SENATE FLOOR VERSION - HB3634 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION April 14, 2022 AS AMENDED 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 wholesale r 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 co mmunication to induce directly or indirectly any person to p atronize a particular medical marijuana business, or to purchase particular medical marijuana or a m edical marijuana product. Advertising includes ma rketing, but does not include packaging and la beling; 2. "Authority" means the Oklahoma Medical Marijuana Authority; SENATE FLOOR VERSION - HB3634 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 chem ical 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 does 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; 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; SENATE FLOOR VERSION - HB3634 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 documentati on required and the applicable 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 product 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 medi cal 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 grow er or licensed medical marijuana processor, to prepare and p ackage noninfused pre -rolled medical marijuana, and to sell medical marijuana or medical marijuana products to licensed patients and caregivers as def ined in this SENATE FLOOR VERSION - HB3634 SFLR Page 4 (Bold face denotes Committee Amendments) 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, or sell or transfer prod ucts 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 i ndividual, general partnership, 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 parts 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 o r 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 o il, coconut oil or other typical food-safe cooking fats; 19. "Harvest batch" means a specifically identified quantity of medical marijuana that is uniform in s train, cultivated utilizing SENATE FLOOR VERSION - HB3634 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the same cultivation p ractices, harvested at the same time from the same location and cured under 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 req uired 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 license 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 facilit y license or medical marijuana education facility license pursuant to the Oklahoma Medical Marijuana and Patient Protection Act that are owned or in possession of the licensee and within which the licensee is a uthorized to cultivate, manufacture, distribut e, sell, store, transport, test or research SENATE FLOOR VERSION - HB3634 SFLR Page 6 (Bold face denotes Committee Amendments) 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 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 b y a combination of extraction 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 appl icant 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, me dical 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 cannabinoids from medical marijuana. Categories of medical marijuana concentrate include water-based medical marijuana SENATE FLOOR VERSION - HB3634 SFLR Page 7 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 transfe r medical marijuana and medical 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 gr ower may sell seeds, flower 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 Oklahom a Medical Marijuana and Patient 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, manufactur e, 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; SENATE FLOOR VERSION - HB3634 SFLR Page 8 (Bold face denotes Committee Amendments) 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 including, 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 means 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 li ve plant forms which are considered 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, packaging 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; SENATE FLOOR VERSION - HB3634 SFLR Page 9 (Bold face denotes Committee Amendments) 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 te sting laboratory" or "laboratory" 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 marijua na transporter" or "transporter" 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 marijuana 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 unused, 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 wholesaler" 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 marijuan a business in the State of Oklahoma. A medical marijuana wh olesaler does not include a medical marijuana business which grows, produces SENATE FLOOR VERSION - HB3634 SFLR Page 10 (Bold face denotes Committee Amendments) 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, possession, 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" means 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 a n individual who can provide 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 follows: 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, SENATE FLOOR VERSION - HB3634 SFLR Page 11 (Bold face denotes Committee Amendments) 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 pa rtnership, 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 interest 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 other 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; SENATE FLOOR VERSION - HB3634 SFLR Page 12 (Bold face denotes Committee Amendments) 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 mixtur e of substances intended for 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 th at 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 opera ting 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 re search 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; SENATE FLOOR VERSION - HB3634 SFLR Page 13 (Bold face denotes Committee Amendments) 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 of 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 li censee 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 Oklahoma 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 Oklahoma 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 pr oject; 56. 57. "Revocation" means the final decision by th e Department that any license issued pursuant to the Oklahoma Medical Marijuana SENATE FLOOR VERSION - HB3634 SFLR Page 14 (Bold face denotes Committee Amendments) 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 requirem ents 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 shipp ing container is used solely 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 Sta te 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 SENATE FLOOR VERSION - HB3634 SFLR Page 15 (Bold face denotes Committee Amendments) 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 limited 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 formed 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 employ ee 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 Medical 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 portions 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 extract ing cannabinoids from medical marijuana through the use of only water, ice or dry ice. SENATE FLOOR VERSION - HB3634 SFLR Page 16 (Bold face denotes Committee Amendments) 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 license, 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: SENATE FLOOR VERSION - HB3634 SFLR Page 17 (Bold face denotes Committee Amendments) 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 remittance 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 SENATE FLOOR VERSION - HB3634 SFLR Page 18 (Bold face denotes Committee Amendments) 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 SENATE FLOOR VERSION - HB3634 SFLR Page 19 (Bold face denotes Committee Amendments) 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 be half, 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 sh all provide proof of Oklahoma 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 SENATE FLOOR VERSION - HB3634 SFLR Page 20 (Bold face denotes Committee Amendments) 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 Control 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, SENATE FLOOR VERSION - HB3634 SFLR Page 21 (Bold face denotes Committee Amendments) 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 applicant 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 SENATE FLOOR VERSION - HB3634 SFLR Page 22 (Bold face denotes Committee Amendments) 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 nonviolen t 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 be en convicted of a nonviolent felony SENATE FLOOR VERSION - HB3634 SFLR Page 23 (Bold face denotes Committee Amendments) 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 time 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 prosecuting 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 involv ed in the management or operations 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 medi cal marijuana license revoked, 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, medical marijuana SENATE FLOOR VERSION - HB3634 SFLR Page 24 (Bold face denotes Committee Amendments) 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 practiti oner 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 o f 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 h istory 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 SENATE FLOOR VERSION - HB3634 SFLR Page 25 (Bold face denotes Committee Amendments) 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 not 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 r esearch 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. SENATE FLOOR VERSION - HB3634 SFLR Page 26 (Bold face denotes Committee Amendments) 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 medical 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 medical marijuana dispensary, medical marijuana commercial grower, medical marijuana processor, medical marijuana research facility, or medical marijuana education facility in SENATE FLOOR VERSION - HB3634 SFLR Page 27 (Bold face denotes Committee Amendments) 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 SENATE FLOOR VERSION - HB3634 SFLR Page 28 (Bold face denotes Committee Amendments) 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 SENATE FLOOR VERSION - HB3634 SFLR Page 29 (Bold face denotes Committee Amendments) 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 t ransfer 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 Positionin g 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 loc ation 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 pr ovisions of this section concerning transportation. SENATE FLOOR VERSION - HB3634 SFLR Page 30 (Bold face denotes Committee Amendments) 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 an d 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 transporte r; 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 t he transporter or wholesaler in writing of the reason for denying the registry identifi cation card. SENATE FLOOR VERSION - HB3634 SFLR Page 31 (Bold face denotes Committee Amendments) 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 transp orter 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 p rovision 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 requir ements 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: SENATE FLOOR VERSION - HB3634 SFLR Page 32 (Bold face denotes Committee Amendments) 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 poin t 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. SENATE FLOOR VERSION - HB3634 SFLR Page 33 (Bold face denotes Committee Amendments) 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 co ncentrate 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. COMMITTEE REPORT BY: COMMITTEE ON BUSINESS, COMMERCE AND TOURISM April 14, 2022 - DO PASS AS AMENDED