Oklahoma 2022 Regular Session

Oklahoma House Bill HB4411 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	SENATE FLOOR VERSION - HB4411 SFLR Page 1
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	3	+	ENGR. H. B. NO. 4411 Page 1 1
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29		-	SENATE FLOOR VERSION
30		-	April 14, 2022
31		-	AS AMENDED
32		-
33	28		ENGROSSED HOUSE
34	29		BILL NO. 4411 By: Lowe (Dick), West (Josh)
35	30		and McDugle of the House
36	31
37	32		and
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39	34		Paxton of the Senate
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43		-	[ medical marijuana - limitation that restricts the
44		-	number of post-licensure inspections - effective
45		-	date ]
	38	+
	39	+
	40	+	An Act relating to medical marijuana; amending 63
	41	+	O.S. 2021, Section 427.6, whi ch relates to the
	42	+	Oklahoma Medical Marijuana and Patient Protection
	43	+	Act; deleting limitation that restricts the number of
	44	+	post-licensure inspections conducted in a calendar
	45	+	year; and providing an effective date .
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49	52		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
50	53		SECTION 1. AMENDATORY 63 O.S. 2021, Section 427.6 , is
51	54		amended to read as follows:
52	55		Section 427.6 A. The State Department of Hea lth shall address
53	56		issues related to the medical m arijuana program in Oklahoma
54	57		including, but not limited to, monitoring an d disciplinary actions
55	58		as they relate to the medica l marijuana program.
56	59		B. 1. The Department or its designee may perform on-site
57	60		inspections or investigations of a licensee or appli cant for any
58	61		medical marijuana business license, research facility, educa tion
59	62		facility or waste disposal facility to determine compliance with
60	63		applicable laws, rules and regulations or submissions made pur suant
61		-	to this section. The Department may enter t he licensed premises of
62		-	a medical marijuana business, research facility, e ducation facility
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64		-	SENATE FLOOR VERSION - HB4411 SFLR Page 2
65		-	(Bold face denotes Committee Amendments) 1
	65	+	ENGR. H. B. NO. 4411 Page 2 1
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	90	+	to this section. The Department may enter t he licensed premises of
	91	+	a medical marijuana business, research facility, e ducation facility
90	92		or waste disposal facility licensee or applicant to assess or
91	93		monitor compliance or ensure qualifications for lice nsure.
92	94		2. Post-licensure A post-licensure inspection of every licensed
93	95		medical marijuana business, medical marijuana resear ch facility,
94	96		medical marijuana education facility, and medical marijuana waste
95	97		disposal facility sh all occur a minimum of once per calendar year;
96	98		provided, however, there shall be no limit to the number of post -
97	99		licensure inspections shall be limited to twice per that may be
98	100		conducted by the Authority in a calendar year. However,
99	101		investigations Investigations and additional inspections may occur
100	102		when the Department believes an investigation or additional
101	103		inspection is necessary due to a possible violation of applicable
102	104		laws, rules or regulations . The State Commissioner of Health may
103	105		adopt rules imposing penalties in cluding, but not limited to,
104	106		monetary fines and suspension o r revocation of licensure for failure
105	107		to allow the Authorit y reasonable access to the licensed premises
106	108		for purposes of conducting a n inspection.
107	109		3. The Department may review relevant records of a licensed
108	110		medical marijuana business, licensed medi cal marijuana research
109	111		facility, licensed medical marijuana educati on facility or licensed
110	112		medical marijuana waste disposal facility , and may require and
111	113		conduct interviews with such persons or entities a nd persons
112		-	affiliated with such entities, for the purpose of determining
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114		-	SENATE FLOOR VERSION - HB4411 SFLR Page 3
115		-	(Bold face denotes Committee Amendments) 1
	115	+	ENGR. H. B. NO. 4411 Page 3 1
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	140	+	affiliated with such entities, for the purpose of determining
140	141		compliance with Department requirements and ap plicable laws, rules
141	142		and regulations.
142	143		4. The Department may refer complaints alleging criminal
143	144		activity that are made against a licensee to appropriate Oklahoma
144	145		state or local law enforcement auth orities.
145	146		C. Disciplinary action may be taken against an ap plicant or
146	147		licensee for not adhering to applicable laws pursuant to the terms,
147	148		conditions and guidelines set forth i n the Oklahoma Medical
148	149		Marijuana and Patient Protection Act .
149	150		D. Disciplinary actions may include revocation, suspension or
150	151		denial of an application, license or final authorization and other
151	152		action deemed appropri ate by the Department.
152	153		E. Disciplinary actions may be imposed u pon a medical marijuana
153	154		business licensee for:
154	155		1. Failure to comply with or satisfy any provision o f
155	156		applicable laws, rules or regulations;
156	157		2. Falsification or misrepresentation of any mater ial or
157	158		information submitted to the Department or other licensees;
158	159		3. Failing to allow or impedin g entry by authorized
159	160		representatives of the Department;
160	161		4. Failure to adhere to any acknowledgement, verification or
161	162		other representation made to the Depart ment;
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163		-	SENATE FLOOR VERSION - HB4411 SFLR Page 4
164		-	(Bold face denotes Committee Amendments) 1
	164	+	ENGR. H. B. NO. 4411 Page 4 1
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189	189		5. Failure to submit or disclose information required b y
190	190		applicable laws, rules or regulations or otherwise requested by the
191	191		Department;
192	192		6. Failure to correct any violation of this section cited as a
193	193		result of a review or audit of financial records or other materials;
194	194		7. Failure to comply with requested access by the Department to
195	195		the licensed premises or materials;
196	196		8. Failure to pay a required monetary penalty;
197	197		9. Diversion of medical marijuana or any medical marijuana
198	198		product, as determined by the Department;
199	199		10. Threatening or harming a medical marijuana patient
200	200		licensee, caregiver licensee , a medical practitioner or an employee
201	201		of the Department; and
202	202		11. Any other basis indicating a violation of the applicable
203	203		laws and regulations as identif ied by the Department.
204	204		F. Disciplinary actions against a licens ee may include the
205	205		imposition of monetary penalties, which m ay be assessed by the
206	206		Department. The Department may suspe nd or revoke a license for
207	207		failure to pay any monetary penalty lawfully a ssessed by the
208	208		Department against a licensee.
209	209		G. Penalties for sales or purchases by a medical marijuana
210	210		business to persons other than those allowed by law occurring within
211	211		any two-year time period may include an initial fine of One Thousand
212	212		Dollars ($1,000.00) for a first violation and a fine of Five
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214		-	SENATE FLOOR VERSION - HB4411 SFLR Page 5
215		-	(Bold face denotes Committee Amendments) 1
	214	+	ENGR. H. B. NO. 4411 Page 5 1
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240	239		Thousand Dollars ($5,000.00) for any subsequent violation .
241	240		Penalties for grossly inaccurate or fraudulent reporting occurring
242	241		within any two-year time period may include an initial fine of Five
243	242		Thousand Dollars ($5,000.00) for a first violation and a fine of Ten
244	243		Thousand Dollars ($10,000.00) for any subsequent violation . The
245	244		medical marijuana business may be subject to a revocation of any
246	245		license granted pursuant to the Oklahoma Medical Marijuana and
247	246		Patient Protection Act upon a showing that the violation was willful
248	247		or grossly negligent.
249	248		H. 1. First offense for intentional a nd impermissible
250	249		diversion of medical marijuana, medical marijuana concentrate, or
251	250		products by a patient or caregiver to an unauthorized person shall
252	251		not be punished under a criminal statute but m ay be subject to a
253	252		fine of Two Hundred Dollars ($200.00).
254	253		2. The second offense for impermissible diversion of medical
255	254		marijuana, medical marijuana concentrate, or products by a patient
256	255		or caregiver to an unauthorized person sh all not be punished under a
257	256		criminal statute but may be subject to a fine of not to exceed Five
258	257		Hundred Dollars ($500.00) and may result in revocat ion of the
259	258		license upon a showing that the violation was willful or grossly
260	259		negligent.
261	260		I. The intentional diversion of medical marijuana , medical
262	261		marijuana concentrate or medical marijuana products by a licensed
263	262		medical marijuana patient or caregiver, med ical marijuana business
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265		-	SENATE FLOOR VERSION - HB4411 SFLR Page 6
266		-	(Bold face denotes Committee Amendments) 1
	264	+	ENGR. H. B. NO. 4411 Page 6 1
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291	289		or employee of a medical marijuana business to an unauthorized minor
292	290		person who the licensed medical marijuana patient or caregiver,
293	291		medical marijuana business or employee of a medical marij uana
294	292		business knew or reasonably should ha ve known to be a minor person
295	293		shall be subject to a cite and release citation and, upon a finding
296	294		of guilt or a plea of no contest, a fin e of Two Thousand Five
297	295		Hundred Dollars ($2,500.00) . For a second or subseque nt offense,
298	296		the licensed medical marijuana patient or caregiver, medical
299	297		marijuana business or employee of a medical marijuana business shall
300	298		be subject to a cite and release cita tion and, upon a finding of
301	299		guilt or a plea of no contest, a fine of Five Tho usand Dollars
302	300		($5,000.00) and automatic te rmination of the medical marijuana
303	301		license.
304	302		J. Nothing in this section shall be construed to prevent the
305	303		criminal prosecution, after the presentation of evidence and a
306	304		finding beyond a reasonable doubt, of a licen sed medical marijuana
307	305		patient or caregiver , medical marijuana business or employee of a
308	306		medical marijuana business who has diverted medical marijuana,
309	307		medical marijuana concentrat e or medical marijuana products to an
310	308		unauthorized person with the intent or knowledge that the
311	309		unauthorized person was to engage in the distribution or trafficking
312	310		of medical marijuana, medical marijuana concentrate or medical
313	311		marijuana products.
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315		-	SENATE FLOOR VERSION - HB4411 SFLR Page 7
316		-	(Bold face denotes Committee Amendments) 1
	313	+	ENGR. H. B. NO. 4411 Page 7 1
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341	338		K. In addition to any other remedies provided for by law, the
342	339		Department, pursuant to its rules and regulations, may issue a
343	340		written order to any licensee the Department has reason to believe
344	341		has violated Sections 420 through 426.1 of this title, the Oklahoma
345	342		Medical Marijuana and Patient Protection Act, the Oklahoma Medical
346	343		Marijuana Waste Management Act, or any rules promulgate d by the
347	344		State Commissioner of Health and to whom the Department has served,
348	345		not less than thirty (30) days p reviously, a written notice of
349	346		violation of such statutes or rules.
350	347		1. The written order shall state wit h specificity the nature of
351	348		the violation. The Department may impose any disciplinary action
352	349		authorized under the provisions of this section including , but not
353	350		limited to, the assessment of monetary penalties.
354	351		2. Any order issued pursuant to the provisio ns of this section
355	352		shall become a final or der unless, not more than thirty (30) days
356	353		after the order is served to the licensee, the licensee requests a n
357	354		administrative hearing in accordance with the rules and regulations
358	355		of the Department. Upon such request, the Department shall promptly
359	356		initiate administrative proceedings.
360	357		L. Whenever the Department finds that an emergency exists
361	358		requiring immediate a ction in order to protect th e health or welfare
362	359		of the public, the Department may issue an order, without providing
363	360		notice or hearing, stating the existence of said emergency and
364	361		requiring that action be taken as the Department deems necessary to
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366		-	SENATE FLOOR VERSION - HB4411 SFLR Page 8
367		-	(Bold face denotes Committee Amendments) 1
	363	+	ENGR. H. B. NO. 4411 Page 8 1
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392	388		meet the emergency. Such action may include, but is not limited to,
393	389		ordering the licensee to immediately cease an d desist operations by
394	390		the licensee. The order shall be effective immediately upon
395	391		issuance. Any person to whom the order is directed shall comply
396	392		immediately with the provision s of the order. The Department may
397	393		assess a penalty not to exceed Ten Thousa nd Dollars ($10,000.00) per
398	394		day of noncompliance with the order. In assessing such a penalty,
399	395		the Department shall consider the seriousness of the vio lation and
400	396		any efforts to comply with applicable requirements . Upon
401	397		application to the Department, the l icensee shall be offered a
402	398		hearing within ten (10) days of the issuance of the order.
403	399		M. All hearings held pursuant to this section shall be in
404	400		accordance with the Oklahoma Admin istrative Procedures Act.
405	401		SECTION 2. This act shall become e ffective November 1, 2022.
406		-	COMMITTEE REPORT BY: COMMITTEE ON BUSINESS, COMMERCE AND TOURISM
407		-	April 14, 2022 - DO PASS AS AMENDED
	402	+	Passed the House of Representatives the 23rd day of March, 2022.
	403	+
	404	+
	405	+
	406	+
	407	+	Presiding Officer of the House
	408	+	of Representatives
	409	+
	410	+
	411	+	Passed the Senate the ___ day of __________, 2022.
	412	+
	413	+
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	415	+
	416	+	Presiding Officer of the Senate
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