Oklahoma 2022 Regular Session

Oklahoma House Bill HB2989 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Req. No. 8523 Page 1
2	2	STATE OF OKLAHOMA
3	3
4	4	2nd Session of the 58th Legislature (2022)
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6	6	HOUSE BILL 2989 By: Russ
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12	12	AS INTRODUCED
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14	14	An Act relating to public health and safety; amending
15	15	63 O.S. 2021, Section 422, which relate s to license
16	16	applications for medical marijuana growing;
17	17	prescribing procedures with respect to approval of
18	18	commercial grow licenses; providing for
19	19	identification of real prope rty; requiring submission
20	20	of certain question to vot ers; requiring majority
21	21	approval for issuance of license; prescribing
22	22	procedures for submission of question ; prescribing
23	23	wording for ballot titles; prescribing procedures for
24	24	communication of election outcomes to the State
25	25	Department of Health; providing for effect of failu re
26	26	of county voters to approve application; prohibiting
27	27	applications during certain ti me period; requiring
28	28	State Department of Health to maintain registr y for
29	29	purposes of implementing requirements related to
30	30	election outcomes; and providing an effective date .
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36	36	BE IT ENACTED BY THE PEOPLE OF THE STAT E OF OKLAHOMA:
37	37	SECTION 1. AMENDATORY 63 O.S. 2021, Section 422, is
38	38	amended to read as follows:
39	39	Section 422. A. The State Department of Health shall, within
40	40	thirty (30) days of passage of this initiative, make available o n
41	41	its website in an easy-to-find location an application for a
42	42	commercial grower license . The application fee shall be Two Req. No. 8523 Page 2
43	43	Thousand Five Hundred Dollars ($2,5 00.00). A method of payment
44	44	shall be provided on the website of the Department. The Subject to
45	45	the provisions of subsections F through O of this section, the State
46	46	Department of Health shall have ninety (90) days to review the
47	47	application; approve, reject or deny the application; and mail the
48	48	approval, rejection or denial letter stating the reasons for the
49	49	rejection or denial to the applicant.
50	50	B. The State Department of Health shall approve all
51	51	applications which me et the following criteria:
52	52	1. The applicant must be twenty-five (25) years of age or
53	53	older;
54	54	2. The applicant, if applying as an individual, mus t show
55	55	residency in the State of Oklahoma;
56	56	3. All applying entities must show that all members, managers,
57	57	and board members are Oklahoma residents;
58	58	4. An applying entity may show ownership of non -Oklahoma
59	59	residents, but that percentage ownership may not exceed twenty-five
60	60	percent (25%);
61	61	5. All applying individuals or entities must be registered to
62	62	conduct business in the State of Oklahoma; and
63	63	6. All applicants must disclose all ownership interests in the
64	64	commercial grower operation ; and
65	65	7. All applicants shall be required to prove that any county in
66	66	which real property owned by or leased to the applicant for a Req. No. 8523 Page 3
67	67	commercial grower license has approved issuance of the license as
68	68	prescribed pursuant to the provisions of su bsections F through O of
69	69	this section.
70	70	Applicants with a nonviolent felony conviction in the last two
71	71	(2) years, any other f elony conviction in the last five (5) years,
72	72	inmates in the custody of the Department of Corrections or any
73	73	person currently incarcerate d shall not qualify for a comme rcial
74	74	grower license.
75	75	C. A licensed commercial grow er may sell marijuana to a
76	76	licensed dispensary or a licensed processor. Further, sales by a
77	77	licensed commercial grower shall be considered wholesale sales and
78	78	shall not be subject to taxation. Under no circumstances may a
79	79	licensed commercial grower sell marijuana directly to a licensed
80	80	medical marijuana patient or licensed caregiver . A licensed
81	81	commercial grower may only sell at the wholesale level to a license d
82	82	dispensary, a licensed grower or a licensed processor. If the
83	83	federal government lifts restr ictions on buying and selling
84	84	marijuana between states, then a licensed commercial grower would be
85	85	allowed to sell and buy marijuana wholesale from, or to, a n out-of-
86	86	state wholesale provider. A licensed commercial grower shall be
87	87	required to complete a mo nthly yield and sales report to th e State
88	88	Department of Health . This report shall be due on the fifteenth of
89	89	each month and provide reporting on the previous month . This report
90	90	shall detail the amount of marijuana harvested in pounds, the amount Req. No. 8523 Page 4
91	91	of drying or dried marijuana on hand, the am ount of marijuana sold
92	92	to licensed processors in pounds, the amount of waste in pounds, and
93	93	the amount of marijuana sold t o licensed dispensaries in pounds.
94	94	Additionally, this report shall show total wholesale sales in
95	95	dollars. The State Department of He alth shall have oversight and
96	96	auditing responsibilities to ensure that all marijuana being grown
97	97	by licensed commercial growers is accounted for.
98	98	D. There shall be no limits on how much marijuana a licensed
99	99	commercial grower can grow.
100	100	E. Beginning on the effective date of this act, licensed
101	101	commercial growers shall be authorized to package and sell pre -
102	102	rolled marijuana to licensed medical marijuana dispensaries . The
103	103	products described in this subsection shall contain o nly the ground
104	104	parts of the marijuana plant and shall not include marijuana
105	105	concentrates or derivatives. The total net weight of each pre -roll
106	106	packaged and sold by medical marijuana commercial growers sh all not
107	107	exceed one (1) gram. These products must be tested, packaged and
108	108	labeled in accordance with Oklahoma law and rules promulga ted by the
109	109	State Commissioner of Health.
110	110	F. Prior to the time an application otherwise authorized by
111	111	this section is filed with the State Department of Health , an
112	112	individual or entity seeking a commercial grower lice nse shall make
113	113	application to the county or co unties in which any real property
114	114	owned by or leased to the applicant is loc ated and upon which Req. No. 8523 Page 5
115	115	commercial marijuana growing as authorized by this section is to
116	116	occur. The provisions of this subsection and subse ctions G through
117	117	O of this section shall be applicable to real property located in
118	118	either unincorporated areas or incorpor ated areas of the county. The
119	119	application shall be on such form as prescribed by the State
120	120	Department of Health for such purpose.
121	121	G. All applications for approval of a commercial grow license
122	122	by the county shall be su bmitted not later than June 30 each year .
123	123	The question for approval of the license shall only be submitted fo r
124	124	a vote at the General Election held in each even -numbered year.
125	125	H. The board of county commi ssioners of the county or counties
126	126	to which an application for approval of a commercial grower license
127	127	is submitted pursuant to the provisions of this section shall submit
128	128	a question to the voters of the county or counties in which the real
129	129	property, which shall be clearly identified in the application , is
130	130	located. If an application for a single license desc ribes a parcel
131	131	of real property located in more th an one county, the application
132	132	shall be submitted in each and every county in w hich the parcel is
133	133	located and the boards of county commissioners of the affected
134	134	counties shall coordinate their actions so that the vote for
135	135	approval of the license application occurs on the same d ate in each
136	136	county with respect to such license application.
137	137	I. If a parcel of real property identified in a commercial
138	138	grower license application is located in more than one county, the Req. No. 8523 Page 6
139	139	license may only be issued by a county the voters of which have
140	140	approved the issuance of the license and only to the extent of
141	141	growing operations for marijuana on the real property located within
142	142	the boundary of the county the voters of which have approved t he
143	143	issuance of the license.
144	144	J. The question for approval of the c ommercial grower license
145	145	shall be submitted in substantially the followin g form:
146	146	SHALL A COMMERCIAL GROWER LICENSE FOR MARIJUANA BE ISSUED TO
147	147	[INSERT LEGAL NAME OF APPLICA NT] WITH RESPECT TO THE FOLLOWING
148	148	DESCRIBED REAL PROPERTY LOCATED IN [INSERT COUNTY NAME AND
149	149	PHYSICAL ADDRESS OR OTHER APPLICAB LE DESCRIPTION, WHETHER LOT OR
150	150	BLOCK OR METES AND BOUN DS OR OTHER DESCRIPTION BY WHICH A PERSON
151	151	OF REASONABLE UNDERSTANDING COULD IDENTIFY THE LOCATION OF THE
152	152	PROPERTY]?
153	153	YES - FOR THE APPROVAL OF THE L ICENSE _____________
154	154	NO - AGAINST THE APPROVAL OF THE LICENSE _____________
155	155	K. A majority of those persons voting on the question submitted
156	156	pursuant to subsection J of this section shall be required in order
157	157	for the license application to be appro ved.
158	158	L. If the voters of the applicable county or counties approve
159	159	the issuance of the lice nse, the outcome of the vote shall be
160	160	certified by the county election board of the affected county or
161	161	counties and a certified copy of the outcome shall be attache d to
162	162	the license application submitted to the State Department of Health Req. No. 8523 Page 7
163	163	which shall then review the application pursuant to the requirements
164	164	of law and either approve or deny the application.
165	165	M. If the voters of the applicable county or counties do not
166	166	approve the issuance of the license, the outcome of the election
167	167	shall be certified by the county election board of the applicable
168	168	county or counties a nd such certified result shall be provided to
169	169	the license applicant and transmitted to the State Department of
170	170	Health, by certified mail with return receipt requested, not later
171	171	than seven (7) days after the election result has been certified by
172	172	the applicable county election board.
173	173	N. An applicant for a commercial grower license that is denied
174	174	approval by a county or counties pur suant to the provisions of this
175	175	section shall not make applicatio n to the county in which any real
176	176	property described in a ballot as prescri bed by subsection J of this
177	177	section was contained for a period o f five (5) years from the date
178	178	of such election. No application for a commercial grower license
179	179	shall be submitted by any applicant in a county that has deni ed a
180	180	commercial grower license pursuant to the voting procedures
181	181	prescribed by this section for a period of five (5) years from the
182	182	date of the election.
183	183	O. The State Department of Health shall maintain a regis try or
184	184	record of any county the v oters of which did not approv e a
185	185	commercial grower license application pursuant to t he provisions of
186	186	this section in order to prevent the issuance of a license to any Req. No. 8523 Page 8
187	187	applicant for a period of five (5) years from the date of the
188	188	election with respect to an y real property located in a county the
189	189	voters of which did not approve the issuance of a license.
190	190	SECTION 2. This act shall become effective November 1, 2022.
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192	192	58-2-8523 MAH 12/03/21