Oklahoma 2022 2022 Regular Session

Oklahoma House Bill HB3530 Engrossed / Bill

Filed 04/28/2022

                     
 
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ENGROSSED SENATE AMENDMENTS 
TO 
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. 
 
 
 
 
AUTHOR: Add the following Senate Coauthor:  Kidd 
 
AMENDMENT NO. 1. Page 1, strike the title, enacting clause and 
entire bill and insert 
 
“An Act relating to the Oklahoma Medical Marijuana 
Authority; creating County Sheriff Public Safety 
Grant Revolving Fund; prov iding sources of funds; 
providing for use of fun ds; prescribing proc edures 
for expenditures; stipulating local law enforcement 
programs; providing for codification; providing a n 
effective date; and declaring an emergency . 
 
 
   
 
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BE IT ENACTED BY THE PE OPLE OF THE STATE OF OKLAHOMA: 
SECTION 1.     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 that are appropriated or apportioned to this 
fund, and any federal funds, grants, and donat ions from any public 
or private source for the purpose of supporting county sheriffs .  
All monies accruing to th e credit of the fund are hereby 
appropriated and may be budgeted and expended by the Oklahoma 
Medical Marijuana Authority for the purpose of establishing programs 
and providing funding to support county sheriffs to enforce the 
requirements of state law with respect to the commercial grow th of 
medical marijuana or other related business activity for wh ich a 
license is required pursuant to the provi sions of law governing the 
production, cultivation, transportation, distribution, sale, or 
other actions related to medical marijuana .  Expenditures from the 
fund shall be made upon warrants issued by the Sta te Treasurer 
against claims filed as prescr ibed by law with the Director of t he   
 
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Office of Management and Enterprise Serv ices for approval and 
payment. 
SECTION 2.  This act shall become effective J uly 1, 2022. 
SECTION 3.  It being immediately necessary for the preservation 
of the public peace, health or safety, an emergency is hereby 
declared to exist, by reason whereof thi s act shall take effect and 
be in full force from and after i ts passage and approval. ” 
 
 
Passed the Senate the 27th day of April, 2022. 
 
 
  
 	Presiding Officer of the Senate 
 
 
Passed the House of Representatives the ____ day of __________, 
2022. 
 
 
  
 	Presiding Officer of the House 
 	of Representatives   
 
ENGR. H. B. NO. 3530 	Page 1  1 
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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 S TATE OF OKLAHOMA: 
SECTION 4.     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 b y 
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 common 
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 5.     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 numberi ng, reads 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 accrui ng to the 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 6.     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 i n 
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 to 
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 implement 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 safe ty policy, 
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 enfo rce 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 Departme nt and 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 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 Oklahom a Medical Marijuana 
Authority, deemed reasonably necessary to assist the Authority 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 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 
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 7.  This act shall become effective July 1, 2022. 
SECTION 8.  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