Oklahoma 2022 2022 Regular Session

Oklahoma House Bill HB3634 Engrossed / Bill

Filed 03/28/2022

                     
 
ENGR. H. B. NO. 3634 	Page 1  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
ENGROSSED HOUSE 
BILL NO. 3634 	By: Fetgatter, Davis, Talley, 
and McDugle of the House 
 
   and 
 
  Rogers of the Senate 
 
 
 
 
 
 
 
[ medical marijuana - providing for the issuance of 
medical marijuana wholesaler licenses - providing 
requirements for warehousing medical marijuana 
products - effective date ] 
 
 
 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOM A: 
SECTION 1.     AMENDATORY    63 O.S. 2021, Section 427.2, is 
amended to read as follows: 
Section 427.2 As used in the Oklahoma Medic al Marijuana and 
Patient Protection Act: 
1.  "Advertising" means the act of providing consideration for 
the publication, dissemination, solicitation, or circulation, of 
visual, oral, or written communication to induce dire ctly or 
indirectly any person to p atronize a particular medical marijuana 
business, or to purchase particular medical marijuana or a m edical   
 
ENGR. H. B. NO. 3634 	Page 2  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
marijuana product.  Advertising includes ma rketing, but does not 
include packaging and labeling; 
2.  "Authority" means the Oklahoma Medical Marijuana Authority; 
3.  "Batch number" means a unique numeric or alphanumeric 
identifier assigned prior to t esting to allow for inventory tracking 
and traceability; 
4.  "Cannabinoid" means any of the chemical compounds that are 
active principles of marijuana; 
5.  "Caregiver" means a family member or assistant who regularly 
looks after a medical marijuana license holder whom a physician 
attests needs assistance; 
6.  "Child-resistant" means special packaging that is: 
a. designed or constructed to be significantly dif ficult 
for children under five (5) years of age to open and 
not difficult for normal adults to use p roperly as 
defined by 16 C.F.R. 1700.15 (1995) and 16 C.F.R. 
1700.20 (1995), 
b. opaque so that the outermost packaging doe s not allow 
the product to be seen without opening the packaging 
material, and 
c. resealable to maintain its child -resistant 
effectiveness for multiple openings for any product 
intended for more than a single use or containing 
multiple servings;   
 
ENGR. H. B. NO. 3634 	Page 3  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
7.  "Clone" means a nonflowering plant cut f rom a mother plant 
that is capable of developing into a new plant and has shown no 
signs of flowering; 
8.  "Commissioner" means the State Commissioner of Health; 
9.  "Complete application" means a document prepared in 
accordance with the provisions set for th in the Oklahoma Medical 
Marijuana and Patient Protection Act, rules promulgated pursuant 
thereto, and the forms and instructions provided by the De partment, 
including any supporting documentation required and the applic able 
license application fee; 
10.  "Department" means the State Department of Health; 
11.  "Director" means the Executive Director of the Oklahoma 
Medical Marijuana Authority; 
12.  "Dispense" means the selling of medical marijuana or a 
medical marijuana pr oduct to a qualified patient or th e designated 
caregiver of the patient that is packaged in a suitable container 
appropriately labeled for subsequent administration to or use by a 
qualifying patient; 
13.  "Dispensary" means a medical marijuana dispensary, an 
entity that has been licensed b y the Department pursuant to the 
Oklahoma Medical Marijuana and Pati ent Protection Act to purchase 
medical marijuana or medical marijuana products fro m a licensed 
medical marijuana commercial grower or licensed medical mar ijuana 
processor, to prepare and p ackage noninfused pre -rolled medical   
 
ENGR. H. B. NO. 3634 	Page 4  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
marijuana, and to sell medical marijuana or medical marijuana 
products to licensed patients and caregivers as def ined in this 
section, or sell or transfer products to another licensed 
dispensary; 
14.  "Edible medical ma rijuana product" means any medical -
marijuana-infused product for whi ch the intended use is oral 
consumption including, but not limited to, any type of food, drink 
or pill; 
15.  "Entity" means an individual, general partner ship, limited 
partnership, limited liability company, trust, estate, association, 
corporation, coopera tive or any other legal or comme rcial entity; 
16. "Flower" means the reproductive organs of the marijuana or 
cannabis plant referred to as the bud or par ts of the plant that are 
harvested and used for consumption in a variety of medical marijuana 
products; 
17.  "Flowering" means the rep roductive state of the marijuana 
or cannabis plant in which there are physical signs of flower or 
budding out of the nodes of the stem; 
18.  "Food-based medical marijuana concentrate" means a medical 
marijuana concentrate th at was produced by extracting ca nnabinoids 
from medical marijuana through the use of propylene glycol, 
glycerin, butter, olive oil, coconut oil or other t ypical food-safe 
cooking fats;   
 
ENGR. H. B. NO. 3634 	Page 5  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
19. "Harvest batch" means a specifically identified quantity of 
medical marijuana that is uniform in s train, cultivated utilizing 
the same cultivation p ractices, harvested at the same time from the 
same location and cured un der uniform conditions; 
20.  "Harvested marijuana" means postflowering medical marijuana 
not including trim, concentrate or waste; 
21.  "Heat- or pressure-based medical marijuana conce ntrate" 
means a medical marijuana concentrate that was produced by 
extracting cannabinoids from medical ma rijuana through the use of 
heat or pressure; 
22.  "Immature plant" m eans a nonflowering marijuana pl ant that 
has not demonstrated signs of flowering; 
23.  "Inventory tracking system" means the required tracking 
system that accounts for the entire life span of medical marijuana 
and medical marijuana products, including any testing samples 
thereof and medical marijuana waste; 
24.  "Licensed patient" or "p atient" means a person who has been 
issued a medical marijuana patient l icense by the State Department 
of Health or Oklahoma Medical Marijuana Authority; 
25.  "Licensed premi ses" means the premises specifie d in an 
application for a medical marijuana busine ss license, medical 
marijuana research facility license or medical marij uana education 
facility license pursuant to the Oklahoma Medical Marijuana and 
Patient Protection Act that are owned or in possession of the   
 
ENGR. H. B. NO. 3634 	Page 6  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
licensee and within which the licensee is a uthorized to cultivate, 
manufacture, distribute, sell, store, transport, test or research 
medical marijuana or medical marijuana products in accordance with 
the provisions of the Oklahoma Medical Marijuana and Patient 
Protection Act and rules promulgated p ursuant thereto; 
26.  "Manufacture" means the production, propagation, 
compounding or processing of a medi cal marijuana product, excluding 
marijuana plants, either directly o r indirectly by extraction from 
substances of natural or synthetic origin, or inde pendently by means 
of chemical synthesis, or by a combination of extract ion and 
chemical synthesis; 
27.  "Marijuana" shall have the same meaning as such term is 
defined in Section 2-101 of this title; 
28.  "Material change" means any change that would affe ct the 
qualifications for licensure of an applicant or licensee; 
29.  "Mature plant" means a harvestable f emale marijuana plant 
that is flowering; 
30.  "Medical marijuana bus iness (MMB)" means a licensed me dical 
marijuana dispensary, medical marijuana proc essor, medical marijuana 
commercial grower, medical marijuana laboratory , medical marijuana 
business operator or a, medical marijuana transporter , or a medical 
marijuana wholesaler ; 
31.  "Medical marijuana concentrate" or "concentrate" means a 
specific subset of medical marijuana that was produced by extracting   
 
ENGR. H. B. NO. 3634 	Page 7  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
cannabinoids from medical marijuana.  Categories of medical 
marijuana concentrate include water-based medical marijuana 
concentrate, food-based medical marijuana concentrate, solvent-based 
medical marijuana concentrate, and heat - or pressure-based medical 
marijuana concentrate; 
32.  "Medical marijuana co mmercial grower" or "commercial 
grower" means an entity licensed to cultivate, prepare and package 
medical marijuana or package medical marijuana as p re-rolls, and 
transfer or contract for transfer medical marijuana and me dical 
marijuana pre-rolls to a medical marijuana dispensary, medical 
marijuana processor, any other medical marijuana commercial growe r, 
medical marijuana research facility or medical marijuana education 
facility.  A commercial grower may sell seeds, flowe r or clones to 
commercial growers pursuant to the Oklahoma Medical Marijuan a and 
Patient Protection Act; 
33.  "Medical marijuana educa tion facility" or "education 
facility" means a per son or entity approved pursuant to the Oklahoma 
Medical Marijuana and Pa tient Protection Act to operate a facility 
providing training and education to individuals involving the 
cultivation, growing, harvest ing, curing, preparing, packaging or 
testing of medical marijuana, or the production, manufacture, 
extraction, processing, packaging or creation of medical -marijuana-
infused products or medical mar ijuana products as described in the 
Oklahoma Medical Mariju ana and Patient Protection Act;   
 
ENGR. H. B. NO. 3634 	Page 8  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
34.  "Medical-marijuana-infused product" means a product infused 
with medical marijuana in cluding, but not limited to, edibl e 
products, ointments and tinctures; 
35.  "Medical marijuana product" or "product" means a product 
that contains cannabinoids that have been extracted from plant 
material or the resin therefrom by physical or chemical mean s and is 
intended for administrati on to a qualified patient including, but 
not limited to, oils, tinctures, edibles, pills, topical fo rms, 
gels, creams, vapors, patches, liquids, and f orms administered by a 
nebulizer, excluding live plant forms which are c onsidered medical 
marijuana; 
36.  "Medical marijuana processor" means a per son or entity 
licensed pursuant to the Oklahoma Medical Mar ijuana and Patient 
Protection Act to operate a bus iness including the production, 
manufacture, extraction, processing, pac kaging or creation of 
concentrate, medical-marijuana-infused products or me dical marijuana 
products as described in the Oklahoma Medic al Marijuana and Patient 
Protection Act; 
37.  "Medical marijuana research facility" or "research 
facility" means a person or entity approved pursuant to the Oklahoma 
Medical Marijuana and Patient P rotection Act to conduct medical 
marijuana research.  A med ical marijuana research facility is not a 
medical marijuana business;   
 
ENGR. H. B. NO. 3634 	Page 9  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
38.  "Medical marijuana testing laboratory" or "labo ratory" 
means a public or private laboratory licensed pursuant to the 
Oklahoma Medical Marijuana and Patient Protection Act to conduct 
testing and research on medical marijuana and med ical marijuana 
products; 
39.  "Medical marijuana transporter" or "transp orter" means a 
person or entity that is licensed pursuant to the Oklahoma Medical 
Marijuana and Patient Protection Act.  A medical mar ijuana 
transporter does not include a medical mari juana business that 
transports its own medical marijuana, medical mariju ana concentrate 
or medical marijuana products to a property or facility adjacent to 
or connected to the licensed premises if the prope rty is another 
licensed premises of the same medic al marijuana business; 
40.  "Medical marijuana waste" or "waste" means u nused, surplus, 
returned or out-of-date marijuana, plant debris of the plant of the 
genus Cannabis including dead plants and all unuse d plant parts and 
roots, except the term shall not include roots, stems, stalks and 
fan leaves; 
41.  "Medical marijuana wh olesaler" or "wholesaler" means an 
entity licensed by the Oklahoma Medical Marijuana Authority to 
acquire, possess, sell , or distribute medical marijuana or medical 
marijuana products on behalf of another licensed medical marijuana 
business in the State of Oklahoma.  A medical marijuana wh olesaler 
does not include a medical marijuana business which grows, produces   
 
ENGR. H. B. NO. 3634 	Page 10  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
and sells its own medi cal marijuana, medical marijuana concentrate , 
or medical marijuana products;  
42. "Medical use" means the acquisition, pos session, use, 
delivery, transfer o r transportation of medical marijuana, medical 
marijuana products, medical marijuana devices or par aphernalia 
relating to the administration of medica l marijuana to treat a 
licensed patient; 
42. 43. "Mother plant" means a marijuana plant that is grown or 
maintained for the purpose of generating clones, and that will not 
be used to produce plant materia l for sale to a medical marijuana 
processor or medical marijuana dispensary; 
43. 44. "Oklahoma physician" or "physician" m eans a physician 
licensed by and in good standing with the State Board of Medical 
Licensure and Supervision, the State Board of Osteo pathic Examiners 
or the Board of Podiatric Medical Examiners; 
44. 45. "Oklahoma resident" means an individual who can prov ide 
proof of residency as required by the Oklahoma Medical Marijuana and 
Patient Protection Act; 
45. 46. "Owner" means, except where the context otherwise 
requires, a direct beneficia l owner including, but not limited to, 
all persons or entities as follow s: 
a. all shareholders owning an i nterest of a corporate 
entity and all officers of a corporate entity, 
b. all partners of a general partnership,   
 
ENGR. H. B. NO. 3634 	Page 11  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
c. all general partners and all limite d partners that own 
an interest in a limited partnership, 
d. all members that own an interest in a limited 
liability company, 
e. all beneficiaries that hold a beneficial interest in a 
trust and all trustee s of a trust, 
f. all persons or entities that own i nterest in a joint 
venture, 
g. all persons or entities that own an inter est in an 
association, 
h. the owners of any other type of legal entity, and 
i. any other person holding an interest or convertible 
note in any entity which owns, operates or manages a 
licensed facility; 
46. 47. "Package" or "packaging" means any container or wrapper 
that may be used by a medical marijuana business to enclose or 
contain medical marijuana; 
47. 48. "Person" means a natura l person, partnership, 
association, business trust, company, corporation, estate, limited 
liability company, trust or any o ther legal entity or organization , 
or a manager, agent, owner, director, servant, officer or employee 
thereof, except that "person" d oes not include any governmental 
organization;   
 
ENGR. H. B. NO. 3634 	Page 12  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
48. 49. "Pesticide" means any substance or mixture of 
substances intended f or preventing, destroying, repell ing or 
mitigating any pest or any substance or mixture of substances 
intended for use as a plant reg ulator, defoliant or desiccant, 
except that the term "pesticide" shall not include any article that 
is a "new animal drug" as designated by the United State s Food and 
Drug Administration; 
49. 50. "Production batch" means: 
a. any amount of medical marijuan a concentrate of the 
same category and produced usi ng the same extraction 
methods, standard operating procedures and an 
identical group of harvest batch of medical marijuana, 
or 
b. any amount of medical marijuana product of the same 
exact type, produced us ing the same ingredients, 
standard operating proced ures and the same production 
batch of medical marijuana concentrate; 
50. 51. "Public institution" means any entity established or 
controlled by the federal government, state government, or a local 
government or municipality including, but not limited to, 
institutions of higher education or related research institutions; 
51. 52. "Public money" means any fund s or money obtained by the 
holder from any governmental entity including, but not limited to, 
research grants;   
 
ENGR. H. B. NO. 3634 	Page 13  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
52. 53. "Recommendation" means a docume nt that is signed or 
electronically submitted by a physician on behalf o f a patient for 
the use of medical marijuana pursuant to the Oklahoma Medical 
Marijuana and Patient Protection Act; 
53. 54. "Registered to conduct business" means a person that 
has provided proof that the business applicant or licensee is in 
good standing with the Oklahoma Secretary of S tate; 
54. 55. "Remediation" means the process by which a harvest 
batch or production batch that fai ls testing undergoes a procedure 
to remedy the harvest batch or production batch and is retested in 
accordance with Oklahom a laws, rules and regulations; 
55. 56. "Research project" means a discrete scientific endeavor 
to answer a research question or a se t of research questions related 
to medical marijuana and is required for a medical marijuana 
research license.  A research project shall include a descripti on of 
a defined protocol, clearly articulated goals, defined methods and 
outputs, and a defined star t and end date.  The description shall 
demonstrate that the research project will comply with all 
requirements in the Oklah oma Medical Marijuana and Patient 
Protection Act and rules promulgated pursuant thereto.  All research 
and development conducted by a medical marijuana research facility 
shall be conducted in furtherance of an approved research project; 
56. 57. "Revocation" means the final decision by th e Department 
that any license issued pursuant to the Oklahoma Medical Marijuana   
 
ENGR. H. B. NO. 3634 	Page 14  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
and Patient Protecti on Act is rescinded because the individual or 
entity does not comply with the applicable requirements set forth in 
the Oklahoma Medical Marijuana and Patien t Protection Act or rules 
promulgated pursuant thereto; 
57. 58. "School" means a public or private elementary, middle 
or high school used for school c lasses and instruction.  A 
homeschool, daycare or child -care facility shall not be considered a 
"school" as used in the Oklahoma Medical Marijuana and Patient 
Protection Act; 
58. 59. "Shipping container" means a hard-sided container with 
a lid or other enclosure that can be secured in place.  A shipping 
container is used sole ly for the transport of medical m arijuana, 
medical marijuana concentrate, or medical marijuana products between 
medical marijuana bus inesses, a medical marijuana research facility, 
or a medical marijuana education facility; 
59. 60. "Solvent-based medical marijuana concentrate" means a 
medical marijuana concentrate that was produced by extracting 
cannabinoids from medical marijuana thro ugh the use of a solvent 
approved by the Department ; 
60. 61. "State Question" means Oklahoma State Question No. 788, 
Initiative Petition No. 412, approved by a majority vote of the 
citizens of Oklahoma on June 26, 2018; 
61. 62. "Strain" means the name gi ven to a particular variety 
of medical marijuana th at is based on a combination of factors which   
 
ENGR. H. B. NO. 3634 	Page 15  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
may include, but is not li mited to, botanical lineage, appe arance, 
chemical profile and accompanying effects.  An example of a "strain" 
would be "OG Kush" or " Pineapple Express"; 
62. 63. "THC" means tetrahydro cannabinol, which is the primary 
psychotropic cannabinoid in marijuana f ormed by decarboxylation of 
naturally tetrahydrocannabinolic acid, which generally occurs by 
exposure to heat; 
63. 64. "Transporter agent" means a person who transports 
medical marijuana or medical marijuana products as an employee of a 
licensed medical marijuana business and holds a tra nsporter agent 
license specific to that business pursuant to the Oklahoma Medical 
Marijuana and Patient Protection Act; 
64. 65. "Universal symbol" mea ns the image established by the 
State Department of Health or Oklahoma M edical Marijuana Authority 
and made available to licensees through its website indicating that 
the medical marijuana or the medical m arijuana product contains THC; 
65. 66. "Usable marijuana" means the dried leaves, flowers, 
oils, vapors, waxes and other p ortions of the marijuana plant an d 
any mixture or preparation thereof, excluding seeds, roots, stems, 
stalks and fan leaves; and 
66. 67.  "Water-based medical marijuana concentrate" me ans a 
concentrate that was produced by extracting cannabinoids from 
medical marijuana through the use of only water, ice or dry ice.   
 
ENGR. H. B. NO. 3634 	Page 16  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
SECTION 2.     AMENDATORY     63 O.S. 2021, Section 42 7.14, is 
amended to read as follows: 
Section 427.14 A.  There is hereby created the medica l 
marijuana business li cense, which shall include the following 
categories: 
1.  Medical marijuana commercial grower; 
2.  Medical marijuana processor; 
3.  Medical marijuana dispensary; 
4.  Medical marijuana tran sporter; and 
5.  Medical marijuana testin g laboratory; and 
6.  Medical marijuana wholesaler. 
B.  The Oklahoma Medical Marijuana Authority, with the aid of 
the Office of Management and Enterprise Services, shall develop a 
website for medical marijuana business ap plications. 
C.  The Authority shall make available on its website in an 
easy-to-find location, applic ations for a medical marijuana 
business. 
D.  The annual, nonrefundable application fee for a medical 
marijuana business license shall be Two Thousand Five Hundred 
Dollars ($2,500.00). 
E.  All applicants seeking licensure or licensure renewal as a 
medical marijuana business shall comply with the following general 
requirements:   
 
ENGR. H. B. NO. 3634 	Page 17  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
1.  All applications for license s and registrations authorized 
pursuant to this section shall be made upon forms pr escribed by the 
Authority; 
2.  Each application shall identify the city or county in which 
the applicant seeks to obtain licensure as a medical marijuana 
business; 
3.  Applicants shall submit a complete application to the 
Department before the application may be accepted or considered; 
4. All applications shall be complete a nd accurate in every 
detail; 
5.  All applications shall include all attachments or 
supplemental information required by the forms supplied by the 
Authority; 
6.  All applications shall b e accompanied by a full remitta nce 
for the whole amount of the applicat ion fees.  Application fees are 
nonrefundable; 
7.  All applicants shall be approved for licensing revi ew that, 
at a minimum, meets the following criteria : 
a. twenty-five (25) years of a ge or older, 
b. if applying as an individual, proof that the applicant 
is an Oklahoma resident pursuant to paragraph 11 of 
this subsection, 
c. if applying as an entity , proof that seventy-five 
percent (75%) of all members, m anagers, executive   
 
ENGR. H. B. NO. 3634 	Page 18  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
officers, partners, board members or any other form of 
business ownership are Oklaho ma residents pursuant to 
paragraph 11 of this subsection, 
d. if applying as an individual or entity, proof that the 
individual or entity is registered to conduct business 
in the State of Oklahoma, 
e. disclosure of all ownership interests pursuant to the 
Oklahoma Medical Marijuana and Patient Protection Act , 
and 
f. proof that the medical marijuana business, medical 
marijuana research facility, medical marij uana 
education facility and medical marijuana waste 
disposal facility applicant or licensee has not been 
convicted of a nonviolent felony in the las t two (2) 
years, or any other felony conviction within th e last 
five (5) years, is not a current inmate in the custody 
of the Department of Corrections , or currently 
incarcerated in a jail or corrections facility; 
8.  There shall be no limit to the number of medical marijuana 
business licenses or categories that an individual or entity can 
apply for or receive, although each application and each category 
shall require a separate application and application fee.  A 
commercial grower, processor and dispensary , or any combination 
thereof, are authorized to share the same address or physical   
 
ENGR. H. B. NO. 3634 	Page 19  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
location, subject to the restrictions set forth i n the Oklahoma 
Medical Marijuana and Patient Protection Act; 
9.  All applicants for a medical marijuana business license, 
research facility license or education facility license aut horized 
by the Oklahoma Medical Marijuana and Patie nt Protection Act, or for 
a renewal of such license, shall undergo an Oklahoma criminal 
history background check conducted by the Oklahoma State Bur eau of 
Investigation (OSBI) within thirty (30) days prior to the 
application for the license, including: 
a. individual applicants applying on their own behalf, 
b. individuals applying on behalf of an entity, 
c. all principal officers of an entity, and 
d. all owners of an entity as defined b y the Oklahoma 
Medical Marijuana and Patient Protection Act; 
10.  All applicable fees charged by the OSBI are the 
responsibility of the applicant and shall not be higher than fee s 
charged to any other person or industry f or such background checks; 
11.  In order to be considered an Oklahoma resident for purposes 
of a medical marijuana business application, all applicants sha ll 
provide proof of Oklah oma residency for at least two (2 ) years 
immediately preceding the date of a pplication or five (5) years of 
continuous Oklahoma resid ency during the preceding twenty-five (25) 
years immediately preceding the date of application .  Sufficient   
 
ENGR. H. B. NO. 3634 	Page 20  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
documentation of proof of residency shall includ e a combination of 
the following: 
a. an unexpired Oklahoma-issued driver license, 
b. an Oklahoma identification card, 
c. a utility bill preceding the d ate of application, 
excluding cellular telep hone and Internet bills, 
d. a residential property deed to pr operty in the State 
of Oklahoma, and 
e. a rental agreement preceding the date of application 
for residential property located in the State of 
Oklahoma. 
Applicants that were issued a medical ma rijuana business license 
prior to August 30, 2019, are hereby exempt from the two-year or 
five-year Oklahoma residence requirement mentioned above; 
12. All license applicants shall be required to submit a 
registration with the Oklahoma State Bureau of Na rcotics and 
Dangerous Drugs Cont rol as provided in Sections 2 -302 through 2-304 
of this title; 
13. All applicants shall establish their identity through 
submission of a color copy or digital image of one of the foll owing 
unexpired documents: 
a. front of an Oklahoma driver license, 
b. front of an Oklahoma identification card,   
 
ENGR. H. B. NO. 3634 	Page 21  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
c. a United States passport or other photo identification 
issued by the United States govern ment, or 
d. a tribal identification card approved fo r 
identification purposes by the Ok lahoma Department of 
Public Safety; and 
14.  All applicants shall subm it an applicant photograph . 
F. The Authority shall review the medical marijuana business 
application; approve, reject or deny the application; and mail the 
approval, rejection, denial or status-update letter to the applica nt 
within ninety (90) business da ys of receipt of the application. 
G.  1.  The Authority shall review the medical marijuan a 
business applications and conduct all investigations, inspec tions 
and interviews before approving the application. 
2.  Approved applicants shall be issued a medical marijuana 
business license for the specific category applied under , which 
shall act as proof of their approved status. Rejection and denial 
letters shall provide a reason for the rejection or denial.  
Applications may only be rejected or denied based on the applicant 
not meeting the standards set forth in the provisions o f the 
Oklahoma Medical Marijuana and Patient Protection Act and Sections 
420 through 426.1 of this title, improper completion of the 
application, or for a reason provided for in the Oklahoma Medical 
Marijuana and Patient Protection Act and Sections 420 through 426.1 
of this title.  If an application is rejected for failure to provide   
 
ENGR. H. B. NO. 3634 	Page 22  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
required information, the applicant shall have thirty (30) days to 
submit the required information for recon sideration.  No additional 
application fee shall be charged for such reconsideration .  Unless 
the Department determines otherwise, an application that has been 
resubmitted but is still incomplete or contains errors that are not 
clerical or typographical in nature shall be denied. 
3.  Status-update letters shall provide a reason for delay in 
either approval, rejection or denial should a situation arise in 
which an application was submitted properly but a delay in 
processing the application occurred. 
4.  Approval, rejection, denial or status-update letters shall 
be sent to the applicant in the sa me method the application was 
submitted to the Department. 
H.  A license for a medical marijuana business, medical 
marijuana research facility, medical marijuana educa tion facility or 
medical marijuana waste disposal facility shall not be issued to or 
held by: 
1.  A person until all required fees have been paid; 
2.  A person who has been convicted of a nonviolent felony 
within two (2) years of the date of application, o r within five (5) 
years for any other felony; 
3.  A corporation, if the criminal history of any of its 
officers, directors or stockholders indicates th at the officer, 
director or stockholder has been convicted of a nonviole nt felony   
 
ENGR. H. B. NO. 3634 	Page 23  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
within two (2) years of the date of application, or within five (5) 
years for any other felony; 
4.  A person under twenty-five (25) years of age; 
5.  A person licensed pursua nt to this section who, during a 
period of licensure, or who, at the tim e of application, has failed 
to: 
a. file taxes, interest or penalties due related to a 
medical marijuana business, or 
b. pay taxes, interest or penalties due related to a 
medical marijuana business; 
6. A sheriff, deputy sheriff, police officer or prosecut ing 
officer, or an officer or emp loyee of the Authority or municipality; 
7.  A person whose authority to be a caregiver , as defined in 
Section 427.2 of this title, has been revoked by the Department; or 
8.  A person who was involved in the management or op erations of 
any medical marijuana business, medical marijuana research facility, 
medical marijuana education facility or m edical marijuana waste 
disposal facility that, after the initi ation of a disciplinary 
action, has had a medical marijuana license revo ked, not renewed, or 
surrendered during the five (5) years preceding submission of the 
application and for the following v iolations: 
a. unlawful sales or purchases, 
b. any fraudulent acts, falsification of records or 
misrepresentation to the Authority, med ical marijuana   
 
ENGR. H. B. NO. 3634 	Page 24  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
patient licensees, caregiver licensees or medical 
marijuana business licensees, 
c. any grossly inaccurate o r fraudulent reporting, 
d. threatening or harming any medical marijuana patient, 
caregiver, medical practitioner or employee of the 
Department, 
e. knowingly or intenti onally refusing to permit the 
Department access to premises or records, 
f. using a prohibited, hazardous substance for processing 
in a residential area , 
g. criminal acts relating to the operation of a medical 
marijuana business, or 
h. any violations that e ndanger public health and safety 
or product safety. 
I.  In investigating the qualificatio ns of an applicant or a 
licensee, the Department, Authority an d municipalities may have 
access to criminal history record information furnished by a 
criminal justice agency subject to any restrictions imposed by such 
an agency. 
J.  The failure of an applic ant or licensee to provide the 
requested information by the Au thority deadline may be grounds for 
denial of the application. 
K.  All applicants and licensees shall submit information to the 
Department and Authority in a full, faithful, truthful and fair   
 
ENGR. H. B. NO. 3634 	Page 25  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
manner.  The Department and Authority may recommend denial of an 
application where the applicant or licensee made misstatements, 
omissions, misrepresentations or untruth s in the application or in 
connection with the background investigation of the applicant . This 
type of conduct may be grounds for administrative actio n against the 
applicant or licensee.  Typos and scrivener errors shall n ot be 
grounds for denial. 
L.  A licensed medical marijuana business premises shall be 
subject to and responsible for compl iance with applicable provisions 
consistent with the zoning wh ere such business is located as 
described in the most recent versions of the Oklahoma Uniform 
Building Code, the International Building Code and the International 
Fire Code, unless granted an ex emption by a municipality or 
appropriate code enforcement enti ty. 
M.  All medical marijuana business , medical marijuana research 
facility, medical marijuana education facility and medical marijuana 
waste disposal facility licensees shall pay the relevant l icensure 
fees prior to receiving licensure to operate. 
N.  A medical marijuana business, medical marijuana research 
facility, medical marijuana education facility or m edical marijuana 
waste disposal facility that attempts to renew its license after the 
expiration date of the license shall pay a late renewal fee in an 
amount to be determined by the Department to reinstate the license .    
 
ENGR. H. B. NO. 3634 	Page 26  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
Late renewal fees are nonrefundable .  A license that has been 
expired for more than ninety (90) days shall not be renewed. 
O.  No medical marijuana business, medical marijuana research 
facility, medical marijuana education facility or medical marijuana 
waste disposal facility shall possess, sell or transfer medical 
marijuana or medical marijuana products without a valid, unexpi red 
license issued by the Department. 
SECTION 3.    AMENDATORY     63 O.S. 2 021, Section 427.16, is 
amended to read as follows: 
Section 427.16 A.  There is hereby created a medical marijuana 
transporter license as a category of the medical marijua na business 
license. 
B.  Pursuant to Section 424 o f this title, the Oklahoma Medical 
Marijuana Authority shall issue a medical marijuana transporter 
license to licensed medical marijuana commercial growers, processors 
and dispensaries upon issuance of such licenses and upon each 
renewal.  Medical marijuana transporter licenses shall als o be 
issued to licensed med ical marijuana research facilities, medical 
marijuana education facilities and medical marijuana testing 
laboratories upon issuance of such license s and upon each renewal. 
C.  A Aside from a medical marijuana transporter license issued 
to a licensed medica l marijuana dispensary, medical marijuana 
commercial grower, medical marijuana processor, medical marijuana 
research facility, or medical marijuana education facility in   
 
ENGR. H. B. NO. 3634 	Page 27  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
conjunction with its business license, a medical marijuana 
transporter license may also be issued to qualifying applicants who 
are registered with the Oklahoma Secretary of State and otherwise 
meet the requirements for a medical mari juana business license set 
forth in the Oklahoma Medical Marijuana and Patient Prote ction Act 
and the requirements set forth in this section to provide logist ics, 
distribution and storage of medical marijuana, medical marijuana 
concentrate and medical mari juana products. The license, when not 
issued in conjunction with a medical marijuan a dispensary, medical 
marijuana commercial grower, medical marijuana processor, medical 
marijuana research facility , or medical marijuana education facility 
license, shall be known as a "medical marijuana wholesaler license" 
or "wholesaler license". 
D.  A medical marijuana transporter license or wholesaler 
license shall be valid for one (1) year and shall not be transf erred 
with a change of ownership .  A licensed medical mar ijuana 
transporter or wholesaler shall be responsible for all medical 
marijuana, medical marijuana concentrate and medical marijuana 
products once the transpo rter or wholesaler takes control of the 
product. 
E.  A transporter license or wholesaler license shall be 
required for any person or entity to transpor t or transfer medical 
marijuana, medical marijuana concentrate or medical marijuana 
products from a licensed medical marijuana business to another   
 
ENGR. H. B. NO. 3634 	Page 28  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
medical marijuana business, or from a medical mar ijuana business to 
a medical marijuana research facility or medical marijuana education 
facility. 
F.  A medical marijuana transporter or wholesaler licensee may 
contract with multiple lic ensed medical marijuana businesses to 
package, store, and transport medical marijuana, medical marijuana 
concentrate, and medical marijuana products on its beh alf in the 
State of Oklahoma. 
G.  A medical marijuana transporter or wholesaler may maintain a 
licensed premises to temporarily store medical marijuana, medical 
marijuana concentrate and medical marijuana products and to use as a 
centralized packaging and distribution point.  A medical marijuana 
transporter or wholesaler and its employees may broker, package, 
store and, market, or distribute medical marijuana, medical 
marijuana concentrate and medical marijuana products from the 
licensed premises in the State of Oklahoma on behalf of another 
medical marijuana business li censee.  The licensed premises of the 
wholesaler shall meet all security requirements applicable to a 
medical marijuana business. 
H.  A medical marijuana transporter or wholesaler licensee shall 
use the seed-to-sale tracking system developed pursuant t o the 
Oklahoma Medical Marijuana and Pa tient Protection Act to track all 
medical marijuana, medical ma rijuana concentrate, and medical 
marijuana products received, packaged, stored, or distributed by a   
 
ENGR. H. B. NO. 3634 	Page 29  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
transporter or wholesaler and to create shipping manifests 
documenting the transport of medical marijuana, medical marijuana 
concentrate and medical marijuana products throughout the state. 
I.  A licensed medical marijuana transporter or wholesaler may 
maintain and operate one or more warehouses in the state to handle 
medical marijuana, medical marijuana concentrate and medical 
marijuana products.  Each location shall be registered and inspected 
by the Authority prior to its use. 
J.  With the exception of a lawful transfer between medical 
marijuana businesses who are licens ed to operate at the same 
physical address, all medical marijuana, medical marijuana 
concentrate and medical marijuana products shall be transported: 
1.  In vehicles equipped with Global Positioning System (GPS) 
trackers; 
2.  In a locked container and clea rly labeled "Medical Marijuana 
or Derivative"; and 
3.  In a secured area of the vehicle that is not accessible by 
the driver during transit. 
K. A transporter agent may possess marijuana at any location 
while the transporter agent is transferring marijuana to or from a 
licensed medical marijuana business, licensed medical marijuana 
research facility or licensed medical marijuana ed ucation facility.  
The Department shall administer and enforce the provisions of this 
section concerning transportation.   
 
ENGR. H. B. NO. 3634 	Page 30  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
L.  The Authority shall issue a tra nsporter agent license to 
individual agents, employees, officers or owners of a transporter or 
wholesaler license in order for the individual employees, officers, 
or owners to qualify to transport medical marijuana , medical 
marijuana concentrate or medical marijuana products. 
M.  The annual fee for a transporter a gent license shall b e 
Twenty-five Dollars ($25.00) and shall be paid by the transporter 
license holder or wholesaler licensee or the individual applicant .  
Transporter license reprints shall be Twe nty Dollars ($20.00). 
N.  The Authority shall issue each transporter agent a regi stry 
identification card within thirty (30) days of receipt of: 
1.  The name, address and date of birth of the person; 
2.  Proof of current Oklahoma residency; 
3.  Proof of identity as required for a medical marijuana 
business license; 
4.  Possession of a valid Oklahoma driv er license; 
5.  Verification of employment with a licensed transporter; 
6.  The application and affiliated fee; and 
7.  A copy of the criminal background ch eck conducted by the 
Oklahoma State Bureau of Investigation, paid for by t he applicant. 
O.  If the transporter agent application is denied, the 
Department shall notify the tra nsporter or wholesaler in writing of 
the reason for denying the registry identifi cation card.   
 
ENGR. H. B. NO. 3634 	Page 31  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
P. A registry identification card for a transporter shall 
expire one (1) year after the date of issuance or upon notification 
from the holder of the transporter or wholesaler license that the 
transporter agent ceas es to work as a transporter. 
Q.  The Department may revoke the registry identification card 
of a transporter agent who knowingl y violates any provision of this 
section, and the transporter or wholesaler is subject to any other 
penalties established by law for the violation. 
R.  The Department may revoke or suspend the transporter license 
of a transporter or wholesaler that the Department determines 
knowingly aided or facilitated a violation of any provision of this 
section, and the license holder is subject to any other penalties 
established in law for the violation. 
S.  Vehicles used in the transport of medical marijuana or 
medical marijuana product shall be: 
1.  Insured at or above the legal requirements in Oklahoma; 
2.  Capable of securing medical marijua na during transport; and 
3.  In possession of a shipping container as defined in Section 
427.2 of this title capable of securing all transported products. 
T.  Prior to the transport of any medical marijuana , medical 
marijuana concentrate or medical marijuana products, an inventory 
manifest shall be prepared at the origination point of the medical 
marijuana.  The inventory manifest shall include the following 
information:   
 
ENGR. H. B. NO. 3634 	Page 32  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
1.  For the origination point of the medical marijuana: 
a. the licensee number for the commercial grower, 
processor or dispensary, 
b. address of origination of transport, and 
c. name and contact information for the originating 
licensee; 
2.  For the end recipient license holder of the medical 
marijuana: 
a. the license number for the dispensar y, commercial 
grower, processor, research facility or education 
facility destination, 
b. address of the destination, and 
c. name and contact information for the destination 
licensee; 
3.  Quantities by weight or unit of each type of medical 
marijuana product contained in transport; 
4.  The date of the transport and the approximate time of 
departure; 
5.  The arrival date and estimate d time of arrival; 
6.  Printed names and signatures of the personnel accompanying 
the transport; and 
7.  Notation of the transpo rting licensee. 
U.  1.  A separate inventory manifest shall be prepared for each 
licensee receiving the medical marijuana.   
 
ENGR. H. B. NO. 3634 	Page 33  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
2.  The transporter agent shall provide the other medical 
marijuana business with a copy of the inventory manifest at the time 
the product changes hands and afte r the other licensee prints his or 
her name and signs the inventory manifest. 
3.  A receiving licensee shall refuse to accept any medical 
marijuana, medical marijuana concentrate or medical marijuana 
products that are not accompanied by an inventory manife st. 
4. Originating and receiving licensees shall maintain copies of 
inventory manifests and logs of quantities of medical marijuana 
received for seven (7) years from date of receipt. 
SECTION 4.  This act shall become effective November 1, 2022. 
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