Oklahoma 2022 Regular Session

Oklahoma House Bill HB4056 Latest Draft

Bill / Enrolled Version Filed 05/20/2022

                            An Act 
ENROLLED HOUSE 
BILL NO. 4056 	By: Marti, Davis, Talley, and 
McDugle of the House 
 
   and 
 
  Paxton of the Senate 
 
 
 
 
An Act relating to medical marijuana; amending 63 
O.S. 2021, Section 427.17, as amended by Section 17 
of Enrolled Senate Bill No. 1543 of the 2nd Session 
of the 58th Oklahoma Legislature, which relates to 
the Oklahoma Medical Marijuana and Patient Protection 
Act; directing certain entities to provide 
recommendations, standards and operating proce dures 
to the Oklahoma Medical Marijuana Authority; 
directing the Authority to promulgate rule s; 
requiring licensed medical marijuana testing 
laboratories to comply with rules; providing for 
license revocation; and declaring an emergency . 
 
 
 
 
SUBJECT: Medical marijuana 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: 
 
SECTION 1.    AMENDATORY     63 O.S. 2021, Section 427.17, as 
amended by Section 17 of Enrolled Senate Bill No. 1543 of the 2nd 
Session of the 58th Oklahoma Legislature, is amended to read as 
follows: 
 
Section 427.17 A.  There is hereby created a medical marijuana 
testing laboratory licens e as a category of the medical marijuana 
business license.  The Oklahoma Medical Marijuana Authority is 
hereby enabled to monitor, inspect and audit a licensed testing 
laboratory under the Oklahoma Medical Marijuana and Patient 
Protection Act. 
 
B. 1. The Authority is hereby authorized to contract with a 
private laboratory for the purpose of conducting compliance testing  ENR. H. B. NO. 4056 	Page 2 
of medical marijuana testing laboratories licensed in th is state.  
Any such laboratory under contract for compliance testing shall be 
prohibited from conducting any other commercial medical ma rijuana 
testing in this state.  The laboratory the Authority contracts with 
for compliance testing shall not employ, or be owned by, the 
following: 
 
1.  Any  
 
a. any individual that has a direct or indirect interest 
in a licensed medical marijuana business ;, or 
 
2.  Any  
 
b. any individual or his or her spouse, parent, child, 
spouse of a child, sibling or spouse of a sibling that 
has an application for a medical marijuana business 
license pending before the Authority or is a member of 
the board of directors of a medi cal marijuana 
business, or is an individual financially interested 
in any licensee or medical marijuana business located 
within this state. 
 
2.  The private laboratory under contract with the Authority for 
compliance testing and a board or committee comprised of licensed 
Oklahoma medical marijuana laboratories currently accredited by the 
International Organization for Standardization (ISO) shall provide 
to the Authority its recommendations for all equipment and standards 
to be utilized by licensed medical marijuana testing laboratories 
when testing samples of medical marijuana, medical marijuana 
concentrate, and medical marijuana products as well as standard 
operating procedures when extracting and testing medical marijuana, 
medical marijuana concentrate, and medical marijuana products. The 
recommendations shall be submitted to the Authority no later than 
June 1, 2023.  The Authority shall have ninety (90) days from the 
date it receives the recommendations to promulgate new rules or 
modify its current rules for laboratory standards and testing. 
Beginning June 1, 2024, medical marijuana testing laboratories 
renewing their medical marijuana business license shall be subject 
to and comply with any new or modified rules relating to the testing 
of medical marijuana, medical marijuana concentrate, and medical 
marijuana products. The refusal or failure of a medical marijuana 
testing laboratory licensee to comply with new or modified rules 
relating to laboratory standards and testing procedures p romulgated  ENR. H. B. NO. 4056 	Page 3 
under the provisions of this paragraph shall result in the permanent 
revocation of the medical marijuana testing laboratory license. 
 
C.  The Authority shall develop acceptable testin g practices 
including, but not limited to, testing, standards, qual ity control 
analysis, equipment certification and calibration, and chemical 
identification and substances used. 
 
D.  A person who is a direct beneficial own er of a medical 
marijuana dispensary, medical marij uana commercial grower or medical 
marijuana processor shall not be an owner of a laboratory. 
 
E. A laboratory and a laboratory applicant shall comply with 
all applicable local ordinances including, but not limited to, 
zoning, occupancy, licensing and build ing codes. 
 
F. A separate license shall be require d for each specific 
laboratory. 
 
G.  A medical marijuana testing laboratory license may be issued 
to a person who perform s testing on medical marijuana a nd medical 
marijuana products for medical marijuana bu sinesses, medical 
marijuana research facilities, m edical marijuana education 
facilities, and testing on marijuana and marijuana products grown or 
produced by a patient or caregiver on behalf of a patien t, upon 
verification of registration .  A medical marijuana testing 
laboratory may also conduct research related to the development and 
improvement of its testing practices and procedures. No state-
approved medical marijuana testing facility shall operate unless a 
medical laboratory director is on site during operational hours. 
 
H.  Laboratory applicants and licensees shall comply with the 
application requirements of this section and shall submit such other 
information as required for a medical marijuana bu siness applicant, 
in addition to any information the Au thority may request for initial 
approval and periodic evaluations during the approval period. 
 
I.  A medical marijuana testing laboratory may accept samples of 
medical marijuana, medical marijuana conc entrate or medical 
marijuana product from a medical mari juana business, medical 
marijuana research facilit y or medical marijuana education facility 
for testing purposes only, which purposes may include the provision 
of testing services for samples submitte d by a medical marijuana 
business for product developmen t.  The Authority may require a 
medical marijuana business to submit a sample of medical marijuana,  ENR. H. B. NO. 4056 	Page 4 
medical marijuana concentrate or medical marijuana product to a 
medical marijuana testing or quality assurance laboratory upon 
demand. 
 
J.  A medical marijuana testing laboratory may accept sample s of 
medical marijuana, medical marijuana concentrate or medical 
marijuana product from an individual person for testing only under 
the following conditions: 
 
1.  The individual person is a patient or caregi ver pursuant to 
the Oklahoma Medical Marijuana and Patient Protection Act or is a 
participant in an approved clinical or observational study conducted 
by a research facility; and 
 
2.  The medical marijuana tes ting laboratory shall require the 
patient or caregiver to produce a valid patient license and curr ent 
and valid photo identification. 
 
K.  A medical marijuana testing laboratory may transfer samples 
to another medical m arijuana testing laboratory for testi ng.  All 
laboratory reports provided to or by a m edical marijuana business or 
to a patient or careg iver shall identify the medical marijuana 
testing laboratory that actually conducted the test. 
 
L.  A medical marijuana t esting laboratory may utilize a 
licensed medical marijuana transporter to transport sa mples of 
medical marijuana, medical marijuana conc entrate and medical 
marijuana product for testing, in accordance with the Oklahoma 
Medical Marijuana and Patient Protect ion Act and the rules adopted 
pursuant thereto, between the originating medical mariju ana business 
requesting testing services and the d estination laboratory 
performing testing services. 
 
M.  The medical marijuana testing laboratory shall establish 
policies to prevent the existence of or app earance of undue 
commercial, financial or other inf luences that may diminish the 
competency, impartia lity and integrity of the testing processes or 
results of the laboratory, or that may diminish public confidence in 
the competency, impartiality and integr ity of the testing processes 
or results of the labo ratory.  At a minimum, employees, owners or 
agents of a medical marijuana testing laboratory who participate in 
any aspect of the analysis and results of a sample are pro hibited 
from improperly influencing the testing process, improperly 
manipulating data or improperly benefiting from any ongoing 
financial, employment, personal or business relationship with the  ENR. H. B. NO. 4056 	Page 5 
medical marijuana business that provided the sample.  A medical 
marijuana testing laboratory shal l not test samples for any medical 
marijuana business in which an owner, employee or agent of the 
medical marijuana testing laboratory has any form of ownership or 
financial interest in the medical marijuana business. 
 
N.  The Authority, pursuant to rules promulgated by the  
Executive Director of the Authority , shall develop standards, 
policies and procedures as necessary for: 
 
1.  The cleanliness and orderliness of a laboratory premise s and 
the location of the laboratory in a sec ure location, and inspectio n, 
cleaning and maintenance of any equipment or utensils used f or the 
analysis of test samples; 
 
2.  Testing procedures, testing standards for cannabinoid and 
terpenoid potency and safe levels of contaminants, and remediation 
procedures; 
 
3.  Controlled access areas for storage of medical marijuana and 
medical marijuana product test samples, waste and reference 
standards; 
 
4.  Records to be retained and computer systems to be utilized 
by the laboratory; 
 
5.  The possession, storag e and use by the laboratory of 
reagents, solutions and reference standards; 
 
6.  A certificate of analysis (COA) for each lot of reference 
standard; 
 
7.  The transport and disposal of unused marijuana, marijuana 
products and waste; 
 
8.  The mandatory use by a laboratory of an invent ory tracking 
system to ensure all harvest and production batches or samples 
containing medical marijuana, medical marijuana concentrate or 
medical marijuana products are identified and tracke d from the point 
they are transferred from a medical marijuana bu siness, a patient or 
a caregiver through the point of transfer, destruction or disposal. 
The inventory tracking system reporting shall include the results of 
any tests that are conducted on medical marijuana, medical marijuana 
concentrate or medical marij uana product; 
  ENR. H. B. NO. 4056 	Page 6 
9.  Standards of performance; 
 
10.  The employment of laboratory personnel; 
 
11.  A written standard operating procedure manual to be 
maintained and updated by the laboratory; 
 
12.  The successful participation in a proficiency testing 
program approved by the Executive Director for each testing category 
listed in this section, in order to obtain and maintain 
certification; 
 
13.  The establishment of and adherence to a quality assurance 
and quality control program to ensure sufficient monitori ng of 
laboratory processes and quality of results reported; 
 
14.  The immediate recall of medical marijuana or medical 
marijuana products that test above allowable thresholds or are 
otherwise determined to be unsa fe; 
 
15. The establishment by the laborato ry of a system to document 
the complete chain of custody for samples from receipt through 
disposal; 
 
16. The establishment by the laboratory of a system to retain 
and maintain all required records, including business records, and 
processes to ensure result s are reported in a timely and accurate 
manner; and 
 
17. Any other aspect of laboratory testing of medical marijuana 
or medical marijuana product deemed necessary by the Executive 
Director. 
 
O.  A medical marijuana test ing laboratory shall promptly 
provide the Authority or designee of the Authority access to a 
report of a test and any underlying data that is conducted on a 
sample at the request of a medical marijuana business or qualified 
patient.  A medical marijuana testing laboratory shall also provide 
access to the Authority or designee of the Authority to laboratory 
premises and to any material or information requested by t he 
Authority to determine compliance w ith the requirements of this 
section. 
 
P.  A medical marijuana testing laboratory shall retain all 
results of laboratory tests conducted on marijuana or products for a  ENR. H. B. NO. 4056 	Page 7 
period of at least seven (7) years and shall make them available to 
the Authority upon request. 
 
Q.  A medical marijuana testing laboratory shall test samples 
from each harvest batch or product batch, as appropriate, of medical 
marijuana, medical marijuana concentrate and medical marij uana 
product for each of the following categories of testing , consistent 
with standards developed by the Executive Director: 
 
1.  Microbials; 
 
2.  Mycotoxins; 
 
3.  Residual solvents; 
 
4.  Pesticides; 
 
5.  Tetrahydrocannabinol (THC) and other cannab inoid potency; 
 
6. Terpenoid type and concentration ; and 
 
7.  Heavy metals. 
 
R.  A licensed medical marijuana testing laboratory shall test 
each individual harvest batch.  A grower shall separate each harvest 
lot of usable marijuana into harvest batches cont aining no more than 
fifteen (15) pounds, with the exception of any plant material to be 
sold to a licensed processor for the purposes of turning the plant 
material into concentrate which may be separated into harvest 
batches of no more than fifty (50) poun ds.  A processor shall 
separate each medical marijuana production lot int o production 
batches containing no more than four (4) liters of concentrate or 
nine (9) pounds for nonliquid products, and for final products, the 
Oklahoma Medical Marijuana Authority shall be authorized to 
promulgate rules on final products as necessary .  Provided, however, 
the Authority shall not require testing of final products less often 
than every one thousand (1,000) grams of THC.  As used in this 
subsection, "final products" shall include, but not be limited to, 
cookies, brownies, candies, gummies, beverages and chocolates. 
 
S.  Medical marijuana testing laboratory licensure shall be 
contingent upon successful on-site inspection, successful 
participation in proficiency testing an d ongoing compliance with the 
applicable requirements in this section. 
  ENR. H. B. NO. 4056 	Page 8 
T. A medical marijuana testing laboratory shall be inspected 
prior to initial licensure and up to two (2) times per year 
thereafter by an inspector approved by the Authority.  The Authority 
may enter the licensed premises of a testing laboratory to conduct 
investigations and additional inspections when the Authority 
believes an investigation or additional inspection is necessary due 
to a possible violation of applicable laws, rules or r egulations. 
 
U.  Medical marijuana testing laboratories shall obtain 
accreditation by an accrediting body approved by the Executive 
Director within one (1) year of the date the initial license is 
issued.  Renewal of any medical marijuana tes ting laboratory license 
shall be contingent upon accreditation in accordance with this 
subsection.  All medical marijuana testing laboratories shall obtain 
accreditation prior to applying for and receiving a medical 
marijuana testing laboratory license. 
 
V. Unless authorized by the provisions of this section, a 
commercial grower shall not tran sfer or sell medical marijuana and a 
processor shall not transfer, sell or process into a concentrate or 
product any medical marijuana, medical marijuana concentrate o r 
medical marijuana product unless samples from each harvest batch or 
production batch from which that medical marijuana, medical 
marijuana concentrate or medical marijuana product was derived has 
been tested by a medical marijuana testing laboratory and passed all 
contaminant tests required b y the Oklahoma Medical Marijuana and 
Patient Protection Act and applicable laws, rules and regulations.  
A licensed commercial grower may transfer medical marijuana that has 
failed testing to a licensed processor only for the purposes of 
decontamination or remediation and only in accordance with the 
provisions of the Oklahoma Medical Marijuana and Patient Protection 
Act and the rules and regulations promulgated by the Executive 
Director.  Remediated and decontaminated medical marijuana may be 
returned only to the originating licensed comme rcial grower. 
 
W.  Kief shall not be transferred or sold except as authorized 
in the rules and regulations promulgated by the Executive Director. 
 
SECTION 2.  It being immediately necessary for the preservation 
of the public peace, health or safety, an emergency is hereby 
declared to exist, by rea son whereof this act shall take effect and 
be in full force from and after its passage an d approval. 
 
  ENR. H. B. NO. 4056 	Page 9 
 
Passed the House of Representatives the 18th day of May, 2022. 
 
 
 
  
 	Presiding Officer of the House 
 	of Representatives 
 
 
Passed the Senate the 19th day of May, 2022. 
 
 
 
  
 	Presiding Officer of the Senate 
 
 
 
OFFICE OF THE GOVERNOR 
Received by the Office of the Governor this ____________________ 
day of ___________________, 20_______, at _______ o'clock _______ M. 
By: _________________________________ 
Approved by the Governor of the State of Oklahoma this _____ ____ 
day of ___________________, 20_______, at _______ o'clock _______ M. 
 
 
 	_________________________________ 
 	Governor of the State of Oklahoma 
 
OFFICE OF THE SECRETARY OF STATE 
Received by the Office of the Secretary of State this __________ 
day of ___________________, 20_______, at _______ o'clock _______ M. 
By: _________________________________