Oklahoma 2022 2022 Regular Session

Oklahoma Senate Bill SB1033 Engrossed / Bill

Filed 04/22/2021

                     
 
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ENGROSSED HOUSE AMENDME NTS 
 TO 
ENGROSSED SENATE BILL NO . 1033 By: Leewright of the Senate 
 
  and 
 
  Fetgatter of the House 
 
 
 
 
 
An Act relating to medical marijuana ;****Oklahoma 
Medical Marijuana and Patient Protection Act; 
grandfathering certain license d location;**** 
authorizing certain objection to grandfather 
provisions; stating procedure for municipal objection 
and documentation; making objection discretionary; 
requiring certain Authority to defer to municipal 
documentation;****and declaring an emerg ency. 
 
 
 
  
NOTE: Emergency failed 
 
AMENDMENT NO. 1.  Page 1, lines 6 through 18, strike the title to 
read 
 
"[ medical marijuana – retail marijuana 
establishments – Oklahoma Medical Marijuana and 
Patient Protection Act – allowing license transfer 
under certain conditions ]" 
 
AMENDMENT NO. 2.  Page 1, line 20, strike the enacting clause 
   
 
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Passed the House of Representatives the 21st day of April, 2021. 
 
 
 
 
  
Presiding Officer of the House of 
 	Representatives 
 
 
Passed the Senate the ____ day of __________, 2021. 
 
 
 
 
  
Presiding Officer of the Senate  
 
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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 certain locations; construing 
provisions; adding definition; amend ing 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; all owing 
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 compliance; 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; requiring 
revocation under certain circumstance; requiring 
certain documentation; defining term; and declaring 
an emergency. 
 
 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: 
SECTION 1.     AMENDATORY     Section 6, State Question No. 788, 
Initiative Petition No. 412, as last amended by Section 46, Cha pter 
161, O.S.L. 2020 (63 O.S. Supp. 2020, Section 425), is amended to 
read as follows:   
 
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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 lic ense 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 o r 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 p erson 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. 
C.  For the purposes of me dical 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   
 
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constitute the use of an il licit 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 with a minor, and there is no 
presumption of neglect or child endang erment 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 unduly be 
withheld from holding a state -issued license by virtue o f 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 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 
marijuana-licensed premises, medical marijuana businesses or any 
other premises where marijuana or its by -products are cultivated, 
grown, processed, stored or manufactured.   
 
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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 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 d istance between properties 
shall not apply as long as the licensed property is used for its 
stated purpose. The licensed location shall be grandfathered in as   
 
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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 license 
pursuant to a change in ownership, revoke any license due to an 
error in measurement of the setback distance or fai lure 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 setback distance, 
subject only to the municipal compliance provisions o f 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 
inconsistent with this section. The setback 
measurement process is allowed an error in measurement   
 
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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 research 
which is subject to federal regulations and institutional ove rsight 
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 amende d 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 grower; 
2.  Medical marijuana processor; 
3.  Medical marijuana dispens ary; 
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 Services, shall develop a 
website for medical marijuana business app lications. 
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 medical marijuana 
business license shall be Two Thousand Five Hundred D ollars 
($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 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 submit 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 that, 
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 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 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 facility; 
8.  There shall be no limit to the number of medical mar ijuana 
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 combi nation 
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 defin ed 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 considere d 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 resi dency 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 a pplication 
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   
 
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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 photograph. 
F.  The Authority shall review the medical marijuana busine ss 
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 specific category applied under which shall 
act as proof of their a pproved 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 dela y 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 is sued 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 cr iminal 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 bu siness, 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 applicant or a 
licensee, the Department, Authority and municipaliti es 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 references and educational 
achievements, especially those items pertain ing 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 requested 
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 recommend denial of an application 
where the applicant made misstatement s, 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 additional 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 medica l 
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 shall 
authorize the Authority to deny issuance or renewal of a licens e 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 the municipal 
compliance provisions of Section 426.1 of this title. 
SECTION 3.     AMENDATORY     Section 4, Chapter 50 9, O.S.L. 
2019 (63 O.S. Supp. 2020, Section 426.1), is amended to read as 
follows: 
Section 426.1. A.  Except for revocation 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 shall 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 defined in Section 2 of Enrolled 
House Bill No. 2612 of the 1st Ses sion 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 o f 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 wi thin 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 the 
applicant or use is to be located certifying compliance with z oning 
classifications, applicable municipal ordinances and all applicable 
safety, electrical, fire, plumbing, waste, construction and building 
specification codes. 
2. Notwithstanding the grandfather provisions in Section 425 of 
this title for a medical ma rijuana 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 license 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 school 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 or 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 t he 
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 aft er 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 safety, 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. 
Passed the Senate the 10th day of March, 2021. 
 
 
  
 	Presiding Officer of the Senate 
 
 
Passed the House of Representatives the ____ day of __________, 
2021. 
 
 
  
 	Presiding Officer of the House 
 	of Representatives