An Act
ENROLLED HOUSE
BILL NO. 2272 By: West (Josh), Cornwell,
McEntire, Sneed and Grego
of the House
and
Murdock, Bergstrom,
Bullard, Pederson and
Rogers of the Senate
An Act relating to medical marijuana; amending
Section 15, Chapter 11, O.S.L. 201 9 (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 medical
marijuana businesses by certain date; amending
Section 6, Chapter 11, O.S.L. 2019, a s amended by
Section 7, Chapter 477, O.S.L. 2019 (63 O.S. Supp.
2020, Section 427.6), which relates to monitoring and
disciplinary 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.
SUBJECT: Medical marijuana
BE IT ENACTED BY THE PEOPL E 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:
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Section 427.15 A. The State Department of Health 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 licensees 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
marijuana business license application by the Oklahoma Medical
Marijuana Authority, submit such attestation to the Bureau. Failure
to submit the attest ation 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 required 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 actions
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
marijuana business licensee or applicant to assess or monitor
compliance.
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2. Inspections Except as otherwise provided by law, inspections
shall be limited to twice per calendar year and twenty -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 additional 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, re search facility or education
facility, the licensee shall be afforded sufficient time to secure
legal representation during such questioning if requested by the
business or facility or any of its agents or employees or
contractors.
4. The Department shal l 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 Ma rijuana 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 revocation, 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; ENR. H. B. NO. 2272 Page 4
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 of the Depart ment;
4. Failure to adhere to any acknowledgement, verification or
other representation made to the Department;
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 penalty;
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 busine ss 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. The medical
marijuana business may be subject to a revocation of any license
granted pursuant to this act the Oklahoma Medical Marijuana and
Patient Protection Act upon a showing that the violation was willful
or grossly negligent.
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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 caregiver 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.
J. All hearings held pursuant to this section shall be in
accordance with the Oklahoma 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 on-site meetings and compliance
inspections of the premises with the medical marijuana dispensary
licensee at the location of the medical marijuana dispensary, the
medical marijuana commercial grower at the location of the medical
marijuana commercial grower site and the medical marijuana processor
at the location of the medical marijuana processing site. The on -
site meetings and compliance inspection s 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 business licensee is actively operating or is
working towards operational status.
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2. If, at the time of the on -site meeting and compliance
inspection, the medical marijuana business licensee fails to provide
proof to the Authority that the medical marijuana business is
actively operating or working towards operational status, the
Authority shall grant the medical marijuana business licensee a
grace period of one hundred eighty (1 80) days to become operational.
Upon expiration of this grace period, the Authority shall schedule a
second on-site meeting and compliance inspection of the premises to
verify whether the medical marijuana business licensee has begun
operations at the lic ensed premises or is continuing to work towards
operational status.
3. If, after the second on -site meeting and compliance
inspection, the medical marijuana business licensee fails to provide
proof to the Authority that the medical marijuana business licensee
is actively operating or is continuing to work towards operational
status, the Authority shall be authorized to grant the medical
marijuana business 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 marijuana business license if the
medical marijuana business licensee has failed to provide proof to
the Authority that the medical marijuana business is actively
conducting business operations at the licensed premises.
SECTION 3. This act shall become 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.
ENR. H. B. NO. 2272 Page 7
Passed the House of Representatives the 14th day of May, 2021.
Presiding Officer of the House
of Representatives
Passed the Senate the 21st day of April, 2021.
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 State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRET ARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________