By: West (Josh), Cornwell,
McEntire, Sneed and Grego
of the House
and
Murdock of the Senate
An Act relating to medical marijuana; creating the
Oklahoma Cap on Medical Marijuana Businesses Act of
2021; directing the Oklahoma Medical Marijuana
Authority to publicly announce caps on certain
medical marijuana business licenses; providing
procedures for determining amount of licenses;
providing application requirements for active medical
marijuana business licenses; pr oviding for the
reduction of medical marijuana dispensary, processor
and commercial grower licenses; prohibiting renewal
of licenses for inactivity; directing the Authority
to promulgate certain rules and regulations for
number-based lottery system; provid ing for
codification; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 431 of Title 63, unless there i s
created a duplication in numbering, reads as follows:
Sections 1 through 4 of this act shall be known and may be cited
as the "Oklahoma Cap on Medical Marijuana Businesses Act of 2021".
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SECTION 2. NEW LAW A new section of law to b e codified
in the Oklahoma Statutes as Section 431.1 of Title 63, unless there
is created a duplication in numbering, reads as follows:
A. On July 1, 2021, or fifteen (15) days from the effective
date of this act, the Oklahoma Medical Marijuana Authority shall
announce publicly that the number of medical marijuana dispensary
licenses, medical marijuana processor licenses and medical marijuana
commercial grower licenses authorized in the State of Oklahoma shall
be capped for a two-year period beginning September 1, 2021, and
ending September 1, 2023 .
B. Beginning September 1, 2021, and ending September 1, 2023,
the number of medical marijuana dispensary licenses, medical
marijuana processor licenses and medical marijuana commercial grower
licenses authorized in the State of Oklahoma shall be capped at the
total number of licenses active in each category as of September 1,
2021, combined with the total number of applications pending in each
category with the Oklahoma Medical Marijuana Authority which were
submitted prior to September 1, 2021. In order to determine the
final amount of authorized medical marijuana dispensary licenses,
medical marijuana processor licenses and medical marijuana
commercial grower licenses in this state, the Authority shall first
process all pending applications for each license category received
prior to September 1, 2021, and add that number to the total number
of active licenses in each category as of September 1, 2021.
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Applications for a medical marijuana dispensary license, me dical
marijuana processor license or medical marijuana commercial grower
license shall not be accepted beginning September 1, 2021, except as
provided in subsection C of this section.
C. All applicants submitting an application for an active
medical marijuana dispensary license, medical marijuana processor
license or medical marijuana commercial grower license, prior to
September 1, 2021, shall meet all requirements to hold a medical
marijuana business license at the time of application. However,
such applicant shall not be required to submit a Certificate of
Compliance prior to submitting an application under the provisions
of this subsection and each applicant shall have one hundred eighty
(180) days from the date such license is provisionally approved t o
submit a Certificate of Compliance to the Oklahoma Medical Marijuana
Authority. Only upon submission and acceptance by the Authority of
the Certificate of Compliance, and provided the applicant continues
to meet all other requirements provided for in Se ctions 421 through
423 of Title 63 of the Oklahoma Statutes and the Oklahoma Medical
Marijuana and Patient Protection Act, shall the applicant be awarded
an active business license. In the event an applicant does not
submit a Certificate of Compliance or fails to meet any other
requirements for licensure within one hundred eighty (180) days of
being awarded a license, the license shall automatically terminate
and shall not be extended.
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SECTION 3. NEW LAW A new section of law to be c odified
in the Oklahoma Statutes as Section 431.2 of Title 63, unless there
is created a duplication in numbering, reads as follows:
A. 1. Beginning September 1, 2021, and ending September 1,
2023, the number of medical marijuana dispensary licensees
authorized to operate in the State of Oklahoma shall be
automatically reduced by the number of medical marijuana dispensary
licenses surrendered, canceled or otherwise terminated, until such
time as the total number of active medical marijuana dispensary
licenses is equal in number to two thousand.
2. Beginning September 1, 2022, any medical marijuana
dispensary licensee who does not actively use the medical marijuana
dispensary license for a period of eighteen (18) months shall not be
authorized to renew th e license. For purposes of this subsection,
the active use of a medical marijuana dispensary license shall
require that a dispensary licensee have a minimum of Five Thousand
Dollars ($5,000.00) per month in gross monthly sales calculated on a
twelve-month rolling average. Gross monthly sales shall be
calculated by taking the total amount of income and subtracting all
discounts and sales and excise tax collected on medical marijuana
and medical marijuana products.
B. 1. Beginning September 1, 2021, and ending September 1,
2023, the number of medical marijuana commercial grower licensees
authorized in the State of Oklahoma shall be automatically reduced
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by the number of medical marijuana commercial grower licenses
surrendered, canceled or otherwise term inated, until the total
number of active medical marijuana commercial grower licenses is
equal in number to or less than five thousand.
2. Beginning September 1, 2022, any medical marijuana
commercial grower licensee who does not actively use the license for
a period of eighteen (18) months shall not be authorized to renew
the license. For purposes of this subsection, active use of a
medical marijuana commercial grower license shall require that a
commercial grower licensee have under cultivation a minimu m of fifty
marijuana plants per month, calculated on a twelve -month rolling
average.
C. 1. Beginning September 1, 2021, and ending September 1,
2023, the number of medical marijuana processor licensees authorized
in the State of Oklahoma shall be automat ically reduced by the
number of medical marijuana processor licenses surrendered, canceled
or otherwise terminated, until the total number of active medical
marijuana processor licenses is equal in number to or less than one
thousand.
2. Beginning September 1, 2022, any medical marijuana processor
licensee who does not actively use the license for a period of
eighteen (18) months shall not be authorized to renew the license.
For purposes of this subsection, active use of a medical marijuana
processor license shall require that a processor licensee have a
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minimum of Five Thousand Dollars ($5,000.00) per month in gross
monthly sales calculated on a twelve -month rolling average. Gross
monthly sales shall be calculated by taking the total amount of
income and subtracting all discounts.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 431.3 of Title 63, unless there
is created a duplication in numbering, reads as follows:
The Authority shall, w ithin ninety (90) days of the effective
date of this act, promulgate rules and regulations to govern an
impartial, number-based lottery to govern issuance of all available
medical marijuana business licenses up to the cap amount for the
specific medical marijuana business license category.
SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
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Passed the House of Representatives the 10th day of March, 2021.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2021.
Presiding Officer of the Sen ate