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SENATE FLOOR VERSION
April 7, 2021
AS AMENDED
ENGROSSED HOUSE
BILL NO. 2646 By: Echols and Davis of the
House
and
Taylor and Rogers of the
Senate
[ medical marijuana - patient and caregiver licensing
requirements - dispensary licensing requirements -
commercial grower licensing requirements -
protections for medical marijuana patient licensees -
taxation of medical marijuana - license revocations
and hearings - Oklahoma Medical Marijuana and Patient
Protection Act - Oklahoma Medical Mar ijuana Waste
Management Act - codification - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 1, State Question No. 788,
Initiative Petition No. 412, as last amended by Section 44, Chapter
161, O.S.L. 2020 (63 O.S. Supp. 2020, Section 420), is amended to
read as follows:
Section 420. A. A person in possession of a state -issued
medical marijuana patient license shall be able to:
1. Consume marijuana legally;
2. Legally possess up to three (3) ounces or eighty-four and
nine-tenths (84.9) grams of marijuana on their person;
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3. Legally possess six mature marijuana plants and the
harvested marijuana therefrom ;
4. Legally possess six seedling plants;
5. Legally possess o ne (1) ounce or twenty-eight and three-
tenths (28.3) grams of concentrated marijuana;
6. Legally possess seventy -two (72) ounces or two thousand
thirty-seven and six-tenths (2,037.6) grams of edible marijuana; and
7. Legally possess up to eight (8) ounce s or two hundred
twenty-six and four-tenths (226.4) grams of marijuana in their
residence; and
8. Legally possess seventy -two ounces (72) ounces of topical
marijuana.
B. Possession of up to one and one -half (1.5) ounces or forty-
two and forty-five one-hundredths (42.45) grams of marijuana by
persons who can state a medical condition, but are not in possession
of a state-issued medical marijuana patient license, shall
constitute a misdemeanor offense not subject to imprisonment but
punishable by a fine not to exceed Four Hundred Dollars ($400.00)
and shall not be subject to imprisonment for the offense . Any law
enforcement officer who comes in contact with a person in violation
of this subsection and who is satisfied as to the identity of the
person, as well as any other pertinent information the law
enforcement officer deems necessary, shall issue to the person a
written citation containing a notice to answer the charge against
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the person in the appropriate court. Upon receiving the written
promise of the alleged violator to answer as specified in the
citation, the law enforcement officer shall release the person upon
personal recognizance unless there has been a violation of another
provision of law.
C. A regulatory office shall be established under the State
Department of Health which shall re ceive applications for medical
marijuana patient and caregiver license recipients, dispensaries,
growers, and packagers processors within sixty (60) days of the
passage of this initiative.
D. The State Department o f Health shall, within thirty (30)
days of passage of this initiative, make available on its website,
in an easy-to-find easy-to-find location, an application for a
medical marijuana patient license. The license shall be good valid
for two (2) years. The biannual application fee shall be One
Hundred Dollars ($100.00), or Twenty Dollars ($20.00) for
individuals on Medicaid, Medicare or SoonerCare. The methods of
payment shall be provided on the website of the Department.
Reprints of the medical marijuana patient license shall be Twenty
Dollars ($20.00).
E. A short-term medical marijuana patient license application
shall also be made available on the website of the State Department
of Health. A short-term medical marijuana patient license shall be
granted to any applicant who can meet the requirements for a two-
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year medical marijuana patient license, but whose physician
recommendation for medical marijuana is only valid for sixty (60)
days. Short-term medical marijuana patient licenses shall be issued
for sixty (60) days. The fee for a short -term medical marijuana
patient license, reprints of the short -term medical marijuana
patient license, and the procedure for extending or renewing the
license shall be determined by the Department.
F. A temporary medical marijuana patient license application
shall also be made available on the website of the State Department
of Health for residents of other states . A temporary medical
marijuana patient license shall be granted to any medical marijuana
license holder from other states, provided that the state has a
state-regulated medical marijuana program , and the applicant can
prove he or she is a member of such program. Temporary medical
marijuana patient licenses shall be issued for thirty (30) days.
The cost for a temporary medical marijuana patient license shall be
One Hundred Dollars ($100.00). Renewal shall be granted with
resubmission of a new application. No additional criteria shall be
required. Reprints of the temporary medical marijuana patient
license shall be Twenty Dollars ($20.00).
G. Medical marijuana patient license applicants sha ll submit
his or her their applications to the State Department of Health for
approval. The applicant shall be an a resident of Oklahoma state
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resident and shall prove residency by a valid driver license,
utility bills, or other accepted methods.
H. The State Department of Health shall review the medical
marijuana patient license application,; approve or, reject or deny
the application,; and mail the approval or, rejection or denial
letter stating any reasons for the rejection or denial to the
applicant within fourteen (14) business days of receipt of the
application. Approved applicants shall be issued a medical
marijuana patient license which shall act as proof of hi s or her
approved status. Applications may only be rejected or denied based
on the applicant not meeting stated criteria or improper completion
of the application.
I. The State Department of Health shall only keep the following
records for each approved medical marijuana license:
1. A digital photograph of the license holder;
2. The expiration date of the license;
3. The county where the card was issued; and
4. A unique 24-character identification number assigned to the
license.
J. The State Department of Health shall make available, both on
its website and through a telephone verifi cation system, an easy
method to validate the authenticity of the medical marijuana patient
license by the unique 24 -character identification number.
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K. J. The State Department of Health shall ensure that all
application medical marijuana patient and caregiv er records and
information are sealed to protect the privacy of medical marijuana
patient license applicants.
L. K. A caregiver license shall be made available for qua lified
caregivers of a medical marijuana patient license holder who is
homebound. As provi ded in Section 11 427.11 of Enrolled House Bill
No. 2612 of the 1st Session of the 57th Oklahoma Legislature this
title, the caregiver license shall provide the care giver the same
rights as the medical marijuana patient licensee, including the
ability to possess marijuana, marijuana products and mature and
immature plants pursuant to the Oklahoma Medical Marijuana and
Patient Protection Act, but excluding the ability to use marijuana
or marijuana products unless the caregiver has a medical marijuana
patient license. An applicant Applicants for a caregiver license
shall submit proof of the license status and homebound status of the
medical marijuana patient and proof t hat the applicant is the
designee of the medical marijuana patient. The applicant shall al so
submit proof that he or she is eighteen (18) years of age or older
and proof of his or her Oklahoma residency. This shall be the only
criteria for a caregiver li cense.
M. L. All applicants for a medical marijuana patient license
shall be eighteen (18) ye ars of age or older. A special exception
shall be granted to an applicant under the age of eighteen (18);
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however, these applications shall be signed by two phys icians and
the parent or legal guardian of the applicant.
N. M. All applications for a medical m arijuana patient license
shall be signed by an Oklahoma physician licensed by and in good
standing with the State Board of Medical Licensure and Supervision
or the State Board of Osteopathic Examiners . There are no
qualifying conditions. A medical mariju ana patient license must
shall be recommended according to the accepted standards a
reasonable and prudent physician would follow when recommending or
approving any medication. No physician may be unduly stigmatized or
harassed for signing a medical marij uana patient license
application.
O. N. Counties and cities may enact medical marijuana
guidelines allowing medical marijuana patient license holders or
caregivers caregiver license holders to exceed the state limits set
forth in subsection A of this section .
SECTION 2. AMENDATORY Section 2, State Question No. 788,
Initiative Petition No. 412 (63 O.S. Supp. 2020, Section 421), is
amended to read as follows:
Section 421. A. The Oklahoma State Department of Health shall ,
within thirty (30) days of passage of this initiative, make
available, on their its website, in an easy to find easy-to-find
location, an application for a medical mariju ana dispensary license.
The application fee shall be Two Thousand Five Hundred Dollars
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($2,500.00) and a. A method of payment will shall be provided on
the website of the Department. Retail Dispensary applicants must
all be Oklahoma state residents of Oklahoma. Any entity applying
for a retail dispensary license must be owned by an Oklahoma state
resident and must be registered to do business in Oklahoma. The
Oklahoma State Department of Health shall have two (2) weeks ninety
(90) business days to review the application,; approve or, reject or
deny the application,; and mail the approval/rejection approval,
rejection or denial letter (if rejected, stating reasons for
rejection) the rejection or denial to the applicant.
B. The Oklahoma State Department of Health must shall approve
all applications which meet the following criteria:
1. Applicant The applicant must be age twenty-five (25) years
of age or older;
2. Any The applicant, if applying as an individual, must show
residency in the State of Oklaho ma;
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 twenty -five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma; and
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6. All applicants must disclose all ownership ; interests in the
dispensary.
7. Applicant(s) Applicants with only a nonviolent felony
conviction(s) conviction in the last two (2) years, any other felony
conviction in five 5 (years) the last five (5) years , inmates in the
custody of the Department of Corrections , or any person currently
incarcerated may shall not qualify for a medical marijuana
dispensary license.
C. Retailers will Licensed medical marijuana dispensaries shall
be required to complete a monthly sal es report to the Oklahoma State
Department of Health. This report will shall be due on the 15
th
fifteenth of each month and provide reporting on the previous month.
This report will shall detail the weight of marijuana purchased at
wholesale and the weig ht of marijuana sold to card holders licensed
medical marijuana patients and licensed caregivers , and account for
any waste. The report will shall show total sales in dollars, tax
collected in dollars, and tax due in dollars. The Oklahoma State
Department of Health will shall have oversight and auditing
responsibilities to ensure that all marijuana being grown is
accounted for. A retailer will only be subject to a penalty if a
gross discrepancy exists and cannot be explained. Penalties for
fraudulent reporting occurring within any 2 year time period will be
an initial fine of Five Thousand Dollars ($5,000.00) (first) and
revocation of licensin g (second).
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D. Only a licensed medical marijuana retailer dispensary may
conduct retail sales of marijuana, or m arijuana derivatives in the
form provided by licensed processors, and these products can only be
sold to a medical marijuana license holder or their caregiver.
Penalties for fraudulent sales occurring within any 2 year time
period will be an initial fine of Five Thousand Dollars ($5,000.00)
(first) and revocation of licensing (second) . Beginning on the
effective date of this act, licensed medic al marijuana dispensaries
shall be authorized to package and sell pre -rolled marijuana to
licensed medical mariju ana patients and licensed caregivers. The
products described in this subsection shall contain only the ground
parts of the marijuana plant and shall not include marijuana
concentrates or derivatives. The total net weight of each pre -roll
packaged and sold by a medical marijuana dispensary shall not exceed
one (1) gram. These products shall be tested, packaged and labeled
in accordance with Okl ahoma law and rules promulgated by the State
Commissioner of Health.
SECTION 3. AMENDATORY Section 3, State Question No. 788,
Initiative Petition No. 412 (63 O.S. Supp. 2020, Section 422), is
amended to read as follows:
Section 422. A. The Oklahoma State Department of Health will
shall, within thirty (30) days of passage of this initiative, make
available, on their its website, in an easy to find easy-to-find
location, an application for a commercial grower license. The
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application fee will shall be Two Thousand Five H undred Dollars
($2,500.00) and methods. A method of payment will shall be provided
on the website of the Department. The Oklahoma State Department of
Health has two (2) weeks shall have ninety (90) days to review the
application,; approve or, reject or deny the application,; and mail
the approval/rejection approval, rejection or denial letter (if
rejected, stating the reasons for rejection) the rejection or denial
to the applicant.
B. The Oklahoma State Department of Health must shall approve
all applications which meet the following criteria:
1. Applicant The applicant must be age twenty-five (25) years
of age or older;
2. Any The applicant, if applying as an individual, must show
residency in the State of Oklahom a;
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 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 mus t disclose all ownership ; interests in the
commercial grower operation.
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7. Applicant(s) Applicants with only a nonviolent felony
conviction(s) conviction in the last two (2) years, any other felony
conviction in the last five (5) years, inmates in the custody of the
Department of Corrections , or any person currently incarcerated may
shall not qualify for a commercial grower license.
C. A licensed commercial grower may s ell marijuana to a
licensed retailer, dispensary or a licensed packager processor.
Further, these sales will by a licensed commercial grower shall be
considered wholesale sales and shall not be subject to taxation.
Under no circumstances may a licensed c ommercial grower sell
marijuana directly to a licensed medical marijuana license holder
patient or licensed caregiver . A licensed commercial grower may
only sell at the wholesale level to a licensed retailer dispensary,
a licensed grower or a licensed processor. If the federal
government lifts restrictions on buying and selling marijuana
between states, then a licensed commercial grower would be allowed
to sell and buy marijuana wholesale from, or to, an out of state
out-of-state wholesale provider. A licensed commer cial grower will
shall be required to complete a monthly yield and sales report to
the Oklahoma State Department of Health. This report will shall be
due on the 15
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fifteenth of each month and provide r eporting on the
previous month. This report will shall detail the amount of
marijuana harvested in pounds, the amount of drying or dried
marijuana on hand, the amount of marijuana sold to licensed
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processors in pounds, the amount of waste in pounds, and t he amount
of marijuana sold to retailers licensed dispensaries in lbs pounds.
Additionally, this report will shall show total wholesale sa les in
dollars. The Oklahoma State Department of Health will shall have
oversight and auditing responsibilities to e nsure that all marijuana
being grown by licensed commercial growers is accounted for. A
licensed grower will only be subject to a penalty if a gross
discrepancy exists and cannot be explained. Penalties for
fraudulent reporting or sales occurring within any 2 year time
period will be an initial fine of Fi ve Thousand Dollars ($5,000.00)
(first) and revocation of licensing (second).
D. There shall be no limits on how much marijuana a licensed
commercial grower can grow.
E. Beginning on the effective date of this act, licensed
commercial growers shall be au thorized to package and sell pre -
rolled marijuana to licensed medical marijuana dispens aries. The
products described in this subsection shall contain only the ground
parts of the marijuana plant and shal l not include marijuana
concentrates or derivatives. The total net weight of each pre -roll
packaged and sold by medical marijuana commerci al growers shall not
exceed one (1) gram. These products must be tested, packaged and
labeled in accordance with Okl ahoma law and rules promulgated by the
State Commissioner of Health.
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SECTION 4. AMENDATORY Section 4, State Questio n No. 788,
Initiative Petition No. 412 (63 O.S. Supp. 2020, Section 423), is
amended to read as follows:
Section 423. A. The Oklahoma State Department of Health shall ,
within thirty (30) days of passage of this initiative, make
available, on their its website, in an easy to find easy-to-find
location, an application for a medical marijuana processing license .
The Department shall be authorized to issue two types of medical
marijuana processor licenses:
1. Nonvolatile, which involves using any solvent in the
extraction process that is not a volatile solvent, including carbon
dioxide; and
2. Volatile, which involves us ing any solvent that is or
produces a flammable gas or vapor that , when present in the air in
sufficient quantities, will create explosive or ignitable mixtures
and may also include extraction using nonvolatile solvents or no
solvents.
The application fee for a nonvolatile or volatile medical marijuana
processor license shall be Two Thousand Five Hundred Dollars
($2,500.00) and methods. A method of payment will shall be provided
on the website of the Department. The Oklahoma State Department of
Health shall have two (2) weeks ninety (90) days to review the
application,; approve or, reject or deny the application,; and mail
the approval/rejection approval, rejection or denial letter (if
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rejected, stating the reasons for rejection) the rejection or denial
to the applicant.
B. The Oklahoma State Department of Health must shall approve
all applications which meet the following criteria:
1. Applicant The applicant must be age twenty-five (25) years
of age or older;
2. Any 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 re sidents;
4. An applying entity may show ownership of non -Oklahoma
residents, but that percentage ownersh ip may not exceed twenty-five
percent (25%);
5. All applying ind ividuals or entities must be registered to
conduct business in the State of Oklahoma; and
6. All applicants must disclose all ownership ; interests in the
processing operation.
7. Applicant(s) Applicants with only a nonviolent felony
conviction(s) conviction in the last two (2) years, any other felony
conviction in the last five (5) years, inmates in the custody of the
Department of Corrections , or any person currently incarcerated may
shall not qualify for a medical marijuana processing license.
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C. 1. A licensed processor may take marijuana plants and
distill or process these plants into concentrates, edibles, and
other forms for consumption.
2. As required by subsection D of this section, the Oklahoma
State Department of Health will shall, within sixty (60) days of
passage of this initiative, make available a set of standards which
will shall be used by licensed processors in the preparation of
edible marijuana products. This The standards should be in line
with current food preparation guidelines and no. No excessive or
punitive rules may be established by the Oklahoma State Department
of Health. Once
3. Up to two times a year, the Oklahoma State Department of
Health may inspect a proc essing operation and determine its
compliance with the preparatio n standards. If deficiencies are
found, a written report of deficiency will shall be issued to the
licensed processor. The licensed processor will shall have one (1)
month to correct the de ficiency or be subject to a fine of Five
Hundred Dollars ($500.00 ) for each deficiency.
4. A licensed processor may sell marijuana products it creates
to a licensed retailer, dispensary or any other licensed processor.
Further, these All sales will 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
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marijuana license holder patient or licensed caregiver. However, a
licensed processor may process cann abis into a concentrated form ,
for a licensed medical license holder, marijuana patient for a fee.
Processors will
6. Licensed processors shall be required to complete a monthly
yield and sales report to the Oklahoma State Department of Health.
This report will shall be due on the 15
th
fifteenth of each month and
shall provide reporting on the previous month. This report will
shall detail the amount of marijuana and medical marijuana produ cts
purchased in pounds, the amount of marijuana cooked or proces sed in
pounds, and the amount of waste in pounds. Additionally, this
report will shall show total wholesale sales in dollars. The
Oklahoma State Department of Health will shall have oversight and
auditing responsibilities to ensure that all marijuana bei ng grown
processed is accounted for. A licensed processor will only be
subject to a penalty if a gross discrepancy exists and cannot be
explained. Penalties for fraudulent reporting occurri ng within any
2 year time period will be an initial fine of Five Thousand Dollars
($5,000.00) (first) and revocation of licensing (second).
D. The Department shall oversee the inspection and compliance
of licensed processors producing products with mariju ana as an
additive. The Oklahoma State Department of Health will shall be
compelled to, within thirty (30) days of passage of this initiative,
appoint a board of twelve (12) Oklahoma residents to the Medical
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Marijuana Advisory Council , who are marijuana i ndustry experts, to
create a list of food safety standards for pr ocessing and handling
medical marijuana in Oklahoma. These standards will shall be
adopted by the agency Department and the agency can Department may
enforce these standards for licensed processors. The agency will
Department shall develop a standards re view procedure and these
standards can be altered by calling another board council of twelve
(12) Oklahoma marijuana industry experts. A signed letter of twenty
(20) operating, licensed processors would shall constitute a need
for a new board council and standard standards review.
E. If it becomes permissible , under 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 unduly be unduly harassed or prosecuted for
selling, manufacturing , or possession of medical possessing
marijuana paraphernalia.
SECTION 5. AMENDATORY Sect ion 6, State Question No. 788,
Initiative Petition No. 412, as last amended by Section 46, Chapter
161, O.S.L. 2020 (63 O.S. Supp. 2020, Section 425), is amended to
read as follows:
Section 425. A. No school or landlord may refuse to enroll or
lease to and may not otherwise penalize a person solely for his or
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her status as a medical marij uana license holder patient licensee,
unless failing to do so would cause the school or landlord the
potential to lose a monetary or licensing -related benefit under
federal law or regulations.
B. Unless a failure to do so would cause an employer the
potential to lose a monetary or licensing -related benefit under
federal law or regulations, an employer may no t discriminate against
a person in hiring, termination or imposin g any term or condition of
employment or otherwise penalize a person based upon either:
1. The the status of the person as a medical marijuana license
holder; or
2. patient licensee. Employers may take action against a holder
of a medical marijuana license patient licensee if the holder
licensee uses or possesses marijuana while in his or her place of
employment or during the hours of employment. Employers may not
take action against the holder of a medical marijuana license
patient licensee solely based upon the status of an employee as a
medical marijuana license holder patient licensee or the results of
a drug test showing positive for marijuana or its components.
C. For the purposes of medical care, including organ
transplants, the authorized use of marijuana by a medical marijuana
license holder patient licensee shall be considered t he equivalent
of the use of any other medication under the direction of a
physician and does not constitu te the use of an illicit substance or
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otherwise disqualify a regi stered qualifying patient from medical
care.
D. No medical marijuana license holder patient licensee may be
denied custody of or visitation or parenting time with a minor
child, and there is no presumption of neglect or child endangerment
for conduct allowed under this law, unless the behavior of the
person medical marijuana patient licens ee creates an unreasonable
danger to the safety of the minor child.
E. No person holding who possesses a medical marijuana patient
license may be unduly be withheld from holding a state-issued
license by virtue of their being his or her status as a medical
marijuana license holder patient licensee including, but not limited
to, a concealed carry permit.
F. 1. No city or local municipality may unduly change or
restrict zoning laws to prevent the opening of a retail medical
marijuana establishment dispensary.
2. For purposes of this subsection, an undue change or
restriction of municipal zoning laws means an act which entirely
prevents retail medical marijuana establishments dispensaries from
operating within municipal boundaries as a matter of law.
Municipalities may follow their standard planning and zoning
procedures to determine if certain zones or distr icts would be
appropriate for locating marijuana -licensed premises, medical
marijuana businesses or any other premises where marijuana or its
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by-products are cultivated, grown, processed, stored or
manufactured.
3. For purposes of this section, "retail ma rijuana
establishment" means an entity licensed by the State Depa rtment of
Health as a medical marijuana dispensary. Retail A medical
marijuana establishment dispensary does not include those other
entities licensed by the Department as marijuana -licensed premises,
medical marijuana businesses or other facilities or lo cations where
marijuana or any product containing marijuana or its by -products are
cultivated, grown, processed, stored or manufactured.
G. The location of any retail medical marijuana establishment
dispensary is specifically prohibited within one thousan d (1,000)
feet of any public or private school entrance. The distance
indicated in this section shall be measured from the nearest
property line of such public or private school to the neare st
perimeter wall of the licensed premises of such medical mariju ana
dispensary. If a medical marijuana dispensary met the requirements
of this subsection at the time of its initial licensure, the medical
marijuana dispensary licensee shall be permitted t o continue
operating at the licensed premises in the same manner, and not be
subject to nonrenewal or revocation, despite subsequent events or
changes in regulations occurring after licensure that would render
the medical marijuana dispensary in violation by being within one
thousand (1,000) feet of a public or private school. If any public
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or private school is established within one thousand (1,000) fe et of
any medical marijuana dispensary after such dispensary has been
licensed, the provisions of this su bsection shall not be a deterrent
to the renewal of such license or warrant revocation of the license.
For purposes of this subsection, a property own ed, used or operated
by a public or private school that is not used for classroom
instruction on core cur riculum, such as an administrative building,
athletic facility, b allpark, field or stadium, shall not constitute
a public or private school unless such property is located on the
same campus as a building used for classroom instruction on core
curriculum.
H. Research shall be provided for under this law. A researcher
may apply to the State Department of Health for a special research
license. The research license shall be granted, provided the
applicant meets the criteria listed under subsection B of Sect ion
421 of this title in the Medical Marijuana and Patient Protec tion
Act. Research license holders licensees shall be required to file
monthly consumption reports to the State Department of Health with
amounts of marijuana used for research. Biomedical and clinical
research which is subject to federal regulations and institutional
oversight shall not be subject to oversight by the State Department
of Health oversight.
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SECTION 6. AMENDATORY Section 7, State Question No. 788,
Initiative Petition No. 412 (63 O.S. Supp. 2020, Section 426), is
amended to read as follows:
Section 426. A. The tax on retail medical marijuana sales will
shall be established at seven percent (7%) of the gross amount
received by the seller.
B. This tax will shall be collected at the point of sale. Tax
proceeds will shall be applied primarily to finance the regulatory
office.
C. If proceeds from the lev y authorized by subsection A of this
section exceed the budgeted amount for running the regulatory
office, any surplus shall be apportioned with seventy -five percent
(75%) going to the General Revenue Fund and may only be expended for
common education. Tw enty-five percent (25%) shall be apportioned to
the Oklahoma State Department of Health and earmarked for drug and
alcohol rehabilitation and prevention.
SECTION 7. AMENDATORY Section 4, Chapter 509, O.S.L.
2019 (63 O.S. Supp. 202 0, Section 426.1), is amended to read as
follows:
Section 426.1. A. Except for revocation hearings conc erning
licensed patients, as defined in Section 2 of Enrolled Hous e Bill
No. 2612 of the 1st Session of the 57th Oklahoma Legislature, all
All licensure revocation hearings conducted pursuant to marijuana
licenses established in the Oklahoma Statutes shall be recorded. A
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party may request a copy of the recording of the proceedings.
Copies shall be provided to local law enforcement if the revocation
was based on alleged criminal activity.
B. The State Department of Health shall assist any law
enforcement officer in the performance of his or her duties upon
such request by the law enforcement officer or the request of other
local officials having jurisdic tion. Except for license information
concerning licensed patients, as defined in Section 2 427.2 of
Enrolled House Bill No. 2612 of the 1st Session of the 57th Oklahoma
Legislature this title, the Department shall share information with
law enforcement agencies upon request without a subpoena or search
warrant.
C. The State Department of Health shall make available all
information displayed on medical marijuana licenses, as well as on
whether or not the a medical marijuana patient or caregiver license
is valid, to law enforcement electronically through the Oklahoma Law
Enforcement Telecommunications System an online verification system.
D. The Department shall make avai lable to Oklahoma state
agencies and political subdivisions a list of marijuana -licensed
premises, medical marijuana businesses or any other premises where
marijuana or its by-products are licensed to be cultivated, grown,
processed, stored or manufactured to aid Oklahoma state agencies and
county and municipal governments in identifying lo cations within
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their jurisdiction and ensure ensuring compliance with local
applicable law, rules and regulations.
E. All marijuana-licensed premises, medical marijuana
businesses or any other premises where marijuana or its by -products
are licensed to be cultivated, grown, processed, stored or
manufactured shall submit with their application or request to
change location, after notifying the political subdivision of thei r
intent, a certificate of compliance from the political subdivision
where the facility of the applicant or use licensee is to be located
certifying compliance with zoning classifications, a pplicable
municipal ordinances and all applicable safety, electric al, fire,
plumbing, waste, construction and building specification codes.
SECTION 8. AMENDATORY Section 2, Chapter 11, O.S.L.
2019, as last amended by Section 48, C hapter 161, O.S.L. 2020 (63
O.S. Supp. 2020, Section 427.2), is am ended to read as follows:
Section 427.2. As used in this act the Oklahoma Medical
Marijuana and Patient Protection Act :
1. "Advertising" means the act of providing consideration for
the publication, dissemination, solicitation, or circulation, of
visual, oral, or written communication to induce directly or
indirectly any person to patroniz e a particular medical marijuana
business, or to purchase particular medical marijuana or a medical
marijuana product. Advertising includes marketing, but does not
include packaging and labeling;
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2. "Authority" means the Oklahoma Medical Marijuana Author ity;
3. "Batch number" means a unique numeric or alphanumeric
identifier assigned prior to testing to allow for inventory tracking
and traceability;
4. "Cannabinoid" me ans any of the chemical compounds that are
active principles of marijuana;
5. "Caregiver" means a family member or assistant who regularly
looks after a medical marijuana license holder wh om a physician
attests needs assistance;
6. "Child-resistant" means special packaging that is:
a. designed or constructed to be significantly difficult
for children under five (5) years of age to open and
not difficult for normal adults to use properly as
defined by 16 C.F.R. 1700.15 (1995) and 16 C.F.R.
1700.20 (1995),
b. opaque so that the outermost packaging does not allow
the product to be seen withou t opening the packaging
material, and
c. resealable to maintain its child -resistant
effectiveness for multiple openings for any product
intended for more than a single us e or containing
multiple servings;
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7. "Clone" means a nonflowering plant cut from a m other plant
that is capable of developing into a new plant and has shown no
signs of flowering;
8. "Commissioner" means the State Commissioner of Health;
9. "Complete application" means a document prepared in
accordance with the provisions set forth in this act the Oklahoma
Medical Marijuana and Patient Protection Act , rules promulgated
pursuant thereto, and the forms and instructions provided by the
Department, includin g any supporting documentation required and the
applicable license application fee;
10. "Department" means the State Department of Health;
11. "Director" means the Executive Director of t he Oklahoma
Medical Marijuana Authority;
12. "Dispense" means the selling of medical marijuana or a
medical marijuana product to a qualified patient or the designated
caregiver of the patient that is packaged in a suitable container
appropriately labeled for subsequent administration to or use by a
qualifying patient;
13. "Dispensary" means a medical marijuana dispensary, an
entity that has been licensed by the Department pursuant to this act
the Oklahoma Medical Marijuana and Patient Protection Act to
purchase medical marijuana or medical marijuana products from a
licensed medical marijuana commercial grower or licensed medical
marijuana processor, to prepare and package non -infused pre-rolled
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medical marijuana, and to sell medical marijuana or medical
marijuana products to licensed patients and caregivers as defined
under in this act section, or sell or transfer products to another
licensed dispensary;
14. "Edible medical marijuana product" means any medical -
marijuana-infused product for which the intend ed use is oral
consumption including, but not limited to, any type of food, drink
or pill;
15. "Entity" means an individual, general partnership, limite d
partnership, limited liability company, trust, estate, association,
corporation, cooperative, or any other legal or commercial entity;
16. "Flower" means the reproduct ive organs of the marijuana or
cannabis plant referred to as the bud or parts of the p lant that are
harvested and used to consume for consumption in a variety of
medical marijuana products;
17. "Flowering" means the reproductive state of the marijuana
or cannabis plant in which there are physical signs of flower or
budding out of the nodes of the stem;
18. "Food-based medical marijuana concentrate" means a medical
marijuana concentrate tha t was produced by extracting cannabinoids
from medical marijuana th rough the use of propylene glycol,
glycerin, butter, olive oil, coconut oil or other t ypical food-safe
cooking fats;
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19. "Good cause" for purposes of an initial, renewal or
reinstatement license application, or for purposes of discipline of
a licensee, means:
a. the licensee or applicant has violated, does not meet,
or has failed to comply with any of the terms,
conditions or provisions of the act, any rules
promulgated pursuant thereto, or any supplemental
relevant state or local law, rule or regulation,
b. the licensee or applicant has failed to comply with
any special terms or conditions that were placed upon
the license pursuant to an order of the State
Department of Health, Oklahoma Med ical Marijuana
Authority or the municipality, or
c. the licensed premises of a medical marijuana business
or applicant have been operated in a manner tha t
adversely affects the public health or welfare or the
safety of the immediate vicinity in which the
establishment is located;
20. "Harvest batch" means a specifically identified quantity of
medical marijuana that is uniform in strain, cultivated utilizi ng
the same cultivation practices, harvested at the same time from the
same location and cured under un iform conditions;
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21. 20. "Harvested marijuana" means post-flowering
postflowering medical marijuana not including trim, concentrate or
waste;
22. 21. "Heat- or pressure-based medical marijuana concentrate"
means a medical marijuana concentrate that was produced by
extracting cannabinoids from medical marijuana through the use of
heat or pressure;
23. 22. "Immature plant" means a nonflowering marijuana plant
that has not demonstrated signs of flowering;
24. 23. "Inventory tracking system" means the requ ired tracking
system that accounts for the entire life span of medical marijuana
from either the seed or immature plant stage until the medical
marijuana or and medical marijuana product is sold to a patient at a
products, including any testing samples the reof and medical
marijuana dispensary, transferred to a medical mar ijuana research
facility, destroyed by a medical marijuana business or used in a
research project by a medical marijuana research facility waste;
25. 24. "Licensed patient" or "patient" me ans a person who has
been issued a medical marijuana patient licens e by the State
Department of Health or Oklahoma Medical Marijuana Authority;
26. 25. "Licensed premises" means the premises specified in an
application for a medical marijuana business lic ense, medical
marijuana research facility license or medical mariju ana education
facility license pursuant to this act the Oklahoma Medical Marijuana
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and Patient Protection Act that are owned or in possession of the
licensee and within which the licensee i s authorized to cultivate,
manufacture, distribute, sell, store, tr ansport, test or research
medical marijuana or medical marijuana products in accordanc e with
the provisions of this act the Oklahoma Medical Marijuana and
Patient Protection Act and rules promulgated pursuant thereto;
27. 26. "Manufacture" means the produ ction, propagation,
compounding or processing of a medical marijuana product, excludin g
marijuana plants, either directly or indirectly by extraction from
substances of natural or synthetic origin, or independently by means
of chemical synthesis, or by a c ombination of extraction and
chemical synthesis;
28. 27. "Marijuana" shall have the s ame meaning as such term is
defined in Section 2 -101 of Title 63 of the Oklahoma Statutes this
title;
29. 28. "Material change" means any change that would require a
substantive revision to the standard operating procedures of a
licensee for the cultivati on or production of medical marijuana,
medical marijuana concentrate or medical marijuana products affect
the qualifications for licensure of an applicant or licensee ;
30. 29. "Mature plant" means a harvestable female marijuana
plant that is flowering;
31. 30. "Medical marijuana business (MMB)" means a licensed
medical marijuana dispensary, medical mariju ana processor, medical
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marijuana commercial grower, medical marijua na laboratory, medical
marijuana business operator, or a medical marijuana transporter ;
32. 31. "Medical marijuana concentrate" or "concentrate" means
a specific subset of medical marijuan a that was produced by
extracting cannabinoids from medical marijua na. Categories of
medical marijuana concentrate include water -based medical marijuana
concentrate, food-based medical marijuana concentrate, solvent -based
medical marijuana concentrate, an d heat- or pressure-based medical
marijuana concentrate;
33. 32. "Medical marijuana commercial grower" or "commercial
grower" means an entity licensed t o cultivate, prepare and package
medical marijuana or package medical marijuana as pre -rolls, and
transfer or contract for transfer medical marijuana and medical
marijuana pre-rolls to a medical marijuana dispensary, medical
marijuana processor, any other medical marijuana commercial grower,
medical marijuana research facility , and medical marijuana educati on
facility and pesticide manufacturers . A commercial grower may s ell
seeds, flower or clones to commercial growers pursuant to this act
the Oklahoma Medical Marijuana and Patient Protection Act ;
34. 33. "Medical marijuana education facility" or "educati on
facility" means a person or entity approved pursuant to this act the
Oklahoma Medical Marijuana and Patient Protection Act to operate a
facility providing training and education to individuals involving
the cultivation, growing, harvesting, curing, prep aring, packaging
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or testing of medical marijuana, or the production , manufacture,
extraction, processing, packaging or creation of medical -marijuana-
infused products or medical marijuana products as described in this
act the Oklahoma Medical Marijuana and Patient Protection Act;
35. 34. "Medical-marijuana-infused product" means a product
infused with medical marijuana including, but not limited to, edible
products, ointments and tinctures;
36. 35. "Medical marijuana product" or "product" means a
product that contains cannabinoids that have been extracted from
plant material or the resin therefrom by physical or chemical means
and is intended for administr ation to a qualified patient including,
but not limited to, oils, tinctures, edibles, pills, topical fo rms,
gels, creams, vapors, patches, liquids, and forms administered by a
nebulizer, excluding live plant forms which are considered medical
marijuana;
37. 36. "Medical marijuana processor" means a person or entity
licensed pursuant to this act the Oklahoma Medical Marijuana and
Patient Protection Act to operate a busines s including the
production, manufacture, extraction, processing, packaging or
creation of concentrate, medical -marijuana-infused products or
medical marijuana products as described in this act the Oklahoma
Medical Marijuana and Patient Protection Act ;
38. 37. "Medical marijuana research facility" or "research
facility" means a person or en tity approved pursuant to this act the
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Oklahoma Medical Marijuana and Patient Protection Act to conduct
medical marijuana research. A medical marijuana research facility
is not a medical marijuana business;
39. 38. "Medical marijuana testing laboratory" or "laboratory"
means a public or private laboratory licensed pursuant to this act
the Oklahoma Medical Marijuana and Patient Protection Act , to
conduct testing and resea rch on medical marijuana and medical
marijuana products;
40. 39. "Medical marijuana t ransporter" or "transporter" means
a person or entity that is licensed pursuant to this act the
Oklahoma Medical Marijuana and Patient Protection Act . A medical
marijuana transporter does not include a medical marijuana business
that transports its own me dical marijuana, medical marijuana
concentrate or medical marijuana products to a property or facility
adjacent to or connected to the licensed premises if the property i s
another licensed premises of the same medical marijuana business;
41. 40. "Medical marijuana waste" or "waste" means unused,
surplus, returned or out -of-date marijuana, plant debris of t he
plant of the genus Cannabis, including dead plants and all unuse d
plant parts and roots, except the term shall not include roots,
stems, stalks and fa n leaves;
42. 41. "Medical use" means the acquisition, possession, use,
delivery, transfer or transpor tation of medical marijuana, medical
marijuana products, medical ma rijuana devices or paraphernalia
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relating to the administration of medical marijuana t o treat a
licensed patient;
43. 42. "Mother plant" means a marijuana plant that is grown or
maintained for the purpose of generating clones, and that will not
be used to produce plant material for sale to a medical marijuana
processor or medical marijuana dispensary;
44. 43. "Oklahoma physician" or "physician" means a physician
licensed by and in good sta nding with the State Board of Medical
Licensure and Supervision, th e State Board of Osteopathic Examiners
or the Board of Podiatric Medical Examiners;
45. 44. "Oklahoma resident" means an individual who can provide
proof of residency as required by this act the Oklahoma Medical
Marijuana and Patient Protection Act ;
46. 45. "Owner" means, except where the context otherwise
requires, a direct beneficial ow ner including, but not limited to,
all persons or entities as follows:
a. all shareholders owning an in terest of a corporate
entity and all officers of a corporate entity ,
b. all partners of a general partnership,
c. all general partners and all limited pa rtners that own
an interest in a limited partnership,
d. all members that own an interest in a limited
liability company,
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e. all beneficiaries that hold a beneficial inte rest in a
trust and all trustees of a trust,
f. all persons or entities that own inter est in a joint
venture,
g. all persons or entities that own an interest in an
association,
h. the owners of any other type of legal entity, and
i. any other person holdin g an interest or convertible
note in any entity which owns, operates or manages a
licensed facility;
47. 46. "Package" or "packaging" means any container or wrapper
that may be used by a m edical marijuana business to enclose or
contain medical marijuana;
48. 47. "Person" means a natural person, partnership,
association, business trust, co mpany, corporation, estate, limited
liability company, trust or any other legal entity or organization,
or a manager, agent, owner, director, servant, officer or employee
thereof, except that "person" does not include any governmental
organization;
49. 48. "Pesticide" means any substance or mixture of
substances intended for preventing, destroying, repelli ng or
mitigating any pest or any substance or mixture of substances
intended for use as a plant regulator, defoliant or desiccant,
except that the term " pesticide" shall not include any article that
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is a "new animal drug" as designated by the United States Food and
Drug Administration;
50. 49. "Production batch" means:
a. any amount of medical marijuana concentrate of the
same category and produced using the same extraction
methods, standard operating procedures and an
identical group of harvest batch of m edical marijuana,
or
b. any amount of medical marijuana product of the same
exact type, produced using the same ingredients,
standard operating procedure s and the same production
batch of medical marijuana concentrate;
51. 50. "Public institution" means a ny entity established or
controlled by the federal government, stat e government, or a local
government or municipality including, but not limited to,
institutions of higher education or related research institutions;
52. 51. "Public money" means any funds or money obtained by the
holder from any governmental entity inclu ding, but not limited to,
research grants;
53. 52. "Recommendation" means a document that is signed or
electronically submitted by a physician on behalf of a patient for
the use of medical marijuana pursuant to this act the Oklahoma
Medical Marijuana and Patient Protection Act ;
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54. 53. "Registered to conduct business" means a person that
has provided proof that the business applicant or licensee is in
good standing with the Oklahoma Secret ary of State and Oklahoma Tax
Commission;
55. 54. "Remediation" means the process by which the medical
marijuana flower or trim, which has failed microb ial a harvest batch
or production batch that fails testing, is processed into solvent -
based medical marijuana concentrate undergoes a procedure to remedy
the harvest batch or production batch and is retested as required by
this act in accordance with Oklah oma laws, rules and regulations ;
56. 55. "Research project" means a discrete scientific endeavor
to answer a research question or a set of research questions related
to medical marijuana and is required for a medical marijuana
research license. A researc h project shall include a description of
a defined protocol, clearly articulated goals, defined methods and
outputs, and a defined start and end date. The description sh all
demonstrate that the research project will comply with all
requirements in this act the Oklahoma Medical Marijuana and Patient
Protection Act and rules promulgated pursuant thereto. Al l research
and development conducted by a medical marijuana researc h facility
shall be conducted in furtherance of an approved research project;
57. 56. "Revocation" means the final decision by the Department
that any license issued pursuant to this act the Oklahoma Medical
Marijuana and Patient Protection Act is rescinded because the
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individual or entity does not comply with the applicable
requirements set forth in this act the Oklahoma Medical Marijuana
and Patient Protection Act or rules promulgated pur suant thereto;
58. 57. "School" means a public or private preschoo l or a
public or private elementary , middle or secondary high school used
for school classes and instruction. A homeschool, daycare or child -
care facility shall not be considered a "school " as used in this act
the Oklahoma Medical Marijuana and Patient Pr otection Act;
59. 58. "Shipping container" means a hard -sided container with
a lid or other enclosure that can be secured in place. A shipping
container is used solely for the transport o f medical marijuana,
medical marijuana concentrate, or medical mari juana products between
medical marijuana businesses, a medical marijuana research faci lity,
or a medical marijuana education facility;
60. 59. "Solvent-based medical marijuana concentrate" means a
medical marijuana concentrate that was produced by extract ing
cannabinoids from medical marijuana through the use of a solvent
approved by the Department;
61. 60. "State Question" means Oklahoma State Question No. 788,
Initiative Petition No. 412 , approved by a majority vote of the
citizens of Oklahoma on June 2 6, 2018;
62. 61. "Strain" means the classification name given to a
particular variety of medical marijuana or cannabis plants in either
pure sativa, indica, afghanica, ruderalis or hybrid varieties that
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is based on a combination of factors which may inclu de, but is not
limited to, botanical lineage, appearance, chemical profile and
accompanying effects. An example of a "strain" would be "OG Kush"
or "Pineapple Express" ;
63. 62. "THC" means tetrahydrocannabinol, which is the primary
psychotropic cannabino id in marijuana formed by decarboxylation of
naturally tetrahydrocannabinolic acid, wh ich generally occurs by
exposure to heat;
64. "Test batch" means with regard to usable marijuana, a
homogenous, identified quantity of usable marijuana by strain, no
greater than ten (10) pounds, that is harvested during a seven -day
period from a specifie d cultivation area, and with regard to oils,
vapors and waxes derived from usable marijuana, means an i dentified
quantity that is uniform, that is intended to meet specif ications
for identity, strength and composition, and that is manufactured,
packaged and labeled during a specified time period according to a
single manufacturing, packaging and labeling pr otocol;
65. 63. "Transporter agent" means a person who transports
medical marijuana or medical marijuana products for a licensed
transporter and holds a transporter agent license pursuant to this
act the Oklahoma Medical Marijuana and Patient Protection A ct;
66. 64. "Universal symbol" means the image established by the
State Department of Health or Oklahoma Medical Marijuana Authority
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and made available to licensees through its website indicating that
the medical marijuana or the medical marijuana product contains THC;
67. 65. "Usable marijuana" means the dried leaves, flowers,
oils, vapors, waxes and other portions of the marijuana plant and
any mixture or preparation thereof, excluding seed seeds, roots,
stems, stalks and fan leaves; and
68. 66. "Water-based medical marijuana concentrate" means a
concentrate that was produced by extracting cannabinoids from
medical marijuana through the use of only wat er, ice, or dry ice.
SECTION 9. AMENDATORY Section 3, Chapter 11, O.S.L.
2019, as amended by Section 6, Chapter 477, O.S.L. 2019 (63 O.S.
Supp. 2020, Section 427.3), is amended to read as follows:
Section 427.3. A. There is hereby created the Oklahoma Medical
Marijuana Authority within the State Department of Health which
shall address issues related to the medical marijuana program in
Oklahoma including, but not limited to, the issuance of patient
licenses and medical marijuana b usiness licenses, and the
dispensing, cultivating, processing, testing, transporting, storage,
research, and the use of and sale of medical marijuana pursuant to
this act the Oklahoma Medical Marijuana and Patient Protection Act .
B. The Department shall p rovide support staff to perform
designated duties of the Authority. The Department shall also
provide office space for meetings of the Authority.
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C. The Department shal l implement the provisions of this act
the Oklahoma Medical Marijuana and Patient Prot ection Act
consistently with the voter -approved State Question No. 788,
Initiative Petition No. 412, s ubject to the provisions of this act
the Oklahoma Medical Marijuana and Patient Protection Act .
D. The Department shall exercise its respective powers an d
perform its respective duties and functions as specified in this act
the Oklahoma Medical Marijuana and Patient Protection Act and Title
63 of the Oklahoma Statutes this title including, but not limited
to, the following:
1. Determine steps the state sh all take, whether administrative
or legislative in nature, to ensure that research on marijuana and
marijuana products is being conducted for public purposes, including
the advancement of:
a. public health policy and public safety policy,
b. agronomic and horticultural best practices, and
c. medical and pharmacopoeia best practices;
2. Contract with third -party vendors and other governmental
entities in order to carry out the respective duties and functions
as specified in this act the Oklahoma Medical Mar ijuana and Patient
Protection Act;
3. Upon complaint or upon its own motion and upon a completed
investigation, levy fines as prescribed in this act applicable laws,
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rules and regulations and suspend or, revoke or not renew licenses
pursuant to this act applicable laws, rules and regulations ;
4. Issue subpoenas for the appearance or production of persons ,
records and things in connection with disciplinary or contested
cases considered by the Department;
5. Apply for injunctive or declaratory relief to en force the
provisions of this section applicable laws, rules and any rules
promulgated pursuant to this section regulations;
6. Inspect and examine , with notice provided in accordance with
this act, all licensed premises of medical marijuana businesses,
research facilities and, education facilities and waste disposal
facilities in which medical marijuana i s cultivated, manufactured,
sold, stored, transported, tested or, distributed or disposed of;
7. Upon action by the federal government by which the
production, sale and use of marijuana in Oklahoma does not violate
federal law, work with the Oklahoma Stat e Banking Department and the
State Treasurer to develop good practic es and standards for banking
and finance for medical marijuana businesses;
8. Establish internal control procedures for licenses including
accounting procedures, reporting procedures and personnel policies;
9. Establish a fee schedule and collect fees fo r performing
background checks as the Commissioner deems appropriate. The fees
charged pursuant to this paragraph shall not exceed the actual cost
incurred for each background check; and
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10. Require verification for sources of finance for medical
marijuana businesses Establish a fee schedule and collect fees for
material changes requested by the licensee.
SECTION 10. AMENDATORY Section 4, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.4), is amended to read as
follows:
Section 427.4. A. The Oklahoma Medical Marijuana Authority, in
conjunction with the St ate Department of Health, shall employ an
Executive Director and other personnel as necessary to assi st the
Authority in carrying out its duties.
B. The Authority shall not employ an individual if any of the
following circumstances exist:
1. The individual has a direct or indirect interest in a
licensed medical marijuana business; or
2. The individual or his or her spouse, parent, child, spouse
of a child, sibling, or s pouse of a sibling has an application for a
medical marijuana business license pending before the Department or
is a member of the board of directors of a medical marijuana
business, or is an individual financially interested in any licensee
or medical marijuana business.
C. All officers and employees of the Authority shall be in the
exempt unclassified service as provided for in Section 840 -5.5 of
Title 74 of the Oklahoma Statutes.
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D. The Commissioner may delegate to any officer or employee of
the Department any of the powers of the Executive Director and may
designate any officer or empl oyee of the Department to perform any
of the duties of the Executive Director.
E. The Executive Dire ctor shall be authorized to suggest rules
governing the oversight and implementation of this act the Oklahoma
Medical Marijuana and Patient Protection Act .
F. The Department is hereby authorized to create employment
positions necessary for the implementat ion of its obligations
pursuant to this act, the Oklahoma Medical Mar ijuana and Patient
Protection Act including, but not limited to, Authority
investigators and a senior director of enforcement. The Department
and the Authority, the senior director of en forcement, the Executive
Director, and Department investigators shall have all the powers of
any peace officer to:
1. Investigate violations or suspected violations of this act
the Oklahoma Medical Marijuana and Patient Protection Act and any
rules promulgated pursuant thereto;
2. Serve all warrants, summonses, subpoenas, administrative
citations, notices or other processes relating to the enforcement of
laws regulating medical marijuana, concentrate, and medical
marijuana product;
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3. Assist or aid any l aw enforcement officer in the performance
of his or her duties upon s uch law enforcement officer's request or
the request of other local officials having j urisdiction;
4. Require any business licensee , upon twenty-four (24) hours
notice or upon a showing of necessity, to permit an inspection of
licensed premises during bus iness hours or at any time of apparent
operation, marijuana equipment, and marijuana a ccessories, or books
and records; and to permit the testing of or examination of medical
marijuana, concentrate, or product; and
5. Require applicants to submit complete and current
applications, information required by this act the Oklahoma Medical
Marijuana and Patient Protection Act, the Oklahoma Medical Marijuana
Waste Management Act and Sections 420 through 426.1 of this title,
and fees, and approve material changes made by the applicant or
licensee;
6. Require medical marijuana business licensees to submit a
sample or unit of medical marijuana or medical marijuana product to
the quality assurance l aboratory when the Department has reason to
believe the medical marij uana or medical marijuana product may be
unsafe for patient consumption or inhalation or has not been tested
in accordance with the provisions of the Oklahoma Medical Marijuana
and Patient Protection Act and the rules and regulations of the
Department. The licensee shall provide the samples or units of
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medical marijuana or medical marijuan a products at its own expense
but shall not be responsible for the costs of testing; and
7. Require medical marijuana business licensees to periodically
submit samples or units of medical marijuana or medical marijuana
products to the quality assurance la b for quality assurance
purposes. Licensed growers, processors, dispensaries and
transporters shall not be required to submit samples or units of
medical marijuana or me dical marijuana products more than twice a
year. The licensee shall provide the sampl es or units of medical
marijuana or medical marijuana products at its own expense but shall
not be responsible for the costs of testing.
SECTION 11. AMENDATORY Section 6, Chapter 11, O.S.L.
2019, as amended by Section 7, Chapter 47 7, 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 m edical marijuana program in Oklahoma
including, but not limited to, monitoring and dis ciplinary actions
as they relate to the medical marijuana program.
B. 1. The Department or its des ignee may perform on-site
assessments inspections or investigations of a licensee or applicant
for any medical marijuana business license issued pursuant to this
act, research facility, education facility or waste disposal
facility to determine compliance with this act applicable laws,
rules and regulations or submissions made pursuant to this section.
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The Department may enter the licensed premises of a medi cal
marijuana business, research facility, education facility or waste
disposal facility licensee or applicant to assess or monitor
compliance.
2. Inspections Postlicensure 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, investigations and
additional inspections may occur when the Department shows that
believes an investigation or additional inspection is necessary due
to a possible violation of this act applicable laws, rules or
regulations. Such inspection may be without notice if the
Department believes that such notice will result in the destruction
of evidence.
3. The Department may review rele vant records of a licensed
medical marijuana business, licensed medical marijuana research
facility or, licensed medical marijuana education facility or
licensed medical marijuana waste disposal facility , and may require
and conduct interviews with such pe rsons or entities and persons
affiliated with such entities, for the purpose of determining
compliance with Department 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
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representation during such questioning if requested by the business
or facility or any of its agents or employees or contractors.
4. The Department shall may 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 ag ainst an applicant or
licensee under this act for not adhering to the law applicable laws
pursuant to the terms, conditions and guidelines set forth in this
act the Oklahoma Medical Mari juana and Patient Protection Act.
D. Disciplinary actions may include revocation, suspension or
denial of an application, license or final authorization an d other
action deemed appropriate by the Department.
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 applicable laws, rules or regulations ;
2. Falsification or misrepresentation of any material or
information submitted to the Department or other licensees;
3. Failing to allow or impeding a monitoring visit entry by
authorized representatives of the Department;
4. Failure to adhere to any acknowledg ement, verification or
other representation made to the Department;
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5. Failure to submit or disclos e information required by this
section applicable laws, rules or regul ations 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 i nclude the
imposition of monetary penalties, which may be assessed by the
Department. The Department may suspend or revoke a license for
failure to pay any monetary penalty lawfully assessed by the
Department against a licensee.
G. Penalties for sales or purchases by a medical marijuana
business 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 ($5,00 0.00) for any subsequent violation.
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Penalties for grossly inaccurate or fraudulent reporting occurring
within any two-year time period may include an initi al fine of Five
Thousand Dollars ($5,000.00) for a first violation and a fine of Ten
Thousand Dollars ($10,000.00) for any subsequent violation. The
medical marijuana bu siness 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.
H. 1. First offense for intentional and imperm issible
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 im permissible diversion of medical
marijuana, concentrate, or products by a patient or c aregiver 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 Dollars
($500.00) and may res ult in revocation of the license upon a showing
that the violation was willful or gros sly negligent.
I. The following persons or entities may request a hearing to
contest an action or p roposed action of In addition to any other
remedies provided for by la w, the Department:
1. A medical marijuana business, research facility or education
facility licensee whose license has been summarily suspended or who
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has received a notice of contempla ted action to suspend or revoke a
license or take other , pursuant to its rules and regulations, may
issue a written order to any licensee the Department has reason to
believe has violated Sections 420 through 426.1 of this title, the
Oklahoma Medical Marij uana and Patient Protection Act, the Oklahoma
Medical Marijuana Waste Management Act, or any rules promulgated by
the State Commissioner of Health and to wh om the Department has
served, not less than thirty (30) days previously, a written notice
of violation of such statutes or rules.
1. The written order shall state with s pecificity the nature of
the violation. The Department may impose any 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 authorized under the provisions of this section incl uding,
but not limited to, the assessment of monetary penalties .
2. Any order issued pursuant to th e provisions of this section
shall become a final order unless, not mo re than thirty (30) days
after the order is served to the licensee, the licensee reque sts an
administrative hearing in accordance with the rules and regulations
of the Department. Upon such request, the Department shall promptly
initiate administrative pr oceedings.
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J. Whenever the Department finds that an emergency exists
requiring immediate action in order to protect the health or welfare
of the public, the Department may issue an orde r, without providing
notice or hearing, stating the existence of said emergency and
requiring that action be taken as the Department deems necessary to
meet the emergency. Such action may include, but is not limited to,
ordering the licensee to immediatel y cease and desist operations by
the licensee. The order shall be eff ective immediately upon
issuance. Any person to whom the order is directed shall comp ly
immediately with the provisions of the order. The Department may
assess a penalty not to exceed Ten Thousand Dollars ($10,000.00) per
day of noncompliance with the or der. In assessing such a penalty,
the Department shall consider the seriousness of th e violation and
any efforts to comply with applicable requirements. Upon
application to the Departm ent, the licensee shall be offered a
hearing within ten (10) days of t he issuance of the order.
K. 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 Ok lahoma Statutes.
SECTION 12. AMENDATORY Secti on 7, Chapter 11, O.S.L.
2019, as amended by Section 5, Chapter 509, O.S.L. 2019 (63 O .S.
Supp. 2020, Section 427.7), is amended to read as follows:
Section 427.7. A. The Oklahoma Medi cal Marijuana Authority
shall create a medical marijuana use registry o f patients and
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caregivers as provided under this section. The handling of any
records maintained in the registry shall comply with all relevant
applicable state and federal privacy laws including, but not limited
to, the Health Insurance Portability and A ccountability Act of 1996
(HIPAA).
B. The medical marijuana use registry shall be acc essible to:
1. Oklahoma-licensed medical marijuana dispensaries to verify
the license of a patient or caregiver by the twenty-four-character
identifier; and
2. Any court in this state.
C. All other records regarding a medical marijuana patient or
caregiver licensee shall be maintained by the Authority and shall be
deemed confidential. The handling o f any records maintained by the
Authority shall comply with all relevant applicable state and
federal privacy laws including, but not limited to, the Health
Insurance Portability and Accountability Act of 1996 (HIPAA) . Such
records shall be marked as conf idential, shall not be made available
to the public, and shall only be made available to the licensee,
designee of the licensee, any physician of the license e or the
caregiver of the licensee.
D. A log shall be kept with the file of the licensee to record
any event in which the records of the licensee were made available
and to whom the records were provided.
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E. The Department Authority shall ensure that all application
medical marijuana patient and caregiver records and information are
sealed to protect the privacy of medical marijuana patient license
applicants and licensees.
SECTION 13. AMENDATORY Section 9, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.9), is amended to read as
follows:
Section 427.9. A. The Oklahoma Medical Marijuana Authority may
contact the recommending physician of an applicant for a medical
marijuana patient license or current holder of a medical m arijuana
patient license to verify the need of the applicant or licensee for
the license and the information submitted with the application .
B. An applicant for a medica l marijuana patient license who can
demonstrate his or her status as a one -hundred-percent-disabled
veteran as determined by the U.S. Department of Veterans Affairs and
codified at 38 C.F.R., Section 3.340(a)(2013) shall pay a reduced
biannual application fee of Twenty Dollars ($20.00). The methods of
payment, as determined by the Authorit y, shall be provided on the
website. However, the Authority shall ensure that all applicants
have an option to submit the license application and payment by
means other than solely by submission of the application and fee
online.
C. The patient license s hall be valid for up to two (2) years
from the date of issuance, unless the recommendation of the
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physician is terminated pursuant to this act the Oklahoma Medical
Marijuana and Patient Protection Act or revoked by the Department.
SECTION 14. AMENDATORY Section 10, Chapter 11, O.S.L.
2019, as amended by Section 2, Chapter 390, O.S.L. 2019 (63 O.S.
Supp. 2020, Section 427.10), is amended to read as follows:
Section 427.10. A. Only licensed Oklahoma allopathic,
osteopathic and podiat ric physicians may provide a medical marijuana
recommendation for a medical marijuana patient lic ense under this
act the Oklahoma Medical Marijuana and Patient Protection Act.
B. A physician who has not completed his or her first residency
shall not meet the definition of "physician" under this section and
any recommendation for a medical marijuana p atient license shall not
be processed by the Authority.
C. No physician shall be subject to arrest, prosecution or
penalty in any manner or denied any right o r privilege under
Oklahoma state, municipal or county statute, ordinance or
resolution, including without limitation a civil penalty or
disciplinary action by the State B oard of Medical Licensure and
Supervision or, the State Board of Osteopathic Examiners , the Board
of Podiatric Medical Examiners, or by any other business, occupation
or professional licensing board or bureau, solely for providing a
medical marijuana recom mendation for a patient or for monitoring,
treating or prescribing scheduled medicatio n to patients who are
medical marijuana licensees. The provisions of this subsection
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shall not prevent the relevant professional licensing boards from
sanctioning a physician for failing to properly evaluate the medical
condition of a patient or for other wise violating the applicable
physician-patient standard of care.
D. A physician who recommends use of medical marijuana shall
not be located at the same physical addres s as a licensed medical
marijuana dispensary.
E. If the physician determines the cont inued use of medical
marijuana by the patient no longer meets the requirements set forth
in this act the Oklahoma Medical Marijuana and Patient Protection
Act, the physician shall notify the Department and the Authority
shall immediately revoke the license shall be immediately voided
without right to an individual proceeding .
SECTION 15. AMENDATORY Section 11, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.11), is amended to read as
follows:
Section 427.11. A. The caregiver license shall provide the
caregiver the same rights as the medical marijuana patient licensee ,
including the ability to possess marijuana, marijuana products, and
mature and immature plants pursuant to this act the Oklahoma Medical
Marijuana and Patient Protection Act, but excluding the ability to
use marijuana or marijuana products unless the car egiver has a
medical marijuana patient license. Caregivers shall be autho rized
to deliver marijuana and products to their authorized patients.
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Caregivers shall be authorized to possess medical marijuana and
medical marijuana products up to the sum of the possession limits
for the patients under his or her care pursuant to this act the
Oklahoma Medical Marijuana and Patient Protection Act .
B. An individual care giver shall be limited to exercising the
marijuana cultivation rights of no more than five licen sed patients
as prescribed by this act the Oklahoma Medical Marijuana and Patient
Protection Act.
C. The license of a caregiver shall not extend beyond the
expiration date of the underlying patient license regardless of the
issue date.
D. A medical marijuana patient license holder may request, at
any time, to withdraw the lice nse of his or her caregiver. In the
event that such a request is made or upon the exp iration of the
medical marijuana license of the patient, the license of the
caregiver shall be i mmediately withdrawn by the Department without
the right to a hearing.
SECTION 16. AMENDATORY Section 13, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.13), is amended to read as
follows:
Section 427.13. A. All medical marijuana and medical marijuana
products shall be purchased solely from an Oklahoma-licensed medical
marijuana business, and shall not be purchased from any out -of-state
providers.
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B. 1. The Authority shall have oversight and auditing
responsibilities to ensure that all marijuana being grown in
Oklahoma is accounted for and sh all implement an inventory tracking
system. Pursuant to these duties, the Authority s hall require that
each medical marijuana business , medical marijuana research
facility, medical marijuana education facility and medical marijuana
waste disposal facility keep records for every transaction with
another medical marijuana business, patient o r caregiver. Inventory
shall be tracked and updated after each individual sale and reported
to the Authority.
2. The inventory tracking system licensees use shall allow for
integration of other seed -to-sale systems and, at a minimum, shall
include the following:
a. notification of when marijuana seeds and clones are
planted,
b. notification of when marijuana plants are harvested
and destroyed,
c. notification of when mar ijuana is transported, sold,
stolen, diverted or lost,
d. a complete inventory of all marijuana, seeds, plant
tissue, clones, plants, usable marijuana or trim,
leaves and other plan t matter, batches of extract, and
marijuana concentrates,
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e. all samples sent to a testing laboratory, an unused
portion of a sample returned to a licensee, all
samples utilized by licensee for purposes of
negotiating a sale, and
f. all samples used for qu ality testing by a licensee.
3. Each medical marijuana business , medical marijuana research
facility, medical marijuana education facility and medical marijuana
waste disposal facility shall use a seed-to-sale tracking system or
integrate its own seed -to-sale tracking system with the seed-to-sale
tracking system established by t he Authority.
4. These records shall include, but not be limited to, the
following:
a. the name and license number of the medical marijuana
business that cultivated, manufactured o r sold the
medical marijuana or medical marijuana product,
b. the address and phone number of the medical marijuana
business that cultivated, manufactured or sol d the
medical marijuana or medical marijuana product,
c. the type of product received during th e transaction,
d. the batch number of the marijuana plant used,
e. the date of the transaction,
f. the total spent in dollars,
g. all point-of-sale records,
h. marijuana excise tax records, and
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i. any additional information as may be reasonably
required by the Department.
5. All inventory tracking records retained by a medical
marijuana business, medical marijuana research facility, medical
marijuana education fa cility or medical marijuana waste disposal
facility containing medical marijuana patient or caregiver
information shall comply with all relevant state and federal laws
including, but not limited to, the Health Insurance Portability and
Accountability Act o f 1996 (HIPAA), and shall not be retained by any
medical marijuana business for more than sixty (60) days.
SECTION 17. AMENDATORY Section 14, Cha pter 11, O.S.L.
2019, as last amended by Section 51, Chapter 161, O.S.L. 2020 (63
O.S. Supp. 2020, Section 427.14), is amended to read as follows:
Section 427.14. A. There is hereby created the medical
marijuana business license, which shall include the f ollowing
categories:
1. Medical marijuana commercial grower;
2. Medical marijuana pr ocessor;
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 Enterprise Services, shall develop a
website for medical marijuana business applications.
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C. The Authority shall make available on its website in an
easy-to-find location, applications for a medical marijuana
business.
D. The annual, nonrefundable application fee for a medical
marijuana business license shall be Two Thousand Five Hundred
Dollars ($2,500.00).
E. All applicants seeking l icensure or licensure renewal as a
medical marijuana business shall comply w ith the following general
requirements:
1. All applications for licenses and registra tions authorized
pursuant to this section shall be made upon forms prescribed by the
Authority;
2. Each application shall identify the city or county in which
the applicant seeks to obtain licensure as a medical marijuana
business;
3. Applicants shall su bmit a complete application to the
Department before the application may be accepted or consid ered;
4. All applications shall be complete and accurate in every
detail;
5. All applications shall include all attachments or
supplemental information required by the forms supplied by the
Authority;
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6. All applications shall be accompanied by a full r emittance
for the whole amount of the application fees. Application fees ar e
nonrefundable;
7. All applicants shall be approved for licensing review that,
at a minimum, meets meet the following criteria:
a. all applicants shall be age twenty-five (25) years of
age or older,
b. any applicant if applying as an individual shall show,
proof that the applicant is an Oklahoma resident
pursuant to paragraph 11 of this s ubsection,
c. any applicant if applying as an entity shall show,
proof that seventy-five percent (75%) of all members,
managers, executive officers, partners, board membe rs
or any other form of business ownership are Oklahoma
residents pursuant to paragrap h 11 of this subsection,
d. all if applying individuals as an individual or
entities shall be entity, proof that the individual or
entity is registered to conduct busines s in the State
of Oklahoma,
e. all applicants shall disclose disclosure of all
ownership interests pursuant to this act the Oklahoma
Medical Marijuana and Patient Protection Act , and
f. applicants shall proof that the medical marijuana
business, medical ma rijuana research facility, medical
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marijuana education facility and medical marijuana
waste disposal facility applicant or licensee has not
have been convicted of a nonviolent felo ny in the last
two (2) years, and or any other felony conviction
within the last five (5) years, shall is not be a
current inmates inmate in the custody of the
Department of Corrections , or currently incarcerated
in a jail or corrections facility;
8. There shall be no limit to the number of medical marijuana
business licenses or categories that an individual or entity can
apply for or receive, although each applic ation and each category
shall require a separate application and application fee. A
commercial grower, processor and dispensary, or any combination
thereof, are authoriz ed to share the same address or physical
location, subject to the restrictions set for th in this act the
Oklahoma Medical Marijuana and Patient Protection Act ;
9. All applicants f or a medical marijuana business license,
research facility license or educat ion facility license authorized
by this act the Oklahoma Medical Marijuana and Patient Protection
Act, or renewal of such license, shall undergo an Oklahoma criminal
history background check conducted by the Oklahoma State Bureau of
Investigation (OSBI) wi thin thirty (30) days prior to the
application for the license, including:
a. individual applicants applying on their own behalf,
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b. individuals applying on behalf of an entity,
c. all principal officers of an entity, and
d. all owners of an entity as defi ned by this act 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 hig her than fees
charged to any other person or industry for such background ch ecks;
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 least two (2) years
immediately preceding the date of application 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 shall include a combination of
the following:
a. an unexpired Oklahoma -issued driver license,
b. an Oklahoma voter identification card,
c. a utility bill precedin g 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.
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Applicants that were issued a medical marijuana business license
prior to the enactment of the Oklahoma Medical Marijuana and Patient
Protection Act August 30, 2019, are hereby exempt from the two -year
or five-year Oklahoma residence requirement me ntioned 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 Title 63 of the Oklahoma Statutes this title;
13. All applicants shall establish their identity through
submission of a color copy or digital im age of one of the following
unexpired documents:
a. front and back of an Oklahoma driver license,
b. front and back of an Oklahoma identification card,
c. a United States passport or other photo identification
issued by the United States government, or
d. certified copy of the applicant's birth certificate
for minor applicants who do not possess a document
listed in this section, or
e. 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 re view the medical marijuana business
application,; approve or, reject or deny the application; and mail
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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 investi gations, inspections
and interviews before approving the application.
2. Approved applicants shall be issued a medical marijuana
business license for the specific catego ry 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 rejected or denied based on the applicant not meeting
the standards set forth in the provisions of this section 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 this act the Oklahoma
Medical Marijuana and Pati ent 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 ap plication fee shall be charged for
such reconsideration. Unless the Department determ ines 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.
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3. Status-update letters shall provide a reason for delay in
either approval or, rejection or denial should a situation arise in
which an application was submitted properly , but a delay in
processing the application occurred.
4. Approval, rejection , denial or status-update letters shall
be sent to the applicant in the same method the applicat ion was
submitted to the Department.
H. A license for a medical marijuana business license, medical
marijuana research facility, 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 nonviolen t felony
within two (2) years of 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 be en convicted of a nonviolent felony
within two (2) years of the date of appl ication, or within 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:
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a. file taxes, interest or penalties 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, police officer or prosecuting
officer, or an officer or employee of the Auth ority or municipality;
or
7. A person whose authority to be a caregiver , as defined in
this act Section 427.2 of this title, has been revoked by the
Department; or
8. A person who was involved in the management or operations of
any medical marijuana busi ness, medical marijuana research facility,
medical marijuana education facility or med ical marijuana waste
disposal facility that, after the initiation of a disciplinary
action, has had a medical marijuana license revoked, not renewed, or
surrendered during the five (5) years preceding submission of the
application and for the following vio lations:
a. unlawful sales or purchases,
b. any fraudulent acts, falsification of records or
misrepresentation to the Department or consumers,
c. any grossly inaccurate o r fraudulent reporting,
d. threatening or harming any medical marijuana patient,
caregiver, medical practitioner or employee of the
Department,
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e. knowingly or intentionally refusi ng to permit the
Department access to premises or records,
f. using a prohibited, hazardous substance for processing
in a residential area,
g. criminal acts relating to the operation of a medical
marijuana business, or
h. any violations that endanger publi c health and safety
or product safety.
I. In investigating the qualificatio ns of an applicant or a
licensee, the Department, Authority and municipalities may hav e
access to criminal history record information furnished by a
criminal justice agency subject to any restrictions imposed by such
an agency. In the event the Department considers the criminal
history record of the applicant, the Department shall also con sider
any information provided by the applicant regarding such criminal
history record, includ ing but not limited to evidence of
rehabilitation, character references and educational achievements,
especially those items pertaining to the period of time betw een the
last criminal conviction of the applicant and the consideration of
the application for a state license.
J. The failure of an applicant or licensee to provide the
requested information by the Authority deadline may be grounds for
denial of the application.
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K. All applicants and licensees shall submit information to the
Department and Autho rity in a full, faithful, truthful and fair
manner. The Department and Auth ority may recommend denial of an
application where the applicant 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 considered as the basis grounds for
additional administrative action against the appli cant 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
for medical marijuana business facilities as des cribed 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 the Authority or municipality .
M. All medical marijuana business , medical marijuana r esearch
facility, medical marijuana education facility and medical marijuana
waste disposal facility licensees shall pay the relevant licensure
fees prior to receiving li censure to operate a medical marijuana
business, as defined in this act for each class of license.
N. A medical marijuana business, medical marijuana research
facility, medical ma rijuana education facility or medical marijuana
waste disposal facility that attempts to renew its license after the
expiration date of the license shall pay a la te renewal fee in an
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amount to be determined by the Department to reinstate the license.
Late renewal fees are nonrefundable. 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 facility 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.
SECTION 18. AMENDATORY Section 16, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.16), is amended to read as
follows:
Section 427.16. A. There is hereby created a medical marijuana
transporter license as a category of the me dical marijuana business
license.
B. Pursuant to Section 424 of Title 63 of the Oklahoma Sta tutes
this title, the Oklahoma Medical Marijuana Authority shall issue a
medical marijuana transporter license to licensed medical marijuana
commercial growers, pr ocessors and dispensaries upon issuance of
such licenses and upon each renewal. Medical marijuana transporter
licenses shall also be issued to licensed medical marijuana research
facilities, medical marijuana education facilities and medical
marijuana testing laboratories upon issuance of such license and
upon renewal.
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C. A medical marijuana tra nsporter license may also be issued
to qualifying applicants who are register ed with the Oklahoma
Secretary of State and otherwise meet the requirements for a medi cal
marijuana business license set forth in this act the Oklahoma
Medical Marijuana and Patie nt Protection Act and the requirements
set forth in this section to provide l ogistics, distribution and
storage of medical marijuana, medical marijuana concentrate and
medical marijuana products.
D. A medical marijuana transporter license shall be valid f or
one (1) year and shall not be transferred with a change of
ownership. A licensed medical marijuana transporter shall be
responsible for all medical marijuana, medical marijuana concentrate
and medical marijuana products once the transporter takes contr ol of
the product.
E. A transporter license shall be required for any person or
entity to transport or transfer medical marijuana, medical marijuana
concentrate or product medical marijuana products from a licensed
medical marijuana business to another me dical marijuana business, or
from a medical marijuana business to a medical m arijuana research
facility or medical marijuana education facility.
F. A medical marijuana transporter licensee may contract with
multiple licensed medical marijuana businesses.
G. A medical marijuana transporter may maintain a licensed
premises to temporarily store medical marijuana, medical marijuana
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concentrate and medical marijuana products and to use as a
centralized distribution point. A medical marijuana transporter may
store and distribute medical marijuana, medical marijuana
concentrate and medical marijuana products from the licensed
premises. The licensed premises shall meet a ll security
requirements applicable to a medical marijuana business.
H. A medical marijuana transporter licensee shall use the seed -
to-sale tracking system developed pur suant to this act the Oklahoma
Medical Marijuana and Patient Protection Act to create shipping
manifests documenting the transport of medical marijuana, medical
marijuana concentrate and medical marijuana products throughout the
state.
I. A licensed medic al marijuana transporter may maintain and
operate one or more warehouses in the state to handle medical
marijuana, medical marijuana concentrate and medical marijuana
products.
J. All With the exception of a lawful transfer between medical
marijuana businesses who are licensed to operate at the same
physical address, all medical marijuana, medical marijuana
concentrate and product medical marijuana products shall be
transported:
1. In vehicles equipped with Global Positioning System (GPS)
trackers;
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2. In a locked container and clearly labeled "Medical Marijuana
or Derivative"; and
3. In a secured area of the vehicle that is not accessible by
the driver during transit.
K. A transporter agent may possess marijuana at any location
while the transporter age nt is transferring marijuana to or from a
licensed medical marijuana business, licensed medical marijuana
research facility or licensed medical marijuana education facility.
The Department shall administer and enforce the provisions of this
section concerning transportation.
L. The Authority shall issue a transporter agent license to
individual agents, employees, officers or owners of a transporter
license in order for the indivi dual to qualify to transport medical
marijuana, medical marijuana concentrate or product medical
marijuana products.
M. The annual fee for a transporter agent lic ense shall be One
Hundred Dollars ($100.00) Twenty-five Dollars ($25.00) and shall be
paid by the transporter license holder or the individual applicant.
Transporter license reprints shall be Twenty Dollars ($20.00).
N. The Authority shall issue each tra nsporter agent a registry
identification card within thirty (30) days of receipt of:
1. The name, address and date of birth of the person;
2. Proof of current Oklahoma residency as required for a
medical marijuana business license ;
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3. Proof of identity as required for a medical marijuana
business license;
4. Possession of a valid Oklahoma driv er license;
5. Verification of employment with a licensed transporter;
6. The application and affiliated fee; and
7. A copy of the criminal background check con ducted by the
Oklahoma State Bureau of Investigation, paid for by the applicant.
O. If the transporter agent application is denied, the
Department shall notify the trans porter in writing of the reason for
denying the registry identification card.
P. A registry identification card for a transporter shall
expire one (1) year after the date of issu ance or upon notification
from the holder of the transporter license that the transporter
agent ceases to work as a transporter.
Q. The Department may revoke the registry identification card
of a transporter agent who knowingly violates any provision of t his
section, and the transporter is subject to any other penalties
established by law for the violation.
R. The Department may revoke or suspend the transporter l icense
of a transporter that the Department determines knowingly aided or
facilitated a violation of any provision of this section, and the
license-holder license holder is subject to any other penalties
established in law for the violation.
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S. Vehicles used in the tran sport of medical marijuana or
medical marijuana product shall be:
1. Insured at or above the legal requirements in Oklahoma;
2. Capable of securing medical marijuana du ring transport; and
3. In possession of a shipping container as defined in Section
427.2 of this act title capable of securing all transported product
products.
T. Prior to the transport of any medical marijuana , medical
marijuana concentrate or medical marijuana products, an inventory
manifest shall be prepared at the origination point o f the medical
marijuana. The inventory manifest shall include the following
information:
1. For the origination point of the medical marijuana:
a. the licensee number f or the commercial grower,
processor or dispensary,
b. address of origination of transp ort, and
c. name and contact information for the originating
licensee;
2. For the end recipient license holder of the medical
marijuana:
a. the license number for the di spensary, commercial
grower, processor, research facility or education
facility destination,
b. address of the destination, and
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c. name and contact information for the destination
licensee;
3. Quantities by weight or unit of each type of medical
marijuana product contained in transport;
4. The date of the transport and the approximate tim e of
departure;
5. The arrival date and estimated time of arrival;
6. Printed names and signatures of the personnel accompanying
the transport; and
7. Notation of the transporting licensee.
U. 1. A separate inventory manifest shall be prepared for eac h
licensee receiving the medical marijuana.
2. The transporter agent shall pr ovide the other medical
marijuana business with a copy of the inventory manifest at the time
the product changes hands and after the other licensee prints his or
her name and signs the inventory manifest.
3. An inventory manifest shall not be altered afte r departing
the originating premises other than in cases where the printed name
and signature of receipt by the receiving licensee is necessary.
4. A receiving licensee shall re fuse to accept any medical
marijuana, medical marijuana concentrate or product medical
marijuana products that is are not accompanied by an inventory
manifest.
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5. 4. Originating and receiving licensees shall maintain copies
of inventory manifests and logs of quantities of medical marijuana
received for three (3) seven (7) years from date of receipt.
SECTION 19. AMENDATORY Section 17, Chapter 11, O .S.L.
2019, as amended by Section 4, Chapter 312, O.S.L. 2019 (63 O.S.
Supp. 2020, Section 427.17), is amended to read as follows:
Section 427.17. A. There is hereby created a medical marijuana
testing laboratory license as a category of the medical marij uana
business license. The Oklahoma Medical Marijuana Authority is
hereby enabled to monitor, inspect and audit a licensed testing
laboratory under this act the Oklahoma Medical Marijuana and Patient
Protection Act.
B. The Authority is hereby authorized to contract with a
private laboratory for the purpose of conducting compliance testing
of medical marijuana testing laboratories licensed in this state.
Any such laboratory under contract for compliance testing shall be
prohibited from conducting any othe r commercial medical marijuana
testing in this state. The laboratory the Authority co ntracts with
for compliance testing shall not employ, or be owned by, the
following:
1. Any individual that has a direct or indirect interest in a
licensed medical marij uana business; or
2. Any individual or his or her spouse, parent, child, spouse
of a child, sibling, or spouse of a sibling that has an application
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for a medical marijuana business license pending before the
Department or is a member of the board of direc tors of a medical
marijuana business, or is an individual financially interested in
any licensee or medical marijuana business located within the State
of Oklahoma.
C. The Authority shall have the authority to develop acceptable
testing and research practices, including, but not limited to,
testing, standards, quality control analysis, equ ipment
certification and calibration, and chemical identification and
substances used in bona fide research methods so long as it complies
with this act.
D. A person who is a direct beneficial owner or an indirect
beneficial owner of a medical marijuana d ispensary, medical
marijuana commercial grower, or medical marijuana processo r shall
not be an owner of a laboratory.
E. A laboratory and a laboratory applicant shall co mply with
all applicable local ordinances, including but not limited to
zoning, occupancy, licensing and building codes.
F. A separate license shall be required f or each specific
laboratory.
G. A medical marijuana testing laboratory license may be issued
to a person who performs testing and research on medical marijuana
and medical marijuana products for medical marijuana businesses,
medical marijuana research fac ilities, medical marijuana education
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facilities, and testing and research on marijuana and marijuana
products grown or produced by a patient or caregiver on behalf of a
patient, upon verification of registration. A medical marijuana
testing laboratory may also conduct research related to the
development and improvement of its testing practices an d procedures.
No state-approved medical marijuana testing facility shall operate
unless a medical laboratory director is on site during operational
hours.
H. A laboratory applicant Laboratory applicants and licensees
shall comply with the application req uirements of this section and
shall submit such other information as required for a me dical
marijuana business applicant, in addition to any information the
Authority may request for initial approval and periodic evaluations
during the approval period.
I. A medical marijuana testing laboratory may accept samples of
medical marijuana, medic al marijuana concentrate or medical
marijuana product from a medical marijuan a business, medical
marijuana research facility or medical marijuana education facility
for testing and research purposes only, which purposes may include
the provision of testing services for samples submitted by a medical
marijuana business for product d evelopment. The Department may
require a medical marijuana business to submit a sample of me dical
marijuana, medical marijuana concentrate or medical marijuana
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product to a medical marijuana testing or quality assurance
laboratory upon demand.
J. A medical marijuana testing laboratory may accept samples of
medical marijuana, medical marijuana co ncentrate or medical
marijuana product from an individual person for testing only unde r
the following conditions:
1. The individual person is a patient or caregiv er pursuant to
this act the Oklahoma Medical Marijuana and Patient Protection Act
or is a participant in an approved clinical or observational study
conducted by a research facili ty; and
2. The medical marijuana testing laboratory shall require the
patient or caregiver to produce a valid patient license and current
and valid photo identification.
K. A medical marijuana testing laboratory may transfer samples
to another medical ma rijuana testing laboratory for testing. All
laboratory reports provided to o r by a medical marijuana business or
to a patient or caregiver shall identify the medical mar ijuana
testing laboratory that actually conducted the test.
L. A medical marijuana te sting laboratory may utilize a
licensed medical marijuana transporter to tran sport samples of
medical marijuana, medical marijuana concentrate and medical
marijuana product for testing, in accordance with this act the
Oklahoma Medical Marijuana and Patient Protection Act and the rules
adopted pursuant thereto, between the originati ng medical marijuana
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business requesting testing services and the destination laboratory
performing testing services.
M. The medical marijuana testing laboratory shall establish
policies to prevent the existence of or appearance of undue
commercial, financial or other influences that may diminish the
competency, impartiality and integrity of the testing processes or
results of the laboratory, or that may diminish public confidence in
the competency, impartiality and integrity of the testing processes
or results of the laboratory. At a minimum, employees, owners or
agents of a medical marijuana te sting laboratory who participate in
any aspect of the analysis and results of a sample are prohibited
from improperly influencing the testing process, improperly
manipulating data, or improperly benefiting from any ongoing
financial, employment, personal o r business relationship with the
medical marijuana business that provided the sample. A medical
marijuana testing laboratory shall not test samples for any medica l
marijuana business in which an owner, employee or agent of the
medical marijuana testing la boratory has any form of ownership or
financial interest in the medical marijuana busi ness.
N. The Department, pursuant to rules promulgated by the State
Commissioner of Health, shall develop standards, policies and
procedures as necessary for:
1. The cleanliness and orderliness of a laboratory premises and
the location of the laboratory in a secure location, and inspection,
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cleaning and maintenance of any equipme nt or utensils used for the
analysis of test samples;
2. Testing procedures, testing standar ds for cannabinoid and
terpenoid potency and safe levels of contaminants, and remediation
procedures and validation procedures ;
3. Controlled access areas for sto rage of medical marijuana and
medical marijuana product test samples, waste and reference
standards;
4. Records to be retained and computer systems to be utilized
by the laboratory;
5. The possession, storage and use by the laboratory of
reagents, solutions and reference standards;
6. A certificate of analysis (COA) for each lot of reference
standard;
7. The transport and disposal of unused marijuana, marijuana
products and waste;
8. The mandatory use by a laboratory of an inventory tracking
system to ensure all test harvest and production batches or samples
containing medical marijuana, medic al marijuana concentrate or
medical marijuana products are identified and tracked from the point
they are transferred from a medical marijuana business, a patient or
a caregiver through the point of transfer, destruction or disposal.
The inventory trackin g system reporting shall include the results of
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any tests that are conducted on medica l marijuana, medical marijuana
concentrate or medical marijuana product;
9. Standards of performance;
10. The employment of laboratory personnel;
11. A written standar d operating procedure manual to be
maintained and updated by the laboratory;
12. The successful participation in a Department -approved
proficiency testing program for each testing category listed in this
section, in order to obtain and maintain certificat ion;
13. The establishment of and adherence to a quality assurance
and quality control program to ensure sufficient monitoring of
laboratory processes and quality of results reported;
14. The immediate recall of medical marijuana or medical
marijuana products that test above allowable thresholds or are
otherwise determined to be unsafe;
15. The establishment by the laboratory of a system to document
the complete chain of custody for samples from receipt through
disposal;
15. 16. The establishment by the laboratory of a system to
retain and maintain all required records, including busines s
records, and processes to ensure results are reported in a timely
and accurate manner; and
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16. 17. Any other aspect of laboratory testing of medical
marijuana or medical marijuana product deemed necessary by the
Department.
O. A medical marijuana testi ng laboratory shall promptly
provide the Department or designee of the Depart ment access to a
report of a test and any underlying data that is conducted on a
sample at the request of a medical marijuana business or qualified
patient. A medical marijuana t esting laboratory shall also provide
access to the Department or designee of the Department to laboratory
premises and to any material or information requested by the
Department to determine compliance with the requirements of this
section.
P. A medical marijuana testing laboratory shall retain all
results of laboratory tests cond ucted on marijuana or products for a
period of at least two (2) seven (7) years and shall make them
available to the Department upon request.
Q. A medical marijuana testing labor atory shall test samples
from each harvest batch or product batch, as appropr iate, of medical
marijuana, medical marijuana concentrate and medical marijuana
product for each of the following categories of testing, consistent
with standards developed by the Commissioner:
1. Microbials;
2. Mycotoxins;
3. Residual solvents;
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4. Pesticides;
5. Tetrahydrocannabinol (THC) and other cannabinoid potency;
6. Terpenoid potency type and concentration ; and
7. Heavy metals.
R. A test batch shall not exceed ten (1 0) pounds of usable
marijuana or medical marijuana product, as appropriate. A grower
shall separate each harvest lot of usable marijuana into harvest
batches containing no more than ten (10) twenty-five (25) pounds. A
processor shall separate each medica l marijuana production lot into
production batches containing no more than ten (10) pounds four (4)
liters of distillate and for final products, the Oklahoma Medical
Marijuana Authority shall be authorized to promulgate rules on final
products as necessary . Provided, however, the Authority shall not
require testing of final produc ts more often than every two hundred
(200) grams of THC, unless the batch size processed is l ess than two
hundred (200) grams of THC. As used in this subsection, "final
products" shall include, but not be limited to, cookies, brownies,
candies, gummies and chocolates.
S. Medical marijuana testing laboratory licensure shall be
contingent upon successful on-site inspection, successful
participation in proficiency testing and ongoin g compliance with the
applicable requirements in this section.
T. A medical marijuana testing laboratory shall be inspected
prior to initial licensure and annually up to two (2) times per year
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thereafter by an inspector approved by the Authority. The Authority
may enter the licensed premises of a testing laboratory to conduct
investigations and additional inspections when the Authority
believes an investigation or additi onal inspection is necessary due
to a possible violation of applicable laws, rules or regulations.
U. Beginning on a date determined by the Commissioner, not
later than January 1, 2020, medical Medical marijuana testing
laboratory licensure laboratories shall be contingent upon obtain
accreditation by the NELAC Institute (TNI), ANSI/ASQ Na tional
Accreditation Board or another an accrediting body approved by the
Commissioner, and any applicable standards as determined by the
Department within one (1) year o f the date the initial license is
issued. Renewal of any medical marijuana testing la boratory license
shall be contingent upon accreditation in accordance with th is
subsection. Beginning November 1, 2021, all medical marijuana
testing laboratories shall obtain accreditation prior to applying
for and receiving a medical marijuana testing l aboratory license.
V. A Unless authorized by the provisions of this section, a
commercial grower shall not transfer or sell medical marijuana and a
processor shall not t ransfer, sell or process into a concentrate or
product any medical marijuana, medical marijuana concentrate or
medical marijuana product unless samples from each h arvest batch or
production batch from which that medical marijuana, medical
marijuana concentrate or medical marijuana product was derived has
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been tested by a medical marijuana t esting facility for contaminants
laboratory and passed all contaminant tests required by this act the
Oklahoma Medical Marijuana and Patient Protection Act and applicable
laws, rules and regulations .
1. A licensed commercial grower may transfer medical ma rijuana
that has failed testing to a licensed processor only for the
purposes of decontamination or remediation and only in accordance
with the provisions of the Oklahoma Medical Marijuana and Patient
Protection Act and the rules and regulations of the Dep artment.
2. Licensed commercial growers and licensed processors who
achieve process validation under the rules and regulations set forth
by the State Department of Healt h may transfer, sell or process
medical marijuana and medical marijuana products in ac cordance with
those rules and regulations.
W. Kief shall not be transferred or sold except as authorized
in the rules and regulations of the Department.
SECTION 20. AMENDATORY Section 18, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 202 0, Section 427.18), is amended to read as
follows:
Section 427.18. A. An Oklahoma medical marijuana business
shall not sell, transfer or otherwise distribute medical mar ijuana
or medical marijuana product that has not been packaged and labeled
in accordance with this section and rules promulgated by the State
Commissioner of Heal th.
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B. A medical marijuana dispensary shall return medical
marijuana and medical marijuana pr oduct that does not meet packaging
or labeling requirements in this section or rules p romulgated
pursuant thereto to the entity who transferred it to the dispensa ry.
The medical marijuana dispensary shall document to whom the item was
returned, what was r eturned and the date of the return or dispose of
any usable marijuana that does not me et these requirements in
accordance with this act the Oklahoma Medical Marij uana and Patient
Protection Act.
C. 1. Medical marijuana packaging shall be packaged to
minimize its appeal to children and shall not depict images other
than the business name l ogo of the medical marijuana producer and
image of the product.
2. A medical marijuana business shall not place any content on
a container in a manner that reasonably ap pears to target
individuals under the age of twenty -one (21), including but not
limited to cartoon characters or similar images.
3. Labels on a container shall n ot include any false or
misleading statements.
4. No container shall be intentionally or know ingly labeled so
as to cause a reasonable patient confusion as to whether the medical
marijuana, medical marijuana concentrate or medical marijuana
product is a trademarked product or labeled in a manner that
violates any federal trademark law or regulatio n.
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5. The label on the container shall not make any claims
regarding health or physic al benefits to the patient.
6. All medical marijuana, medical marijuana con centrate and
medical marijuana products shall be in a child -resistant container
at the point of transfer to the patient or caregiver.
D. The State Department of Health shall devel op minimum
standards for packaging and labeling of medical marijuana and
medical marijuana products. Such standards shall include, but not
be limited to, the required co ntents of labels to be affixed to all
medical marijuana and medical marijuana products prior to transfer
to a licensed patient or caregiver, which shall include, at a
minimum:
1. A universal symbol indicating that the product contains
tetrahydrocannabinol (THC);
2. THC and other cannabinoid potency, and terpenoid potency;
3. 2. A statement indicating that the product has been tested
for contaminants;
4. 3. One or more product warnings to be determined by the
Department; and
5. 4. Any other information the Department deems necessary.
SECTION 21. AMENDATORY Sectio n 19, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.19), is amend ed to read as
follows:
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Section 427.19. A. A medical marijuana research license may be
issued to a person to grow, cultivate, possess and transfer, by sale
or donation, marijuana p ursuant to this act the Oklahoma Medical
Marijuana and Patient Protection A ct for the limited research
purposes identified in this section.
B. The annual fee for a medical marijuana research license
shall be Five Hundred Dollars ($500.00) and shall be pay able by an
applicant for a medical marijuana research license upon submissi on
of his or her application to the Authority.
C. A medical marijuana research license may be issued for the
following research purposes:
1. To test chemical potency and compositi on levels;
2. To conduct clinical investigations of marijuana -derived
medicinal products;
3. To conduct research on the efficacy and safety of
administering marijuana a s part of medical treatment;
4. To conduct genomic, horticultural or agricultural res earch;
and
5. To conduct research on marijuana -affiliated products or
systems.
D. 1. As part of the application process for a medical
marijuana research license, an ap plicant shall submit to the
Authority a description of the research that the applicant intends
to conduct and whether the research will be conducted with a publi c
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institution or using public money. If the research will not be
conducted with a public insti tution or with public money, the
Authority shall grant the application if it determine s that the
applicant meets the criteria in this section.
2. If the research will be conducted with a public institution
or public money, the Department shall review the research project of
the applicant to determine if it meets the requirements of this
section and to assess the following:
a. the quality, study design, value or i mpact of the
project,
b. whether the applicant has the appropriate personnel,
expertise, facilities, infrastructure, funding and
human, animal or other approvals in place to
successfully conduct the project, and
c. whether the amount of marijuana to be gro wn by the
applicant is consistent with the scope and goals of
the project.
3. If the Authority determines that the research project does
not meet the requirements of this section o r assesses the criteria
to be inadequate, the application shall be denied.
E. A medical marijuana research licensee may only transfer, by
sale or donation, marijuana gro wn within its operation to other
medical marijuana research licensees. The Department may revoke a
medical marijuana research license for violations of this sec tion
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and any other violation of this act the Oklahoma Medical Marijuana
and Patient Protection Act.
F. A medical marijuana research licensee may contract to
perform research in con junction with a public higher education
research institution or another med ical marijuana research licensee.
G. The growing, cultivating, possessing or transferring, by
sale or donation, of marijuana in accordance with this section and
the rules promulgated pursuant thereto, by a medical marijuana
research licensee shall not be a criminal or civil offense under
state law. A medical marijuana research license shall be iss ued in
the name of the applicant and shall specify the location in Oklahoma
at which the medical marijuana research licensee intends to operate.
A medical marijuana research licensee shall not allow any other
person to exercise the privilege of the licens e.
H. If the research conducted includes a public institution or
public money, the Au thority shall review any reports made by medical
marijuana research license es under state licensing authority rule
and provide the Authority with its determination on whe ther the
research project continues to meet research qualifications pursuant
to this section.
SECTION 22. AMENDATORY Section 20, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.20), is amended to read as
follows:
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Section 427.20. A. There is hereby created a medical marijuana
education facility license.
B. A medical marijuana education facility license may be issued
to a person to possess or cultivate marijuana for the limited
education and research purposes identified in this section.
C. A medical marijuana education facility license may only be
granted to a not-for-profit organization structured under Section
501(c)(3) of the Internal Revenue Code, operating as an Oklahoma
not-for-profit registered organization with the Office of the
Secretary of State.
D. A medical marijuana education facility license m ay only be
granted upon the submission of a an annual fee of Five Hundred
Dollars ($500.00) to the Authority.
E. A medical marijuana education facility license may be is sued
for the following education and research purposes:
1. To test cultivation techni ques, strategies, infrastructure,
mediums, lighting and other related tech nology;
2. To demonstrate cultivation techniques, strategies,
infrastructure, mediums, lighting and other related technology;
3. To demonstrate the application and use of product
manufacturing technologies;
4. To conduct genomic, horticultural or agricu ltural research;
and
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5. To conduct research on marijuana -affiliated products or
systems.
F. As part of the application process for a medical marijuana
education facility license, a n applicant shall submit to the
Authority a description of the project and curriculum that the
applicant intends to conduct and whether the project and curriculum
will be conducted with a public institution or using public money.
If the research project and curriculum will not be conducted with a
public institution or with publ ic money, the Authority shall grant
the application. If the research will be conducted with a p ublic
institution or public money, the Authority shall review the research
project of the applicant to determine if it meets the requirements
of this section and to assess the following:
1. The quality, study design, value or impact of the project;
2. Whether the applicant has the appropriate personnel,
expertise, facilities, infrastructu re, funding, and human, animal or
other approvals in place to successfully conduct the project; and
3. Whether the amount of marijuana to be grown by the applicant
is consistent with the scope and goals of the project.
If the Authority determines that the education project does not meet
the requirements of this section or asses ses the criteria to be
inadequate, the application shall be denied.
G. A medical marijuana educ ation facility licensee may only
transfer, by sale or donation, marijuana grown within its operation
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to medical marijuana research licensees. The Department ma y revoke
a medical marijuana education facility license for violations of
this section and any o ther violation of this act applicable laws,
rules and regulations .
H. A medical marijuana education facility licensee may contract
to perform research in conju nction with a public higher education
research institution or another research licensee.
I. The growing, cultivating, possessing or transferring, by
sale or donation, of marijuana i n accordance with this section and
the rules promulgated pursuant thereto, by a medical marijuana
education facility licensee shall not be a criminal or civil offense
under state law. A medical marijuana education facility license
shall be issued in the n ame of the applicant and shall specify the
location in Oklahoma at which t he medical marijuana education
facility licensee intends to operate. A medical marijuana educat ion
facility licensee shall not allow any other person to exercise the
privilege of the license.
SECTION 23. AMENDATORY Section 22, Cha pter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.22), is amended to read as
follows:
Section 427.22. A. An All medical marijuana patient and
caregiver records and information i ncluding, but not limited to, any
application or renewal and supporting i nformation submitted by a
qualifying patient or designated caregiver under the provisions of
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this act including, without limitation, the Oklahoma Medical
Marijuana and Patient Protect ion Act and information regarding the
physician of the qualifying patient shall be considered confidential
medical records that are exempt from the Oklahoma Open Records Act.
B. The dispensary records with patient information shall be
treated as confident ial records that are exempt from the Oklahoma
Open Records Act.
C. All financial information provided by an applicant or a
licensee in its an application to the Authorit y shall be treated as
confidential records that are exempt from the Oklahoma Open Reco rds
Act.
D. All information provided by an applicant or a licensee that
constitutes private business information shall be treated as
confidential records that are exempt from the Oklahoma Open Records
Act.
E. As used in this section, "private business in formation"
means information that, if disclosed, would give advantage to
competitors or bidders including, but not limited to, information
related to the planning, site l ocation, operations, strategy, or
product development and marketing of an applicant, u nless approval
for release of those records is granted by the business.
F. All monthly report, inventory tracking and seed -to-sale
information, data and records submitte d to the Department shall be
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treated as confidential records and are exempt from the O klahoma
Open Records Act.
G. Except for license information concerning l icensed patients,
the Department may share confidential information with the other
Oklahoma state agencies to assist those agencies in ensuring
compliance with applicable laws, rules and regulations.
SECTION 24. AMENDATORY Section 23, Chapter 11, O.S.L.
2019, as amended by Section 11, Chapter 477, O.S.L. 2019 (63 O.S.
Supp. 2020, Section 427.23), is amended to read as follows:
Section 427.23. A. The State Commissioner of Health, the
Oklahoma Tax Commission, the State Treasurer, th e Secretary of State
and the Director of the Office of Management and Enterprise Services
shall promulgate rules to implement the provisions of this act the
Oklahoma Medical Marijuana and Patient Protection Act .
B. The Food Safety Standards Board Medical Marijuana Advisory
Council, in addition to the powers and duties granted in Section 423
of Title 63 of the Oklahoma Statutes this title, may recommend to
the State Commissioner of Heal th rules relating to all aspects of
the regarding the safe cultivation and manufacture manufacturing of
medical marijuana products. In addition to the twelve members
required in Section 423 of this title, the State Department of
Health may appoint up to e ight additional members. The makeup of
the Council shall include medica l marijuana industry representation.
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SECTION 25. NEW LAW A new section of l aw to be codified
in the Oklahoma Statutes as Section 427.24 of Title 63, unless there
is created a duplication in numbering, reads as follows:
A. Whenever an authorized agent of the State Department of
Health finds, in whole or in part, that the medical marijuana or
medical marijuana product fails to meet the requirements of Sections
420 through 426.1 of Title 63 of the Oklahoma Statutes or the
Oklahoma Medical Marijuana and Patient Protection Act as it relates
to health and safety, the medical marijuana or medical marijuana
product is handled in violation of applicable laws or rules and
regulations of the Department, or the medical marijuana or medical
marijuana product may be poisonous, deleterious to health or is
otherwise unsafe, an electronic or physi cal tag or other appropriate
marking or hold shall be affixed to the medical marijuana or medical
marijuana product which shall give notice that the medical m arijuana
or medical marijuana product is or is suspected of being
manufactured, produced, transfer red, sold or offered for sale in
violation of applicable laws or rules and regulations of the
Department and is embargoed. The notice shall further provide a
warning to all persons not to remove or dispose of the medical
marijuana or medical marijuana pro duct until permission for removal
or disposal is given by the Department. It shall be unlawful for
any person to remove or dispose of the medical marijuana o r medical
marijuana product embargoed without permission by the Department.
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B. If the State Commi ssioner of Health finds that medical
marijuana or medical marijuana product embargoed pursuant to
subsection A of this section does not meet the requirements of
applicable laws or rules and regulations of the Department, or is
poisonous, deleterious to hea lth or otherwise unsafe, the
Commissioner may institute an action in the district cour t in whose
jurisdiction the medical marijuana or medical marijuana produ ct is
embargoed for the condemnation and destruction of the medical
marijuana or medical marijuana product. If the Commissioner finds
that the medical marijuana or medical marijuana p roduct embargoed
does meet the requirements of applicable laws and the r ules and
regulations of the Department and is not poisonous, deleterious to
health or otherwise un safe, the Commissioner shall remove the
embargo. In any court proceeding regarding an embargo, neither the
State Department of Health, the Oklahoma Medical M arijuana Authority
or the Commissioner shall be held liable if the court finds
reasonable belief for the embargo.
C. Except as otherwise provided in subsection D of this
section, if the court finds that the embargoed medical marijuana or
medical marijuana product, in whole or in part, is in violation of
any applicable laws or rules and regulations of the Department or is
poisonous, deleterious to health, or otherwise unsafe, the medica l
marijuana or medical marijuana product shall be destroyed at the
expense of the defendant under the supervision of the Commissioner.
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All court costs, fees, costs of st orage and disposal and other
proper expenses shall be paid by the defendant of the med ical
marijuana or medical marijuana product.
D. The court may order tha t the medical marijuana or medical
marijuana product be delivered to the defendant for appropriate
labeling or processing under the supervision of the Commissioner
only if:
1. The violation can be corrected by proper processing of
medical marijuana or med ical marijuana product;
2. All costs, fees and expenses have been paid; and
3. A sufficient bond is executed and conditioned for
appropriate labeling or processing as the court may r equire.
The expense of supervision shall be paid to the Commissioner by
the person obtaining release of the medical marijuana or medical
marijuana product under bond.
SECTION 26. AMENDATORY Section 2, Chapter 337, O.S.L.
2019 (63 O.S. Supp. 2020, Section 428.1), is amended to read as
follows:
Section 428.1. As used in this act the Oklahoma Medical
Marijuana Waste Management Act :
1. "Authority" shall mean the Oklahoma Medical Marijuana
Authority, or successor agency;
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2. "Commercial licensee" shall mean any person or entity issued
a license by the Okla homa Medical Marijuana Authority, or successor
agency, to conduct commercial business in this state ;
3. "Disposal" shall mean the final disposition of medical
marijuana waste by either a process which renders the waste unusable
through physical destructio n or a recycling process;
4. "Facility" shall mean a location the licensed or permitted
premises where the disposal of medical marijuana waste takes place
by a licensee;
5. "License" shall mean a medical marijuana waste disposal
license;
6. "Licensee" shall mean the holder of a medical marijuana
waste disposal license;
7. "Medical marijuana waste" s hall mean unused, surplus,
returned or out-of-date marijuana and plant debris of the p lant of
the genus Cannabis, including dead plants and all unused plant
parts, except the term shall not include seeds, roots, stems, stalks
and fan leaves; and
8. "Medical marijuana waste disposal license" shall mean a
license issued by the Oklahoma Medic al Marijuana Authority, or
successor agency.
SECTION 27. AMENDATORY Section 3, Chapter 337, O.S.L.
2019 (63 O.S. Supp. 2020, Section 429), is ame nded to read as
follows:
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Section 429. A. Medical marijuana waste shall be subject to
the provisions of this act the Oklahoma Medical Marijuana Waste
Management Act and shall not be subject to the provisions of the
Uniform Controlled Dangerous Substances Act. Nothing in this act
the Oklahoma Medical Marijuana Waste Management Act shall alter or
affect the jurisdictional areas of environmental responsibility of
the Department of Environmental Quality as provided for in Title 27A
of the Oklahoma Statutes.
B. Commercial licensees, medical marijuana research facilities
and medical marijuana e ducation facilities shall be authorized to
destroy the following mariju ana plant parts without being required
to utilize the services of a medical marijuana waste disposa l
facility:
1. Root balls Roots;
2. Stems;
3. Fan leaves; and
4. Seeds; and
5. Stalks.
Unless restricted by local ordinance, commercial licensees,
medical marijuana research facilities and medical marijuana
education facilities shall be authorized to destroy the above-listed
marijuana plant parts on-site on site by open burning, incine ration,
burying, mulching, composting or any other technique approved b y the
Department of Environmental Quality.
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C. Commercial licensees, medical marijuana research fac ilities
and medical marijuana education facilities engaged in the disposal
of medical marijuana waste shall create and maintain documentation
on a form prescribed by the Oklahoma Medical Marijuana Authority
that includes precise weights or counts of medica l marijuana waste
and the manner in which the medical marijuana waste is disposed.
Such documentation shall contain a witness affidavit and signature
attesting to the lawful disposal of the medical marijuana waste
under penalty of perjury. All disposal r ecords shall be maintained
by commercial licensees, medical marijuana research facilit ies and
medical marijuana educational facilities for a period of five ( 5)
years and shall be subject to inspection and auditing by the
Authority.
SECTION 28. AMENDATORY Section 4, Chapter 337, O.S.L.
2019 (63 O.S. Supp. 2020, Secti on 430), is amended to read as
follows:
Section 430. A. There is here by created and authorized a
medical marijuana waste disposal license. A person or entity in
possession of a medical marijuana waste disposal license shall be
entitled to possess, trans port and dispose of medical marijuana
waste. No person or entity shall possess, transport or dispose of
medical marijuana waste without a valid medical marijuana waste
disposal license. The Oklahoma Medical Marijuana Authority shall
issue licenses upon p roper application by a licensee and
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determination by the Authority that the proposed site and facility
are physically and technically suitable. Upon a finding that a
proposed medical marijuana waste disposal facility is not physically
or technically suita ble, the Authority shall deny the license. The
Authority may, upon det ermining that public health or safety
requires emergency action, issue a temporary license for trea tment
or storage of medical marijuana waste for a period not to exceed
ninety (90) days. The Authority shall not, for the first year of
the licensure progra m, issue more than ten medical marijuana waste
disposal licenses. Upon the conclusion of the first year, the
Authority shall assess the need for additional medical marijuana
waste disposal licenses and shall, if demonstrated, increase the
number of licenses as deemed necessary by the Authority.
B. Entities applying for a medical marijuana waste dispos al
license shall undergo the following screening process:
1. Complete an application form, as prescribed by the
Authority, which shall include:
a. an attestation that the applicant is authorized to
make application on behalf of the entity,
b. full name of the organization,
c. trade name, if applicable,
d. type of business organization,
e. complete mailing address,
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f. an attestation that the commercial entity will not be
located on tribal land,
g. telephone number and email address of the entity, and
h. name, residential address and date of birth of each
owner and each member, manager and bo ard member, if
applicable;
2. The application for a medical marijuana waste disposal
license made by an individual on his or her own behalf shall be on
the form prescribed by the Authority and shall include, but not be
limited to:
a. the first, middle and last name of the applicant and
suffix, if applicable,
b. the residence address and mailing address of the
applicant,
c. the date of birth of the applicant,
d. the preferred telephone number and email address of
the applicant,
e. an attestation that the in formation provided by the
applicant is true and correct, and
f. a statement signed by the applicant pledging not to
divert marijuana to any individual or entity that is
not lawfully entitled to possess marijuana; and
3. Each application shall be accompani ed by the following
documentation:
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a. a list of all persons or entities that have an
ownership interest in the entity,
b. a certificate of good standing from the Oklahoma
Secretary of State, if applicable,
c. an Affidavit of Lawful Presence for each owner,
d. proof that the proposed location of the disposal
facility is at least one thousand (1,000) feet from a
public or private school. The distance indicated in
this subparagraph shall be measured from any entrance
of the nearest property line of such publi c or private
school to the nearest property line point perimeter
wall of the premises of such disposal facility. If
any public or private school is established within on e
thousand (1,000) feet of any disposal facility after
such disposal facility has been licensed, the
provisions of this subparagraph shall not be a
deterrent to the renewal of such license or warrant
revocation of the license , and
e. documents establishing the applicant, the members,
managers and board members, if applicable, and
seventy-five percent (75%) of the ownership interests
are Oklahoma residents as e stablished in Section 420
et seq. of Title 63 of the Oklahoma Statutes this
title, as it relates to proof of residency.
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C. No license shall be issued except upon proof of sufficient
liability insurance and financial responsibility. Liability
insurance shall be provided by the applicant and shall apply to
sudden and nonsudden bodily injury or property damage on, below or
above the surface, as required by the rules of the Authority. Suc h
insurance shall be maintained for the period of operation of the
facility and shall provide coverage for damages resulting from
operation of the facility during operati on and after closing. In
lieu of liability insurance required by this subsection, an
equivalent amount of cash, securities, bond or alternate financial
assurance, of a type and in an amount acceptable to the Authority,
may be substituted; provided, that s uch deposit shall be maintained
for a period of five (5) years after the date of last operation of
the facility.
D. Submission of an application for a medic al marijuana waste
disposal license shall constitute permission for entry to and
inspection of the facility of the licensee during hours of operation
and other reasonable times. Refusa l to permit such entry of
inspection shall constitute grounds for the n onrenewal, suspension
or revocation of a license. The Authority may perform an annual
unannounced on-site inspection of the operations and any facility of
the licensee. If the Authori ty receives a complaint concerning
noncompliance by a licensee with the provisions of this act the
Oklahoma Medical Marijuana Waste Management Act , the Authority may
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conduct additional unannounced, on -site inspections beyond an annual
inspection. The Auth ority shall may refer all complaints alleging
criminal activity that ar e made against a licensed facility to
appropriate state or local law enforcement authorities.
E. The Authority shall issue a an annual permit for each
medical marijuana waste disposal facility operated by a licensee. A
permit shall be issued only upon pr oper application by a licensee
and determination by the Authority that the proposed site and
facility are physically and technically suitable. Upon a finding
that a proposed medical ma rijuana waste disposal facility is not
physically or technically suitab le, the Authority shall deny the
permit. The Authority shall have the authority to revoke a permit
upon a finding that the site and facility are not physically and
technically suitable for processing. The Authority may, upon
determining that public healt h or safety requires emergency action,
issue a temporary permit for treatment or storage of medical
marijuana waste for a period not to exceed ninety (90) days.
F. The cost of a medica l marijuana waste disposal license shall
be Five Thousand Dollars ($5,0 00.00) for the initial license. The
cost of a medical marijuana waste disposal facility permit sha ll be
Five Hundred Dollars ($500.00). A medical marijuana waste disposal
facility permit that has been revoked shall be reinstated upon
remittance of a rein statement fee of Five Hundred Dollars ($500.00)
to restore the facility permit. All license and pe rmit fees shall
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be deposited into the Public Health Special Oklahoma Medical
Marijuana Authority Revolving Fund as provided in Section 1-107
427.5 of Title 63 of the Oklahoma Statutes this title.
G. The holder of a medical marijuana waste disposal license
shall not be required to obtain a medical marijuana transporter
license provided for in the Oklahoma Medical Marijuana and Patient
Protection Act for purpos es of transporting medical marijuana waste.
H. All commercial licensees, as defined in Section 2 428.1 of
this act title, shall utilize a licensed medical marijuana waste
disposal service to process all medical marijuana waste generated by
the licensee.
I. The State Commissioner of Health shall promulgate rules for
the implementation of this act the Oklahoma Medical Marijuana Waste
Management Act. Promulgated rules shall address dispo sal process
standards, site security and any other subject matter deeme d
necessary by the Authority.
SECTION 29. This act shall become effective November 1, 2021.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
April 7, 2021 - DO PASS AS AMENDED