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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
CONFERENCE COMMITTEE
SUBSTITUTE
FOR ENGROSSED
HOUSE BILL NO. 3734 By: Fetgatter, Davis, Talley,
and McDugle of the House
and
Rogers of the Senate
CONFERENCE COMMITTEE SUBSTITUTE
An Act relating to medical marijuana; amending 63
O.S. 2021, Sections 421, 422, 423 and 424, wh ich
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 Oklahoma Medical
Marijuana Authority when issuing temporary licenses;
stating length of term of tempora ry licenses;
providing for extensions under certain circumstances;
establishing fees for tempo rary licenses and
extensions; requiring submission of certain
information to the Authority; prohibiting issuance of
license until certain inspections are complete d;
authorizing rejection of applications; defining term;
clarifying circumstances that allow f or the issuance
of annual medical marijuana business licenses;
requiring current licensees to submit certain
documentation prior to renewal; establishing
timelines and procedures; requiring person issued a
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temporary and annual license to annually submit
certain documentation when seeking renewal of the
license; updating language; creating temporary
licensing program for medical marijuana transporters;
and declaring an emergency.
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, 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 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.
Dispensary Medical marijuana dis pensary applicants must all be
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
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license; approve, reject or deny the application; and mai l the
approval, rejection or denial letter stating 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 Autho rity 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, 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 e ntities must be registered 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
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person currently incarcerated shall not qualify for a temporary or
annual medical marijuana dispensary license.
C. Licensed medical marijuana dispensaries shall be r equired to
complete a monthly sales report 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 weight of marijuana purchased at who lesale 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 Heal th Authority shall have
oversight and auditing responsibilities to ensure that all marijuana
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 medical marijuana
dispensaries shall be authorized to packa ge 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 derivativ es. 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, pac kaged
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and labeled in accordance with Oklahoma 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, caregiver licensee or other
member of the public to handle or otherwise have physical contact
with any medical marijuana not contained i n a sealed or separate
package. Provided, such prohibition shall not preclude an employee
of the medical marijuana dispensary from handling loose or
nonpackaged medical marijuana to be placed in packaging consistent
with the Oklahoma Medical Marijuana 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 marijuan a in separate display cases, jars or
other containers and allowing medical marijuana patient licensees
and caregiver licensees the ability to handle or smell the various
samples as long as the sample medical 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 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 applications for a temporary medical
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marijuana commercial grower license and an annual medical marijuana
commercial grower license. The applicatio n 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
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 Author ity 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 appl ying 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;
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4. An applying entity may show ownership of non -Oklahoma
residents, but that per centage ownership may not exceed twenty -five
percent (25%);
5. All applying individuals or en tities must be registered to
conduct business in the State of Oklahoma; and
6. All applicants must disclose all ownership interests in the
commercial grower oper ation.
Applicants with a nonviolent felony conviction in the last two
(2) years, any other fel ony 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 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 t axation. 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 licensed medical marijuana
dispensary, a licensed medical marijuana commercial grower or a
licensed medical marijuana processor. If the fe deral government
lifts restrictions on buying and selling marijuana between states,
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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 report t o
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 sha ll detail the amount of marijuana harvested
in pounds, the amount of drying or dried marijuana on hand, the
amount of marijuana sold to licensed processors in pounds, the
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 do llars. 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 marijua na a licensed
medical marijuana commercial grower can grow.
E. Beginning on the effective date of this act, licensed
medical marijuana commercial growers shall b e authorized to package
and sell pre-rolled marijuana to licensed medical marijuana
dispensaries. The products described in this subsection shall
contain only the ground parts of the marijuana plant and shall not
include marijuana concentrates or derivati ves. The total net weight
of each pre-roll packaged and sold by medical marijuana commercial
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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. 2021, S ection 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
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 conducted:
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
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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 criteri a:
1. The applicant must be twenty -five (25) years of age or
older;
2. The applicant, if app lying 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 Oklaho ma residents;
4. An applying entity may show ownership of non -Oklahoma
residents, but that pe rcentage ownership may not exceed twenty -five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklah oma; 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 D epartment of Corrections or any
person currently incarcerated shall not qualify for a temporary or
annual medical marijuana processing processor license.
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C. 1. A licensed medical marijuana processor may take
marijuana plants and distill or process these plants into
concentrates, edibles, and other forms for consumption.
2. As required by subsect ion D of this section, the 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 edib le marijuana products. The
standards should be in line with current food preparation
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 Health
Authority may inspect a processing operation and determine its
compliance with the preparation standards. If deficiencies are
found, a written report of the deficie ncy 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 marijuana
products it creates to a licensed 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.
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5. Under no circumstances may a licensed medical marijuana
processor sell marijuana or any 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
month and shall provide report ing 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 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 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 resident s
to the Medical Marijuana Advisory Council, who are marijuana
industry experts, to create a list of food safety standards for
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processing and handling medical mar ijuana 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 t hese standards can be
altered by calling another council of twelve (12) Oklahoma marijuana
industry experts. A signed letter of twenty operating, licensed
processors shall constitute a need for a new council and standards
review.
E. If it becomes permiss ible 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, manufactu rer or
individual may be unduly harassed or prosecuted for selling,
manufacturing or possessin g 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 applicants for a medical
marijuana retail dispensary, growing medical marijuana commercial
grower, or processing medical marijuana processor license. The
transportation temporary or annual medical marijuana tran sporter
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license will shall be issued at the time of approval of a retail,
growing the temporary or annual medical marijuana dispensary,
medical marijuana commerci al grower, or processing medical marijuana
processor license. The fees for the temporary or a nnual 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 medical marijuana retailer dispensary, licensed
growing medical marijuana commercial grower facility, or licensed
medical marijuana processor facility to an 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 contain er and clearly labeled "Medical
Marijuana or Derivative".
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;
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3. Medical marijuana dispensary;
4. Medical marijuana transporter; and
5. Medical marijuana testing laboratory.
B. The Oklahoma Medical M arijuana 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
marijuana business license and annual medical marijuana business
license.
D. The annual, nonrefundable application 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 licensure as
a medical marijuana commercial grower, medical marijuana processor,
medical marijuana dispensary, or medical marijuana transporter to
first apply for a tempora ry medical marijuana business license.
1. A temporary medical marijuana 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 tempo rary
medical marijuana business licensee shall follow all applicable
rules and regulations promulgated by the Authority.
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2. A temporary medical marijuana busines s license does not
obligate the Authority to issue an annual medical marijuana 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.
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 dat e.
4. A temporary medical marijuana business license may be
extended by the Authority for add itional 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 temporary 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
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requested by the holder of a temporary medical marijuana business
license and subsequently granted by the Authori ty.
6. In addition to the general requirements provided for in
subsection E of this section, persons or entities applying for a
temporary medical marijuana busin ess license or applying to renew a
medical marijuana business license shall submit the followi ng to the
Authority:
a. business-formation documents, which may include, but
not be limited to, articles of incorporation,
operating agreements, partnership agree ments, 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 applicant 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,
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(2) a list of loans made to the applicant. For each
loan, the applicant shall provide the amount of
the loan, the date of the loan, term of the loan,
security provided for th e 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 name, address, and phone
number of the investor, and
(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,
c. a complete list of every individual who has a
financial interest in the medical marijuana business
who is not an owner of the medical marijuana business,
d. whether the applicant has an ownership or a financial
interest in any other medical marijuana business
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licensed under the provisions of the Oklahoma Medical
Marijuana and Patient Protection Act,
e. a complete and detailed diagram of the proposed
premises. If changes to the proposed premises oc cur
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, showin g all boundaries,
dimensions, entrances and exits, interior
partitions, walls, rooms, windows, doorways, and
common or shared entryways, 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 numb er
assigned to each camera for identification
purposes, and
(4) if the proposed premises consi sts 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 property is used for,
f. 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 the right to occupy the
property and acknowledging the applicant 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 applicable,
g. 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,
h. if the applicant is applying for a medical marijuana
commercial grower license, the applic ant shall also
submit the following:
(1) for indoor and mixed light cultivation,
identification of all power sources for
cultivation activities including, but not limited
to, illumination, heating, cooling, and
ventilation,
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(2) if the applicant is proposin g to use a diversion
from a waterbody, groundwater well, or rain
catchment system as a water s ource for
cultivation, include the following locations on
the property diagram with locations also provided
as coordinates in either latitude and longitude
or the Oklahoma Coordinate System:
(a) sources of water used, including the
location of waterbody di version, 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
i. evidence of insurance including, but not limited to:
(1) general liability insurance,
(2) workers' compensation insurance or a copy of an
Affidavit of Exempt Status filed with the
Workers' Compensation Commission if compensation
coverage is not required pursuant 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 bu siness license if the requirements for a
temporary medical marijuana business license or any provision of the
Oklahoma Medical Marijuana and Patient Protection Ac t are not
satisfied.
9. For purposes of this subsection, "financial interest"
concerning a medical marijuana business shall include any
contractual agreements for profit sharing, subcontracting, or
similar financial arrangements; provided, that such discl osures
alone shall not automatically indicate ownership of the license or
require disclosure a s an owner of the license .
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 secti on 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 a s a medical marijuana
business;
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3. Applicants shall submit a complete application to the
Department Authority before the application may be accepted or
considered;
4. All applications shall be complete and accurate in every
detail;
5. All applications s hall include all attachments or
supplemental information required by the forms supplied by the
Authority;
6. All applications shall be accompanied 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 or older,
b. if applying as an individual, proof that the applicant
is an Oklahoma resident pursuant to paragraph 11 of
this subsection,
c. if applying as an entity, proof that seventy -five
percent (75%) of all me mbers, managers, executive
officers, partners, board members or any other form of
business ownership are Oklahoma residents pursuant to
paragraph 11 of this subse ction,
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d. if applying as an individual or entity, proof that the
individual or entity is regis tered to conduct business
in the State of Oklahoma,
e. disclosure of all ownership interests pursuant to the
Oklahoma Medical Marijuana and Patient Protection Act ,
and
f. proof that the medical marijuana business, medical
marijuana research facility, medic al 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 inm ate 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 med ical marijuana
business licenses or categories that an individual or entity can
apply for or receive, although each application and each category
shall require a separate application and application fee. A
commercial grower, processor and dispensary, or a ny combination
thereof, are authorized to share the same address or physical
location, subject to the restrictions set forth in the Oklahoma
Medical Marijuana and Patient Protection Act;
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9. All applicants for a medical marijuana business license,
research facility license or education facility license authorized
by the Oklahoma Medical Marijuana a nd 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, includ ing:
a. individual applicants applying on their 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 suc h background checks;
11. In order to be considered an Oklahoma resident for purposes
of a medical marijuana business application, all applicants shall
provide proof of Oklahoma residency for at least two (2) years
immediately preceding the date of applica tion or five (5) years of
continuous Oklahoma residency during the preceding twenty -five (25)
years immediately preceding the date of application. Sufficient
documentation of proof of residency shall include a combination of
the following:
a. an unexpired Oklahoma-issued driver license,
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b. an Oklahoma identification card,
c. a utility bill precedi ng the date of application,
excluding cellular telephone and Internet bills,
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 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 required to submit a
registration with the Oklahoma State Bureau of 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
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d. a tribal identification card app roved for
identification purposes by the Oklahoma Department of
Public Safety; and
14. All applicants shall submit an applicant photograph.
F. The Authority sha ll review the temporary medical marijuana
business license application; approve, reject or den y the
application; and mail the approval, rejection, denial or status -
update letter to the applicant within ninety (90) business days of
receipt of the applicatio n.
G. 1. The Authority shall review the temporary medical
marijuana business license applications and conduct all
investigations, inspections and interviews before approving the
application for an annual medical marijuana business license. The
annual medical marijuana business license shall not be issued until
the Authority determines that all n ecessary inspections and reviews
including, but not limited to, plan reviews, safety inspections or
compliance inspections, have been completed .
2. The annual, nonrefundable application fee for a medical
marijuana business license shall be One Thousand Fi ve Hundred
Dollars ($1,500.00).
3. Approved applicants shall 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 rejection or denial.
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Applications for an annual medical marijuana business license may
only be rejected or denied based on the applicant not meet ing 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, impr oper
completion of the application, or for a reason provided for in the
Oklahoma Medical Marij uana and Patient Protection Act and Sections
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 applicant 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 applica tion 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 applicant and subsequently granted by the
Authority. Unless the Department determines o therwise, an
application that has been resubmitted but is still incomplete or
contains errors that are not clerical or typographical in nature
shall be denied.
3. 4. Status-update letters shall provide a reason for delay in
either approval, rejection or d enial should a situation arise in
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which an application was submitted 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 m arijuana
business license prior to the effective date of this act shall be
required to submit business -formation documents, financial
information, and insurance i nformation pertaining to the operations
of the medical marijuana business, as prescribed in su bparagraphs a,
b, c, d, e, f, and i of paragraph 6 of subsection D of this section,
to the Authority prior to renewal of the medical marijuana business
license. The medical marijuana business licensee shall submit the
required documentation not less than sixty (60) days prior to the
date of renewal of the medical marijuana business license. The
Authority shall have thirty (30) days to review the submitted
documentation and an additional thirty (30) days immediately
thereafter for purposes of resolving any inconsistencies,
discrepancies, or disputed issues found within the submitted
documentation. If the medical marijuana business licensee fails to
submit the required documentation sixty (60) days prior to the date
of renewal, the license of the medical ma rijuana business shall be
suspended until such time as the documentation is submitted to the
Authority.
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7. Medical marijuana businesses that have been issued a
temporary and annual medical marijuana business license pursuant to
the provisions of subsectio n D of this section shall be required to
annually submit updated business -formation documents, financial
information, and insurance information pertaining to the operations
of the medical marijuana business, as prescribed in subparagraphs a,
b, c, d, e, f, and i 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 medica l marijuana business, medical
marijuana research facility, medical marijuana education facilit y or
medical marijuana waste disposal facility shall not be issued to or
held by:
1. A person until all required fees have been paid;
2. A person who has been c onvicted of a nonviolent felony
within two (2) years of the date of application, or within fiv e (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 the date of application, or within five (5)
years for any other felony;
4. A person under twenty -five (25) years of age;
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5. A person licensed pursuant to this section who, during a
period of licensure, or who, at the time of application, has failed
to:
a. file taxes, interest or penalties due related to a
medical marijuana business, or
b. pay taxes, interest or penalties due related to a
medical marijuana business;
6. A sheriff, deputy sheriff, police officer or prosecuting
officer, or an officer or 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
Authority; or
8. A person who was involved in the management or operations of
any medical marijuana b usiness, medical marijuana research facility,
medical marijuana education facility or medical marijuana waste
disposal facility that, after the initiation of a di sciplinary
action, has had a medical marijuana license revoked, 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, medical marijuana
patient licensees, c aregiver licensees or medical
marijuana business licensees,
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c. any grossly inaccurate or fraudulent reporting,
d. threatening or harming any medical marijuana pat ient,
caregiver, medical practitioner or employee of the
Department Authority,
e. knowingly or intentionally 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 operation of a medical
marijuana business, or
h. any violations that endanger public health and safety
or product safety.
I. In investigating the qualifications of an applicant or a
licensee, the Department, Authority and municipalities may have
access to criminal history record information 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 Authority deadline may be grounds for
denial of the application.
K. All applicants and l icensees shall submit information to the
Department and Authority in a full, faithful, truthful and fair
manner. The Department and Authority may recommend denia l of an
application where the applicant or licensee made misstatements,
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omissions, misrepresen tations or untruths in the application or in
connection with the background investigation of the applicant. This
type of conduct may be grounds for administrativ e action against the
applicant or licensee. Typos and scrivener errors shall not be
grounds for denial.
L. A licensed medical marijuana business premises shall be
subject to and responsible for compliance with applicable provisions
consistent with the zo ning where such business is located as
described in the most recent versions of the Oklahoma U niform
Building Code, the International Building Code and the International
Fire Code, unless granted an exemption by a municipality or
appropriate code enforceme nt entity.
M. All medical marijuana business, medical marijuana research
facility, medical ma rijuana education 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 marijuana research
facility, medical marijuana educa tion facility or medical marijuana
waste disposal facility that attempts to renew its license after the
expiration date of the license shall pay a late renewal fe e 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.
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O. No medical marijuana business, medical mar ijuana research
facility, medical marijuana education facility or medical marijuana
waste disposal facility shall possess, sell or transfer medical
marijuana or medical marijuana products without a valid, unexpired
license issued by the Department Authority.
SECTION 6. AMENDATORY 63 O.S. 2021, Section 427.16, is
amended to read as follows:
Section 427.16 A. There is hereby created a medical marijuana
transporter license as a category of the medical marijuana business
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
commercial growers, licensed medical marijuana processors, and
licensed medical marijuana dispensaries upon issuance of such
licenses and upon each renewal. Medic al 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 renew al.
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 set forth i n Section 427.14
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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 medical marijua na 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 medi cal marijuana transporter shall be
responsible for all medical marijuana, medical marijuana co ncentrate
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
marijuana business to another medical marijuana business, or from a
medical marijuana business to a medical marijuana research fa cility
or medical marijuana education facility.
F. A medical marijuana transporter licensee m ay contract with
multiple licensed medical marijuana businesses.
G. A medical marijuana transporter may maintain a licensed
premises to temporarily store medical marijuana, medical marijuana
concentrate and medical marijuana products and to use as a
centralized distribution point. A medical marijuana transporter may
store and distribute medical marijuana, medical marijuana
concentrate and medical marijuana produc ts from the licensed
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premises. The licensed premises shall meet all security
requirements applicable to a medical marijuana business.
H. A medical marijuana transporter licensee shall use the seed -
to-sale tracking system developed pursuant to the Oklahom a 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.
J. With the exception o f a lawful transfer between medical
marijuana businesses who are licensed to operate at the sa me
physical address, all medical marijuana, medical marijuana
concentrate and medical marijuana products shall be transported:
1. In vehicles equipped with Globa l Positioning System (GPS)
trackers;
2. In a locked container and clearly labeled "Medical Ma rijuana
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 marijuan a at any location
while the transporter agent is transferring marijuana to or from a
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licensed medical marijuana business, licensed medical marijuana
research facility or licensed medical marijuana education facility.
The Department shall administer and en force the provisions of this
section concerning transportation.
L. The Authority shall issue a transporter agent license to
individual agents, employees, officers or owners of a transporter
license in order for the individual to qualify to transport medic al
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
license holder or the individual applicant. Transporte r license
reprints shall be Twenty Dollars ($20.00).
N. The Authority shall issue each transp orter agent a registry
identification card within thirty (30) days of receipt of:
1. The name, address and date of birth of the person;
2. Proof of current Okla homa 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 Investigation, pa id for by the applicant.
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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 shall
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 transport er.
Q. The Department 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.
R. The Department m ay revoke or suspend the transporter license
of a transporter that the Department determines k nowingly 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 the 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 shipp ing container as defined in Section
427.2 of this title capable of securing all transported pr oducts.
T. Prior to the transport of any medical marijuana, medical
marijuana concentrate or medical marijuana products, an inventory
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manifest shall be prepared at the origination point of the medical
marijuana. The inventory manifest shall include the f ollowing
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 originating
licensee;
2. For the end recipient license holder of the medical
marijuana:
a. the license number for the dispensary, commercial
grower, processor, research facility or education
facility destination,
b. address of the destination, and
c. name and contact inform ation 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 transpo rt 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
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7. Notation of the transporting licensee.
U. 1. A separate inventory manifest shall be prepared for each
licensee receiving the medical marijuana.
2. The transporter agen t 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 prin ts his or
her name and signs the inventory manifest.
3. A receiving licensee shall refuse to accept any medical
marijuana, medical marijuana concentrate or medical marijuana
products that are not accompanied by an inventory manifest.
4. Originating and r eceiving licensees shall maintain copies of
inventory manifests and logs of quantities of medi cal 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 this act sha ll take effect and
be in full force from and after its passage and approval.
58-2-11543 GRS 05/11/22