ENGR. H. A. to ENGR. S. B. NO. 1033 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 ENGR. H. A. to ENGR. S. B. NO. 1033 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 ENGR. S. B. NO. 1033 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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: ENGR. S. B. NO. 1033 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 ENGR. S. B. NO. 1033 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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. ENGR. S. B. NO. 1033 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 ENGR. S. B. NO. 1033 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 ENGR. S. B. NO. 1033 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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. ENGR. S. B. NO. 1033 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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; ENGR. S. B. NO. 1033 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 ENGR. S. B. NO. 1033 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 ENGR. S. B. NO. 1033 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 ENGR. S. B. NO. 1033 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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. ENGR. S. B. NO. 1033 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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: ENGR. S. B. NO. 1033 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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. ENGR. S. B. NO. 1033 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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. ENGR. S. B. NO. 1033 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 ENGR. S. B. NO. 1033 Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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. ENGR. S. B. NO. 1033 Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 ENGR. S. B. NO. 1033 Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 ENGR. S. B. NO. 1033 Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 ENGR. S. B. NO. 1033 Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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