An Act ENROLLED HOUSE BILL NO. 3208 By: Cornwell, West (Josh), Bashore, Kendrix, Roberts (Eric), and Luttrell of the House and Paxton of the Senate An Act relating to medical marijuana; amending 63 O.S. 2021, Section 427.3, which relates to the Oklahoma Medical Marijuana and Patient Protection Act; expanding scope of powers and duties; directing the Oklahoma Medical Marijuana Authority to declare and establish a moratorium on issuing certain medical marijuana business licenses; providing an exception; requiring review and processing of applications received prior to certain date; directing the Authority to promulgate rules; and providing for codification. SUBJECT: Medical marijuana BE IT ENACTED BY THE P EOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 63 O .S. 2021, Section 427.3, is amended to read as follows: Section 427.3 A. There is hereby created the Oklahoma Med ical Marijuana Authority within the State Department of Health which shall address issues related t o the medical marijuana program in Oklahoma including, but not limited to, the issuance of patient licenses and medical mar ijuana business licenses, and the dispensing, cultivating, processing, testing, transport ing, storage, research, and the use of and s ale of medical marijuana pursuant t o the Oklahoma Medical Marijuana and Patient Protection Act . ENR. H. B. NO. 3208 Page 2 B. The Department shall provide support staff to perform designated duties of the Authority . The Department shall also provide office space for meetings of t he Authority. C. The Department Authority shall implement the provisions of the Oklahoma Medical Marijuana and Patient Protection Act consistently with the v oter-approved State Question No. 788, Initiative Petition No. 412, subject to the provisions o f the Oklahoma Medical Marijuana and Patient Protection Act. D. The Department Authority shall exercise its respective powers and perform its respective duties a nd functions as specified in the Oklahoma Medical Ma rijuana and Patient Protection Act and this title including, but not limited to, the following: 1. Determine steps the state shall take, whether administrative or legislative in nature, to ensure that re search on marijuana and marijuana products is being conducted for public purposes, including the advancement of: a. public health policy and public safety p olicy, b. agronomic and horticultural best practices, an d c. medical and pharmacopoeia best practice s; 2. Contract with third-party vendors and ot her governmental entities in order to carry out the respective duties and functions as specified in the Oklahoma Medical Marijuana and Patient Protection Act; 3. Upon complaint or upon its own motion and upon a completed investigation, levy fines as pres cribed in applicable laws, rules, and regulations and suspend, revoke, or not renew licenses pursuant to applicable laws, rules, and regulations; 4. Issue subpoenas for the appearance or production of persons, records, and things in connection with disci plinary or contested cases considered by the Department Authority; 5. Apply for injunctive or declaratory rel ief to enforce the provisions of applicable laws, rules , and regulations; 6. Inspect and examine all licensed premises of medical marijuana businesses, research facilities , education facilities, and ENR. H. B. NO. 3208 Page 3 waste disposal facilities in which medical marijuana is cultivated, manufactured, sold, stored, transported, tested , distributed, or disposed of; 7. Upon action by the federal government by which th e production, sale, and use of marijuana in Oklahoma does not vi olate federal law, work with the Oklahoma State B anking Department and the State Treasurer to develop good practice s and standards for banking and finance for medical marijuana businesses; 8. Establish internal control pr ocedures for licenses including accounting procedures, reporting procedures , and personnel policies; 9. Establish a fee schedule and collect fees f or performing background checks as t he Commissioner Authority deems appropriate. The fees charged pursuant to this paragraph shall not exceed the actual cost incurred for each background che ck; 10. Establish a fee schedule and collect fees for material changes requested by the licensee; and 11. Establish regulations , which require a medical marijuana business to submit information to the Oklahoma Medical Marijuana Authority, deemed reasonably necessary to assist the Authority in the prevention of diversion of medical marijuana by a license d medical marijuana business . Such information required by the Authority may include, but shall not be li mited to: a. the square footage of the licensed p remises, b. a diagram of the licensed premises, c. the number and type of lights at the licensed medi cal marijuana commercial grower bus iness, d. the number, type, and production capacity of equipment located at the medical marijuana processing facility, e. the names, addresses, and telephone numbers of employees or agents of a medical marijuana business, f. employment manuals and stand ard operating procedures for the medical marijuana business, and ENR. H. B. NO. 3208 Page 4 g. any other information as the Authority reasonably deems necessary; and 12. Declare and establish a moratorium on processing and issuing new medical marijuana business licenses pursuant to Section 427.14 of this title for an amount of time the Authority deems necessary. SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 427.14a of Title 63, unless there is created a duplicat ion in numbering, re ads as follows: A. Beginning August 1, 2022, and ending August 1, 2024, the Oklahoma Medical Marijuana Authori ty shall, based on the number of current medical marijuana business licenses for dispensaries, processors, and commercial growers, declare and establish a moratorium on processing and issuing new medical marijuana business licenses for dispensaries, processors, and commercial growers. The Executive Director of the Authority shall be authorized to te rminate the moratorium at any time prior to August 1, 2024, if the Execu tive Director determines that all pending licensing reviews, inspections, or investigations have been co mpleted by the Authority. B. The provisions of this section shall not apply to the renewal of a medical marijuana business license for a dispensary, processor, or commercial grower under the provisions of Section 427.14 of Title 63 of the Oklahoma Statutes or to the issuance of a medical marijuana business license necessitated by a change in the ownership or location of a medical marijuana dispensary, medical marijuana processor, or medical marijuana commerci al grower; provided, however, the Authority shall be authorized to deny the request for issuance of a medical marijuana business license due to a change in ownership if the licensee is subject to any disciplinary action that may necessitate the revocation , suspension, or nonrenewal of the medical marijuana business license . C. The Authority shall review and process applications for medical marijuana busine ss licenses for dispensaries, processors, and commercial growers if applications were received on or before August 1, 2022. D. The Authority shall promulgate rules as necessary to implement the provisions of this section. ENR. H. B. NO. 3208 Page 5 Passed the House of Represe ntatives the 17th day of May, 2022. Presiding Officer of the House of Representatives Passed the Senate the 19th day of May, 2022. Presiding Officer of the S enate OFFICE OF THE GOVERNOR Received by the Office of the Governor this ____________________ day of ___________________, 20____ ___, at _______ o'clock _______ M. By: _________________________________ Approved by the Governor of the State of Oklahoma t his _________ day of ___________________, 20_______, at _______ o'clock _______ M. _________________________________ Governor of the State of Oklahoma OFFICE OF THE SECRETARY OF STATE Received by the Office of the Secretary of State this __________ day of ___________________, 20_______, at _______ o'clock _______ M. By: _________________________________