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ENGROSSED SENATE AMENDMENT
TO
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 Business es 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; providing 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; providing for
codification; and declaring an emergency.
AUTHOR: Add the following Senate Coauthors: Bergstrom and Bullard
AMENDMENT NO. 1. Page 1, strike the title, enacting clause and
entire bill and insert
"An Act relating to medical marijuana; amending
Section 15, Chapter 11, O.S.L. 2019 (63 O.S. Supp.
2020, Section 427.15), which relates to disclosing
financial interests; requiring an attestation under
penalty of perjury for foreign interests in marijuana
businesses by certain date; amending Section 6,
Chapter 11, O.S.L. 2019, as amended by Section 7,
Chapter 477, O.S.L. 2019 (63 O.S. Supp. 2020, Section
427.6), which relates to monitoring and disciplinary
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actions; updating statutory references; modifying
language; providing for certain inspections within
certain time; providing grace periods to gain
compliance; requiring termination of license for
failure to provide proof of business operations
within certain time; providing an effective date; and
declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 15, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.15), is amended to read as
follows:
Section 427.15. A. The State Department of Healt h Oklahoma
Medical Marijuana Authority is hereby authorized to develop policies
and procedures for disclosure by a medical marijuana business of
financial interest and ownership.
B. Upon the effective date of this act, current medical
marijuana business l icensees and applicants seeking licensure as a
medical marijuana business shall be required to submit under penalty
of perjury an attestation confirming or denying the existence of any
foreign financial interests in the medical marijuana business
operation and shall disclose the identity of such ownership, if
applicable. Medical marijuana business licensees shall, within
sixty (60) days after the effective date of this act, submit such
attestation to the Oklahoma State Bureau of Narcotics and Dangerous
Drugs Control. Applicants for a medical marijuana business license
shall, within sixty (60) days after the approval of a medical
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marijuana business license application by the Oklahoma Medical
Marijuana Authority, submit such attestation to the Bureau. Failu re
to submit the attestation or accompanying information to the Bureau
within the specified sixty -day time period shall result in the
immediate revocation of the medical marijuana business license. The
Bureau shall prescribe the form of the attestation re quired under
the provisions of this subsection and shall make the form available
on its publicly accessible Internet website.
SECTION 2. AMENDATORY Section 6, Chapter 11, O.S.L.
2019, as amended by Section 7, Chapter 477, O.S.L. 2019 (63 O.S.
Supp. 2020, Section 427.6), is amended to read as follows:
Section 427.6. A. The State Department of Health shall address
issues related to the medical marijuana program in Oklahoma
including, but not limited to, monitoring and disciplinary ac tions
as they relate to the medical marijuana program.
B. 1. The Oklahoma Medical Marijuana Authority, Department or
its designee may perform on -site assessments of a licensee or
applicant for any medical marijuana business license issued pursuant
to this act the Oklahoma Medical Marijuana and Patient Protection
Act to determine compliance with this act the Oklahoma Medical
Marijuana and Patient Protection Act or submissions made pursuant to
this section. The Oklahoma Medical Marijuana Authority, Department
or its designee may enter the licensed premises of a medical
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marijuana business licensee or applicant to assess or monitor
compliance.
2. Inspections Except as otherwise provided by law, inspections
shall be limited to twice per calendar year and twen ty-four (24)
hours of notice shall be provided to a medical marijuana business
applicant or licensee prior to an on -site assessment. However,
additional inspections may occur when the Oklahoma Medical Marijuana
Authority or Department shows that an additi onal inspection is
necessary due to a violation of this act or noncompliance with the
Oklahoma Medical Marijuana and Patient Protection Act . Such
inspection may be without notice if the Oklahoma Medical Marijuana
Authority or Department believes that such notice will result in the
destruction of evidence.
3. The Department may review relevant records of a licensed
medical marijuana business, licensed medical marijuana research
facility or licensed medical marijuana education facility, and may
require and conduct interviews with such persons or entities and
persons affiliated with such entities, for the purpose of
determining compliance with Department rules, requirements and
applicable laws. However, prior to conducting any interviews with
the medical marijuana business, research facility or education
facility, the licensee shall be afforded sufficient time to secure
legal representation during such questioning if requested by the
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business or facility or any of its agents or employees or
contractors.
4. The Department shall refer complaints alleging criminal
activity that are made against a licensee to appropriate Oklahoma
state or local law enforcement authorities.
C. Disciplinary action may be taken against an applicant or
licensee under this act the Oklahoma Medical Marijuana and Patient
Protection Act for not adhering to the law pursuant to the terms,
conditions and guidelines set forth in this act the Oklahoma Medical
Marijuana and Patient Protection Act .
D. Disciplinary actions may include revocatio n, suspension or
denial of an application, license or final authorization and other
action deemed appropriate by the Department or the Oklahoma Medical
Marijuana Authority.
E. Disciplinary actions may be imposed upon a medical marijuana
business licensee for:
1. Failure to comply with or satisfy any provision of this
section;
2. Falsification or misrepresentation of any material or
information submitted to the Department;
3. Failing to allow or impeding a monitoring visit by
authorized representatives o f the Department;
4. Failure to adhere to any acknowledgement, verification or
other representation made to the Department;
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5. Failure to submit or disclose information required by this
section or otherwise requested by the Department;
6. Failure to correct any violation of this section cited as a
result of a review or audit of financial records or other materials;
7. Failure to comply with requested access by the Department to
the licensed premises or materials;
8. Failure to pay a required monetary p enalty;
9. Diversion of medical marijuana or any medical marijuana
product, as determined by the Department;
10. Threatening or harming a patient, a medical practitioner or
an employee of the Department; and
11. Any other basis indicating a violation of the applicable
laws and regulations as identified by the Department.
F. Disciplinary actions against a licensee may include the
imposition of monetary penalties, which may be assessed by the
Department.
G. Penalties for sales by a medical marijuana busi ness to
persons other than those allowed by law occurring within any two -
year time period may include an initial fine of One Thousand Dollars
($1,000.00) for a first violation and a fine of Five Thousand
Dollars ($5,000.00) for any subsequent violation. T he medical
marijuana business may be subject to a revocation of any license
granted pursuant to this act the Oklahoma Medical Marijuana and
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Patient Protection Act upon a showing that the violation was willful
or grossly negligent.
H. 1. First offense for intentional and impermissible
diversion of medical marijuana, concentrate , or products by a
patient or caregiver to an unauthorized person shall not be punished
under a criminal statute but may be subject to a fine of Two Hundred
Dollars ($200.00).
2. The second offense for impermissible diversion of medical
marijuana, concentrate , or products by a patient or caregiver to an
unauthorized person shall not be punished under a criminal statute
but may be subject to a fine of not to exceed Five Hundred Dollar s
($500.00) and may result in revocation of the license upon a showing
that the violation was willful or grossly negligent.
I. The following persons or entities may request a hearing to
contest an action or proposed action of the Department:
1. A medical marijuana business, research facility or education
facility licensee whose license has been summarily suspended or who
has received a notice of contemplated action to suspend or revoke a
license or take other disciplinary action; and
2. A patient or care giver licensee whose license has been
summarily suspended or who has received notice of contemplated
action to suspend or revoke a license or take other disciplinary
action.
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J. All hearings held pursuant to this section shall be in
accordance with the Okl ahoma Administrative Procedures Act, Section
250 et seq. of Title 75 of the Oklahoma Statutes.
K. 1. Beginning September 1, 2021, the Oklahoma Medical
Marijuana Authority shall schedule an on -site meeting and compliance
inspection of the premises with th e medical marijuana dispensary
licensee at the location of the medical marijuana dispensary, the
medical commercial grower at the location of the medical marijuana
commercial grower site and the medical marijuana processor at the
location of the medical ma rijuana processing site. The on -site
meeting and compliance inspection shall occur within the first one
hundred eighty (180) days after issuance of the medical marijuana
dispensary license, commercial grower license or processor license
and shall be conducted for purposes of verifying whether the medical
marijuana licensee is actively operating or is working towards
operational status.
2. If, at the time of the on -site meeting and compliance
inspection, the medical marijuana licensee fails to provide proo f to
the Authority that the medical marijuana business is actively
operating or working towards operational status, the Authority shall
grant the medical marijuana licensee a grace period of one hundred
eighty (180) days to become operational. Upon expira tion of this
grace period, the Authority shall schedule a second on -site meeting
and compliance inspection of the premises to verify whether the
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medical marijuana licensee has begun operations at the licensed
premises or is continuing to work towards opera tional status.
3. If, after the second on -site meeting and compliance
inspection, the medical marijuana licensee fails to provide proof to
the Authority that the medical marijuana licensee is actively
operating or continuing to work towards operational st atus, the
Authority shall be authorized to grant the medical marijuana
licensee an additional grace period of one hundred eighty (180) days
to become operational.
4. Upon expiration of the second grace period, the Authority
shall terminate the medical mar ijuana business license if the
medical marijuana licensee has failed to provide proof to the
Authority that the medical marijuana dispensary is actively
conducting business operations at the licensed premises.
SECTION 3. This act shall bec ome effective July 1, 2021.
SECTION 4. 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 Senate the 21st day of April, 2021.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2021.
Presiding Officer of the House
of Representatives
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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 5. 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 6. 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 7. 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 8. 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 9. 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