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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
HOUSE BILL 3679 By: Roberts (Sean)
AS INTRODUCED
An Act relating to medical marijuana; amending 63
O.S. 2021, Sections 421, 422 and 423, which relate to
licensing of medical mari juana dispensaries,
commercial growers and processors; modifying
ownership interest requirements; amending 63 O.S.
Sections 427.3 and 427.14, which relate to the
Oklahoma Medical Marijuana and Patient Pro tection
Act; directing the Oklahoma Medical Marijuana
Authority to investigate alleged violations;
modifying ownership interest requirement; directing
applicants to submit proof of ownership; dire cting
certain businesses to relinquish ownership;
authorizing the Oklahoma Medical Marijuana Authority
to suspend licenses for noncompliance; amending 63
O.S. 2021, Section 430, which relates to the Okl ahoma
Medical Marijuana Waste Management Act; modifying
ownership interest requirement; and prov iding an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 421, is
amended to read as follows:
Section 421. A. The State Department of Health shall , within
thirty (30) days of passage of this initiative, make available o n
its website in an easy-to-find location an application f or a medical
marijuana dispensary license. The application fee shall be Two
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Thousand Five Hundred Dollars ($2,500.00) . A method of payment
shall be provided on the website of the Department. Dispensary
applicants must all b e residents of Oklahoma. Any entity applying
for a dispensary license must be owned by an Oklahom a resident and
must be registered to do business in Oklahoma . The Department shall
have ninety (90) business days to review the application; approve,
reject or deny the application; and mail the approval, rejection or
denial letter stating reasons for the rejection or denial to the
applicant.
B. The State Department of Healt h shall approve all
applications which meet the following cri teria:
1. The applicant must be twenty-five (25) years of age or
older;
2. The applicant, if applying as an individual, must show
residency in the State of Oklahoma;
3. All applying entities must show that all members, managers,
and board members are Ok lahoma residents;
4. An applying entity may must show ownership of non-Oklahoma
that one hundred percent (100%) of its owners are Oklahoma
residents, but that percentage ownership may not exceed twenty -five
percent (25%);
5. All applying individuals or e ntities must be registered to
conduct business in the S tate of Oklahoma; and
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6. All applicants must disclose all ownership interests in the
dispensary.
Applicants with a nonviolent felony conviction in the last two
(2) years, any other felony conviction i n the last five (5) years ,
inmates in the custody of th e Department of Corrections or any
person currently incarcerate d shall not qualify for a medical
marijuana dispensary license.
C. Licensed medical marijuana dispensaries shall be required to
complete a monthly sales report to th e State Department of Health.
This report shall be due on the fifteenth of each month and provide
reporting on the previous month . This report shall detail the
weight of marijuana purchased at wholesale and the weight of
marijuana sold to licensed medical marijuana patients and li censed
caregivers and account for any waste. The report shall show total
sales in dollars, tax collected in dollars, and tax due in dollars .
The State Department of Healt h shall have oversight and au diting
responsibilities to ensure that all marijuana be ing grown is
accounted for.
D. Only a licensed medical marijuan a dispensary may conduct
retail sales of marijuana or marijuana derivatives . Beginning on
the effective date of this act, licensed medic al marijuana
dispensaries shall be authorized to packag e and sell pre-rolled
marijuana to licensed medical marijuana patients and lice nsed
caregivers. The products described in this subsection shall contain
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only the ground parts of the marijuana plant and shall not include
marijuana concentrates or derivative s. The total net weight of each
pre-roll packaged and sold by a medical mariju ana dispensary shall
not exceed one (1) gram . These products shall be tested, packaged
and labeled in accordance with Okl ahoma law and rules promulgated by
the State Commission er of Health.
E. No medical marijuana dispensary shall offer or allow a
medical marijuana patient licensee, caregiver licensee or other
member of the public to handle or otherwise have physical contac t
with any medical marijuana not contained in a sealed or separate
package. Provided, such prohibition shall not preclude an employe e
of the medical marijuana dispensary from handling loose or
nonpackaged medical marijuana to be placed in packaging consis tent
with the Oklahoma Medical Marijuana and Patient Pr otection Act and
the rules promulgated by the Authority for the packaging of m edical
marijuana for retail sale . Provided, further, such prohibition
shall not prevent a medical marijuana dispensary from displaying
samples of its medical marijuana in separa te display cases, jars or
other containers and allowing medical marijuana pati ent licensees
and caregiver licensees the ability to handle or smell the various
samples as long as the sample medical mari juana is used for display
purposes only and is not offe red for retail sale.
SECTION 2. AMENDATORY 63 O.S. 2021, Section 422, is
amended to read as follows:
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Section 422. A. The State Department of Healt h shall, within
thirty (30) days of passage of this initiative, make available o n
its website in an easy-to-find location an application for a
commercial grower license . The application fee shall be Two
Thousand Five Hundred Dollars ($2,500.00) . A method of payment
shall be provided on the website of the Department. The State
Department of Health shall have ninety (90) days to review the
application; approve, reject or deny the application; and mail the
approval, rejection or denial letter stating the reasons for the
rejection or denial to the applicant.
B. The State Department of He alth shall approve all
applications which meet the following criteria:
1. The applicant must be twenty-five (25) years of age or
older;
2. The applicant, if applying as an individual, must show
residency in the State of Oklahoma;
3. All applying entitie s must show that all members, manager s,
and board members are Oklahoma residents;
4. An applying entity may must show ownership of non-Oklahoma
that one hundred percent (100 %) of its owners are Oklahoma
residents, but that percentage ownership may not exc eed twenty-five
percent (25%);
5. All applying individuals or en tities must be registered to
conduct business in the State of Oklahoma; and
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6. All applicants must disclose all ownership interests in the
commercial grower operation.
Applicants with a nonviolent felony conviction in the last two
(2) years, any other f elony conviction in the last five (5) years,
inmates in the custody of the Department of Corrections or any
person currently incarcerate d shall not qualify for a commercial
grower license.
C. A licensed commercial grower may sell marijuana to a
licensed dispensary or a licensed processor. Further, sales by a
licensed commercial grower shall be considered wholesale sales and
shall not be subject to taxation. Under no circumstances may a
licensed commercial grower sell marijuana d irectly to a licensed
medical marijuana patient or licensed care giver. A licensed
commercial grower may only sell at the wholesale level to a license d
dispensary, a licensed grower or a licensed processor . If the
federal government lifts restrictions on buying and selling
marijuana between states, then a licensed com mercial grower would be
allowed to sell and buy marijuana wholesale from, or to, a n out-of-
state wholesale provider. A licensed commercial growe r shall be
required to complete a monthly yield and sales report to th e State
Department of Health . This report shall be due on the fifteenth of
each month and provide reporting on the previous month . This report
shall detail the amount of marijuana harvested in p ounds, the amount
of drying or dried marijuana on hand, the am ount of marijuana sold
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to licensed processors in pounds, the amount of waste in pounds, and
the amount of marijuana sold t o licensed dispensaries in pounds.
Additionally, this repor t shall show total wholesale sales in
dollars. The State Department of He alth shall have oversight and
auditing responsibilities to ensure that all marijuana being grown
by licensed commercial growers is accounted for.
D. There shall be no limits on how much marijua na a licensed
commercial grower can grow.
E. Beginning on the effective date of this act, licensed
commercial growers shall be authorized to package and sell pre -
rolled marijuana to licensed medical m arijuana dispensaries . The
products described in this subsection shall contain only the gro und
parts of the marijuana plant and shall not include marijua na
concentrates or derivatives . The total net weight of each pre -roll
packaged and sold by medical ma rijuana commercial growers shall not
exceed one (1) gram. These products must be tested, pa ckaged and
labeled in accordance with Oklahoma law and rules p romulgated by the
State Commissioner of Health.
SECTION 3. AMENDATORY 63 O.S . 2021, Section 423, is
amended to read as follows:
Section 423. A. The State Department of Health shall, within
thirty (30) days of passage of this initiative, make available o n
its website in an easy-to-find location an application for a medical
marijuana processing license . The Department shall be authorized to
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issue two types of medical ma rijuana processor licenses based on the
level of risk posed by the type of processing conducted:
1. Nonhazardous medical mariju ana processor license; and
2. Hazardous medical marijuana processor license .
The application fee for a nonhazardous or hazardou s medical
marijuana processor license shall be Two Thousand F ive Hundred
Dollars ($2,500.00). A method of payment shall be provided on the
website of the Department. The State Department of Health shal l
have ninety (90) days to review the application ; approve, reject or
deny the application; and mail the approval, rejection or denial
letter stating the reasons for the rejection or denial to the
applicant.
B. The State Department of Healt h shall approve all
applications which meet the following criteria:
1. The applicant must be twenty-five (25) years of age or
older;
2. The applicant, if applying as an individual, must show
residency in the State of Oklahoma;
3. All applying entities must show th at all members, mana gers,
and board members are Oklahoma residents;
4. An applying entity may must show ownership of non-Oklahoma
that one hundred percent (100 %) of its owners are Oklahoma
residents, but that percentage ownership may not exceed twenty -five
percent (25%);
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5. All applying individuals or entitie s must be registered to
conduct business in the State of Oklahoma; and
6. All applicants must disclose all ownership interests in the
processing operation.
Applicants with a nonviolent felony conviction in the last two
(2) years, any other felony convicti on in the last five (5) years,
inmates in the custody of the Department of Corrections or any
person currently incarcerate d shall not qualify for a medical
marijuana processing license.
C. 1. A licensed processor may take marijuana plants and
distill or process these plants into concentrates, edibles, and
other forms for consumption.
2. As required by subsection D of this sectio n, the State
Department of Health shall, within sixty (60) days of passage of
this initiative, make available a set of standards which shall be
used by licensed processors in the preparation of edible marijuana
products. The standards should be in line wi th current food
preparation guidelin es. No excessive or punitive rules may b e
established by the State Department of Health .
3. Up to two times a year, the State Department of Health may
inspect a processing operation and determine its compliance with the
preparation standards . If deficiencies are found, a written report
of the deficiency shall be issued to the licensed processor. The
licensed processor shall have one (1) month to correct the
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deficiency or be subject to a fine of Five Hundred Dollars ($500.00)
for each deficiency.
4. A licensed processor may sell marijuana pr oducts it creates
to a licensed dispensary or any other licensed processor . All sales
by a licensed processor shall be considered wholesale sales and
shall not be subject to taxation.
5. Under no circumstances may a licensed processor sell
marijuana or any marijuana product directly to a licensed medical
marijuana patient or licensed caregiver . However, a licensed
processor may process cannabis into a concentrated form for a
licensed medical marijuana patient for a fee.
6. Licensed processors shall be required to complete a monthly
yield and sales report to the State Department of Health . This
report shall be due on the fifteenth of each month and shall provide
reporting on the previous month. This report shall detail the
amount of marijuana and medical marijuana products purchased in
pounds, the amount of marijuana cooked or processed in pounds, and
the amount of waste in pounds . Additionally, this repor t shall show
total wholesale sales in dollars . The State Department of Health
shall have oversight and auditing responsibilities to ensure that
all marijuana being processed is accounted for.
D. The Department shall oversee the inspection and compliance
of licensed processors producing products with marijuana as an
additive. The State Department of Health shall be compelled to,
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within thirty (30) days of passage of this initiative, appoin t
twelve (12) Oklahoma residents to the Medical Marijuana Advisory
Council, who are marijuana industry experts, to create a lis t of
food safety standards for proces sing and handling medical marijuana
in Oklahoma. These standards shall be adopted by the Department and
the Department may enforce these standards for licensed processors.
The Department shall develop a standards revi ew procedure and these
standards can be altered by calling another council of twelve (12)
Oklahoma marijuana industry experts . A signed letter of twent y
operating, licensed processors shall constitute a need for a n ew
council and standards review.
E. If it becomes permissible under federal law, marijuana may
be moved across state lines.
F. Any device used for the processing or consumption of medical
marijuana shall be considered legal to be sold, manufactured,
distributed and possessed . No merchant, wholesaler, manufacturer or
individual may be unduly harassed or prosecuted for sellin g,
manufacturing or possessing marijuana paraphernalia.
SECTION 4. AMENDATORY 63 O.S. 2021, Section 427.3, is
amended to read as follows:
Section 427.3 A. There is hereby created the Oklahoma Medical
Marijuana Authority within the State Department of Health which
shall address issues related to the m edical marijuana program in
Oklahoma including, but not limited to, the issuance of patient
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licenses and medical marijuana business licenses, and the
dispensing, cultivating, processing, testing, transporting, storage,
research, and the use of and sale of medical marijuana pursuant t o
the Oklahoma Medical Marijuana and Patient Protection Act .
B. The Department shall provide support staff to perform
designated duties of the Authority . The Department shall also
provide office space for meetings of the Autho rity.
C. The Department shall im plement the provisions o f the
Oklahoma Medical Marijuana and Patient Protection Act consistently
with the voter-approved State Question No. 788, Initiative Petition
No. 412, subject to the provisions o f the Oklahoma Medical Marijuana
and Patient Protection Act.
D. The Department shall exercise its respective p owers and
perform its respective duties and functions as specified in the
Oklahoma Medical Marijuana and Patient Protection Act and this title
including, but not limit ed to, the following:
1. Determine steps the state shall take, whether administrative
or legislative in nature, to ensure that research on marijuana and
marijuana products is being conducted for public purposes, including
the advancement of:
a. public health policy and public safety poli cy,
b. agronomic and horticultural best practices, an d
c. medical and pharmacopoeia best practices;
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2. Contract with third-party vendors and other governmental
entities in order to carry out the respective duties and funct ions
as specified in the Oklahoma Medical Marijuana and Patient
Protection Act;
3. Upon complaint or upon its own motion and upon a completed
investigation, levy fines as prescribed i n applicable laws, rules
and regulations and suspend, revoke or not renew licenses pursuant
to applicable laws, rules and regulations ;
4. Issue subpoenas for the appearance or production of persons,
records and things in conne ction with disciplinary or contested
cases considered by the Department;
5. Apply for injunctive or declaratory relief to enforce the
provisions of applicable laws, rules and regulations;
6. Inspect and examine all licensed premises of medical
marijuana businesses, research facilities , education facilities and
waste disposal facilities in which medical marijuana is cultivated,
manufactured, sold, stored, transported, tested , distributed or
disposed of;
7. Upon action by the federal government by which th e
production, sale and use of marijuana in Oklahoma does not violate
federal law, work with the Oklah oma State Banking Department an d the
State Treasurer to develop good practice s and standards for ban king
and finance for medical marijuana businesses;
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8. Establish internal control procedures for licenses including
accounting procedures, reporting procedu res and personnel policies;
9. Establish a fee schedule and collect fees f or performing
background checks as the Commissioner deems appropriate . The fees
charged pursuant to this paragraph shall not exceed the actual cost
incurred for each background che ck;
10. Establish a fee sched ule and collect fees for material
changes requested by the licensee; and
11. Establish regulations , which require a medical marijuana
business to submit information to the Oklahoma Medical Marijuana
Authority, deemed reasonably necessary to assist the Aut hority in
the prevention of diversion of m edical marijuana by a licen sed
medical marijuana business . Such information requi red by the
Authority may include, but shall not be limited to:
a. the square footage of the licensed premises,
b. a diagram of the licensed premises,
c. the number and type of lights at the licensed me dical
marijuana commercial grower business,
d. the number, type and production capacity of equipment
located at the medical marijuana processing facility,
e. the names, addresses and tele phone numbers of
employees or agents of a medical marijuana business,
f. employment manuals and standard operating procedure s
for the medical marijuana business, and
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g. any other information as the Authority reasonably
deems necessary; and
12. Upon receipt by the Authority of a signed complaint from a
member of the public of an alleged violation of any o f the
provisions of Sections 420 through 426.1 of this title or the
Oklahoma Medical Marijuana and Patient Protection Act , the Authority
shall investigate the alleged violation within five (5) business
days of receiving the complaint and inform the complainant of the
result of the investigation.
SECTION 5. AMENDATORY 63 O.S. 2021, Section 427.14, is
amended to read as follows:
Section 427.14 A. There is hereby created the medica l
marijuana business license, which shall incl ude the following
categories:
1. Medical marijuana commercial grower;
2. Medical marijuana processor;
3. Medical marijuana dispensary;
4. Medical marijuana transporter; and
5. Medical marijuana testing laboratory.
B. The Oklahoma Medical Marijuana Au thority, with the aid of
the Office of Management and Enterprise Services, shall develop a
website for medical marijuana business applications.
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C. The Authority shall make available on its website in an
easy-to-find location, applications for a medical ma rijuana
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 l icensure or licensure renewal as a
medical marijuana business shall comply with the following ge neral
requirements:
1. All applications for licenses and registrations auth orized
pursuant to this section shall be made upon forms prescribed 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 com plete application to the
Department before the application may be accepted or consid ered;
4. All applications shall be compl ete and accurate in every
detail;
5. All applications shall include all attachments or
supplemental information required by the fo rms supplied by the
Authority;
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6. All applications shall be accompanied by a full r emittance
for the whole amount of the app lication fees. Application fees are
nonrefundable;
7. All applicants shall be approved for licensing review that,
at a minimum, meets the following criteria:
a. twenty-five (25) years of age or older,
b. if applying as an individual, proof that the applicant
is an Oklahoma resid ent pursuant to paragraph 11 of
this subsection,
c. if applying as an entity , proof that seventy-five
percent (75%) one hundred percent (100%) of all
members, managers, executive officers, partners, board
members or any other form of business ownership are
Oklahoma 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 t o the
Oklahoma Medical Marijua na and Patient Protection Act ,
and
f. proof that the medical marijuana business, medical
marijuana research facility, medical marijuana
education facility and m edical marijuana waste
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disposal facility applicant or licensee has not been
convicted of a nonvi olent felony in the last two (2)
years, or any other felony conviction within the 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 entit y can
apply for or receive, although each application and each category
shall require a separate application and application fee. A
commercial grower, p rocessor and dispensary, or any combination
thereof, are authorized to share the same address or physic al
location, subject to the restrictions set forth i n the Oklahoma
Medical Marijuana and Patient Protection Act;
9. All applicants for a medical marijua na business license,
research facility license or education facility license authorized
by the Oklahoma Medical Marijuana and Patient Protection Act, or for
a renewal of such license, shall undergo an Oklahoma criminal
history background check conducted by the Oklahoma State Bureau of
Investigation (OSBI) within thirty (30) days prior to the
application for the license, including:
a. individual applicants applyin g on their own behalf,
b. individuals applying on behalf of an enti ty,
c. all principal officers of an entity, and
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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 applica nt and shall not be higher than fees
charged to any other person or industry for such background checks;
11. In order to be considered an Oklahoma resident f or purposes
of a medical marijuana business application, all applicants shall
provide proof of Okl ahoma residency for at lea st two (2) years
immediately preceding the date of application or five (5) years of
continuous Oklahoma residency during the precedi ng twenty-five (25)
years immediately preceding the date of application. Sufficient
documentation of proof of residency sha ll include a combination of
the following:
a. an unexpired Oklahoma -issued driver license,
b. an Oklahoma identification card,
c. a utility bill preceding the date of application,
excluding cellular telephone and Internet bills,
d. a residential property d eed to property in the State
of Oklahoma, and
e. a rental agreement preceding the date of application
for residential property locat ed in the State of
Oklahoma.
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Applicants that were issued a medical marijuana 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 re quired to submit a
registration with the Oklahoma State B ureau of Narcotics and
Dangerous Drugs Control as provided in Secti ons 2-302 through 2-304
of this title;
13. All applicants shall establish their identity through
submission of a color copy or digi tal image of one of the following
unexpired documents:
a. front of an Oklahoma driver license,
b. front of an Oklahoma ident ification card,
c. a United States passport or other photo identification
issued by the United States government, or
d. a tribal identification card approved for
identification purposes by the Oklahoma Department of
Public Safety; and
14. All applicants shall submit an applicant phot ograph.
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 appli cant
within ninety (90) bu siness days of receipt of the application.
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G. 1. The Authority shall review the medical marijuana
business applications and condu ct all investigations, inspections
and interviews before a pproving 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 Protectio n Act and Sections
420 through 426.1 of this title , improper completion of the
application, or for a reason provided for i n the Oklahoma Medical
Marijuana and Patient Protection Act and Sections 420 through 426.1
of this title. If an application is reject ed for failure to provide
required information, the applic ant shall have thirty (30) days to
submit the required information for reconsideration. No additional
application fee shall be charged for such reconsideration . Unless
the Department determines ot herwise, an application that has been
resubmitted but is s till incomplete or contains errors that a re not
clerical or typographical in nature shall be den ied.
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 su bmitted properly but a delay in
processing the application occurred.
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4. Approval, rejection, denial or status-update letters shall
be sent to the applicant in the same method the application was
submitted to the Department.
H. A license for a medical marijuana business, medical
marijuana research facility, medical mariju ana education facility or
medical marijuana waste disposal facility shall not be issued to or
held by:
1. A person until all req uired fees have been paid;
2. A person who has been c onvicted of a nonviolent felony
within two (2) years of the date of appli cation, or within five (5)
years for any other felony;
3. A corporation, if the criminal history of any of its
officers, directors or stockholders indicates that the officer,
director or stockholder has been convicted of a nonvio lent felony
within two (2) years of the date of applica tion, or within five (5)
years for any other felony;
4. A person under twenty -five (25) years of ag e;
5. A person licensed pursuant to this section w ho, during a
period of licensure, or who, at the t ime of application, has fa iled
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;
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6. A sheriff, deputy sheriff, police officer or prosec uting
officer, or an offic er or employee of the Authority or municipality;
7. A person whose authority to be a caregiver , as defined in
Section 427.2 of this title, has been revoked by the Department ; or
8. A person who was involved in the management or operations of
any medical marijuana business, medical m arijuana research facility,
medical marijuana education facility or medical marijuana waste
disposal facility that, after the initiation of a disc iplinary
action, has had a medical marijuana license re voked, not renewed, or
surrendered during the five (5) years preceding submission of the
application and for the following violations:
a. unlawful sales or purchases,
b. any fraudulent acts, falsific ation of records or
misrepresentation to the Authority, m edical marijuana
patient licensees, caregiver licensees or medical
marijuana business licensees,
c. any grossly inaccurate or fraudulent reporting,
d. threatening or harming any medical marijuana p atient,
caregiver, medical practitioner or employee of the
Department,
e. knowingly or intentionally refusing to p ermit the
Department access to premises or records,
f. using a prohibited, hazardous substance for p rocessing
in a residential area,
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g. criminal acts relating t o the operation of a medical
marijuana business, or
h. any violations that endanger public healt h and safety
or product safety.
I. In investigating the qualifications of an applicant or a
licensee, the Department, Authority and muni cipalities may have
access to criminal history record informatio n furnished by a
criminal justice agency subject to any restrictions imposed by such
an agency.
J. The failure of an applicant or licensee to provide the
requested information by the Authori ty deadline may be groun ds for
denial of the application.
K. All applicants and licensees shall submit information to t he
Department and Authority in a full, faithful, truthful and fair
manner. The Department and Autho rity may recommend denial of an
application where the applic ant or licensee made misstatements,
omissions, misrepresentations o r untruths in the application or in
connection with the background investigation of the applicant . This
type of conduct may b e grounds for administrative action ag ainst the
applicant or licensee. Typos and scrivener errors shall not be
grounds for denial.
L. A licensed medical mari juana business premises shall be
subject to and responsible for compliance with applicable provision s
consistent with the zoning where such business is located as
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described in the most recent versions of the Oklahoma Uniform
Building Code, the Internationa l Building Code and the International
Fire Code, unless granted an exemption b y a municipality or
appropriate code enforcement entity .
M. All medical marijuana business, medical marijuana research
facility, medical marijuana e ducation facility and medical marijuana
waste disposal facility licensees shall pay the relevant licensure
fees prior to receivin g licensure to operate.
N. A medical marijuana business, me dical marijuana research
facility, medical marijuana education faci lity or medical marijuana
waste disposal facility that attempts to renew its license after the
expiration date of the license sh all pay a late renewal fee in an
amount to be determined by t he Department to reinstate the license .
Late renewal fees are nonr efundable. A license that has been
expired for more than ninety (90) days shall not be renewed.
O. No medical marijuana busine ss, medical marijuana research
facility, medical marijuana ed ucation facility or medical marijuana
waste disposal facility shall possess, sell or transfer me dical
marijuana or medical marijuana products without a valid, unexpired
license issued by the Depa rtment.
P. Beginnning November 1, 2022, any entity applying for a
medical marijuana business license shall submit proof that one
hundred percent (100%) of its owners are Oklahoma residents . Any
licensed medical marijuana business currently operating in this
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state with owners who are not Oklahoma residents shall have n inety
(90) days from the effective da te of this act to relinquish his or
her ownership interest in the medical marijuana business. Notice
shall be provided to the Authority by the medical marijuana bu siness
of the change in ownership. The Authority shall be authorized to
suspend the license of the medical marijuana business for failing to
comply with the provisions of this subsection in accor dance with the
administrative hearing requirements provided for in Section 427.6 of
this title.
SECTION 6. AMENDATORY 63 O.S. 2021, Section 430, is
amended to read as follows:
Section 430. A. There is hereby created and authorized a
medical marijuana waste disposal license . A person or entity in
possession of a medical marijuana wast e disposal license shall be
entitled to possess, transport and dispose of medi cal marijuana
waste. No person or entity shall dispose of medical marijuana waste
without a valid medical marijuana waste disposal license . The
Oklahoma Medical Marijuana Autho rity shall issue licenses upon
proper application by a licensee and determinat ion by the Authority
that the proposed site and facility are physically and technically
suitable. Upon a finding that a proposed medical marijuana waste
disposal facility is not physically or technically suitab le, the
Authority shall deny the license . The Authority may, upon
determining that public health or safety requires emergency action,
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issue a temporary license for treatment or storage of medical
marijuana waste for a peri od not to exceed ninety (90) days . The
Authority shall not, for the first yea r of the licensure pr ogram,
issue more than ten medical marijuana waste disposal licenses. Upon
the conclusion of the first year, the Authority shall assess the
need for additional medical marijuana waste dispo sal licenses and
shall, if demonstrated, incr ease the number of li censes as deemed
necessary by the Authority.
B. Entities applying for a medical marijuana waste disposal
license shall undergo the following screening proce ss:
1. Complete an application f orm, as prescribed by the
Authority, which shall include:
a. an attestation that the applicant is authorized to
make application on behalf of the entity,
b. full name of the organization,
c. trade name, if applicable,
d. type of business organization,
e. complete mailing address,
f. an attestation that the commercial ent ity will not be
located on tribal land,
g. telephone number and email address of the entity, and
h. name, residential address and date of birth of each
owner and each member, manager and boa rd member, if
applicable;
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2. The application for a medical mariju ana waste disposal
license made by an individual on his or her own behalf shall be on
the form prescribed by the Authority and shall include, but not be
limited to:
a. the first, middle and last name of the applicant and
suffix, if applicable,
b. the residence address and mailing address of the
applicant,
c. the date of birth of the applicant,
d. the preferred telephone number and email address of
the applicant,
e. an attestation that the inf ormation provided by the
applicant is true and correct, and
f. a statement signed by the applicant pledging not to
divert marijuana to any individual or entity that is
not lawfully entitled to possess marijuana; and
3. Each application shall be accompanie d by the following
documentation:
a. a list of all persons or enti ties that have an
ownership interest in the entity,
b. a certificate of good standing from the Oklahoma
Secretary of State, if applicable,
c. an Affidavit of Lawful Presence for each owner,
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d. proof that the proposed location of the disposal
facility is at least one thousand (1,000) feet from a
public or private school . The distance indicated in
this subparagraph shall be measured fro m the nearest
property line of such public or private school to the
nearest perimeter wall of the premises of such
disposal facility. If any public or private school is
established within one thousand (1,000) feet of any
disposal facility after such disposal facility has
been licensed, the provisions of this sub paragraph
shall not be a deterrent to the renewal of such
license or warrant revocation of the license, and
e. documents establishing the applicant, the members,
managers and board members, if applicable, and
seventy-five percent (75%) one hundred percent (100%)
of the ownership interests are Oklahoma re sidents as
established in Section 420 et seq. of this title, as
it relates to proof of residency.
C. No license shall be issued except upon proof of sufficient
liability insurance and financial respon sibility. Liability
insurance shall be provided by th e applicant and shall apply to
sudden and nonsudden bodily injury or property damage on, below or
above the surface, as required by the rules of the Authority . Such
insurance shall be maintained for th e period of operation of the
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facility and shall provid e coverage for damages resulting from
operation of the facility during operation and after closing .
D. Submission of an application for a medical marijuana waste
disposal license shall constitute permi ssion for entry to and
inspection of the facility of the licensee during hours of operation
and other reasonable times . Refusal to permit such entry of
inspection shall constitute grounds for the nonrenewal, suspension
or revocation of a license . The Authority may perform an annual
unannounced on-site inspection of the operations and any facility of
the licensee. If the Authority receives a complaint concerning
noncompliance by a licensee with the provisions o f the Oklahoma
Medical Marijuana Waste Manage ment Act, the Authority may conduct
additional unannounced, on-site inspections beyond an annual
inspection. The Authority may refer all complaints alleging
criminal activity that are made against a licensed facility to
appropriate state or local law enfo rcement authorities.
E. The Authority shall issu e an annual permit for each medical
marijuana waste disposal facility operated by a licensee . A permit
shall be issued only upon proper application by a licensee and
determination by the Authority that the proposed site and facility
are physically and techni cally suitable. Upon a finding that a
proposed medical marijuana waste disposal facility is not physically
or technically suitable, the Authority shall deny the permit . The
Authority shall have the auth ority to revoke a permit upon a finding
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that the site and facility are n ot physically and technically
suitable for processing . The Authority may, upon determining that
public health or safety requires emergency action, issue a temporary
permit for treatment or storage of medical marijuana waste for a
period not to exceed nine ty (90) days.
F. The cost of a medical marijuana waste disposal license shall
be Five Thousand Dollars ($5,000.00) for the initial license . The
cost of a medical marijuana waste disp osal facility permit shall be
Five Hundred Dollars ($500.00). A medical marijuana waste disposal
facility permit that has been revoked shall be reinstated upon
remittance of a reinstatement fee of Five Hundred Dollars ($500.00)
to restore the facility per mit. All license and permit fees shall
be deposited into the Oklahoma Medical Marijuana Authority Revolving
Fund as provided in Sectio n 427.5 of this title.
G. The holder of a medical marijuana waste disposal license
shall not be required to obtain a med ical marijuana transporter
license provided for in the Oklahoma Medical Marijuana and Patient
Protection Act for purposes of transporting medical marijuana waste.
H. All commercial licensees, as defined in Sectio n 428.1 of
this title, shall utilize a lice nsed medical marijuana waste
disposal service to process all medical mar ijuana waste generated by
the licensee.
I. The State Commissioner of Health shall promulgate rules for
the implementation o f the Oklahoma Medical Marijuana Waste
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Management Act. Promulgated rules shall address disposal process
standards, site security an d any other subject matter deemed
necessary by the Authority.
SECTION 7. This act shall become effective November 1, 2022.
58-2-9999 GRS 01/19/22