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SENATE FLOOR VERSION
February 4, 2021
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 1033 By: Leewright
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; 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
Patient Protection Act; grandfathering certain
licensed location; allowing license transfer under
certain conditions; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section No. 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 s olely for his or
her status as a medical marijuana license holder, u nless failing to
do so would cause the school or landlord the potential to lose a
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monetary or licensing-related benefit under federal law or
regulations.
B. Unless a failure to do so woul d 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 penali ze a person based upon either:
1. The status of the person as a med ical 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 emplo yment or during the hours of employment.
Employers may not take act ion against the holder of a medical
marijuana license solely based upon the status of an employ ee as a
medical marijuana license holder or the results of a drug test
showing positive for m arijuana or its components.
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 o f a physician and does not
constitute the use of an illicit substanc e 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 with a minor, and there is no
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presumption of neglect or child endangerment for con duct allowed
under this law, unless the behavior of the person creates an
unreasonable danger t o the safety of the minor.
E. No person holding a medical marijuana license may unduly 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 prevent the o pening of a retail marijuana
establishment.
2. For purposes of this subsection, an undue change or
restriction of municipal zoning laws means an act which entirel y
prevents retail marijuana establishments from operating within
municipal boundaries as a ma tter of law. Municipalities may follow
their standard planning and zoning procedures to determine if
certain zones or districts would be appropriate for locating
marijuana-licensed premises, medical marijuana businesses or any
other premises where marijua na or its by-products are cultivated,
grown, processed, stored or ma nufactured.
3. For purposes of this section, “retail marijuana
establishment” means an entity licensed by the State Department of
Health as a medical marijuana dispensary . Retail marijuana
establishment does not include those other entities licensed by t he
Department as marijuana-licensed premises, medical marijuana
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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 establi shment is specifically
prohibited within one thousand (1,000) feet of any public or private
school entrance. On and after Novembe r 1, 2019, if any public or
private school exists or is established within one thousand (1,000)
feet of any retail marijuana e stablishment after a license has been
issued by the Authority for that location, the prohibited distance
between properties shall not apply as long as the licensed property
is used for its stated purpose. The Authority shall not deny any
issuance or renewal of licensure, deny any transfer of licensure
pursuant to a change in ownership or revoke any license due to
mistake in measurement by the Authority or any change in public or
private school usage after an initial license has been issued at the
location. The licensed location shall be grandfathered by the
Authority upon initial licensure as long as the property is used in
accordance with the original license d purpose. For purposes of this
subsection, “public or private school” means any nursery school,
preschool, elementary school, secondary school, college, university
or career or technical school.
H. Research shall b e provided for under this law. A researcher
may apply to the State Department of Health for a special research
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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 research
which is subject to federal regulations and institutional oversight
shall not be subject to State Department of Health over sight.
SECTION 2. AMENDATORY Section 14, Chapter 11, O.S.L.
2019, as last amended by Section 51, Cha pter 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 cre ated the medical
marijuana business license, which shall include the following
categories:
1. Medical marijuana commercial grower;
2. Medical marijuana processor;
3. Medical marijuana dispensary;
4. Medical marijuana transporter; and
5. Medical marijuana testing laboratory.
B. The Oklahoma Medical Marijuana Authority, with the aid of
the Office of Management and Enterprise Services, shall develop a
website for medical marijuana business applications .
C. The Authority shall make available on its websi te in an
easy-to-find location, applications for a medical marijuana
business.
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D. The nonrefundable application fee for a medical marijuana
business license shall be T wo 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 registrations authorized
pursuant to this section shall be made upon forms prescribe d by the
Authority;
2. Each application shall identi fy the city or county in which
the applicant seeks to obtain licensure as a medical marijuana
business;
3. Applicants shall submit a complete application to the
Department Authority before the applicati on may be accepted or
considered;
4. All applications shall be complete and accurate in every
detail;
5. All applications shall include all attachments or
supplemental information required by the forms supplied by the
Authority;
6. All applications shal l 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 that,
at a minimum, meets the following criteria:
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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 subsection,
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 this subsection,
d. all applying individuals or enti ties 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 Ma rijuana
and Patient Protection Act , and
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 cur rently
incarcerated in a jail or corrections facility;
8. There shall be no limit to the number of medical marijuana
business licenses or categories that an indivi dual or entity can
apply for or receive, although each application and each category
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shall require a separate application and application fee. A
commercial grower, processor and dispensary, or any combination
thereof, are authorized to share the same addr ess 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 hist ory 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
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 industr y for such background checks;
11. In order to be considered an Oklahom a resident for purposes
of a medical marijuana bus iness application, all applicants shall
provide proof of Oklahoma residency for at least two (2) years
immediately preceding the date o f application or five (5) years of
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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 identifi cation 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 Medical Marijuana and Patient
Protection Act are hereby exempt from the two -year or five-year
Oklahoma residence requirement mentione d above;
12. All license applicants shall be required to submit a
registration with the Oklahoma State Bureau of Narcotics and
Dangerous Drugs Control as pr ovided in Sections 2 -302 through 2-304
of Title 63 of the Oklahoma Stat utes this title;
13. All applicants shall establish their identity through
submission of a color copy or digit al image of one of the following
unexpired documents:
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a. front and back of an Oklahom a driver license,
b. front and back of an Oklahoma identific ation 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 photograph.
F. The Authority shall review th e 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.
G. 1. The Authority shall review the med ical marijuana
business applications and conduct all investi gations, inspections
and interviews before approving the application.
2. Approved applicants shall be issued a medical marijuana
business license for the specific category applied under which sha ll
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 meetin g the standards set forth
in the provisions of this section, improper completion of t he
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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 r equired information, the applicant
shall have thirty (30) days to submi t the required information for
reconsideration. No additional applicati on 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, reject ion 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:
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 stockholde rs indicates that the officer,
director or stockholder has been convicted of a nonv iolent felony
within two (2) years of the date of application, or withi n five (5)
years for any other felony;
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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 penalti es due related to a
medical marijuana business, or
b. pay taxes, interest or penal ties due related to a
medical marijuana business;
6. A sheriff, deputy sheriff, police officer or pros ecuting
officer, or an officer or employee of the Authority or municipa lity;
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.
I. In investigating the qualifications of an applicant or a
licensee, the Department, Authority and municipalities may have
access to criminal history record information furn ished 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 b y the applicant
regarding such criminal history record, including but not limited to
evidence of rehabilitation, character references and educational
achievements, especially those items pertaining to the period of
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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 requested
information by the Authority deadline may be grounds for denial of
the application.
K. All applicants shall submit inf ormation to the Department
and Authority in a full, faithful, truthful and fair manner. The
Department and Authority may recommend denial of an application
where the applicant made misstatements, omissions,
misrepresentations or untruths in the applicatio n or in connection
with the background investigation of the applicant. This type of
conduct may be considered as the basis for additional administrative
action against the applicant. Typos and scrivener errors shall not
be grounds for denial.
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 Okla homa 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 bu siness, as defined in this act the Oklahoma
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Medical Marijuana and Patient Protectio n Act for each class of
license.
N. Any original license issued on or after November 1, 20 19, by
the Authority, for a medical marijuana commercial grower, a medical
marijuana processor or a medical marijuana dispensary shall be
deemed to have been vested on the date the original license was
first issued for purposes of determining the location and authority
of any business to conduct and continue the same type of business
under a license issued by the Authority. Any change in ownership
after the original 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 such location. Nothing shall
authorize the Authority to deny issuance of any new license, license
renewal or transfer of license due to a change in ownership for the
same business location previously licensed, except when a revocation
has been adjudicated for a violation of the Oklahoma Medical
Marijuana and Patient Protection Act.
SECTION 3. This act shall become effective November 1, 2021.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS, COMMERCE AND TOURISM
February 4, 2021 - DO PASS AS AMENDED