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28	28	STATE OF OKLAHOMA
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30	30	2nd Session of the 58th Legislature (2022)
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32	32	HOUSE BILL 3728 By: West (Josh)
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38	38	AS INTRODUCED
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40	40	An Act relating to medical marijuana; amending 63
41	41	O.S. 2021, Section 427.6, which relates to the
42	42	Oklahoma Medical Marijuana and Patient Protection
43	43	Act; deleting certain unlawful acts and relat ed
44	44	penalties; removing construing provision regarding
45	45	criminal prosecutions; and providing an effective
46	46	date.
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52	52	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
53	53	SECTION 1. AMENDATORY 63 O.S. 2021, Section 427.6, is
54	54	amended to read as follows:
55	55	Section 427.6 A. The State Department of Hea lth shall address
56	56	issues related to the medical m arijuana program in Oklahoma
57	57	including, but not limited to, monitoring an d disciplinary actions
58	58	as they relate to the medica l marijuana program.
59	59	B. 1. The Department or its designee may perform on -site
60	60	inspections or investigations of a licensee or appli cant for any
61	61	medical marijuana business license , research facility, educa tion
62	62	facility or waste disposal facility to determine compliance with
63	63	applicable laws, rules and regulations or submissions made pur suant
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90	90	to this section. The Department may enter t he licensed premises of
91	91	a medical marijuana business , research facility, e ducation facility
92	92	or waste disposal facility licensee or applicant to assess o r
93	93	monitor compliance or ensure qualifications for lice nsure.
94	94	2. Post-licensure inspections shall be limited to twice per
95	95	calendar year. However, investigations and additional inspections
96	96	may occur when the Departmen t believes an investigation or
97	97	additional inspection is necessary due to a possible violation of
98	98	applicable laws, rules or regulations . The State Commissioner of
99	99	Health may adopt rules imposing penalties including, b ut not limited
100	100	to, monetary fines and suspension o r revocation of licensure fo r
101	101	failure to allow the Authority reasonable access to the licensed
102	102	premises for purposes of conducting a n inspection.
103	103	3. The Department may review relevant records of a licensed
104	104	medical marijuana business, licensed medi cal marijuana research
105	105	facility, licensed medical marijuana education facility or licensed
106	106	medical marijuana waste disposal facility , and may require and
107	107	conduct interviews with such persons or entities and persons
108	108	affiliated with such entities, for the purpose of determining
109	109	compliance with Department requirements and applicable laws , rules
110	110	and regulations.
111	111	4. The Department may refer complaints alleging criminal
112	112	activity that are made against a licensee to approp riate Oklahoma
113	113	state or local law enforcement auth orities.
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140	140	C. Disciplinary action may be taken against an applicant or
141	141	licensee for not adhering to applicable laws pursuant to the terms,
142	142	conditions and guidelines set forth i n the Oklahoma Medical
143	143	Marijuana and Patient Protection Act .
144	144	D. Disciplinary actions may include revocation, suspension or
145	145	denial of an application, license or final authorization and other
146	146	action deemed appropri ate by the Department.
147	147	E. Disciplinary actions may be imposed upon a medi cal marijuana
148	148	business licensee for:
149	149	1. Failure to comply with or satisfy any provision of
150	150	applicable laws, rules or regulat ions;
151	151	2. Falsification or misrepresentation of any mater ial or
152	152	information submitted to the Department or other licensees;
153	153	3. Failing to allow or impedin g entry by authorized
154	154	representatives of the Departmen t;
155	155	4. Failure to adhere to any acknowledgem ent, verification or
156	156	other representation made to the Depart ment;
157	157	5. Failure to submit or disclose information required b y
158	158	applicable laws, rules or regulations or otherwise requested by the
159	159	Department;
160	160	6. Failure to correct any violation of this secti on cited as a
161	161	result of a review or audit of financial records or other materials;
162	162	7. Failure to comply with requested access by the De partment to
163	163	the licensed premises or materials;
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190	190	8. Failure to pay a required monetary penalty;
191	191	9. Diversion of medical marijuana or any medical marijuana
192	192	product, as determined by the Department;
193	193	10. Threatening or harming a medical marijuana patient
194	194	licensee, caregiver licensee , a medical practitioner or an employee
195	195	of the Department; and
196	196	11. Any other basis indic ating a violation of the applicable
197	197	laws and regulations as identif ied by the Department.
198	198	F. Disciplinary actions against a licensee may inc lude the
199	199	imposition of monetary penalties, which m ay be assessed by the
200	200	Department. The Department may suspend or revoke a license for
201	201	failure to pay any monetary penalty lawfully a ssessed by the
202	202	Department against a licensee.
203	203	G. Penalties for sales or purchases by a medical marijuana
204	204	business to persons other than those allowed b y law occurring within
205	205	any two-year time period may include an initial fine of One Thousand
206	206	Dollars ($1,000.00) for a first violation and a fine of Five
207	207	Thousand Dollars ($5,000. 00) for any subsequent violation .
208	208	Penalties for grossly inaccurate or fraudul ent reporting occurring
209	209	within any two-year time period may include an initial fine of Five
210	210	Thousand Dollars ($5,000.00) for a first violation and a fine of Ten
211	211	Thousand Dollars ($10,000.00) for any subsequent violation . The
212	212	medical marijuana business may be subject to a revocation of any
213	213	license granted pursuant t o the Oklahoma Medical Marijuana and
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240	240	Patient Protection Act upon a showing that the violation was willful
241	241	or grossly negligent.
242	242	H. 1. First offense for intentional a nd impermissible
243	243	diversion of medical marijuana, concentrate, or products by a
244	244	patient or caregiver to an unauthorized person shall not be punished
245	245	under a criminal statute but may be subject to a fine of T wo Hundred
246	246	Dollars ($200.00).
247	247	2. The second offense for impermissible diversi on of medical
248	248	marijuana, concentrate, or products by a patient or caregiver to an
249	249	unauthorized person sh all not be punished under a criminal statute
250	250	but may be subject to a fine of not to exceed Five Hundred Dollars
251	251	($500.00) and may result in revocation o f the license upon a showing
252	252	that the violation was willful or grossly negligent.
253	253	I. The intentional diversion of medical marijuana, medical
254	254	marijuana concentrate or medical mar ijuana products by a licensed
255	255	medical marijuana patient or caregiver, medical marijuana business
256	256	or employee of a medical marijuana business to an unauthorized minor
257	257	person who the licensed medical marijuana patient or caregiver,
258	258	medical marijuana business or employee of a medical marijuana
259	259	business knew or reasonably should have kn own to be a minor person
260	260	shall be subject to a cite and release citation and, upon a finding
261	261	of guilt or a plea of no contest, a fine of Two Thousand Five
262	262	Hundred Dollars ($2,500 .00). For a second or subsequent offense,
263	263	the licensed medical marijuana patient or caregiver, medical
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290	290	marijuana business or employee of a medical marijuana business shall
291	291	be subject to a cite and release citation and, upon a finding of
292	292	guilt or a plea of no contest, a fine of Five Thousand Dollars
293	293	($5,000.00) and automatic termina tion of the medical marijuana
294	294	license.
295	295	J. Nothing in this section shall be construed to prevent the
296	296	criminal prosecution, after the presentation of evidence and a
297	297	finding beyond a reasonable doubt, of a licensed medical marijuana
298	298	patient or caregiver, med ical marijuana business or empl oyee of a
299	299	medical marijuana business who has diverted medical marijuana,
300	300	medical marijuana concentrate or medical marijuana products to an
301	301	unauthorized person with the intent or knowledge that the
302	302	unauthorized person was to e ngage in the distribution or tr afficking
303	303	of medical marijuana, medical marijuana concentrate or medical
304	304	marijuana products.
305	305	K. In addition to any other remedies provided for by law, the
306	306	Department, pursuant to its rules and reg ulations, may issue a
307	307	written order to any licensee the De partment has reason to believe
308	308	has violated Sections 420 through 426.1 of this title, the Oklahoma
309	309	Medical Marijuana and Patient Protection Act, the Oklahoma Medical
310	310	Marijuana Waste Management Act, or any rules promulgated by the
311	311	State Commissioner of Heal th and to whom the Department has served,
312	312	not less than thirty (30) days p reviously, a written notice of
313	313	violation of such statutes or rules.
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340	340	1. The written order shall state with specificity the n ature of
341	341	the violation. The Department may impose any disciplinary action
342	342	authorized under the provisions of this section including , but not
343	343	limited to, the assessment of monetary penalties.
344	344	2. Any order issued pursuant to the provisions of this section
345	345	shall become a final order u nless, not more than thirty (30) days
346	346	after the order is served to the licensee, the licensee requests a n
347	347	administrative hearing in accordance with the rules and regulations
348	348	of the Department. Upon such request, the Department shall promptly
349	349	initiate administrative proceedings.
350	350	L. I. Whenever the Department finds that an emergency exists
351	351	requiring immediate a ction in order to protect the health or welfare
352	352	of the public, the Depa rtment may issue an order, without providing
353	353	notice or hearing, stating the ex istence of said emergency and
354	354	requiring that action be taken as the Department deems necessary to
355	355	meet the emergency. Such action may include, but is not limited to,
356	356	ordering the licensee to immediately cease and desist operations by
357	357	the licensee. The order shall be effective immedia tely upon
358	358	issuance. Any person to whom the order is directed shall comply
359	359	immediately with the provisions of the order . The Department may
360	360	assess a penalty not to exceed Ten Thousand Dollars ($10,000 .00) per
361	361	day of noncompliance with the order. In assessing such a penalty,
362	362	the Department shall consider the seriousness of the vio lation and
363	363	any efforts to comply with applicable requirements . Upon
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390	390	application to the Department, the licensee shall be of fered a
391	391	hearing within ten (10) days of the issuance of the order.
392	392	M. J. All hearings held pursuant to this section shall be in
393	393	accordance with the Oklahoma Administrative Procedures Act.
394	394	SECTION 2. This act shall become effective November 1, 2022.
395	395
396	396	58-2-8643 GRS 01/03/22

Oklahoma 2022 Regular Session

Oklahoma House Bill HB3728 Compare Versions