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SENATE FLOOR VERSION
April 14, 2022
AS AMENDED
ENGROSSED HOUSE
BILL NO. 3827 By: Dobrinski, Newton, Talley,
West (Josh) and Kendrix of
the House
and
Murdock of the Senate
[ medical marijuana - commercial grower licenses -
register as an environmentally sensitive crop owner -
effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. 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, make available on
its website in an easy-to-find location an application for a
commercial grower license . The application fee shall be Two
Thousand Five Hundred Dollars ($ 2,500.00). A method of payment
shall be provided on the website of the Department. The State
Department of Health shall have ninety (90) days to review the
application; approve, reject or deny the application; and mail the
approval, rejection or denial letter stating the reasons for the
rejection or denial to the applicant.
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B. The State Department of Health shall approve all
applications which me et 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 twe nty-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,
inmates in the custody of the Department of Corrections or any
person currently incarcerate d shall not qualify for a commercial
grower license.
C. A licensed commercial grower may sell marijuan a to a
licensed dispensary or a licensed processor. Further, sales by a
licensed commercial grower shall be considered wholesale sales and
shall not be subject to taxation. Under no circumstances may a
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licensed commercial grower sell marijuana directly t o a licensed
medical marijuana patient or licensed caregiver . A licensed
commercial grower may only sell at the wholesale level to a license d
dispensary, a licensed grower or a licensed processor. If the
federal government lifts restrictions on buying an d selling
marijuana between states, then a licensed commercial grower would be
allowed to sell and buy marijuana wholesale from, or to, a n out-of-
state wholesale provider. A licensed commercial grower shall be
required to complete a monthly yield and sale s report to the State
Department of Health . This report shall be due on the fifteenth of
each month and provide reporting on the previous month . This report
shall detail the amount of marijuana harvested in 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 t o licensed dispensaries in pounds.
Additionally, this report shall show total wholesale sales in
dollars. The State Department of Health shall have oversight and
auditing responsibilities to ensure that all marijuana being grown
by licensed commercial growers is accounted for.
D. There shall be no limits on how much marijuana a li censed
commercial grower can grow.
E. Beginning on the effective date of this act, licensed
commercial growers shall be authorized to package and sell pre -
rolled marijuana to licensed medical marijuana dispensa ries. The
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products described in this subsect ion 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 commercia l growers shall not
exceed one (1) gram. These products must be tested, packaged and
labeled in accordance with Oklahoma law and rules promulga ted by the
State Commissioner of Health.
F. Beginning November 1, 2022, all medical marijuana commer cial
grower licensees who operate an outdoor medic al marijuana production
facility shall be required to register with the Oklahoma Department
of Agriculture, Food, and Forestry as an environmentally sensitive
crop owner. Registration shall provide notice to commercial and
private pesticide applicators of the locations of medical marijuana
crops and help minimize the potential for damaging pesticide drift .
Medical marijuana commercial grower licensees shall provide their
business name, address, Global Positioning Sys tem (GPS) coordinates
for all outdoor medical marijuana production facilities, and any
other information required by the Department when registering with
the Environmentally Sensitive Area Registry.
SECTION 2. This act shall become effecti ve November 1, 2022.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS, COMMERCE AND TOURISM
April 14, 2022 - DO PASS AS AMENDED