Oklahoma 2022 Regular Session

Oklahoma House Bill HB2660 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	HB2660 HFLR Page 1
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	3	+	Req. No. 6480 Page 1 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31	28		STATE OF OKLAHOMA
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33	30		1st Session of the 58th Legislature (2021)
34	31
35		-	COMMITTEE SUBSTITUTE
36		-	FOR
37		-	HOUSE BILL NO. 2660 By: Echols
	32	+	HOUSE BILL 2660 By: Echols
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43		-	~~COMMITTEE SUBSTITUTE~~
	38	+	AS INTRODUCED
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45		-	An Act relating to medical marijuana; amending
46		-	Section 4, State Question No. 788, Initiative
47		-	Petition No. 412 (63 O.S. Supp. 2020, Section 423),
48		-	which relates to medical marijuana processor
49		-	licensing requirements; providing for the issuance of
50		-	volatile and nonvolatile processor licenses; updating
51		-	language; amending Section 17, Chapter 11, O.S.L.
52		-	2019, as amended by Section 4, Chapter 312, O.S.L.
53		-	2019 (63 O.S. Supp. 2020, Section 427.17), which
54		-	relates to the Oklahoma Medical Marijuana and Patient
55		-	Protection Act; modifying test batch requirements for
56		-	licensed medical marijuana commercial growers and
57		-	processors; defining certain term; and providing an
58		-	effective date.
	40	+	An Act relating to cannabis; creating the Oklahoma
	41	+	Cannabis Law of 2021; providing for noncodification;
	42	+	and providing an effective date .
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63	48		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
64		-	SECTION 1. AMENDATORY Section 4, State Question No. 788,
65		-	Initiative Petition No. 412 (63 O.S. Supp. 2020, Section 423), is
66		-	amended to read as follows:
67		-	Section 423. A. The Oklahoma State Department of Health shall
68		-	within thirty (30) days of passage of this initiative, make
69		-	available, on their its website, in an easy-to-find location, an
	49	+	SECTION 1. NEW LAW A new section of law not to be
	50	+	codified in the Oklahoma Statutes reads as follows:
	51	+	This act shall be known and may be cited as the "Oklahoma
	52	+	Cannabis Law of 2021".
	53	+	SECTION 2. This act shall become effective November 1, 2021.
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71		-	HB2660 HFLR Page 2
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97		-	application for a medical marijuana processing processor license.
98		-	The Department shall be authorized to issue two types of medical
99		-	marijuana processor licenses:
100		-	1. Nonvolatile, which involves using any solvent in the
101		-	extraction process that is not a volatile solvent, including carbon
102		-	dioxide; and
103		-	2. Volatile, which involves using any solvent that is or
104		-	produces a flammable gas or vapor that, when present in the air in
105		-	sufficient quantities, will create explosive or ignitable mixtures
106		-	and may also include extraction using nonvolatile solvents or no
107		-	solvents.
108		-	The application fee for a nonvolatile or volatile medical marijuana
109		-	processor license shall be Two Thousand Five Hundred Dollars
110		-	($2,500.00) and methods. Methods of payment will shall be provided
111		-	on the website. The Oklahoma State Department of Health shall have
112		-	two (2) weeks to review the application, approve or reject the
113		-	application, and mail the approval/rejection letter (if rejected,
114		-	stating reasons for rejection) to the appli cant.
115		-	B. The Oklahoma State Department of Health must shall approve
116		-	all applications which meet the following criteria:
117		-	1. Applicant must be age twenty -five (25) or older;
118		-	2. Any applicant, applying as an individual, must show
119		-	residency in the State of Oklahoma;
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121		-	HB2660 HFLR Page 3
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147		-	3. All applying entities must show that all members, managers,
148		-	and board members are Oklahoma residents;
149		-	4. An applying entity may show ownership of non -Oklahoma
150		-	residents, but that percentage ownership may not exceed twenty -five
151		-	percent (25%);
152		-	5. All applying individuals or entities must be registered to
153		-	conduct business in the State of Oklahoma; and
154		-	6. All applicants must disclose all ownership ;.
155		-	7. Applicant(s) An applicant with only a nonviolent felony
156		-	conviction(s) in the last two (2) ye ars, or any other felony
157		-	conviction in five (5) years, inmates, or any person currently
158		-	incarcerated may not qualify for a medical marijuana processing
159		-	processor license.
160		-	C. A licensed medical marijuana processor may take marijuana
161		-	plants and distill or p rocess these plants into concentrates,
162		-	edibles, and other forms for consumption. As required by subsection
163		-	D of this section, the Oklahoma State Department of Health will
164		-	shall, within sixty (60) days of passage of this initiative, make
165		-	available a set of standards which will be used by licensed medical
166		-	marijuana processors in the preparation of edible marijuana
167		-	products. This should be in line with current food preparation
168		-	guidelines and no excessive or punitive rules may be established by
169		-	the Oklahoma State Department of Health. Once a year, the Oklahoma
170		-	State Department of Health may inspect a processing operation and
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172		-	HB2660 HFLR Page 4
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198		-	determine its compliance with the preparation standards. If
199		-	deficiencies are found, a written report of deficiency will the
200		-	deficiencies shall be issued to the licensed medical marijuana
201		-	processor. The licensed medical marijuana processor will shall have
202		-	one (1) month to correct the deficiency or be subject to a fine of
203		-	Five Hundred Dollars ($500.00) for each deficiency. A licensed
204		-	medical marijuana processor may sell marijuana products it creates
205		-	to a licensed retailer, or any other licensed medical marijuana
206		-	processor. Further, these sales will shall be considered wholesale
207		-	sales and not subject to taxation. Under no circumstances ma y a
208		-	licensed medical marijuana processor sell marijuana, or any
209		-	marijuana product, directly to a medical marijuana license holder
210		-	patient licensee or caregiver licensee . However, a licensed medical
211		-	marijuana processor may process cannabis into a concentra ted form,
212		-	for a medical license holder, marijuana patient licensee for a fee.
213		-	Processors will Licensed medical marijuana processors shall be
214		-	required to complete a monthly yield and sales report to the
215		-	Oklahoma State Department of Health. This report will be due on the
216		-	15th fifteenth of each month and provide reporting on the previous
217		-	month. This report will shall detail the amount of marijuana
218		-	purchased in pounds, the amount of marijuana cooked or processed in
219		-	pounds, and the amount of waste in pounds. Additionally, this
220		-	report will shall show total wholesale sales in dollars. The
221		-	Oklahoma State Department of Health will shall have oversight and
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223		-	HB2660 HFLR Page 5
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249		-	auditing responsibilities to ensure that all marijuana being grown
250		-	is accounted for. A licensed medical marijuana processor will shall
251		-	only be subject to a penalty if a gross discrepancy exists and
252		-	cannot be explained. Penalties for fraudulent reporting occurring
253		-	within any 2 year two-year time period will shall be an initial fine
254		-	of Five Thousand Dollars ($5, 000.00) (first) for a first offense and
255		-	revocation of licensing (second) the medial marijuana processor
256		-	license for a second offense .
257		-	D. The Department shall oversee inspection and compliance of
258		-	licensed medical marijuana processors producing products wit h
259		-	marijuana as an additive. The Oklahoma State Department of Health
260		-	will shall be compelled to, within thirty (30) days of passage of
261		-	this initiative, appoint a board of twelve (12) Oklahoma residents,
262		-	who are marijuana industry experts, to create a list of food safety
263		-	standards for processing and handling medical marijuana in Oklahoma.
264		-	These standards will shall be adopted by the agency Department and
265		-	the agency Department can enforce these standards for licensed
266		-	medical marijuana processors. The agency will Department shall
267		-	develop a standards review procedure and these standards can may be
268		-	altered by calling another board of twelve (12) Oklahoma marijuana
269		-	industry experts. A signed letter of twenty (20) operating licensed
270		-	medical marijuana processors would constitute a need for a new board
271		-	and standard standards review.
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299		-	E. If it becomes permissible , under federal law, marijuana may
300		-	be moved across state lines.
301		-	F. Any device used for the consumption of medical marijuana
302		-	shall be considered legal to be sold, manufactured, distributed, and
303		-	possessed. No merchant, wholesaler, manufacturer, or individual may
304		-	unduly be harassed or prosecuted for selling, manufacturing, or
305		-	possession of medical marijuana paraphernalia.
306		-	SECTION 2. AMENDATORY Section 17, Chapter 11, O.S.L.
307		-	2019, as amended by Section 4, Chapter 312, O.S.L. 2019 (63 O.S.
308		-	Supp. 2020, Section 427.17), is amended to read as follows:
309		-	Section 427.17 A. There is hereby created a medical marijuana
310		-	testing laboratory license as a category of the medical marijuana
311		-	business license. The Authority is hereby enabled to monitor,
312		-	inspect and audit a licensed testing laboratory under this act.
313		-	B. The Authority is hereby authorized to contract with a
314		-	private laboratory for the purp ose of conducting compliance testing
315		-	of medical marijuana testing laboratories licensed in this state.
316		-	Any such laboratory under contract for compliance testing shall be
317		-	prohibited from conducting any other commercial medical marijuana
318		-	testing in this state.
319		-	C. The Authority shall have the authority to develop acceptable
320		-	testing and research practices, including but not limited to
321		-	testing, standards, quality control analysis, equipment
322		-	certification and calibration, and chemical identification and
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324		-	HB2660 HFLR Page 7
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350		-	substances used in bona fide research methods so long as it complies
351		-	with this act.
352		-	D. A person who is a direct beneficial owner or an indirect
353		-	beneficial owner of a medical marijuana dispensary, medical
354		-	marijuana commercial grower, or medical marijuana processo r shall
355		-	not be an owner of a laboratory.
356		-	E. A laboratory and a laboratory applicant shall comply with
357		-	all applicable local ordinances, including but not limited to
358		-	zoning, occupancy, licensing and building codes.
359		-	F. A separate license shall be required f or each specific
360		-	laboratory.
361		-	G. A medical marijuana testing laboratory license may be issued
362		-	to a person who performs testing and research on medical marijuana
363		-	and medical marijuana products for medical marijuana businesses,
364		-	medical marijuana research fac ilities, medical marijuana education
365		-	facilities, and testing and research on marijuana and marijuana
366		-	products grown or produced by a patient or caregiver on behalf of a
367		-	patient, upon verification of registration. No state -approved
368		-	medical marijuana testin g facility shall operate unless a medical
369		-	laboratory director is on site during operational hours.
370		-	H. A laboratory applicant shall comply with the application
371		-	requirements of this section and shall submit such other information
372		-	as required for a medical m arijuana business applicant, in addition
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400		-	to any information the Authority may request for initial approval
401		-	and periodic evaluations during the approval period.
402		-	I. A medical marijuana testing laboratory may accept samples of
403		-	medical marijuana, medical mari juana concentrate or medical
404		-	marijuana product from a medical marijuana business for testing and
405		-	research purposes only, which purposes may include the provision of
406		-	testing services for samples submitted by a medical marijuana
407		-	business for product developm ent. The Department may require a
408		-	medical marijuana business to submit a sample of medical marijuana,
409		-	medical marijuana concentrate or medical marijuana product to a
410		-	medical marijuana testing laboratory upon demand.
411		-	J. A medical marijuana testing laborat ory may accept samples of
412		-	medical marijuana, medical marijuana concentrate or medical
413		-	marijuana product from an individual person for testing only under
414		-	the following conditions:
415		-	1. The individual person is a patient or caregiver pursuant to
416		-	this act or is a participant in an approved clinical or
417		-	observational study conducted by a research facility; and
418		-	2. The medical marijuana testing laboratory shall require the
419		-	patient or caregiver to produce a valid patient license and current
420		-	and valid photo identifi cation.
421		-	K. A medical marijuana testing laboratory may transfer samples
422		-	to another medical marijuana testing laboratory for testing. All
423		-	laboratory reports provided to or by a medical marijuana business or
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425		-	HB2660 HFLR Page 9
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451		-	to a patient or caregiver shall identify the medi cal marijuana
452		-	testing laboratory that actually conducted the test.
453		-	L. A medical marijuana testing laboratory may utilize a
454		-	licensed medical marijuana transporter to transport samples of
455		-	medical marijuana, medical marijuana concentrate and medical
456		-	marijuana product for testing, in accordance with this act and the
457		-	rules adopted pursuant thereto, between the originating medical
458		-	marijuana business requesting testing services and the destination
459		-	laboratory performing testing services.
460		-	M. The medical marijuana testing laboratory shall establish
461		-	policies to prevent the existence of or appearance of undue
462		-	commercial, financial or other influences that may diminish the
463		-	competency, impartiality and integrity of the testing processes or
464		-	results of the laboratory, or that may diminish public confidence in
465		-	the competency, impartiality and integrity of the testing processes
466		-	or results of the laboratory. At a minimum, employees, owners or
467		-	agents of a medical marijuana testing laboratory who participate in
468		-	any aspect of the analysis and results of a sample are prohibited
469		-	from improperly influencing the testing process, improperly
470		-	manipulating data, or improperly benefiting from any ongoing
471		-	financial, employment, personal or business relationship with the
472		-	medical marijuana business that provided the sample.
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500		-	N. The Department, pursuant to rules promulgated by the State
501		-	Commissioner of Health, shall develop standards, policies and
502		-	procedures as necessary for:
503		-	1. The cleanliness and orderliness of a laboratory premises and
504		-	the location of the laboratory in a secure location, and inspection,
505		-	cleaning and maintenance of any equipment or utensils used for the
506		-	analysis of test samples;
507		-	2. Testing procedures, testing standards for cannabinoid and
508		-	terpenoid potency and safe levels of contaminants, and remediation
509		-	procedures;
510		-	3. Controlled access areas for storage of medical marijuana and
511		-	medical marijuana product test samples, waste and reference
512		-	standards;
513		-	4. Records to be retained and computer systems to be utilized
514		-	by the laboratory;
515		-	5. The possession, storage and use by the laboratory of
516		-	reagents, solutions and reference standards;
517		-	6. A certificate of analysis (COA) for each lot of reference
518		-	standard;
519		-	7. The transport and disposal of unused marijuana, marijuana
520		-	products and waste;
521		-	8. The mandatory use by a laboratory of an inventory tracking
522		-	system to ensure all test batches or samples containing medical
523		-	marijuana, medical marijuana concentrate or medical marijuana
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551		-	products are identified and tracked from the point they are
552		-	transferred from a medical marijuana business, a patient or a
553		-	caregiver through the point of transfer, destruction or disposal.
554		-	The inventory tracking system reporting shall include the results of
555		-	any tests that are conducted on medical marijuana, medical marijuana
556		-	concentrate or medical marijuana product;
557		-	9. Standards of performance;
558		-	10. The employment of laboratory personnel;
559		-	11. A written standard operating procedure manual to be
560		-	maintained and updated by the laboratory;
561		-	12. The successful participa tion in a Department -approved
562		-	proficiency testing program for each testing category listed in this
563		-	section, in order to obtain and maintain certification;
564		-	13. The establishment of and adherence to a quality assurance
565		-	and quality control program to ensure sufficient monitoring of
566		-	laboratory processes and quality of results reported;
567		-	14. The establishment by the laboratory of a system to document
568		-	the complete chain of custody for samples from receipt through
569		-	disposal;
570		-	15. The establishment by the laborator y of a system to retain
571		-	and maintain all required records, including business records, and
572		-	processes to ensure results are reported in a timely and accurate
573		-	manner; and
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601		-	16. Any other aspect of laboratory testing of medical marijuana
602		-	or medical marijuana p roduct deemed necessary by the Department.
603		-	O. A medical marijuana testing laboratory shall promptly
604		-	provide the Department or designee of the Department access to a
605		-	report of a test and any underlying data that is conducted on a
606		-	sample at the request of a medical marijuana business or qualified
607		-	patient. A medical marijuana testing laboratory shall also provide
608		-	access to the Department or designee of the Department to laboratory
609		-	premises and to any material or information requested by the
610		-	Department to determine compliance with the requirements of this
611		-	section.
612		-	P. A medical marijuana testing laboratory shall retain all
613		-	results of laboratory tests conducted on marijuana or products for a
614		-	period of at least two (2) years and shall make them available to
615		-	the Department upon request.
616		-	Q. A medical marijuana testing laboratory shall test samples
617		-	from each harvest batch or product batch, as appropriate, of medical
618		-	marijuana, medical marijuana concentrate and medical marijuana
619		-	product for each of the following cat egories of testing, consistent
620		-	with standards developed by the Commissioner:
621		-	1. Microbials;
622		-	2. Mycotoxins;
623		-	3. Residual solvents;
624		-	4. Pesticides;
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651		-
652		-	5. Tetrahydrocannabinol (THC) and other cannabinoid potency;
653		-	6. Terpenoid potency; and
654		-	7. Heavy metals.
655		-	R. A test batch shall not exceed ten (10) pounds of usable
656		-	marijuana or medical marijuana product, as appropriate. A grower
657		-	shall separate each harvest lot of usable marijuana into harvest
658		-	batches containing no more than ten (10) twenty-five (25) pounds. A
659		-	processor shall separate each medical marijuana production lot into
660		-	production batches containing no more than ten (10) pounds four (4)
661		-	liters of distillate and for final products, the Oklahoma Medical
662		-	Marijuana Authority shall be authorized to promulga te rules on final
663		-	products as necessary. Provided, however, the Authority shall not
664		-	require testing of final products more often than every two hundred
665		-	(200) grams of THC, unless the batch size processed is less than two
666		-	hundred (200) grams of THC. As us ed in this subsection, "final
667		-	products" shall include, but not be limited to, cookies, brownies,
668		-	candies, gummies and chocolates .
669		-	S. Medical marijuana testing laboratory licensure shall be
670		-	contingent upon successful on -site inspection, successful
671		-	participation in proficiency testing and ongoing compliance with the
672		-	applicable requirements in this section.
673		-	T. A medical marijuana testing laboratory shall be inspected
674		-	prior to initial licensure and annually thereafter by an inspector
675		-	approved by the Authority .
676		-
677		-	HB2660 HFLR Page 14
678		-	BOLD FACE denotes Committee Amendments. 1
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702		-
703		-	U. Beginning on a date determined by the Commissioner, not
704		-	later than January 1, 2020, medical marijuana testing laboratory
705		-	licensure shall be contingent upon accreditation by the NELAC
706		-	Institute (TNI), ANSI/ASQ National Accreditation Board or another
707		-	accrediting body approved by the Commissioner, and any applicable
708		-	standards as determined by the Department.
709		-	V. A commercial grower shall not transfer or sell medical
710		-	marijuana and a processor shall not transfer, sell or process into a
711		-	concentrate or produ ct any medical marijuana, medical marijuana
712		-	concentrate or medical marijuana product unless samples from each
713		-	harvest batch or production batch from which that medical marijuana,
714		-	medical marijuana concentrate or medical marijuana product was
715		-	derived has been tested by a medical marijuana testing facility for
716		-	contaminants and passed all contaminant tests required by this act.
717		-	SECTION 3. This act shall become effective November 1, 2021.
718		-
719		-	COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
720		-	SUBSTANCES, dated 03/01/2021 - DO PASS, As Amended.
	55	+	58-1-6480 GRS 01/10/21