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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
HOUSE BILL 3734 By: Fetgatter, Davis, Talley,
and McDugle of the House
and
Rogers of the Senate
COMMITTEE SUBSTITUTE
An Act relating to medical marijuana; amending 63
O.S. 2021, Sections 421, 422, 423, and 424, which
relate to licensing requirements for medical
marijuana dispensaries, commercial growers,
processors, and transporters; providing for temporary
and annual licenses; providing statutory references
for fees; updating language; amending 63 O.S. 2021,
Sections 427.14 and 427.16, which relate to the
Oklahoma Medical Marijuana and Patient Protection
Act; creating temporary and annual licensing program
for certain medical marijuana businesses; stating
conditions for temporary licenses; requiring
adherence to certain rules and regulations;
clarifying obligations of the Ok lahoma Medical
Marijuana Authority when issuing temporary licenses;
stating length of term of temporary licenses;
providing for extensions under certain circumstances;
establishing fees for temporary licenses and
extensions; requiring submission of certain
information to the Authority; authorizing re jection
of applications; clar ifying circumstances that allow
for the issuance of annual medical marijuana busin ess
licenses; updating language; creating temporary
licensing program for medical marijuana transporters;
and declaring an emergency .
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BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Sec tion 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, Oklahoma Medical
Marijuana Authority shall make available on its website in an easy-
to-find location an application for a temporary medical marijuana
dispensary license and an annual medical marijuana dispensary
license. The application fee shall be Two Thousand F ive Hundred
Dollars ($2,500.00) fees for the temporary or annual license shall
be paid by the applicant in the amounts provided for in Section
427.14 of this title. A method of payment for the application f ees
shall be provided on the website of the Department Authority.
Dispensary Medical marijuana dispensary applicants must all b e
residents of Oklahoma. Any entity applying for a temporary or
annual medical marijuana dispensary license must be owned by an
Oklahoma resident and must be registered to do business in Oklahoma .
The Department Authority shall have ninety (90) business days to
review the application for a temporary medical marijuana dispensary
license; 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 In addition to the
requirements provided for in the Oklahoma Medical Marijuana and
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Patient Protection Act, the Authority 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 that all members, managers,
and board members are Oklahoma residents;
4. An applying entity may show ownership of non -Oklahoma
residents, but that percentage ownership may not exceed twenty -five
percent (25%);
5. All applying individuals or entities must be regis tered to
conduct business in the State of Oklahoma; and
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 the Department of Corrections or any
person currently incarcerate d shall not qualify for a temporary or
annual medical marijuana dispensary license.
C. Licensed medical marijuana dispensaries shall be required to
complete a monthly sales repor t to the State Department of Health
Authority. This report shall be due on the fifteenth of each month
and provide reporting on the previous month. This report shall
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detail the weight of marijuana purchased at wholesale and the weight
of marijuana sold to licensed medical marijuana patients and
licensed 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 Authority shall have
oversight and auditing responsibilities to ensure that all mariju ana
being grown is accounted for .
D. Only a licensed medical marijuana dispensary may conduct
retail sales of marijuana or marijuana derivatives. Beginning on
the effective date of this act, licensed medica l marijuana
dispensaries shall be authorized to package and sell pre-rolled
marijuana to licensed medical marijuana patients and licensed
caregivers. The products described in this subsection shall contain
only the ground parts of the marijuana plant and shall not include
marijuana concentrates or deri vatives. The total net weight of each
pre-roll packaged and sold by a medical marijuana dispensary shall
not exceed one (1) gram . These products shall be tested, packaged
and labeled in accordance with Okla homa law and rules promulgated by
the State Commissioner of Health Authority.
E. No medical marijuana dispensary shall offer or allow a
medical marijuana patient licensee, care giver licensee or other
member of the public to handle or otherwise have physic al contact
with any medical marijuana not contai ned in a sealed or separate
package. Provided, such prohibition shall not preclude an employee
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of the medical marijuana dispensary from handling loose or
nonpackaged medical marijuana to be placed in packagi ng consistent
with the Oklahoma Medical Marijuan a and Patient Protection Act and
the rules promulgated by the Authority for the packaging of medical
marijuana for retail sale . Provided, further, such prohibition
shall not prevent a medical marijuana dispensary from displaying
samples of its medical mar ijuana in separate display cases, jars or
other containers and allowing medical marijuana patient licensees
and caregiver license es the ability to handle or smell the various
samples as long as the sample med ical marijuana is used for display
purposes only and is not offered for retail sale.
SECTION 2. AMENDATORY 63 O.S. 2021, Section 422, is
amended to read as follows:
Section 422. A. The State Department of Healt h shall, within
thirty (30) days of passage of this initiative, Oklahoma Medical
Marijuana Authority shall make available on its website in an easy-
to-find location an application applications for a temporary medical
marijuana commercial grower license and an annual medical marijuana
commercial grower license . The application fee shall be Two
Thousand Five Hundred Dollars ($2,500.00) fees for the temporary or
annual license shall be paid by the applicant in the amounts
provided for in Section 427.14 of this title. A method of payment
for the application fees shall be provided on the website of the
Department Authority. The State Department of Health Authority
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shall have ninety (90) days to review the application for a
temporary medical marijuana commercial grower license ; 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 Health In addition to the
requirements provided for in the Oklahoma Medical Marijuana and
Patient Protection Act, the Authority 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 that all members, managers,
and board members are Oklahoma residents;
4. An applying entity may show ownership o f non-Oklahoma
residents, but that percentage ownership may not exceed twenty -five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma; and
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 felony conviction in the last five (5) years,
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inmates in the custody of the Department of Corrections or any
person currently incarcerated shall not qualify for a temporary or
annual medical marijuana commercial grower license.
C. A licensed medical marijuana commercial grower may sell
marijuana to a licensed medical marijuana dispensary or a licensed
medical marijuana processor. Further, sales by a licensed medical
marijuana commercial grower shall be considered wholesale sales and
shall not be subject to taxation. Under no circumstances may a
licensed medical marijuana commercial grower sell marijuana directly
to a licensed medical marijuana patient or licensed medical
marijuana caregiver. A licensed medical marijuana commercial grower
may only sell at the wholesale level to a license d medical marijuana
dispensary, a licensed medical marijuana commercial grower or a
licensed medical marijuana processor. If the federal government
lifts restrictions on buying and selling mariju ana between states,
then a licensed medical marijuana commercial grower would be allowed
to sell and buy marijuana wholesale from, or to, an out-of-state
wholesale provider. A licensed medical marijuana commercial grower
shall be required to complete a monthly yield and sales rep ort to
the State Department of Health Authority. 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 pounds, the amount of drying or dried mari juana on hand, the
amount of marijuana sold to licensed processors in pounds, the
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amount of waste in pounds, and the amount of marijuana sold to
licensed medical marijuana dispensaries in pounds. Additionally,
this report shall show total wholesale sales in dollars. The State
Department of Health Authority shall have oversight and auditing
responsibilities to ensure that all marijuana being grown by
licensed medical marijuana commercial growers is accounted for.
D. There shall be no limits on how much ma rijuana a licensed
medical marijuana commercial grower can grow.
E. Beginning on the effective date of this act, licensed
medical marijuana commercial growers shall be authorized to package
and sell pre-rolled marijuana to licensed medical marijuana
dispensaries. The products described in this subsectio n shall
contain only the ground parts of the marijuana plant and shall not
include marijuana concentrates or derivatives . The total net weight
of each pre-roll packaged and sold by medical marijuana commer cial
growers shall not exceed one (1) gram . These products must be
tested, packaged and labeled in accordance with Oklahoma law and
rules promulgated by the State Commissioner of Health Authority.
SECTION 3. AMENDATORY 63 O.S. 20 21, 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, Oklahoma Medical
Marijuana Authority shall make available on its website in an easy-
to-find location an application for a temporary medical marijuana
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processor license and an annual medical marijuana processing
processor license. The Department Authority shall be authorized to
issue two types of annual medical marijuana processor licenses based
on the level of risk posed by the type of processing co nducted:
1. Nonhazardous medical marijuana processor license; and
2. Hazardous medical marijuana processor license .
The application fee for a nonhazardous or hazardous medical
marijuana processor license shall be Two Thousand Five Hundred
Dollars ($2,500.00) fees for the temporary or annual license shall
be paid by the applicant in the amounts provided for in Section
427.14 of this title. A method of payment shall be provided on the
website of the Department Authority. The State Department of Health
Authority shall have ninety (90) days to review the temporary
medical marijuana processor license 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 Health Authority 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;
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3. All applying entities must show that all members, managers,
and board members are Oklahoma residents;
4. An applying entity may show ownership of non -Oklahoma
residents, but that percentage ownership may not exceed twenty -five
percent (25%);
5. All applying individuals or entities 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 conviction in the last five (5) years,
inmates in the custody of the Department of Corrections or any
person currently incarcerated shall not qualify for a temporary or
annual medical marijuana processing processor license.
C. 1. A licensed medical marijuana processor may take
marijuana plants and distill or process these plants into
concentrates, edibles, and ot her forms for consumption.
2. As required by subsection D of this section, th e State
Department of Health shall, within sixty (60) days of passage of
this initiative, The Authority shall make available a set of
standards which shall be used by licensed medical marijuana
processors in the preparation of edible marijuana products . The
standards should be in line with current food preparation
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guidelines. No excessive or punitive rules may be established by
the State Department of Health Authority.
3. Up to two times a year, the State Department of Healt h
Authority may inspect a processing o peration and determine its
compliance with the preparation standards. If deficiencies are
found, a written report of the deficiency shall be issued to the
licensed medical marijuana processor. The licensed medical
marijuana processor shall have one (1) month to correct the
deficiency or be subject to a fine of Five Hundred Dollars ($500.00)
for each deficiency.
4. A licensed medical marijuana processor may sell mariju ana
products it creates to a license d medical marijuana dispensary or
any other licensed medical marijuana processor. All sales by a
licensed medical marijuana processor shall be considered wholesale
sales and shall not be subject to taxation.
5. Under no circumstances may a licensed medical marijuana
processor sell marijuana or a ny marijuana product directly to a
licensed medical marijuana patient or licensed medical marijuana
caregiver. However, a licensed medical marijuana processor may
process cannabis into a concentrated form for a licensed medical
marijuana patient for a fee.
6. Licensed medical marijuana processors shall be required to
complete a monthly yield and sales report to the State Department of
Health Authority. This report shall be due on the fifteenth of each
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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 Authority shall have
oversight and auditing responsibilities to ensure that all marijuana
being processed is accounted for.
D. The Department Authority shall oversee the inspection and
compliance of licensed medical marijuana processors producing
products with marijuana as an additive. The State Department of
Health Authority shall be compelled to, within thirty (30) days of
passage of this initiative, appoint twelve (12) Oklahoma res idents
to the Medical Marijuana Advi sory Council, who are marijuana
industry experts, to create a list of food safety standards for
processing and handling medical marijuana in Oklahoma . These
standards shall be adopted by the Department Authority and the
Department Authority may enforce these standards for licensed
medical marijuana processors. The Department Authority shall
develop a standards review procedure and these standards can be
altered by calling another council of twelve (12) Oklahoma marijuan a
industry experts. A signed letter of twenty operating, licensed
processors shall constitute a need for a new council and standards
review.
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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 424, is
amended to read as follows:
Section 424. A. A temporary medical marijuana transporter
license or an annual medical marijuana transportation transporter
license will shall be issued to qualifying a pplicants for a medical
marijuana retail dispensary, growing medical marijuana commercial
grower, or processing medical marijuana processor license. The
transportation temporary or annual medical marijuana transporter
license will shall be issued at the time of approval of a retail,
growing the temporary or annual medical marijuana dispensary,
medical marijuana commercial grower, or processing medical marijuana
processor license. The fees for the temporary or annual license
shall be paid by the applicant in the amounts provided for in
Section 427.14 of this title.
B. A transportation medical marijuana transporter license will
shall allow the holder to transport medical marijuana from an
Oklahoma licensed Oklahoma-licensed medical marijuana retailer
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dispensary, licensed growing medical marijuana commercial grower
facility, or licensed medical marijuana processor facility to an
Oklahoma licensed Oklahoma-licensed medical marijuana retailer
dispensary, licensed growing medical marijuana commercial grower
facility, or licensed medical marijuana processing facility.
C. All medical marijuana or medical marijuana products shall be
transported in a locked containe r and clearly labeled “Medical
Marijuana or Derivati ve”.
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 medical
marijuana business license, which shall include the following
categories:
1. Medical marijuana commercial grower;
2. Medical marijuana processor;
3. Medical marijuana dispensary;
4. Medical marijuana transporter; and
5. Medical marijuana testing laboratory.
B. The Oklahoma Medical Marijuana Authority, with the aid of
the Office of Management and Enterprise Services, shall de velop a
website for medical marijuana business license applications.
C. The Authority shall make available on its website in an
easy-to-find location, applications for a temporary medical
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marijuana business licens e and annual medical marijuana business
license.
D. The annual, nonrefundable appli cation fee for a medical
marijuana business license shall be Two Thousand Five Hundred
Dollars ($2,500.00) Upon the effective date of this act , the
Authority shall require all persons or entities seeking initial
licensure as a medical marijuana commercial grower, medical
marijuana processor, medical marijuana dispensary, or medical
marijuana transporter to first apply for a temporary medical
marijuana business license.
1. A temporary medical marij uana business license is a
conditional license and does not authorize the licensee to conduct
any sales of medical marijuana or marijuana products , the growing or
processing of marijuana , or the transportation of any medical
marijuana or marijuana products by the licensee. A temporary
medical marijuana business licensee shall follow all applicable
rules and regulations promulgated by the Authority .
2. A temporary medical marijuana business license does not
obligate the Authority to issue an annual medical mariju ana business
license nor does the temporary medical marijuana business license
create a vested right in the holder to either an extension of the
temporary medical marijuana business license or to the granting of a
subsequent annual medical marijuana business license.
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3. A temporary medical marijuana business license issued under
the provisions of this subsection shall be valid for one hundred
eighty (180) days from its effective date.
4. A temporary medical marijuana business license may be
extended by the Authority for additional ninety-day periods not to
exceed eighteen (18) months if:
a. an application for an annual license has been
submitted to the Authority prior to the initial
expiration date of the temporary medical marijuana
business license, and
b. the Authority determines that the application and
required documentation submitted by the applicant for
an annual medical marijuana business license is
deficient in some manner .
5. The nonrefundable application fee for a t emporary medical
marijuana business license shall be One Thousand Dollars
($1,000.00). A nonrefundable fee of One Thousand Dollars
($1,000.00) shall be assessed for every ninety-day extension
requested by the holder of a temporary medical marijuana busine ss
license and subsequently granted by the Authority.
6. In addition to the general requirements provided for in
subsection E of this section, applicants for a temporary medical
marijuana business license or applicants applying to renew a medical
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marijuana business license shall submit the following to the
Authority:
a. business-formation documents, which may include, but
not be limited to, articles of incorporatio n,
operating agreements, partnership agreements, and
fictitious business name statements. The applicant
shall also provide all document s filed with the
Oklahoma Secretary of State,
b. financial information pertaining to the operations of
the medical marijuana business, which shall include
the following:
(1) a list of funds belonging to the applic ant held
in savings, checking, or other acc ounts
maintained by a financial institution. The
applicant shall provide for each account, the
name of the financial institution, the address of
the financial institution, account type, account
number, and the amount of money in the account,
(2) a list of loans made to the applicant for the
purposes of applying for or operating a medical
marijuana business. For each loan, the applicant
shall provide the amount of the loan, the date of
the loan, term of the loan, security provided for
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the loan, and the name, address, and phone number
of the lender,
(3) a list of investments made into the medical
marijuana business. For each investment, the
applicant shall provide the amount of the
investment, the date of the investment, term of
the investment, and the n ame, address, and phone
number of the investor,
(4) a list of all monetary gifts, equipment, and
property of any kind given to the applicant for
the purpose of or in exchange for applying for or
operating a medical marijuana business. For each
gift, the applicant shall provide the value or a
description of the gift and the name, address,
and phone number of the provider of the gift ,
(5) a complete list of every individual who has a
financial interest in the medical marijuana
business not otherwise disclosed in di visions (1)
through (4) of this subparagraph, along with a
description of the financial interest, and
(6) whether the applicant has an ownership or a
financial interest in any other medical marijuana
business licensed under the provisions of the
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Oklahoma Medical Marijuana and Patient Protection
Act,
c. a complete and detailed diagram of the proposed
premises. If changes to the proposed premises occur
during the application period, a revised set of plans
shall be submitted to the Authority for final
inspection. The diagram shall be to scale and shall
show the following:
(1) boundaries of the property and the proposed
premises to be licensed, showing all boundaries,
dimensions, entrances and exits, interior
partitions, walls, rooms, windows, doorways, and
common or shared ent ryways, and shall include a
brief statement or description of the principal
activity to be conducted therein,
(2) the location of medical marijuana business
activities that will take place in each area of
the premises, and limited-access areas,
(3) where all cameras are located and a number
assigned to each camera for identification
purposes, and
(4) if the proposed premises consists of only a
portion of the property, labels indicating which
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part of the property is the proposed premises and
what the remaining prope rty is used for,
d. if the applicant is not the landowner of the real
property upon which the premises is located, the
applicant shall provide to the Authority a document
from the landowner or the agent of the landowner that
states that the applicant has t he right to occupy the
property and acknowledging the applica nt may use the
property for the medical marijuana business activity
for which the applicant is applying for licensure. An
applicant shall also provide a copy of the rental
agreement, as applicab le,
e. if the applicant is the landowner of the real property
upon which the premises is located, the applicant
shall provide to the Authority a copy of the title or
deed to the property,
f. if the applicant is applying for a medical marijuana
commercial grower license, the applicant shall also
submit the following:
(1) for indoor and mixed light cultivation,
identification of all pow er sources for
cultivation activities including, but not limited
to, illumination, heating, cooling, and
ventilation,
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(2) if the applicant is proposing to use a diversion
from a waterbody, groundwater well, or rain
catchment system as a water source for
cultivation include the following locations on
the property diagram with locations also provided
as coordinates in either lati tude and longitude
or the Oklahoma Coordinate System:
(a) sources of water used including the location
of waterbody diversion , pump location, and
distribution system, and
(b) location, type, and capacity of each storage
unit to be used for cultivation , and
(3) a proposed cultivation plan, which shall include
identification of all water sources used for
cultivation activities , and
g. evidence of insurance including, but not limited to:
(1) general liability insurance,
(2) workers’ compensation insurance or a copy of an
Affidavit of Exempt St atus filed with the
Workers’ Compensation Commission if compensation
coverage is not required pu rsuant to the
Administrative Workers’ Compensation Act, and
(3) product liability insurance.
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7. The Authority may request additional information from the
applicant.
8. The Authority may reject an application for an annual
medical marijuana business license if the requirements for a
temporary medical marijuana business license or any provision of the
Oklahoma Medical Marijuana and Patient Protection Act are not
satisfied.
For purposes of this subsection, “financial interest” shall
include any contractual agreements for pro fit-sharing,
subcontracting, or similar financial arrangements; provided, that
such disclosures alone shall not automatically indicate ownership of
the license or require disclosure as an owner of the lic ense.
E. All applicants seeking licensure or licensure renewal as a
medical marijuana business shall comply with the following general
requirements:
1. All applications for licenses and registrations authorized
pursuant to this section shall be made upon forms prescri bed by the
Authority;
2. Each application shall identify the city or county in which
the applicant seeks to obtain licensure as a medical marijuana
business;
3. Applicants shall submit a complete application to the
Department Authority before the application may b e accepted or
considered;
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4. All applications shall be complete and accurate in every
detail;
5. All applications shall include all attachments or
supplemental information requi red by the forms supplied by the
Authority;
6. All applications shall be acc ompanied by a full remittance
for the whole amount of the application 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 o r older,
b. if applying as an individual, proof that the applicant
is an Oklahoma resident pursuant to paragraph 11 of
this subsection,
c. if applying as an entity, proof that seventy-five
percent (75%) of all members, 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,
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e. disclosure of all ownership interests pursuant to the
Oklahoma Medical Marijuana and Patient Protection Act,
and
f. proof that the medical marijuana business, medical
marijuana research facility, medical marijuana
education facility and medical marijuana waste
disposal facility applicant or licensee has not been
convicted of a nonviolent 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 Corr ections, 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 indivi dual or entity can
apply for or receive, although each application and each c ategory
shall require a separate application and application fee. A
commercial grower, processor and dispensary, or any combination
thereof, are authorized to share the same addr ess or physical
location, subject to the restrictions set forth i n the Oklahoma
Medical Marijuana and Patient Protection Act;
9. All applicants for a medical marijuana business license,
research facility license or education facility license authorized
by the Oklahoma Medical Marijuana and Patient Protection Act, or for
a renewal of such license, shall undergo an Oklahoma criminal
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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 applying on th eir own behalf,
b. individuals applying on behalf of an entity,
c. all principal officers of an entity, and
d. all owners of an entity as defined by the Oklahoma
Medical Marijuana and Patient Protection Act;
10. All applicable fees charged by the OSBI are the
responsibility of the applicant and shall not be higher than fees
charged to any other person or industry for such background checks;
11. In order to be considered an Oklaho ma resident for purposes
of a medical marijuana business application, all app licants shall
provide proof of Oklahoma residency for at least two (2) years
immediately preceding the date of application or five (5) years of
continuous Oklahoma residency durin g the preceding twenty-five (25)
years immediately preceding the date of appl ication. Sufficient
documentation of proof of residency shall 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,
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d. a residential property deed to property in the State
of Oklahoma, and
e. a rental agreement preceding the date of application
for residential property located in the State of
Oklahoma.
Applicants that were issued a medic al 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 applicant s shall be required to submit a
registration with the Oklahoma State Bureau o f Narcotics and
Dangerous Drugs Control as provided in Sections 2-302 through 2-304
of this title;
13. All applicants shall establish their identity through
submission of a color copy or digital image of one of the following
unexpired documents:
a. front of an Oklahoma driver license,
b. front of an Oklahoma identification 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 Ok lahoma Department of
Public Safety; and
14. All applicants shall submit an applicant photograph.
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F. The Authority shall review the temporary medical marijuana
business license application; approve, reject or deny the
application; and mail the approval, rejection , denial or status-
update letter to the applicant within ninety (90) business days of
receipt of the application.
G. 1. The Authority shall review the temporary medical
marijuana business license applications and conduct all
investigations, inspections and intervie ws before approving the
application for an annual medical marijuana business license.
2. The annual, nonrefundable application fee for a medical
marijuana business license shall b e One Thousand Five Hundred
Dollars ($1,500.00).
3. Approved applicants sha ll be issued a an annual 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 r ejection or denial.
Applications for an annual medical marijuana business license may
only be rejected or denied based on the applicant not meeting the
standards set forth in the provisions of subsection D of this
section for a temporary medical marijuana business license, the
provisions of the Oklahoma Medical Marijuana and Patient Protection
Act and Sections 420 through 426.1 of this title, improper
completion of the application, or for a reason provided for i n the
Oklahoma Medical Marijuana and Patient Protection Act and Sections
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420 through 426.1 of this title. If an application for an annual
medical marijuana business license is rejected for failure to
provide required information, the applica nt shall have thirty (30)
days be granted an extension of time as provided for in paragraph 4
of subsection D of this section to submit the required information
for reconsideration. No additional application fee and shall be
charged for such reconsideration assessed a nonrefundable fee of One
Thousand Dollars ($1,000.00) for every ninety-day extension
requested by the applic ant and subsequently grante d by the
Authority. Unless the Department determines otherwise, an
application that has been resubmitted but is st ill incomplete or
contains errors that are not clerical or typographical in nature
shall be denied.
3. 4. Status-update letters shall provid e 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.
4. 5. Approval, rejection, denial or status-update letters
shall be sent to the applicant in the same method the application
was submitted to the Department Authority.
6. Medical marijuana businesses issued a medical marijuana
business license prior to the effe ctive date of this act shall be
required to submit business-formation documents, financial
information, and insurance information pertaining to th e operations
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of the medical marijuana business, as prescribed in subparagraphs a,
b, c, d, and g of paragraph 6 of subsection D of this section, to
the Authority upon renewal of the medical marijuana business
license. The medical marijuana business licens ee shall have ninety
(90) days after the date of renewal to submit the required
documentation to the Authority. The medical marijuana business
licensee shall be authorized t o continue operations during the
ninety-day period; provided, that if the medical marijuana business
licensee fails to submit the required documentation prior to the
expiration of the ninety-day period, the license of the medical
marijuana business shall b e suspended until such time as the
documentation is submitted to the Authority .
7. Medical marijuana businesses that have been issued a
temporary and annual medical marijuana business license pursuant to
the provisions of subs ection D of this section shal l be required to
annually submit updated business-formation documents, financial
information, and insurance information pertaining to the o perations
of the medical marijuana business, as prescribed in subparagraphs a,
b, c, d, and g of paragraph 6 of subsection D of this section, to
the Authority when seeking renewal of the medical marijuana business
license.
H. A license for a medical marijuana business, medical
marijuana research facility, medical marijuana educati on facility or
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medical marijuana waste disposal facility shall not be issued to or
held by:
1. A person until all required fees have been paid;
2. A person who has been c onvicted of a nonviolent felony
within two (2) years of the date of application, 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 nonviolent felony
within two (2) years of t he date of applicatio n, or within five (5)
years for any other felony;
4. A person under twenty-five (25) years of age;
5. A person licensed pursuant to this section w ho, during a
period of licensure, or who, at the time of application, has failed
to:
a. file taxes, interest or penalties due related to a
medical marijuana business, or
b. pay taxes, interest or penalties due related to a
medical marijuana business;
6. A sheriff, deputy sheriff, police officer or prosecuting
officer, or an officer or emplo yee 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
Authority; or
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8. A person who was involved in the management or operations of
any medical marijuana business, me dical marijuana 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 revoked, not renewed, or
surrendered during the fi ve (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, medical marijuana
patient licensees, caregiver li censees 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 Authority,
e. knowingly or intentiona lly refusing to permit the
Department Authority access to premises or records,
f. using a prohibited, hazardous substance for processing
in a residential area,
g. criminal acts relating to the o peration of a medical
marijuana business, or
h. any violations that endanger public health and safety
or product safety.
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I. In investigating the qualifications of an applicant or a
licensee, the Department, Authority and municipalities may have
access to criminal history record information furni shed 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 Autho rity deadline may be grounds for
denial of the application.
K. All applicants and licensees shall submit information to the
Department and Authority in a full, faithful, truthful and fair
manner. The Department and Authority may recommend denial of an
application where the applicant or licensee made misstatements,
omissions, misrepresentations or untruths in the application or in
connection with the background investigation of the applicant. This
type of conduct may be grounds for administrative action a gainst the
applicant or licensee. Typos and scrivener errors shall not be
grounds for denial.
L. A licensed medical marijuana business premises shall be
subject to and responsible for compliance with applicable provisions
consistent with the zoning where such business is located as
described in the most recent versions of the Oklahoma Uniform
Building Code, the International Building Code and the International
Fire Code, unless granted an exemption by a municipality or
appropriate code enforcement entity .
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M. All medical marijuana busine ss, medical marijuana research
facility, medical marijuana edu cation facility and medical marijuana
waste disposal facility licensees shall pay the relevant licensure
fees prior to receiving licensure to operate.
N. A medical marijuana business, medical m arijuana research
facility, medical marij uana education facili ty or medical marijuana
waste disposal facility that attempts to renew its license after the
expiration date of the license shall pay a late renewal fee in an
amount to be determined by the Department Authority to reinstate the
license. Late renewal fees are nonrefundable. A license that has
been expired for more than ninety (90) days shall not be renewed.
O. No medical marijuana business, medical marijuana res earch
facility, medical marijuana education facility or medical marijuana
waste disposal facili ty shall possess, sell or transfer medical
marijuana or medical marijuana products without a valid, unexpired
license issued by the Department Authority.
SECTION 6. AMENDATORY 63 O.S. 2021, Section 427.16 , is
amended to read as fo llows:
Section 427.16. A. There is hereby created a medical marijuana
transporter license as a category of the medical marijuana b usiness
license.
B. Pursuant to Section 424 of this title, the Oklahoma Medical
Marijuana Authority shall issue a temporary and an annual medical
marijuana transporter license to licensed medical marijuana
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commercial growers, licensed medical marijuana processors, and
licensed medical marijuana dispensaries upon issuance of such
licenses and upon each renew al. Medical marijuana transporter
licenses shall also be issued to licensed medical marijuana research
facilities, licensed medical marijuana education facilities and
licensed medical marijuana testing laboratories upon issuance of
such licenses and upon each renewal.
C. A temporary or annual medical marijuana transporter license
may also be issued to qualifying applicants who are registered with
the Oklahoma Secretary of State and otherwise meet the requirements
for a medical marijuana business license s et forth in Section 427.14
of this title, the Oklahoma Medical Marijuana and Patient Protection
Act, and the requirements set forth in this section to provide
logistics, distribution and storage of medical marijuana, medical
marijuana concentrate and medic al marijuana products.
D. A medical marijuana transporter license shall be valid for
one (1) year and shall not be transferred with a change of
ownership. A licensed medical marijuana transporter shall be
responsible for all medical marijuana, medical marijuana concentrate
and medical marijuana products once the transporter takes control of
the product.
E. A transporter license shall be required for any person or
entity to transport or transfer medical marijuana, medical marijuana
concentrate or medical marijuana products from a licensed medical
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marijuana business to another medical marijuana business, or from a
medical marijuana business to a medical marijuana researc h facility
or medical marijuana education facility.
F. A medical marijuana transporter licensee may contract with
multiple licensed medical marijuana businesses.
G. A medical marijuana transporter may maintain a licensed
premises to temporarily store med ical marijuana, medical marijuana
concentrate and medical marijuana products and to use as a
centralized distributio n point. A medical marijuana transporter may
store and distribute medical marijuana, medical marijuana
concentrate and medical marijuana products from the licensed
premises. The licensed premises shall meet all security
requirements applicable to a medic al marijuana business.
H. A medical marijuana transporter licensee shall use the seed-
to-sale tracking system developed pursuant t o the Oklahoma Medical
Marijuana and Patient Protection Act to create shipping manifests
documenting the transport of medical marijuana, medical marijuana
concentrate and medical marijuana products throughout the state.
I. A licensed medical marijuana transporter may maintain and
operate one or more warehouses in the state to handle medical
marijuana, medical marijuana concentrate and medical marijuana
products. Each location shall be registered and inspected by the
Authority prior to its use .
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J. With the exception of a lawful transfer between medical
marijuana businesses who are licensed to operate at the same
physical address, all medical marijuana, medical marijuana
concentrate and medical marijuana products shall be transported:
1. In vehicles equipped with G lobal Positioning System (GPS)
trackers;
2. In a locked container and clearly labeled “Medical Marijuana
or Derivative”; and
3. In a secured area of the vehicle that is not accessible by
the driver during transit.
K. A transporter agent may possess mari juana at any location
while the transporter agent is transferring marijuana to or from a
licensed medical marijuana business, licensed medical marijuana
research facility or licensed medical marijuana education facility.
The Department shall administer an d enforce the provisions of this
section concerning transportation.
L. The Authority shall issue a transporter agen t license to
individual agents, employees, officers or owners of a transporter
license in order for the individual to qualify to transport m edical
marijuana, medical marijuana concentrate or medical marijuana
products.
M. The annual fee for a transporter agent license shall be
Twenty-five Dollars ($25.00) and shall be paid by the transporter
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license holder or the individual applicant . Transporter license
reprints shall be Twenty Dollars ($20.00).
N. The Authority shall issue e ach transporter agent a regi stry
identification card within thirty (30) days of receipt of:
1. The name, address and date of birth of the person;
2. Proof of current Oklahoma residency;
3. Proof of identity as required for a medical marijuana
business license;
4. Possession of a valid Oklahoma driver license;
5. Verification of employment with a licensed transporter;
6. The application and affiliated fee; and
7. A copy of the criminal background check conducted by the
Oklahoma State Bureau of Investi gation, paid for by the applicant.
O. If the transporter agent application is denied, the
Department shall notify the transporter in writing of the reason for
denying the registry identification card.
P. A registry identification card for a transporter s hall
expire one (1) year after the date of issuance or upon notification
from the holder of the transporter license that the transporter
agent ceases to work as a trans porter.
Q. The Department Authority may revoke the registry
identification card of a transporter agent who knowingly violates
any provision of this section, and the transporter is subject to any
other penalties established by law for the violation.
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R. The Department Authority may revoke or suspend the
transporter license of a transporter that the Department Authority
determines knowingly aided or facilitated a violation of any
provision of this section, and the license holder is subject to any
other penalties established in law for th e violation.
S. Vehicles used in the transport of medical marijuana or
medical marijuana product shall be:
1. Insured at or above the legal requirements in Oklahoma;
2. Capable of securing medical marijuana during transport; and
3. In possession of a s hipping container as defined in Section
427.2 of this title capable of securing all tran sported products.
T. Prior to the transport of any medical marijuana, medical
marijuana concentrate or medical marijuana products, an inventory
manifest shall be prepa red at the origination point of the medical
marijuana. The inventory manifest shall inc lude the following
information:
1. For the origination point of the medical marijuana:
a. the licensee number for the commercial grower,
processor or dispensary,
b. address of origination of transport, and
c. name and contact information for the originati ng
licensee;
2. For the end recipient license holder of the medical
marijuana:
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a. the license number for the dispensary, commercial
grower, processor, research facilit y or education
facility destination,
b. address of the destination, and
c. name and contact information for the destination
licensee;
3. Quantities by weight or unit of each type of medical
marijuana product contained in transport;
4. The date of the transport and the approximate time of
departure;
5. The arrival date and estimated time of arrival;
6. Printed names and signatures of the personnel accompanying
the transport; and
7. Notation of the transporting licensee.
U. 1. A separate inventory mani fest shall be prepared for each
licensee receiving the medical marijuana.
2. The transporter agent shall provide the other medical
marijuana business with a copy of the inventory manifest at the time
the product changes hands and after the other licensee prints his or
her name and signs the inventory manifest.
3. A receiving licensee sh all refuse to accept any medical
marijuana, medical marijuana concentrate or medical marijuana
products that are not accompanied by an inventory manifest.
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4. Originating and receiving licensees shall maintain copies of
inventory manifests and logs of qua ntities of medical marijuana
received for seven (7) years from date of receipt.
SECTION 7. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof th is act shall take effect and
be in full force from and after its passage and approval.
58-2-3819 MR 4/13/2022 6:08:49 PM