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SENATE FLOOR VERSION
April 14, 2022
AS AMENDED
ENGROSSED HOUSE
BILL NO. 4411 By: Lowe (Dick), West (Josh)
and McDugle of the House
and
Paxton of the Senate
[ medical marijuana - limitation that restricts the
number of post-licensure inspections - effective
date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 427.6 , is
amended to read as follows:
Section 427.6 A. The State Department of Hea lth shall address
issues related to the medical m arijuana program in Oklahoma
including, but not limited to, monitoring an d disciplinary actions
as they relate to the medica l marijuana program.
B. 1. The Department or its designee may perform on-site
inspections or investigations of a licensee or appli cant for any
medical marijuana business license, research facility, educa tion
facility or waste disposal facility to determine compliance with
applicable laws, rules and regulations or submissions made pur suant
to this section. The Department may enter t he licensed premises of
a medical marijuana business, research facility, e ducation facility
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or waste disposal facility licensee or applicant to assess or
monitor compliance or ensure qualifications for lice nsure.
2. Post-licensure A post-licensure inspection of every licensed
medical marijuana business, medical marijuana resear ch facility,
medical marijuana education facility, and medical marijuana waste
disposal facility sh all occur a minimum of once per calendar year;
provided, however, there shall be no limit to the number of post -
licensure inspections shall be limited to twice per that may be
conducted by the Authority in a calendar year. However,
investigations Investigations and additional inspections may occu r
when the Department believes an investigation or additional
inspection is necessary due to a possible violation of applicable
laws, rules or regulations . The State Commissioner of Health may
adopt rules imposing penalties in cluding, but not limited to,
monetary fines and suspension or revocation of licensure for failure
to allow the Authorit y reasonable access to the licensed premises
for purposes of conducting a n inspection.
3. The Department may review relevant records of a licensed
medical marijuana business, licensed medical marijuana research
facility, licensed medical marijuana educati on facility or licensed
medical marijuana waste disposal facility , and may require and
conduct interviews with such persons or entities a nd persons
affiliated with such entities, for the purpose of determining
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compliance with Department requirements and ap plicable laws, rules
and regulations.
4. The Department may refer complaints alleging criminal
activity that are made against a licensee to appropriate Oklahoma
state or local law enforcement authorities.
C. Disciplinary action may be taken against an ap plicant or
licensee for not adhering to applicable laws pursuant to the terms,
conditions and guidelines set forth i n the Oklahoma Medical
Marijuana and Patient Prote ction Act.
D. Disciplinary actions may include revocation, suspension or
denial of an application, license or final authorization and other
action deemed appropri ate by the Department.
E. Disciplinary actions may be imposed u pon a medical marijuana
business licensee for:
1. Failure to comply with or satisfy any provision o f
applicable laws, rules or regulations;
2. Falsification or misrepresentation of any mater ial or
information submitted to the Department or other licensees;
3. Failing to allow or im peding entry by authorized
representatives of the Department;
4. Failure to adhere to any acknowledgement, verification or
other representation made to the Depart ment;
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5. Failure to submit or disclose information required b y
applicable laws, rules or reg ulations or otherwise requested by the
Department;
6. Failure to correct any violation of this section cited as a
result of a review or audit of financial records or other materials;
7. Failure to comply with requested access by the Department to
the licensed premises or materials;
8. Failure to pay a required monetary penalty;
9. Diversion of medical marijuana or any medical marijuana
product, as determined by the Department;
10. Threatening or harming a medical marijuana patient
licensee, caregiver l icensee, a medical practitioner or an employee
of the Department; and
11. Any other basis indicating a violation of the applicable
laws and regulations as identif ied by the Department.
F. Disciplinary actions against a licens ee may include the
imposition of monetary penalties, which may be assessed by the
Department. The Department may suspe nd or revoke a license for
failure to pay any monetary penalty lawfully a ssessed by the
Department against a licensee.
G. Penalties for sales or purchases by a medical marijuana
business to persons other than those allowed by law occurring within
any two-year time period may include an initial fine of One Thousand
Dollars ($1,000.00) for a first violation and a fine of Five
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Thousand Dollars ($5,000.00) for any subsequ ent violation.
Penalties for grossly inaccurate or fraudulent reporting occurring
within any two-year time period may include an initial fine of Five
Thousand Dollars ($5,000.00) for a first violation and a fine of Ten
Thousand Dollars ($10,000.00) for an y subsequent violation. The
medical marijuana business may be subject to a revocation of any
license granted pursuant to the Oklahoma Medical Marijuana and
Patient Protection Act upon a showing that the violation was willful
or grossly negligent.
H. 1. First offense for intentional and impermissible
diversion of medical marijuana, medical marijuana concentrate, or
products by a patient or caregiver to an unauthorized person shall
not be punished under a criminal statute but m ay be subject to a
fine of Two Hundred Dollars ($200.00).
2. The second offense for impermissible diversion of medical
marijuana, medical marijuana concentrate, or products by a patient
or caregiver to an unauthorized person sh all not be punished under a
criminal statute but may be s ubject to a fine of not to exceed Five
Hundred Dollars ($500.00) and may result in revocat ion of the
license upon a showing that the violation was willful or grossly
negligent.
I. The intentional diversion of medical marijuana , medical
marijuana concentrate or medical marijuana products by a licensed
medical marijuana patient or caregiver, med ical marijuana business
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or employee of a medical marijuana business to an unauthorized minor
person who the licensed medical marijuana patient or caregiver,
medical marijuana business or employee of a medical marij uana
business knew or reasonably should ha ve known to be a minor person
shall be subject to a cite and release citation and, upon a finding
of guilt or a plea of no contest, a fin e of Two Thousand Five
Hundred Dollars ($2,500.00). For a second or subseque nt offense,
the licensed medical marijuana patient or caregiver, medical
marijuana business or employee of a medical marijuana business shall
be subject to a cite and release cita tion and, upon a finding of
guilt or a plea of no contest, a fine of Five Tho usand Dollars
($5,000.00) and automatic te rmination of the medical marijuana
license.
J. Nothing in this section shall be construed to prevent the
criminal prosecution, after the presentation of evidence and a
finding beyond a reasonable doubt, of a licen sed medical marijuana
patient or caregiver , medical marijuana business or employee of a
medical marijuana business who has diverted medical marijuana,
medical marijuana concentrat e or medical marijuana produc ts to an
unauthorized person with the intent or knowledge that the
unauthorized person was to engage in the distribution or trafficking
of medical marijuana, medical marijuana concentrate or medical
marijuana products.
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K. In addition to any other remedies provided for by law, the
Department, pursuant to its rules and regulations, may issue a
written order to any licensee the Department has reason to believe
has violated Sections 420 through 426.1 of this title, the Oklahoma
Medical Marijuana and Patient Pr otection Act, the Oklahoma Medical
Marijuana Waste Management Act, or any rules promulgate d by the
State Commissioner of Health and to whom the Department has served,
not less than thirty (30) days p reviously, a written notice of
violation of such statutes or rules.
1. The written order shall state wit h specificity the nature of
the violation. The Department may impose any disciplinary action
authorized under the provisions of this section including , but not
limited to, the assessment of monetary penaltie s.
2. Any order issued pursuant to the provisio ns of this section
shall become a final or der unless, not more than thirty (30) days
after the order is served to the licensee, the licensee requests a n
administrative hearing in accordance with the rules and regulations
of the Department. Upon such request, the Department shall promptly
initiate administrative proceedings.
L. Whenever the Department finds that an emergency exists
requiring immediate a ction in order to protect th e health or welfare
of the public, the Department may issue an order, without providing
notice or hearing, stating the existence of said emergency and
requiring that action be taken as the Department deems necessary to
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meet the emergency. Such action may include, but is not limited t o,
ordering the licensee to immediately cease an d desist operations by
the licensee. The order shall be effective immediately upon
issuance. Any person to whom the order is directed shall comply
immediately with the provision s of the order. The Department may
assess a penalty not to exceed Ten Thousa nd Dollars ($10,000.00) per
day of noncompliance with the order. In assessing such a penalty,
the Department shall consider the seriousness of the vio lation and
any efforts to comply with applicable requirem ents. Upon
application to the Department, the l icensee shall be offered a
hearing within ten (10) days of the issuance of the order.
M. All hearings held pursuant to this section shall be in
accordance with the Oklahoma Admin istrative Procedures Act.
SECTION 2. This act shall become e ffective November 1, 2022.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS, COMMERCE AND TOURISM
April 14, 2022 - DO PASS AS AMENDED