OK
Oklahoma House Bill HB3679

Oklahoma 2022 Regular Session

Oklahoma House Bill HB3679 Compare Versions

Only one version of the bill is available at this time.
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2828 STATE OF OKLAHOMA
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3030 2nd Session of the 58th Legislature (2022)
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3232 HOUSE BILL 3679 By: Roberts (Sean)
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3838 AS INTRODUCED
3939
4040 An Act relating to medical marijuana; amending 63
4141 O.S. 2021, Sections 421, 422 and 423, which relate to
4242 licensing of medical mari juana dispensaries,
4343 commercial growers and processors; modifying
4444 ownership interest requirements; amending 63 O.S.
4545 Sections 427.3 and 427.14, which relate to the
4646 Oklahoma Medical Marijuana and Patient Pro tection
4747 Act; directing the Oklahoma Medical Marijuana
4848 Authority to investigate alleged violations;
4949 modifying ownership interest requirement; directing
5050 applicants to submit proof of ownership; dire cting
5151 certain businesses to relinquish ownership;
5252 authorizing the Oklahoma Medical Marijuana Authority
5353 to suspend licenses for noncompliance; amending 63
5454 O.S. 2021, Section 430, which relates to the Okl ahoma
5555 Medical Marijuana Waste Management Act; modifying
5656 ownership interest requirement; and prov iding an
5757 effective date.
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6262 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
6363 SECTION 1. AMENDATORY 63 O.S. 2021, Section 421, is
6464 amended to read as follows:
6565 Section 421. A. The State Department of Health shall , within
6666 thirty (30) days of passage of this initiative, make available o n
6767 its website in an easy-to-find location an application f or a medical
6868 marijuana dispensary license. The application fee shall be Two
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9595 Thousand Five Hundred Dollars ($2,500.00) . A method of payment
9696 shall be provided on the website of the Department. Dispensary
9797 applicants must all b e residents of Oklahoma. Any entity applying
9898 for a dispensary license must be owned by an Oklahom a resident and
9999 must be registered to do business in Oklahoma . The Department shall
100100 have ninety (90) business days to review the application; approve,
101101 reject or deny the application; and mail the approval, rejection or
102102 denial letter stating reasons for the rejection or denial to the
103103 applicant.
104104 B. The State Department of Healt h shall approve all
105105 applications which meet the following cri teria:
106106 1. The applicant must be twenty-five (25) years of age or
107107 older;
108108 2. The applicant, if applying as an individual, must show
109109 residency in the State of Oklahoma;
110110 3. All applying entities must show that all members, managers,
111111 and board members are Ok lahoma residents;
112112 4. An applying entity may must show ownership of non-Oklahoma
113113 that one hundred percent (100%) of its owners are Oklahoma
114114 residents, but that percentage ownership may not exceed twenty -five
115115 percent (25%);
116116 5. All applying individuals or e ntities must be registered to
117117 conduct business in the S tate of Oklahoma; and
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144144 6. All applicants must disclose all ownership interests in the
145145 dispensary.
146146 Applicants with a nonviolent felony conviction in the last two
147147 (2) years, any other felony conviction i n the last five (5) years ,
148148 inmates in the custody of th e Department of Corrections or any
149149 person currently incarcerate d shall not qualify for a medical
150150 marijuana dispensary license.
151151 C. Licensed medical marijuana dispensaries shall be required to
152152 complete a monthly sales report to th e State Department of Health.
153153 This report shall be due on the fifteenth of each month and provide
154154 reporting on the previous month . This report shall detail the
155155 weight of marijuana purchased at wholesale and the weight of
156156 marijuana sold to licensed medical marijuana patients and li censed
157157 caregivers and account for any waste. The report shall show total
158158 sales in dollars, tax collected in dollars, and tax due in dollars .
159159 The State Department of Healt h shall have oversight and au diting
160160 responsibilities to ensure that all marijuana be ing grown is
161161 accounted for.
162162 D. Only a licensed medical marijuan a dispensary may conduct
163163 retail sales of marijuana or marijuana derivatives . Beginning on
164164 the effective date of this act, licensed medic al marijuana
165165 dispensaries shall be authorized to packag e and sell pre-rolled
166166 marijuana to licensed medical marijuana patients and lice nsed
167167 caregivers. The products described in this subsection shall contain
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194194 only the ground parts of the marijuana plant and shall not include
195195 marijuana concentrates or derivative s. The total net weight of each
196196 pre-roll packaged and sold by a medical mariju ana dispensary shall
197197 not exceed one (1) gram . These products shall be tested, packaged
198198 and labeled in accordance with Okl ahoma law and rules promulgated by
199199 the State Commission er of Health.
200200 E. No medical marijuana dispensary shall offer or allow a
201201 medical marijuana patient licensee, caregiver licensee or other
202202 member of the public to handle or otherwise have physical contac t
203203 with any medical marijuana not contained in a sealed or separate
204204 package. Provided, such prohibition shall not preclude an employe e
205205 of the medical marijuana dispensary from handling loose or
206206 nonpackaged medical marijuana to be placed in packaging consis tent
207207 with the Oklahoma Medical Marijuana and Patient Pr otection Act and
208208 the rules promulgated by the Authority for the packaging of m edical
209209 marijuana for retail sale . Provided, further, such prohibition
210210 shall not prevent a medical marijuana dispensary from displaying
211211 samples of its medical marijuana in separa te display cases, jars or
212212 other containers and allowing medical marijuana pati ent licensees
213213 and caregiver licensees the ability to handle or smell the various
214214 samples as long as the sample medical mari juana is used for display
215215 purposes only and is not offe red for retail sale.
216216 SECTION 2. AMENDATORY 63 O.S. 2021, Section 422, is
217217 amended to read as follows:
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244244 Section 422. A. The State Department of Healt h shall, within
245245 thirty (30) days of passage of this initiative, make available o n
246246 its website in an easy-to-find location an application for a
247247 commercial grower license . The application fee shall be Two
248248 Thousand Five Hundred Dollars ($2,500.00) . A method of payment
249249 shall be provided on the website of the Department. The State
250250 Department of Health shall have ninety (90) days to review the
251251 application; approve, reject or deny the application; and mail the
252252 approval, rejection or denial letter stating the reasons for the
253253 rejection or denial to the applicant.
254254 B. The State Department of He alth shall approve all
255255 applications which meet the following criteria:
256256 1. The applicant must be twenty-five (25) years of age or
257257 older;
258258 2. The applicant, if applying as an individual, must show
259259 residency in the State of Oklahoma;
260260 3. All applying entitie s must show that all members, manager s,
261261 and board members are Oklahoma residents;
262262 4. An applying entity may must show ownership of non-Oklahoma
263263 that one hundred percent (100 %) of its owners are Oklahoma
264264 residents, but that percentage ownership may not exc eed twenty-five
265265 percent (25%);
266266 5. All applying individuals or en tities must be registered to
267267 conduct business in the State of Oklahoma; and
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294294 6. All applicants must disclose all ownership interests in the
295295 commercial grower operation.
296296 Applicants with a nonviolent felony conviction in the last two
297297 (2) years, any other f elony conviction in the last five (5) years,
298298 inmates in the custody of the Department of Corrections or any
299299 person currently incarcerate d shall not qualify for a commercial
300300 grower license.
301301 C. A licensed commercial grower may sell marijuana to a
302302 licensed dispensary or a licensed processor. Further, sales by a
303303 licensed commercial grower shall be considered wholesale sales and
304304 shall not be subject to taxation. Under no circumstances may a
305305 licensed commercial grower sell marijuana d irectly to a licensed
306306 medical marijuana patient or licensed care giver. A licensed
307307 commercial grower may only sell at the wholesale level to a license d
308308 dispensary, a licensed grower or a licensed processor . If the
309309 federal government lifts restrictions on buying and selling
310310 marijuana between states, then a licensed com mercial grower would be
311311 allowed to sell and buy marijuana wholesale from, or to, a n out-of-
312312 state wholesale provider. A licensed commercial growe r shall be
313313 required to complete a monthly yield and sales report to th e State
314314 Department of Health . This report shall be due on the fifteenth of
315315 each month and provide reporting on the previous month . This report
316316 shall detail the amount of marijuana harvested in p ounds, the amount
317317 of drying or dried marijuana on hand, the am ount of marijuana sold
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344344 to licensed processors in pounds, the amount of waste in pounds, and
345345 the amount of marijuana sold t o licensed dispensaries in pounds.
346346 Additionally, this repor t shall show total wholesale sales in
347347 dollars. The State Department of He alth shall have oversight and
348348 auditing responsibilities to ensure that all marijuana being grown
349349 by licensed commercial growers is accounted for.
350350 D. There shall be no limits on how much marijua na a licensed
351351 commercial grower can grow.
352352 E. Beginning on the effective date of this act, licensed
353353 commercial growers shall be authorized to package and sell pre -
354354 rolled marijuana to licensed medical m arijuana dispensaries . The
355355 products described in this subsection shall contain only the gro und
356356 parts of the marijuana plant and shall not include marijua na
357357 concentrates or derivatives . The total net weight of each pre -roll
358358 packaged and sold by medical ma rijuana commercial growers shall not
359359 exceed one (1) gram. These products must be tested, pa ckaged and
360360 labeled in accordance with Oklahoma law and rules p romulgated by the
361361 State Commissioner of Health.
362362 SECTION 3. AMENDATORY 63 O.S . 2021, Section 423, is
363363 amended to read as follows:
364364 Section 423. A. The State Department of Health shall, within
365365 thirty (30) days of passage of this initiative, make available o n
366366 its website in an easy-to-find location an application for a medical
367367 marijuana processing license . The Department shall be authorized to
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394394 issue two types of medical ma rijuana processor licenses based on the
395395 level of risk posed by the type of processing conducted:
396396 1. Nonhazardous medical mariju ana processor license; and
397397 2. Hazardous medical marijuana processor license .
398398 The application fee for a nonhazardous or hazardou s medical
399399 marijuana processor license shall be Two Thousand F ive Hundred
400400 Dollars ($2,500.00). A method of payment shall be provided on the
401401 website of the Department. The State Department of Health shal l
402402 have ninety (90) days to review the application ; approve, reject or
403403 deny the application; and mail the approval, rejection or denial
404404 letter stating the reasons for the rejection or denial to the
405405 applicant.
406406 B. The State Department of Healt h shall approve all
407407 applications which meet the following criteria:
408408 1. The applicant must be twenty-five (25) years of age or
409409 older;
410410 2. The applicant, if applying as an individual, must show
411411 residency in the State of Oklahoma;
412412 3. All applying entities must show th at all members, mana gers,
413413 and board members are Oklahoma residents;
414414 4. An applying entity may must show ownership of non-Oklahoma
415415 that one hundred percent (100 %) of its owners are Oklahoma
416416 residents, but that percentage ownership may not exceed twenty -five
417417 percent (25%);
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444444 5. All applying individuals or entitie s must be registered to
445445 conduct business in the State of Oklahoma; and
446446 6. All applicants must disclose all ownership interests in the
447447 processing operation.
448448 Applicants with a nonviolent felony conviction in the last two
449449 (2) years, any other felony convicti on in the last five (5) years,
450450 inmates in the custody of the Department of Corrections or any
451451 person currently incarcerate d shall not qualify for a medical
452452 marijuana processing license.
453453 C. 1. A licensed processor may take marijuana plants and
454454 distill or process these plants into concentrates, edibles, and
455455 other forms for consumption.
456456 2. As required by subsection D of this sectio n, the State
457457 Department of Health shall, within sixty (60) days of passage of
458458 this initiative, make available a set of standards which shall be
459459 used by licensed processors in the preparation of edible marijuana
460460 products. The standards should be in line wi th current food
461461 preparation guidelin es. No excessive or punitive rules may b e
462462 established by the State Department of Health .
463463 3. Up to two times a year, the State Department of Health may
464464 inspect a processing operation and determine its compliance with the
465465 preparation standards . If deficiencies are found, a written report
466466 of the deficiency shall be issued to the licensed processor. The
467467 licensed processor shall have one (1) month to correct the
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494494 deficiency or be subject to a fine of Five Hundred Dollars ($500.00)
495495 for each deficiency.
496496 4. A licensed processor may sell marijuana pr oducts it creates
497497 to a licensed dispensary or any other licensed processor . All sales
498498 by a licensed processor shall be considered wholesale sales and
499499 shall not be subject to taxation.
500500 5. Under no circumstances may a licensed processor sell
501501 marijuana or any marijuana product directly to a licensed medical
502502 marijuana patient or licensed caregiver . However, a licensed
503503 processor may process cannabis into a concentrated form for a
504504 licensed medical marijuana patient for a fee.
505505 6. Licensed processors shall be required to complete a monthly
506506 yield and sales report to the State Department of Health . This
507507 report shall be due on the fifteenth of each month and shall provide
508508 reporting on the previous month. This report shall detail the
509509 amount of marijuana and medical marijuana products purchased in
510510 pounds, the amount of marijuana cooked or processed in pounds, and
511511 the amount of waste in pounds . Additionally, this repor t shall show
512512 total wholesale sales in dollars . The State Department of Health
513513 shall have oversight and auditing responsibilities to ensure that
514514 all marijuana being processed is accounted for.
515515 D. The Department shall oversee the inspection and compliance
516516 of licensed processors producing products with marijuana as an
517517 additive. The State Department of Health shall be compelled to,
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544544 within thirty (30) days of passage of this initiative, appoin t
545545 twelve (12) Oklahoma residents to the Medical Marijuana Advisory
546546 Council, who are marijuana industry experts, to create a lis t of
547547 food safety standards for proces sing and handling medical marijuana
548548 in Oklahoma. These standards shall be adopted by the Department and
549549 the Department may enforce these standards for licensed processors.
550550 The Department shall develop a standards revi ew procedure and these
551551 standards can be altered by calling another council of twelve (12)
552552 Oklahoma marijuana industry experts . A signed letter of twent y
553553 operating, licensed processors shall constitute a need for a n ew
554554 council and standards review.
555555 E. If it becomes permissible under federal law, marijuana may
556556 be moved across state lines.
557557 F. Any device used for the processing or consumption of medical
558558 marijuana shall be considered legal to be sold, manufactured,
559559 distributed and possessed . No merchant, wholesaler, manufacturer or
560560 individual may be unduly harassed or prosecuted for sellin g,
561561 manufacturing or possessing marijuana paraphernalia.
562562 SECTION 4. AMENDATORY 63 O.S. 2021, Section 427.3, is
563563 amended to read as follows:
564564 Section 427.3 A. There is hereby created the Oklahoma Medical
565565 Marijuana Authority within the State Department of Health which
566566 shall address issues related to the m edical marijuana program in
567567 Oklahoma including, but not limited to, the issuance of patient
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594594 licenses and medical marijuana business licenses, and the
595595 dispensing, cultivating, processing, testing, transporting, storage,
596596 research, and the use of and sale of medical marijuana pursuant t o
597597 the Oklahoma Medical Marijuana and Patient Protection Act .
598598 B. The Department shall provide support staff to perform
599599 designated duties of the Authority . The Department shall also
600600 provide office space for meetings of the Autho rity.
601601 C. The Department shall im plement the provisions o f the
602602 Oklahoma Medical Marijuana and Patient Protection Act consistently
603603 with the voter-approved State Question No. 788, Initiative Petition
604604 No. 412, subject to the provisions o f the Oklahoma Medical Marijuana
605605 and Patient Protection Act.
606606 D. The Department shall exercise its respective p owers and
607607 perform its respective duties and functions as specified in the
608608 Oklahoma Medical Marijuana and Patient Protection Act and this title
609609 including, but not limit ed to, the following:
610610 1. Determine steps the state shall take, whether administrative
611611 or legislative in nature, to ensure that research on marijuana and
612612 marijuana products is being conducted for public purposes, including
613613 the advancement of:
614614 a. public health policy and public safety poli cy,
615615 b. agronomic and horticultural best practices, an d
616616 c. medical and pharmacopoeia best practices;
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643643 2. Contract with third-party vendors and other governmental
644644 entities in order to carry out the respective duties and funct ions
645645 as specified in the Oklahoma Medical Marijuana and Patient
646646 Protection Act;
647647 3. Upon complaint or upon its own motion and upon a completed
648648 investigation, levy fines as prescribed i n applicable laws, rules
649649 and regulations and suspend, revoke or not renew licenses pursuant
650650 to applicable laws, rules and regulations ;
651651 4. Issue subpoenas for the appearance or production of persons,
652652 records and things in conne ction with disciplinary or contested
653653 cases considered by the Department;
654654 5. Apply for injunctive or declaratory relief to enforce the
655655 provisions of applicable laws, rules and regulations;
656656 6. Inspect and examine all licensed premises of medical
657657 marijuana businesses, research facilities , education facilities and
658658 waste disposal facilities in which medical marijuana is cultivated,
659659 manufactured, sold, stored, transported, tested , distributed or
660660 disposed of;
661661 7. Upon action by the federal government by which th e
662662 production, sale and use of marijuana in Oklahoma does not violate
663663 federal law, work with the Oklah oma State Banking Department an d the
664664 State Treasurer to develop good practice s and standards for ban king
665665 and finance for medical marijuana businesses;
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692692 8. Establish internal control procedures for licenses including
693693 accounting procedures, reporting procedu res and personnel policies;
694694 9. Establish a fee schedule and collect fees f or performing
695695 background checks as the Commissioner deems appropriate . The fees
696696 charged pursuant to this paragraph shall not exceed the actual cost
697697 incurred for each background che ck;
698698 10. Establish a fee sched ule and collect fees for material
699699 changes requested by the licensee; and
700700 11. Establish regulations , which require a medical marijuana
701701 business to submit information to the Oklahoma Medical Marijuana
702702 Authority, deemed reasonably necessary to assist the Aut hority in
703703 the prevention of diversion of m edical marijuana by a licen sed
704704 medical marijuana business . Such information requi red by the
705705 Authority may include, but shall not be limited to:
706706 a. the square footage of the licensed premises,
707707 b. a diagram of the licensed premises,
708708 c. the number and type of lights at the licensed me dical
709709 marijuana commercial grower business,
710710 d. the number, type and production capacity of equipment
711711 located at the medical marijuana processing facility,
712712 e. the names, addresses and tele phone numbers of
713713 employees or agents of a medical marijuana business,
714714 f. employment manuals and standard operating procedure s
715715 for the medical marijuana business, and
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742742 g. any other information as the Authority reasonably
743743 deems necessary; and
744744 12. Upon receipt by the Authority of a signed complaint from a
745745 member of the public of an alleged violation of any o f the
746746 provisions of Sections 420 through 426.1 of this title or the
747747 Oklahoma Medical Marijuana and Patient Protection Act , the Authority
748748 shall investigate the alleged violation within five (5) business
749749 days of receiving the complaint and inform the complainant of the
750750 result of the investigation.
751751 SECTION 5. AMENDATORY 63 O.S. 2021, Section 427.14, is
752752 amended to read as follows:
753753 Section 427.14 A. There is hereby created the medica l
754754 marijuana business license, which shall incl ude the following
755755 categories:
756756 1. Medical marijuana commercial grower;
757757 2. Medical marijuana processor;
758758 3. Medical marijuana dispensary;
759759 4. Medical marijuana transporter; and
760760 5. Medical marijuana testing laboratory.
761761 B. The Oklahoma Medical Marijuana Au thority, with the aid of
762762 the Office of Management and Enterprise Services, shall develop a
763763 website for medical marijuana business applications.
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790790 C. The Authority shall make available on its website in an
791791 easy-to-find location, applications for a medical ma rijuana
792792 business.
793793 D. The annual, nonrefundable application fee for a medical
794794 marijuana business license shall be Two Thousand Five Hundred
795795 Dollars ($2,500.00).
796796 E. All applicants seeking l icensure or licensure renewal as a
797797 medical marijuana business shall comply with the following ge neral
798798 requirements:
799799 1. All applications for licenses and registrations auth orized
800800 pursuant to this section shall be made upon forms prescribed by the
801801 Authority;
802802 2. Each application shall identify the city or county in which
803803 the applicant seeks to obtain licensure as a medical marijuana
804804 business;
805805 3. Applicants shall submit a com plete application to the
806806 Department before the application may be accepted or consid ered;
807807 4. All applications shall be compl ete and accurate in every
808808 detail;
809809 5. All applications shall include all attachments or
810810 supplemental information required by the fo rms supplied by the
811811 Authority;
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838838 6. All applications shall be accompanied by a full r emittance
839839 for the whole amount of the app lication fees. Application fees are
840840 nonrefundable;
841841 7. All applicants shall be approved for licensing review that,
842842 at a minimum, meets the following criteria:
843843 a. twenty-five (25) years of age or older,
844844 b. if applying as an individual, proof that the applicant
845845 is an Oklahoma resid ent pursuant to paragraph 11 of
846846 this subsection,
847847 c. if applying as an entity , proof that seventy-five
848848 percent (75%) one hundred percent (100%) of all
849849 members, managers, executive officers, partners, board
850850 members or any other form of business ownership are
851851 Oklahoma residents pursuant to paragraph 11 of this
852852 subsection,
853853 d. if applying as an individual or entity, proof that the
854854 individual or entity is registered to conduct business
855855 in the State of Oklahoma,
856856 e. disclosure of all ownership interests pursuant t o the
857857 Oklahoma Medical Marijua na and Patient Protection Act ,
858858 and
859859 f. proof that the medical marijuana business, medical
860860 marijuana research facility, medical marijuana
861861 education facility and m edical marijuana waste
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888888 disposal facility applicant or licensee has not been
889889 convicted of a nonvi olent felony in the last two (2)
890890 years, or any other felony conviction within the last
891891 five (5) years, is not a current inmate in the custody
892892 of the Department of Corrections, or currently
893893 incarcerated in a jail or corrections facility;
894894 8. There shall be no limit to the number of medical marijuana
895895 business licenses or categories that an individual or entit y can
896896 apply for or receive, although each application and each category
897897 shall require a separate application and application fee. A
898898 commercial grower, p rocessor and dispensary, or any combination
899899 thereof, are authorized to share the same address or physic al
900900 location, subject to the restrictions set forth i n the Oklahoma
901901 Medical Marijuana and Patient Protection Act;
902902 9. All applicants for a medical marijua na business license,
903903 research facility license or education facility license authorized
904904 by the Oklahoma Medical Marijuana and Patient Protection Act, or for
905905 a renewal of such license, shall undergo an Oklahoma criminal
906906 history background check conducted by the Oklahoma State Bureau of
907907 Investigation (OSBI) within thirty (30) days prior to the
908908 application for the license, including:
909909 a. individual applicants applyin g on their own behalf,
910910 b. individuals applying on behalf of an enti ty,
911911 c. all principal officers of an entity, and
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938938 d. all owners of an entity as defined b y the Oklahoma
939939 Medical Marijuana and Patient Protection Act;
940940 10. All applicable fees charged by the OSBI are the
941941 responsibility of the applica nt and shall not be higher than fees
942942 charged to any other person or industry for such background checks;
943943 11. In order to be considered an Oklahoma resident f or purposes
944944 of a medical marijuana business application, all applicants shall
945945 provide proof of Okl ahoma residency for at lea st two (2) years
946946 immediately preceding the date of application or five (5) years of
947947 continuous Oklahoma residency during the precedi ng twenty-five (25)
948948 years immediately preceding the date of application. Sufficient
949949 documentation of proof of residency sha ll include a combination of
950950 the following:
951951 a. an unexpired Oklahoma -issued driver license,
952952 b. an Oklahoma identification card,
953953 c. a utility bill preceding the date of application,
954954 excluding cellular telephone and Internet bills,
955955 d. a residential property d eed to property in the State
956956 of Oklahoma, and
957957 e. a rental agreement preceding the date of application
958958 for residential property locat ed in the State of
959959 Oklahoma.
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986986 Applicants that were issued a medical marijuana business license
987987 prior to August 30, 2019, are hereby exempt from the two -year or
988988 five-year Oklahoma residence requirement mentioned above;
989989 12. All license applicants shall be re quired to submit a
990990 registration with the Oklahoma State B ureau of Narcotics and
991991 Dangerous Drugs Control as provided in Secti ons 2-302 through 2-304
992992 of this title;
993993 13. All applicants shall establish their identity through
994994 submission of a color copy or digi tal image of one of the following
995995 unexpired documents:
996996 a. front of an Oklahoma driver license,
997997 b. front of an Oklahoma ident ification card,
998998 c. a United States passport or other photo identification
999999 issued by the United States government, or
10001000 d. a tribal identification card approved for
10011001 identification purposes by the Oklahoma Department of
10021002 Public Safety; and
10031003 14. All applicants shall submit an applicant phot ograph.
10041004 F. The Authority shall review the medical marijuana business
10051005 application; approve, reject or deny the application; and mail the
10061006 approval, rejection, denial or status-update letter to the appli cant
10071007 within ninety (90) bu siness days of receipt of the application.
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10341034 G. 1. The Authority shall review the medical marijuana
10351035 business applications and condu ct all investigations, inspections
10361036 and interviews before a pproving the application.
10371037 2. Approved applicants shall be issued a medical marijuana
10381038 business license for the specific category applied under , which
10391039 shall act as proof of their approved status . Rejection and denial
10401040 letters shall provide a reason for the rejection or denial.
10411041 Applications may only be rejected or denied based on the applicant
10421042 not meeting the standards set forth in the provisions o f the
10431043 Oklahoma Medical Marijuana and Patient Protectio n Act and Sections
10441044 420 through 426.1 of this title , improper completion of the
10451045 application, or for a reason provided for i n the Oklahoma Medical
10461046 Marijuana and Patient Protection Act and Sections 420 through 426.1
10471047 of this title. If an application is reject ed for failure to provide
10481048 required information, the applic ant shall have thirty (30) days to
10491049 submit the required information for reconsideration. No additional
10501050 application fee shall be charged for such reconsideration . Unless
10511051 the Department determines ot herwise, an application that has been
10521052 resubmitted but is s till incomplete or contains errors that a re not
10531053 clerical or typographical in nature shall be den ied.
10541054 3. Status-update letters shall provide a reason for delay in
10551055 either approval, rejection or denial should a situation arise in
10561056 which an application was su bmitted properly but a delay in
10571057 processing the application occurred.
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10841084 4. Approval, rejection, denial or status-update letters shall
10851085 be sent to the applicant in the same method the application was
10861086 submitted to the Department.
10871087 H. A license for a medical marijuana business, medical
10881088 marijuana research facility, medical mariju ana education facility or
10891089 medical marijuana waste disposal facility shall not be issued to or
10901090 held by:
10911091 1. A person until all req uired fees have been paid;
10921092 2. A person who has been c onvicted of a nonviolent felony
10931093 within two (2) years of the date of appli cation, or within five (5)
10941094 years for any other felony;
10951095 3. A corporation, if the criminal history of any of its
10961096 officers, directors or stockholders indicates that the officer,
10971097 director or stockholder has been convicted of a nonvio lent felony
10981098 within two (2) years of the date of applica tion, or within five (5)
10991099 years for any other felony;
11001100 4. A person under twenty -five (25) years of ag e;
11011101 5. A person licensed pursuant to this section w ho, during a
11021102 period of licensure, or who, at the t ime of application, has fa iled
11031103 to:
11041104 a. file taxes, interest or penalties due related to a
11051105 medical marijuana business, or
11061106 b. pay taxes, interest or penalties due related to a
11071107 medical marijuana business;
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11341134 6. A sheriff, deputy sheriff, police officer or prosec uting
11351135 officer, or an offic er or employee of the Authority or municipality;
11361136 7. A person whose authority to be a caregiver , as defined in
11371137 Section 427.2 of this title, has been revoked by the Department ; or
11381138 8. A person who was involved in the management or operations of
11391139 any medical marijuana business, medical m arijuana research facility,
11401140 medical marijuana education facility or medical marijuana waste
11411141 disposal facility that, after the initiation of a disc iplinary
11421142 action, has had a medical marijuana license re voked, not renewed, or
11431143 surrendered during the five (5) years preceding submission of the
11441144 application and for the following violations:
11451145 a. unlawful sales or purchases,
11461146 b. any fraudulent acts, falsific ation of records or
11471147 misrepresentation to the Authority, m edical marijuana
11481148 patient licensees, caregiver licensees or medical
11491149 marijuana business licensees,
11501150 c. any grossly inaccurate or fraudulent reporting,
11511151 d. threatening or harming any medical marijuana p atient,
11521152 caregiver, medical practitioner or employee of the
11531153 Department,
11541154 e. knowingly or intentionally refusing to p ermit the
11551155 Department access to premises or records,
11561156 f. using a prohibited, hazardous substance for p rocessing
11571157 in a residential area,
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11841184 g. criminal acts relating t o the operation of a medical
11851185 marijuana business, or
11861186 h. any violations that endanger public healt h and safety
11871187 or product safety.
11881188 I. In investigating the qualifications of an applicant or a
11891189 licensee, the Department, Authority and muni cipalities may have
11901190 access to criminal history record informatio n furnished by a
11911191 criminal justice agency subject to any restrictions imposed by such
11921192 an agency.
11931193 J. The failure of an applicant or licensee to provide the
11941194 requested information by the Authori ty deadline may be groun ds for
11951195 denial of the application.
11961196 K. All applicants and licensees shall submit information to t he
11971197 Department and Authority in a full, faithful, truthful and fair
11981198 manner. The Department and Autho rity may recommend denial of an
11991199 application where the applic ant or licensee made misstatements,
12001200 omissions, misrepresentations o r untruths in the application or in
12011201 connection with the background investigation of the applicant . This
12021202 type of conduct may b e grounds for administrative action ag ainst the
12031203 applicant or licensee. Typos and scrivener errors shall not be
12041204 grounds for denial.
12051205 L. A licensed medical mari juana business premises shall be
12061206 subject to and responsible for compliance with applicable provision s
12071207 consistent with the zoning where such business is located as
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12341234 described in the most recent versions of the Oklahoma Uniform
12351235 Building Code, the Internationa l Building Code and the International
12361236 Fire Code, unless granted an exemption b y a municipality or
12371237 appropriate code enforcement entity .
12381238 M. All medical marijuana business, medical marijuana research
12391239 facility, medical marijuana e ducation facility and medical marijuana
12401240 waste disposal facility licensees shall pay the relevant licensure
12411241 fees prior to receivin g licensure to operate.
12421242 N. A medical marijuana business, me dical marijuana research
12431243 facility, medical marijuana education faci lity or medical marijuana
12441244 waste disposal facility that attempts to renew its license after the
12451245 expiration date of the license sh all pay a late renewal fee in an
12461246 amount to be determined by t he Department to reinstate the license .
12471247 Late renewal fees are nonr efundable. A license that has been
12481248 expired for more than ninety (90) days shall not be renewed.
12491249 O. No medical marijuana busine ss, medical marijuana research
12501250 facility, medical marijuana ed ucation facility or medical marijuana
12511251 waste disposal facility shall possess, sell or transfer me dical
12521252 marijuana or medical marijuana products without a valid, unexpired
12531253 license issued by the Depa rtment.
12541254 P. Beginnning November 1, 2022, any entity applying for a
12551255 medical marijuana business license shall submit proof that one
12561256 hundred percent (100%) of its owners are Oklahoma residents . Any
12571257 licensed medical marijuana business currently operating in this
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12841284 state with owners who are not Oklahoma residents shall have n inety
12851285 (90) days from the effective da te of this act to relinquish his or
12861286 her ownership interest in the medical marijuana business. Notice
12871287 shall be provided to the Authority by the medical marijuana bu siness
12881288 of the change in ownership. The Authority shall be authorized to
12891289 suspend the license of the medical marijuana business for failing to
12901290 comply with the provisions of this subsection in accor dance with the
12911291 administrative hearing requirements provided for in Section 427.6 of
12921292 this title.
12931293 SECTION 6. AMENDATORY 63 O.S. 2021, Section 430, is
12941294 amended to read as follows:
12951295 Section 430. A. There is hereby created and authorized a
12961296 medical marijuana waste disposal license . A person or entity in
12971297 possession of a medical marijuana wast e disposal license shall be
12981298 entitled to possess, transport and dispose of medi cal marijuana
12991299 waste. No person or entity shall dispose of medical marijuana waste
13001300 without a valid medical marijuana waste disposal license . The
13011301 Oklahoma Medical Marijuana Autho rity shall issue licenses upon
13021302 proper application by a licensee and determinat ion by the Authority
13031303 that the proposed site and facility are physically and technically
13041304 suitable. Upon a finding that a proposed medical marijuana waste
13051305 disposal facility is not physically or technically suitab le, the
13061306 Authority shall deny the license . The Authority may, upon
13071307 determining that public health or safety requires emergency action,
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13341334 issue a temporary license for treatment or storage of medical
13351335 marijuana waste for a peri od not to exceed ninety (90) days . The
13361336 Authority shall not, for the first yea r of the licensure pr ogram,
13371337 issue more than ten medical marijuana waste disposal licenses. Upon
13381338 the conclusion of the first year, the Authority shall assess the
13391339 need for additional medical marijuana waste dispo sal licenses and
13401340 shall, if demonstrated, incr ease the number of li censes as deemed
13411341 necessary by the Authority.
13421342 B. Entities applying for a medical marijuana waste disposal
13431343 license shall undergo the following screening proce ss:
13441344 1. Complete an application f orm, as prescribed by the
13451345 Authority, which shall include:
13461346 a. an attestation that the applicant is authorized to
13471347 make application on behalf of the entity,
13481348 b. full name of the organization,
13491349 c. trade name, if applicable,
13501350 d. type of business organization,
13511351 e. complete mailing address,
13521352 f. an attestation that the commercial ent ity will not be
13531353 located on tribal land,
13541354 g. telephone number and email address of the entity, and
13551355 h. name, residential address and date of birth of each
13561356 owner and each member, manager and boa rd member, if
13571357 applicable;
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13841384 2. The application for a medical mariju ana waste disposal
13851385 license made by an individual on his or her own behalf shall be on
13861386 the form prescribed by the Authority and shall include, but not be
13871387 limited to:
13881388 a. the first, middle and last name of the applicant and
13891389 suffix, if applicable,
13901390 b. the residence address and mailing address of the
13911391 applicant,
13921392 c. the date of birth of the applicant,
13931393 d. the preferred telephone number and email address of
13941394 the applicant,
13951395 e. an attestation that the inf ormation provided by the
13961396 applicant is true and correct, and
13971397 f. a statement signed by the applicant pledging not to
13981398 divert marijuana to any individual or entity that is
13991399 not lawfully entitled to possess marijuana; and
14001400 3. Each application shall be accompanie d by the following
14011401 documentation:
14021402 a. a list of all persons or enti ties that have an
14031403 ownership interest in the entity,
14041404 b. a certificate of good standing from the Oklahoma
14051405 Secretary of State, if applicable,
14061406 c. an Affidavit of Lawful Presence for each owner,
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14331433 d. proof that the proposed location of the disposal
14341434 facility is at least one thousand (1,000) feet from a
14351435 public or private school . The distance indicated in
14361436 this subparagraph shall be measured fro m the nearest
14371437 property line of such public or private school to the
14381438 nearest perimeter wall of the premises of such
14391439 disposal facility. If any public or private school is
14401440 established within one thousand (1,000) feet of any
14411441 disposal facility after such disposal facility has
14421442 been licensed, the provisions of this sub paragraph
14431443 shall not be a deterrent to the renewal of such
14441444 license or warrant revocation of the license, and
14451445 e. documents establishing the applicant, the members,
14461446 managers and board members, if applicable, and
14471447 seventy-five percent (75%) one hundred percent (100%)
14481448 of the ownership interests are Oklahoma re sidents as
14491449 established in Section 420 et seq. of this title, as
14501450 it relates to proof of residency.
14511451 C. No license shall be issued except upon proof of sufficient
14521452 liability insurance and financial respon sibility. Liability
14531453 insurance shall be provided by th e applicant and shall apply to
14541454 sudden and nonsudden bodily injury or property damage on, below or
14551455 above the surface, as required by the rules of the Authority . Such
14561456 insurance shall be maintained for th e period of operation of the
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14831483 facility and shall provid e coverage for damages resulting from
14841484 operation of the facility during operation and after closing .
14851485 D. Submission of an application for a medical marijuana waste
14861486 disposal license shall constitute permi ssion for entry to and
14871487 inspection of the facility of the licensee during hours of operation
14881488 and other reasonable times . Refusal to permit such entry of
14891489 inspection shall constitute grounds for the nonrenewal, suspension
14901490 or revocation of a license . The Authority may perform an annual
14911491 unannounced on-site inspection of the operations and any facility of
14921492 the licensee. If the Authority receives a complaint concerning
14931493 noncompliance by a licensee with the provisions o f the Oklahoma
14941494 Medical Marijuana Waste Manage ment Act, the Authority may conduct
14951495 additional unannounced, on-site inspections beyond an annual
14961496 inspection. The Authority may refer all complaints alleging
14971497 criminal activity that are made against a licensed facility to
14981498 appropriate state or local law enfo rcement authorities.
14991499 E. The Authority shall issu e an annual permit for each medical
15001500 marijuana waste disposal facility operated by a licensee . A permit
15011501 shall be issued only upon proper application by a licensee and
15021502 determination by the Authority that the proposed site and facility
15031503 are physically and techni cally suitable. Upon a finding that a
15041504 proposed medical marijuana waste disposal facility is not physically
15051505 or technically suitable, the Authority shall deny the permit . The
15061506 Authority shall have the auth ority to revoke a permit upon a finding
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15331533 that the site and facility are n ot physically and technically
15341534 suitable for processing . The Authority may, upon determining that
15351535 public health or safety requires emergency action, issue a temporary
15361536 permit for treatment or storage of medical marijuana waste for a
15371537 period not to exceed nine ty (90) days.
15381538 F. The cost of a medical marijuana waste disposal license shall
15391539 be Five Thousand Dollars ($5,000.00) for the initial license . The
15401540 cost of a medical marijuana waste disp osal facility permit shall be
15411541 Five Hundred Dollars ($500.00). A medical marijuana waste disposal
15421542 facility permit that has been revoked shall be reinstated upon
15431543 remittance of a reinstatement fee of Five Hundred Dollars ($500.00)
15441544 to restore the facility per mit. All license and permit fees shall
15451545 be deposited into the Oklahoma Medical Marijuana Authority Revolving
15461546 Fund as provided in Sectio n 427.5 of this title.
15471547 G. The holder of a medical marijuana waste disposal license
15481548 shall not be required to obtain a med ical marijuana transporter
15491549 license provided for in the Oklahoma Medical Marijuana and Patient
15501550 Protection Act for purposes of transporting medical marijuana waste.
15511551 H. All commercial licensees, as defined in Sectio n 428.1 of
15521552 this title, shall utilize a lice nsed medical marijuana waste
15531553 disposal service to process all medical mar ijuana waste generated by
15541554 the licensee.
15551555 I. The State Commissioner of Health shall promulgate rules for
15561556 the implementation o f the Oklahoma Medical Marijuana Waste
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15831583 Management Act. Promulgated rules shall address disposal process
15841584 standards, site security an d any other subject matter deemed
15851585 necessary by the Authority.
15861586 SECTION 7. This act shall become effective November 1, 2022.
15871587
15881588 58-2-9999 GRS 01/19/22