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ENGROSSED HOUSE
BILL NO. 3891 By: Townley, Grego, West (Josh)
and Roe of the House
and
Weaver of the Senate
An Act relating to medical marijuana; amending 63
O.S. 2021, Section 422, which relates to medical
marijuana commercial grower licensing; prohibiting
medical marijuana commercial grow operations from
being located near public schools; providing for the
continuation of licensure under certain
circumstances; defining term; providing an exception
to certain defined term; and providing an effective
date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 202 1, 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 ($2,500.0 0). 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
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approval, rejection or denial letter stating the reasons for the
rejection or denial to the applicant.
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 p ercentage 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 op eration.
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 Depart ment of Corrections or any
person currently incarcerated shall not qualify for a commercial
grower license.
C. A licensed commercial grower may sell marijuana to a
licensed dispensary or a licensed processor. Further, sales by a
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licensed commercial growe r shall be considered wholesale sales and
shall not be subject to taxation. Under no circumstances may a
licensed commercial grower sell marijuana directly to a licensed
medical marijuana patient or licensed caregiver . A licensed
commercial grower may on ly sell at the wholesale level to a license d
dispensary, a licensed grower or a licensed processor. If the
federal government lifts restrictions on buying and selling
marijuana between states, then a licensed commercial grower would be
allowed to sell and buy marijuana wholesale from, or to, a n out-of-
state wholesale provider. A licensed commercial growe r shall be
required to complete a monthly yield and sales report to 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 am ount
of drying or dried marijuana on hand, the amount of marijuana sold
to licensed processors in pounds, the amount of waste in po unds, 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 marijua na being grown
by licensed commercial growers is accounted for.
D. There shall be no limits on how much marijuana a licensed
commercial grower can grow.
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E. Beginning on the effective date of this act, licensed
commercial growers shall be authorized to pa ckage and sell pre-
rolled marijuana to licen sed medical marijuana dispensaries . The
products described in this subsection sh all 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 commercial growe rs 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 Healt h.
F. 1. The location of any licensed medical marijuana processor
or licensed medical marijuana commercial grow operation is
specifically prohibited within one thousand (1,000) feet of any
public school. The distance indicated in this subsection shall b e
measured from the nearest property line of the public school to the
nearest perimeter wall of the license d premises of the medical
marijuana processor or medical marijuana commercial grower.
2. If a licensed medical marijuana processor or licensed
medical marijuana commercial grow operation was established within
one thousand (1,000) feet of a public school at the time of initial
licensure, the medical marijuana processor or medical marijuana
commercial grower licensee shall be permitted to continue oper ating
at the licensed premises in the same manner and not be subject to
nonrenewal or revocation due to subsequent events or changes in
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regulations occurring after licensure that would render the medical
marijuana processor or medical marijuana commercial grower in
violation of the provisions of this subsection. If any public
school is established within one thousand (1,000) feet of any
medical marijuana processor or medical marijuana commercial grow
operation after such medical marijuana processor or medical
marijuana commercial grower has been licensed, the provisions of
this subsection shall not be a deterrent to th e renewal of such
license or warrant revocation of the license.
3. As used in this subsection, "public school" means all free
schools supported by public taxation, and shall include grades
prekindergarten through twelve a nd technology center schools that
provide vocational and technical instruction for high school
students who attend the technology center school on a tuition -free
basis. The term public school shall include property used for
athletic events including sta diums, athletic facilities, ballparks
and fields that are owned, used, or operated by a public school.
The term public school shall not include private schools, home
schools, or virtual schools. For purposes of this subsection, a
property owned, used, or operated by a public school tha t is not
used for classroom instruction on core curriculum, such as an
administrative building , shall not constitute a p ublic school unless
such property is located on the same campus as a building used for
classroom instruction on core curriculum.
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SECTION 2. This act shall become effective November 1, 2022.
Passed the House of Representatives the 23rd day of March, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2022.
Presiding Officer of the Senate