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ENGROSSED HOUSE
BILL NO. 3530 By: Hardin (David), West
(Kevin), Burns, Humphrey,
Roberts (Dustin), Grego,
Bashore, Davis, Talley,
West (Josh), McDugle, and
Roberts (Sean) of the House
and
Weaver of the Senate
An Act relating to public health and safety; amending
63 O.S. 2021, Sections 426 and 427.3, which relate to
the Oklahoma Medical Marijuana Authority; modifying
apportionment of excise tax; providing for specified
dollar amount to be apportioned to County Sheriff
Public Safety Grant Revolving Fund; creating County
Sheriff Public Safety Grant Revolving Fund; providing
for use of apportioned funds by Oklahoma Medical
Marijuana Authority; prescribing procedures for
expenditures; providing for local law enforcement
programs; providing for codification; providing an
effective date; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 426 , is
amended to read as follows:
Section 426. A. The tax on retail medical marijuana sales will
be established at seven percent (7%) of the gross amount received by
the seller.
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B. This tax will be collected at the point of sale. Except as
provided for in subsection D of this section, tax proceeds will be
applied primarily to finance the regulatory office.
C. Except as provided for in subsection D of this section, if
proceeds from the levy authorized by subsection A of this section
exceed the budgeted amount for runn ing 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 comm on
education including funding redbud school grants pursuant to Section
3-104 of Title 70 of the Oklahoma Statutes. Twenty-five percent
(25%) shall be apportioned to the Oklahoma State Department of
Health and earmarked for drug and alcohol rehabilitation .
D. For fiscal year 2022 2023 and for each fiscal year
thereafter, proceeds from the levy autho rized by subsection A of
this section shall be apportioned as follows:
1. The first Sixty-five Million Dollars ($65,000,000.00) Five
Million Dollars ($5,000,000.00), allocated in equal mon thly amounts
of one-twelfth (1/12) during each fiscal year, shall be apportioned
as follows:
a. fifty-nine and twenty-three hundredths percent
(59.23%) to the State Public Common School Bui lding
Equalization Fund,
b. thirty-four and sixty-two hundredths percent (34.62%)
to the Oklahoma Medical Mari juana Authority, a
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division within the Oklahoma State Department of
Health, and
c. six and fifteen hund redths percent (6.15%) to the
Oklahoma State Department of Health and earmarked for
drug and alcohol rehabilitation to the County Sheriff
Public Safety Grant Revolving Fund created pursuant to
Section 2 of this act; and
2. Any surplus collections , in excess of the monthly allocation
required by paragraph 1 of this subsection, shall be apportioned to
the General Revenue Fund of the State Treasury .
SECTION 2. NEW LAW A new section of law to be codifi ed
in the Oklahoma Statutes as Sect ion 427.3A of Title 63, unless there
is created a duplication in numbering, read s as follows:
There is hereby created in the State Treasury a revolving fund
for the Oklahoma Medical Marijuana Authority to be designated the
"County Sheriff Public Safety Grant Revolving Fund". The fund shall
be a continuing fund, not subject to fiscal year limitations, and
shall consist of all monies received by the Oklahoma Medical
Marijuana Authority from the apportionment of the excise tax on
medical marijuana as provided by Section 426 of Title 63 of the
Oklahoma Statutes. All monies accruing to th e credit of said fund
are hereby appropriated and may be budgeted and expended by the
Oklahoma Medical Marijuana Authority for the purpose specified by
paragraph 12 of subsection D of Section 427.3 of Title 63 of the
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Oklahoma Statutes. Expenditures from said fund shall be mad e upon
warrants issued by the State Treasurer against claims filed as
prescribed by law with the Director of t he Office of Management and
Enterprise Services for approval and payment.
SECTION 3. AMENDATORY 63 O.S. 2021, Section 427.3 , is
amended to read as follows:
Section 427.3 A. There is hereby creat ed the Oklahoma Medical
Marijuana Authority within the State Department of Heal th 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 business licenses, and the
dispensing, cultivating, processing, testing, transporting, storage,
research, and the use of and sale of medical marijuana pursuant t o
the Oklahoma Medical Marijuana and Patient Protection Act .
B. The Department shall provide support s taff to perform
designated duties of the Authority. The Department shall also
provide office space for meetings of the Authority.
C. The Department shall im plement the provisions o f the
Oklahoma Medical Marijuana and Patient Protection Act consistently
with the voter-approved State Quest ion No. 788, Initiative Petition
No. 412, subject to the provisions of the Oklahoma Medical Marijuana
and Patient Protection Act.
D. The Department shall exercise its respective p owers and
perform its respective duties an d functions as specified i n the
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Oklahoma Medical Marijuana and Patient Protecti on 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 res earch on marijuana and
marijuana products is being conducted for public purpose s, including
the advancement of:
a. public health policy and public safety poli cy,
b. agronomic and horticultural best practices, an d
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 the Oklahoma Medical Marijuana and Patient
Protection Act;
3. Upon complaint or upon its own motion and upon a completed
investigation, levy fi nes as prescribed 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 disciplinary or contested
cases considered by the Department;
5. Apply for injunctive or declaratory relief to enforce the
provisions of applicable laws, rules and regulations;
6. Inspect and examine all licensed premis es of medical
marijuana businesses , research facilities, education facilities and
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waste disposal facilities in which medical marijuana is cultivated,
manufactured, sold, stored, transported, tested , distributed or
disposed of;
7. Upon action by the federa l government by which the
production, sale and use of marijuana in Oklahoma doe s not violate
federal law, work with the Oklahoma State Banking Department an d the
State Treasurer to develop good practice s and standards for banking
and finance for medical ma rijuana businesses;
8. Establish internal control procedures for licenses incl uding
accounting procedures, reporting procedures and personnel policies;
9. Establish a fee schedule and collect fees f or performing
background checks as the Commissioner deem s appropriate. The fees
charged pursuant to this paragraph shall not exceed th e actual cost
incurred for each background check;
10. Establish a fee sched ule 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 Oklahom a Medical Marijuana
Authority, deemed reasonably necessary to assist the Aut hority in
the prevention of diversion of m edical marijuana by a licensed
medical marijuana business . Such information required by the
Authority may include, but shall not be limit ed to:
a. the square footage of the licensed premise s,
b. a diagram of the licensed premises,
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c. the number and type of lights at the li censed medical
marijuana commercial growe r business,
d. the number, type and production capacity of equipment
located at the medical marijuana processing facility,
e. the names, addresses and tele phone numbers of
employees or agents of a medical marijuana business,
f. employment manuals and stand ard operating procedures
for the medical marijuana business, and
g. any other information as the Authority reasonably
deems necessary; and
12. Establish programs and provide funding, from the revenues
apportioned pursuant to paragraph 1 of subsection D o f Section 426
of this title, to support county sheriffs to enforce the
requirements of state law with respect to the commercial growth of
medical marijuana or other related business activity for which a
license is required pursuant to the provisions of law governing the
production, cultivation, transportation, distribution, sale, or
other actions related to medical marijuana.
SECTION 4. This act shall become effective July 1, 2022.
SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is her eby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
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Passed the House of Representatives the 23rd day of March, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2022.
Presiding Officer of the Senate