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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
ENGROSSED SENATE
BILL NO. 1033 By: Leewright of the Senate
and
Fetgatter of the House
An Act relating to medical marijuana; amending
Section 6, State Question No. 788, Initiative
Petition No. 412, as last amended by Section 46,
Chapter 161, O.S.L. 2020 (63 O.S. Supp. 2020, Section
425), which relates to retail marijuana
establishments; determining setback distance from
school; grandfathering c ertain locations; construing
provisions; adding definition; amending Section 14,
Chapter 11, O.S.L. 2019, as last amended by Section
51, Chapter 161, O.S.L. 2020 (63 O.S. Supp. 2020,
Section 427.14), which relates to the Oklahoma
Medical Marijuana and Pati ent Protection Act;
grandfathering certain licensed location; allowing
license transfer under certain conditions; providing
exception; amending Section 4, Chapter 50 9, O.S.L.
2019 (63 O.S. Supp. 2020, Section 426.1), which
relates to revocation and complia nce; updating
statutory references; authorizing certain objection
to grandfather provisions; stating procedure for
municipal objection and documentation ; making
objection discretionary; requiring certain Authority
to defer to municipal documentation; requi ring
revocation under certain circumstance; requiring
certain documentation; defining term; and declaring
an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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SECTION 1. AMENDATORY Section 6, State Question No. 788 ,
Initiative Petition No. 412, as last amended by Section 46, Chapter
161, O.S.L. 2020 (63 O.S. Supp. 2020, Section 425), is amended to
read as follows:
Section 425. A. No school or landlord may refuse to enroll or
lease to and may not otherwise penalize a person solely for his or
her status as a medical marijuana license holder, unless failing to
do so would cause the school or landlord the potential to lose a
monetary or licensing -related benefit under federal law or
regulations.
B. Unless a failure to do so would cause an employer the
potential to lose a monetary or licensing -related benefit under
federal law or regulations, an employer may not discriminate against
a person in hiring, termination or imposing any term or condition of
employment or otherwise penalize a person based upon either:
1. The status of the person as a medical marijuana license
holder; or
2. Employers may take action against a holder of a medical
marijuana license if the holder uses or possesses marijuana while in
his or her place of employment or during the hours of employment.
Employers may not take action against the holder of a medical
marijuana license solely based upon the status of an employee as a
medical marijuana license holder or the results of a drug test
showing positive for marijuana or its components.
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C. For the purposes of medical care , including organ
transplants, the authorized use of marijuana by a medical marijuana
license holder shall be considered the equivalent of the use of any
other medication under the direction of a physician and does not
constitute the use of an illicit substance or otherwise disqualify a
registered qualifying patient from medical care.
D. No medical marijuana license holder may be denied custody of
or visitation or parenting time wit h a minor, and there is no
presumption of neglect or child endangerment for conduct allowed
under this law, unless the behavior of the person creates an
unreasonable danger to the safety of the minor.
E. No person holding a medical marijuana license may u nduly be
withheld from holding a state -issued license by virtue of their
being a medical marijuana license holder including, but not limited
to, a concealed carry permit.
F. 1. No city or local municipality may unduly change or
restrict zoning laws to pr event the opening of a retail marijuana
establishment.
2. For purposes of this subsection, an undue change or
restriction of municipal zoning laws means an act which entirely
prevents retail marijuana establishments from operating within
municipal boundaries as a matter of law. Municipalities may follow
their standard planning and zoning procedures to determine if
certain zones or districts would be appropriate for locating
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marijuana-licensed premises, medical marijuana businesses or any
other premises where marijuana or its by -products are cultivated,
grown, processed, stored or manufactured.
3. For purposes of this section, “retail marijuana
establishment” means an entity licensed by the State Department of
Health as a medical marijuana dispensary. Ret ail marijuana
establishment does not include those other entities licensed by the
Department as marijuana -licensed premises, medical marijuana
businesses or other facilities or locations where marijuana or any
product containing marijuana or its by -products are cultivated,
grown, processed, stored or manufactured.
G. The Except as otherwise provided in this subsection, the
location of any retail marijuana establishment is specifically
prohibited within one thousand (1,000) feet of any public or private
school entrance. On and after the effective date of this act, for
purposes of calculating the 1,000 -foot setback distance, the
measurement shall be determined by calculating the distance in a
straight line from the school door nearest the front door of the
retail marijuana establishment to the front door of the retail
marijuana establishment .
1. On and after November 1, 2019, if any public or private
school is established within one thousand (1,000) feet of any retail
marijuana establishment after a license has been issued by the
Authority for that location, the setback distance between properties
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shall not apply as long as the licensed property is used for its
stated purpose. The licensed location shall be grandfathered in as
to the setback distance as long as the property is used in
accordance with the original licensed purpose.
2. On and after November 1, 2019, the Authority shall not deny
any issuance or renewal of a license, deny any transfer of licens e
pursuant to a change in ownership , revoke any license due to an
error in measurement of the setback distance or failure to measure
the setback distance by the Authority prior to issuance of an
initial license at the location and the retail marijuana
establishment shall be grandfathered in as to the setbac k distance,
subject only to the municipal compliance provisions of Section 426.1
of this title.
3. For purposes of this subsection :
a. “public or private school ” means any nursery school,
preschool, kindergarten, elementary school, secondary
school, college, university or career or technical
school, and
b. “error in measurement ” means a mistake made by the
Authority or a municipality in the setback measurement
process where either the distance between a retail
marijuana establishment and a public to private school
is miscalculated due to mathematical error or the
method used to measure the setback distance is
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inconsistent with this section. The setback
measurement process is allowed an error in measurement
up to and including five hundred (500) feet when
remeasured after an original license has been issued .
H. Research shall be provided for under this law. A researcher
may apply to the State Department of Health for a special research
license. The license shall be granted, provided the applicant meets
the criteria listed under subsection B of Section 421 of this title.
Research license holders shall be required to file monthly
consumption reports to the State Department of Health with amounts
of marijuana used for research. Biomedical and clinical resea rch
which is subject to federal regulations and institutional oversight
shall not be subject to State Department of Health oversight.
SECTION 2. AMENDATORY Section 14, Chapter 11, O.S.L.
2019, as last amended by Section 51, Chapter 161, O.S.L. 2020, (63
O.S. Supp. 2020, Section 427.14), is amended to read as follows:
Section 427.14. A. There is hereby created the medical
marijuana business license, which shall include the following
categories:
1. Medical marijuana commercial growe r;
2. Medical marijuana processor;
3. Medical marijuana dispensary;
4. Medical marijuana transporter; and
5. Medical marijuana testing laboratory.
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B. The Oklahoma Medical Marijuana Authority, with the aid of
the Office of Management and Enterprise Ser vices, shall develop a
website for medical marijuana business applications.
C. The Authority shall make available on its website in an
easy-to-find location, applications for a medical marijuana
business.
D. The nonrefundable application fee for a medica l marijuana
business license shall be Two Thousand Five Hundred Dollars
($2,500.00).
E. All applicants seeking licensure as a medical marijuana
business shall comply with the following general requirements:
1. All applications for licenses and registrati ons authorized
pursuant to this section shall be made upon forms prescribed by the
Authority;
2. Each application shall identify the city or county in which
the applicant seeks to obtain licensure as a medical marijuana
business;
3. Applicants shall subm it a complete application to the
Department Authority before the application may be accepted or
considered;
4. All applications shall be complete and accurate in every
detail;
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5. All applications shall include all attachments or
supplemental information required by the forms supplied by the
Authority;
6. All applications shall be accompanied by a full remittance
for the whole amount of the application fees. Application fees are
nonrefundable;
7. All applicants shall be approved for licensing review tha t,
at a minimum, meets the following criteria:
a. all applicants shall be age twenty -five (25) years of
age or older,
b. any applicant applying as an individual shall show
proof that the applicant is an Oklahoma resident
pursuant to paragraph 11 of this su bsection,
c. any applicant applying as an entity shall show that
seventy-five percent (75%) of all members, managers,
executive officers, partners, board members or any
other form of business ownership are Oklahoma
residents pursuant to paragraph 11 of thi s subsection,
d. all applying individuals or entities shall be
registered to conduct business in the State of
Oklahoma this state,
e. all applicants shall disclose all ownership interests
pursuant to this act the Oklahoma Medical Marijuana
and Patient Protection Act, and
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f. applicants shall not have been convicted of a
nonviolent felony in the last two (2) years, and any
other felony conviction within the last five (5)
years, shall not be current inmates, or currently
incarcerated in a jail or corrections f acility;
8. There shall be no limit to the number of medical marijuana
business licenses or categories that an individual or entity can
apply for or receive, although each application and each category
shall require a separate application and application fee. A
commercial grower, processor and dispensary, or any combination
thereof, are authorized to share the same address or physical
location, subject to the restrictions set forth in this act the
Oklahoma Medical Marijuana and Patient Protection Act ;
9. All applicants for a medical marijuana business license,
research facility license or education facility license authorized
by this act the Oklahoma Medical Marijuana and Patient Protection
Act shall undergo an Oklahoma criminal history background check
conducted by the Oklahoma State Bureau of Investigation (OSBI)
within thirty (30) days prior to the application for the license ,
including:
a. individual applicants applying on their own behalf,
b. individuals applying on behalf of an entity,
c. all principal officers of an entity, and
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d. all owners of an entity as defined by this act Section
427.2 of this title;
10. All applicable fees charged by OSBI are the responsibility
of the applicant and shall not be higher than fees charged to any
other person or industry for such background checks;
11. In order to be considered an Oklahoma resident for purposes
of a medical marijuana business application, all applicants shall
provide proof of Oklahoma residency for at least two (2) years
immediately preceding the date of application or five (5) years of
continuous Oklahoma residency during the preceding twenty -five (25)
years immediately preceding the date of application. Sufficient
documentation of proof of residency shall include a combination of
the following:
a. an unexpired Oklahoma -issued driver license,
b. an Oklahoma voter identification card,
c. a utility bill preceding the date of application,
excluding cellular telephone and Internet bills,
d. a residential property deed to property in the State
of Oklahoma this state, and
e. a rental agreement preceding the date of application
for residential property located in the State of
Oklahoma this state.
Applicants that were issued a medical marijuana business license
prior to the enactment of the Oklahoma Medica l Marijuana and Patient
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Protection Act are hereby exempt from the two -year or five-year
Oklahoma residence requirement mentioned above;
12. All license applicants shall be required to submit a
registration with the Oklahoma State Bureau of Narcotics and
Dangerous Drugs Control as provided in Sections 2 -302 through 2-304
of Title 63 of the Oklahoma Statutes this title;
13. All applicants shall establish their identity through
submission of a color copy or digital image of one of the following
unexpired documents:
a. front and back of an Oklahoma driver license,
b. front and back of an Oklahoma identification card,
c. a United States passport or other photo identification
issued by the United States government,
d. certified copy of the applicant ’s birth certificate
for minor applicants who do not possess a document
listed in this section, or
e. a tribal identification card approved for
identification purposes by the Oklahoma Department of
Public Safety; and
14. All applicants shall submit an applicant photog raph.
F. The Authority shall review the medical marijuana business
application, approve or reject the application and mail the
approval, rejection or status -update letter to the applicant within
ninety (90) business days of receipt of the application.
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G. 1. The Authority shall review the medical marijuana
business applications and conduct all investigations, inspections
and interviews before approving the application.
2. Approved applicants shall be issued a medical marijuana
business license for the sp ecific category applied under which shall
act as proof of their approved status. Rejection letters shall
provide a reason for the rejection. Applications may only be
rejected based on the applicant not meeting the standards set forth
in the provisions of this section, improper completion of the
application, or for a reason provided for in this act the Oklahoma
Medical Marijuana and Patient Protection Act . If an application is
rejected for failure to provide required information, the applicant
shall have thirty (30) days to submit the required information for
reconsideration. No additional application fee shall be charged for
such reconsideration.
3. Status-update letters shall provide a reason for delay in
either approval or rejection should a situation arise in which an
application was submitted properly, but a delay in processing the
application occurred.
4. Approval, rejection or status -update letters shall be sent
to the applicant in the same method the application was submitted to
the Department Authority.
H. A medical marijuana business license shall not be issued to
or held by:
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1. A person until all required fees have been paid;
2. A person who has been convicted of a nonviolent felony
within two (2) years of the date of application, or within five (5)
years for any other felony;
3. A corporation, if the criminal history of any of its
officers, directors or stockholders indicates that the officer,
director or stockholder has been convicted of a nonviolent felony
within two (2) years of the date of application, or within five (5)
years for any other felony;
4. A person under twenty -five (25) years of age;
5. A person licensed pursuant to this section who, during a
period of licensure, or who, at the time of application, has failed
to:
a. file taxes, interest or penalties due related to a
medical marijuana business, or
b. pay taxes, interest or penalties due related to a
medical marijuana business;
6. A sheriff, deputy sheriff, police officer or prosecuting
officer, or an officer or employee of the Authority or municipality;
or
7. A person whose authority to be a caregiver as defined in
this act the Oklahoma Medical Marijuana and Patient Protection Act
has been revoked by the Department Authority.
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I. In investigating the qualifications of an ap plicant or a
licensee, the Department, Authority and municipalities may have
access to criminal history record information furnished by a
criminal justice agency subject to any restrictions imposed by such
an agency. In the event the Department Authority considers the
criminal history record of the applicant, the Department Authority
shall also consider any information provided by the applicant
regarding such criminal history record , including but not limited to
evidence of rehabilitation, character refere nces and educational
achievements, especially those items pertaining to the period of
time between the last criminal conviction of the applicant and the
consideration of the application for a state license.
J. The failure of an applicant to provide the re quested
information by the Authority deadline may be grounds for denial of
the application.
K. All applicants shall submit information to the Department
and Authority in a full, faithful, truthful and fair manner. The
Department and Authority may recomme nd denial of an application
where the applicant made misstatements, omissions,
misrepresentations or untruths in the application or in connection
with the background investigation of the applicant. This type of
conduct may be considered as the basis for a dditional administrative
action against the applicant. Typos and scrivener errors shall not
be grounds for denial.
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L. A licensed medical marijuana business premises shall be
subject to and responsible for compliance with applicable provisions
for medical marijuana business facilities as described in the most
recent versions of the Oklahoma Uniform Building Code, the
International Building Code and the International Fire Code, unless
granted an exemption by the Authority or municipality.
M. All medical marijuana business licensees shall pay the
relevant licensure fees prior to receiving licensure to operate a
medical marijuana business, as defined in this act the Oklahoma
Medical Marijuana and Patient Protection Act for each class of
license.
N. An original medical marijuana business license issued on or
after November 1, 2019, by the Authority, for a medical marijuana
commercial grower, a medical marijuana processor or a medical
marijuana dispensary shall be deemed to have been grandfathered into
the location on the date the original license was first issued for
purposes of determining the authority of the business to conduct and
continue the same type of business under a license issued by the
Authority, except as may be provided in Sections 425 and 426.1 of
this title. Any change in ownership after the original medical
business licensure has been issued by the Authority shall be
construed by the Authority to be a continuation of the same type of
business originally licensed at that location. Nothing shal l
authorize the Authority to deny issuance or renewal of a license or
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transfer of license due to a change in ownership for the same
business location previously licensed, except when a revocation is
otherwise authorized by law or a protest is made under th e municipal
compliance provisions of Section 426.1 of this title .
SECTION 3. AMENDATORY Section 4, Chapter 509, O.S.L.
2019 (63 O.S. Supp. 2020, Section 426.1), is amended to read as
follows:
Section 426.1. A. Except for revocatio n hearings concerning
licensed patients, as defined in Section 2 of Enrolled House Bill
No. 2612 of the 1st Session of the 57th Oklahoma Legislature 427.1
of this title, all licensure revocation hearings conducted pursuant
to marijuana licenses established in the Oklahoma Statutes shall be
recorded. A party may request a copy of the recording of the
proceedings. Copies shall be provided to local law enforcement if
the revocation was based on alleged criminal activity.
B. The State Department of Health sh all assist any law
enforcement officer in the performance of his or her duties upon
such request by the law enforcement officer or the request of other
local officials having jurisdiction. Except for license information
concerning licensed patients, as de fined in Section 2 of Enrolled
House Bill No. 2612 of the 1st Session of the 57th Oklahoma
Legislature 427.1 of this title, the Department shall share
information with law enforcement agencies upon request without a
subpoena or search warrant.
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C. The State Department of Health shall make available all
information displayed on medical marijuana licenses, as well as
whether or not the license is valid, to law enforcement
electronically through the Oklahoma Law Enforcement
Telecommunications System.
D. The Department shall make available to political
subdivisions a list of marijuana -licensed premises, medical
marijuana businesses or any other premises where marijuana or its
by-products are licensed to be cultivated, grown, processed, stored
or manufactured to aid county and municipal governments in
identifying locations within their jurisdiction and ensure
compliance with local regulations.
E. 1. All marijuana-licensed premises, medical marijuana
businesses or any other premises where marijuana or its by -products
are licensed to be cultivated, grown, processed, stored or
manufactured shall submit with their application, after notifying
the political subdivision of their intent, a certificate of
compliance from the political subdivision where the facility of t he
applicant or use is to be located certifying compliance with zoning
classifications, applicable municipal ordinances and all applicable
safety, electrical, fire, plumbing, waste, construction and building
specification codes.
2. Notwithstanding the gra ndfather provisions in Section 425 of
this title for a medical marijuana dispensary, upon the request for
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renewal or transfer of a retail marijuana establishment license, a
municipal government may object to the continued licensure of the
medical marijuana dispensary when it is operating contrary to the
required setback distance from a public or private school including
the error in measurement allowance authorized by Section 425 of this
title. The municipal objection authorized by this subsection is
discretionary; however, if documentation for an objection is
submitted by the municipal government to the Oklahoma Medical
Marijuana Authority, the Oklahoma Medical Marijuana Authority shall
defer to the municipal government ’s documentation. Upon the
municipal government providing the documentation required by this
subsection, the Authority shall not renew or transfer the medical
marijuana dispensary licens e and shall cause the license to be
revoked.
3. To prevent the granting of the grandfather provisions of
Section 425 of this title as a matter of law, the municipal
government shall provide the following documentation to the Oklahoma
Medical Marijuana Authority prior to renewal or transfer of a
license:
a. a municipal resolution finding that the marijuana
dispensary is located within the prohibited setback
distance from a public or private school that was
openly in existence in such a way that the public
generally would have known of the school ’s existence
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and operation in that location prior to the original
marijuana dispensary being licensed . For purposes of
this subparagraph, “openly in existence” means any
building, location or structure on a school site that
has visible outward markings indicating the building,
location or structure was operating as a sch ool which
would serve as sufficient notice of the existence of
the school or a reason for further inquiry on the part
of the marijuana dispensary license applicant.
“Openly in existence” shall not mean any public or
private school that operated secretly o r discreetly
without any signs or other markings on any building,
location or structure on the school site , undeveloped
land or a structure owned by a school that was not
openly used and marked as a school site, or any school
site that was established after the marijuana
dispensary had been established and licensed by the
Authority, and
b. documentation of the measured distance from the public
or private school to the marijuana dispensary
utilizing the method for determining the setback
distance less any allowable error in measurement
calculated and remeasured on and after the effective
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date of this act as authorized by Section 425 of this
title.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or sa fety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
SUBSTANCES, dated 04/08/2021 - DO PASS.