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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
CONFERENCE COMMITTEE SUBSTITUTE
FOR ENGROSSED
SENATE BILL 1033 By: Leewright of the Senate
and
Fetgatter of the House
CONFERENCE COMMITTEE SUBSTITUTE
An Act relating to medical marijuana; amending
Section 1, State Question No. 788, Initiative
Petition No. 412, as last amended by Section 44,
Chapter 161, O.S.L. 2020 (63 O.S Supp. 2020, Section
420), which relates to possession of medical
marijuana; modifying references; caregiver
cultivation and charges; expanding prohibitions for
licensed physicians; Section 6, State Question No.
788, Initiative Petition No. 412, as last amended by
Section 2 of Enrolled Senate Bi ll No. 862 of the 1st
Session of the 58th Oklahoma Legisla ture, which
relates to retail marijuana dispensaries; determining
setback distance from school; grandfathering certain
locations; construing provisions; adding definition;
amending Section 4, Chapte r 509, O.S.L. 2019 (63 O.S.
Supp. 2020, Section 426.1), wh ich relates to
revocation and compliance; updating statutory
references; authorizing certain objection to
grandfather provisions; stating procedure for
municipal objection and documentation; requiring
revocation under certain circumstance; requiring
certain documentation; defining term; amending
Section 2, Chapter 11, O.S.L. 2019, as last amended
by Section 48, Chapter 161, O.S.L. 2020 (63 O.S.
Supp. 2020, Section 427.2), which relates to
definitions; updating references; modifying
definition; amending Section 3, Chapter 11, O.S.L.
2019, as amended by Section 6, Chapter 477, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.3) , which
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relates to creation of duties; adding duty to enforce
certain laws; amending Section 4, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020 , Section 427.4), which
relates to executive direct or; including business
applicant for inspections; amending Section 13,
Chapter 11, O.S.L. 2019 (63 O.S. Supp. 2020, Section
427.13), which relates to medic al marijuana;
requiring written operation procedur es for certain
facilities; amending Section 14, Cha pter 11, O.S.L.
2019, as last amended by Section 51, Chapt er 161,
O.S.L. 2020 (63 O.S. Supp. 2020, Section 427.14),
which relates to the Oklahoma Medical M arijuana and
Patient Protection Act; grandfatherin g certain
licensed location; allowing license trans fer under
certain conditions; defining term; providing for
certain foreign investments ; amending Section 16,
Chapter 11, O.S.L. 2019 (63 O.S. Supp. 2020, S ection
427.16), which relates to medical marijuana
transporter license; updating statutory references;
requiring each locati on to be registered; amending
Section 2, Chapter 337, O.S.L. 2019 (63 O.S. Supp.
2020, Section 428.1), which relates to medical
marijuana waste management; modifying definitions;
amending Section 4, Chapter 337, O.S.L. 2019 (63 O.S.
Supp. 2020, Section 430 ), which relates to medical
marijuana disposal license; limiting certain licenses
until after certain date; providing for measuremen t
of prohibited distance from school; amending Sec tion
7, State Question No. 788, Initiative Petition No.
412 (63 O.S. Supp. 2020, Section 426), which relates
to retail tax on medical marijuana; providing for
Oklahoma Tax Commission to assess, collect and
enforce taxes; authorizing collection of certain
percentage of tax on retail medical marijuana sales;
authorizing a percenta ge fee charged to th e State
Department of Health; directing deposit of certain
funds; providing exception; providing for
codification; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 1, Stat e Question No. 788,
Initiative Petition No. 412, as last amended by Section 44, Chapter
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161, O.S.L. 2020 (63 O.S. Supp. 2020, Section 420), i s amended to
read as follows:
Section 420. A. A person in possession of a stat e-issued
medical marijuana license shall be able to:
1. Consume marijuana legally;
2. Legally possess up to three (3) ounces of mar ijuana on their
person;
3. Legally possess six mature marijuana plants;
4. Legally possess six seedling plants;
5. Legally possess one (1) ounce of concent rated marijuana;
6. Legally possess seventy -two (72) ounces of edible marijuana;
and
7. Legally possess up to eight (8) ounces of marijuana in their
residence.
B. Possession of up to one and one -half (1.5) ounces of
marijuana by persons who can state a medical condition, but are not
in possession of a state -issued medical marijuana license, shall
constitute a misdemeanor offense punishable b y a fine not to exceed
Four Hundred Dollars ($400.00) and shall not be subject t o
imprisonment for the offense. An y law enforcement officer who comes
in contact with a person in violation of this subsection and w ho is
satisfied as to the identity of the p erson, as well as any other
pertinent information the law enforcement officer de ems necessary,
shall issue to the p erson a written citation containing a notice to
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answer the charge against the person in the approp riate court. Upon
receiving the written pr omise of the alleged violator to answer as
specified in the citation, the law en forcement officer shall release
the person upon personal recognizance unless there has been a
violation of another provision of law.
C. A regulatory office shall be establishe d under the State
Department of Health which shall receive applications for medi cal
marijuana license recipients, d ispensaries, growers, and packagers
within sixty (60) days of the passage of this initiative.
D. The State Department of Health shall, withi n thirty (30)
days of passage of this initiative, make available on its website,
in an easy-to-find location, an ap plication for a medical marijuana
license. The license shall be good for two (2) years. The
application fee shall be One Hundred Dollars ($ 100.00), or Twenty
Dollars ($20.00) for individuals on Medicaid, Medicare or
SoonerCare. The methods of payment sh all be provided on the website
of the Department.
E. A short-term medical marijuana license appli cation shall
also be made available on the website of the State Department of
Health. A short-term medical marijuana licen se shall be granted to
any applicant who can meet the requirements for a two -year medical
marijuana license, but whose physician reco mmendation for medical
marijuana is only va lid for sixty (60) days. Short -term medical
marijuana licenses shall be issued for sixty (60) days. The fee for
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a short-term medical marijuana license and the procedure for
extending or renewing the license shal l be determined by the
Department.
F. A temporary license application shall also be made available
on the website of the D epartment. A temporary medical mar ijuana
license shall be granted to any medical marijuana license holder
from other states, provide d that the state has a state -regulated
medical marijuana program, and the applicant can prove he or she is
a member of such program. Temporary licenses shall be issued for
thirty (30) days. The cost for a temporary license shall be One
Hundred Dollars ($100.00). Renewal shall be granted with
resubmission of a new application. No additional criteria shall be
required.
G. Medical marijuana license applicants shall submit his or her
applications to the State Department of Health for approval. The
applicant shall be an Oklahoma state resident and shall prove
residency by a valid driver license, utility bills, or other
accepted methods.
H. The State Department of Health shall review the medical
marijuana application, approve or reject the application, and mail
the approval or rejection letter stati ng any reasons for rejection
to the applicant within fourteen (14) business days of receipt of
the application. Ap proved applicants shall be issued a medical
marijuana license which shall act as proof of his or h er approved
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status. Applications may only be rejected based on the applicant
not meeting stated criteria or improper compl etion of the
application.
I. The State Department of Health shall only keep the following
records for each approved medical marijuan a license:
1. A digital photograph of the license holder;
2. The expiration date of the license;
3. The county where the card was issued; and
4. A unique 24-character identification number assigned to the
license.
J. The State Department of Health sha ll make available, both on
its website and through a telephone verification system, an easy
method to validate the authenti city of the medical marijuana licen se
by the unique 24-character identification number.
K. The State Department of Health shall ensu re that all
application records and informa tion are sealed to protect the
privacy of medical marijuana license applicants.
L. A caregiver license shall be ma de available for qualified
caregivers of a medical marijuana license holder who is homebound.
As provided in Section 11 of Enrolled House Bi ll No. 2612 of the 1st
Session of the 57th Oklahoma Legislature 427.11 of this title, the
caregiver license shall p rovide the caregiver the same rights as the
medical marijuana patient licensee , including the ability to possess
marijuana, marijuana product s and mature and immature plants or
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cultivated medical marijuana pursuant to the Oklahoma Medical
Marijuana and Patient Protection Act, but excluding the ability to
use marijuana or marijuana products unless the c aregiver has a
medical marijuana patient li cense. An applicant for a caregiver
license shall submit proof of the license s tatus and homebound
status of the medical marijuana patient and proof that the applicant
is the designee of the medical marijuana pat ient. The applicant
shall also submit proo f that he or she is eighteen (18) years of age
or older and proof of his or her Oklahoma residency. This shall be
the only criteria for a caregiver license. A licensed caregiver
shall not cultivate medical marij uana for more than five medical
marijuana patient licensees and shall not charge a medical marijuana
patient licensee for c ultivating medical marijuana in exc ess of the
actual costs incurred in cultivating the medical marijuana.
M. All applicants shall be eighteen (18) years of age or older.
A special exception shall be granted to an applicant under the age
of eighteen (18); however, these applications shall be signed by two
physicians and the parent or legal guardian of the applica nt.
N. All applications for a medical marijuana license shall be
signed by an Oklahoma physician. There are no qualifying
conditions. A medical marijuana license must be recommen ded
according to the accepted standards a reasonable and prudent
physician would follow when recom mending or approving any
medication. No physician may be unduly stigmatized , penalized,
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subjected to discipline, sanctione d, reprimanded or harassed for
signing a medical marijuana license application ; provided, the
physician acted in accordance with the provisions of this subsection
and all other rules governing the medical license of the physician
in this state.
O. Counties and cities may enact medical mari juana guidelines
allowing medical marijuana license holders or caregivers t o exceed
the state limits set forth in subsection A of this section.
SECTION 2. AMENDATORY Section 6, State Question No. 7 88,
Initiative Petition No. 412, as last amended by Section 2 of
Enrolled Senate Bill No. 862 of the 1st Sessi on of the 58th Oklahoma
Legislature, 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 licensed medical marijuana patient, unles s failing
to do so would cause the school or landlord the potential to lo se a
monetary or licensing -related benefit under federal law or
regulations.
B. 1. 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 discr iminate against
a person in hiring, termination or imposing any term or c ondition of
employment or otherwise penalize a person based upon the status of
the person as a licensed medica l marijuana patient.
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2. Employers may take action against a licensed med ical
marijuana patient if the licensed medical marijuana patient 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 licensed medical marijuana patient solely bas ed upon the
status of an employee as a licensed medical marijuana patient or the
results of a drug test show ing positive for marijuana or its
components.
C. For the purposes of medic al care, including orga n
transplants, the authorized use of marijuana by a licensed medical
marijuana patient shall be considered the equivalent o f the use of
any other medication u nder the direction of a physician and does not
constitute the use of an ill icit substance or other wise disqualify a
registered qualifying patient fr om medical care.
D. No licensed medical marijuana patient may be denied custody
of or visitation or parenti ng time with a minor child, and there is
no presumption of neglect or child endangerment for condu ct allowed
under this law, unless the behavior of the person creates an
unreasonable danger to the safety of the minor chil d.
E. No licensed medical marijuan a patient may unduly be withheld
from holding a state -issued license by vir tue of their being a
licensed medical marijuana patient including, but no t limited to, a
concealed carry permit.
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F. 1. No city or local municipa lity may unduly change or
restrict zoning laws to prevent the opening of a medical marijuana
dispensary.
2. For purposes of this sub section, an undue change or
restriction of municip al zoning laws means an act which entirely
prevents medical marijuana dis pensaries from operating within
municipal boundaries as a matter of law. Municipalities may follow
their standard planning and zonin g procedures to determine if
certain zones or dist ricts would be appropriate for locating
marijuana-licensed premises, medi cal marijuana businesses or any
other premises where marijuana or its by -products are cultivated,
grown, processed, stored or manufac tured.
3. For purposes of this section, a medical marijuana dispensary
does not include those other entities licensed by t he Department as
marijuana-licensed premises, medical marijuana businesses or other
facilities or locations wh ere marijuana or any pr oduct containing
marijuana or its by-products are cultivated, grown, processed,
stored or manufactured.
G. The Except as otherwise provided in this subsectio n, the
location of any retail marijuana establishment dispensary 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 purp oses of calculating the 1,000 -foot setback
distance, the measurement shall be determined by calculating the
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distance in a straight li ne from the school door nearest the front
door of the retail marijuana dispensary to the front door of the
retail marijuana dispensary.
1. On and after June 26, 2018, if any school is established
within one thousand (1,000) feet of any retail marijuana di spensary
after a license has been issued by the Au thority for that location,
the setback distance between properties shall not apply as long as
the licensed property is used for its original licensed purpose.
The licensed location s hall be grandfathered i n as to the setback
distance as long as the proper ty is used in accordance with the
original licensed purpose.
2. On and after June 26, 2018, the Authority, due to an error
in measurement of the setback distance or failure to measur e the
setback distance by the Authority prior to issuance of an original
license at a location, shall not:
a. deny any issuance or renewal of a li cense at that
location,
b. deny any transfer of license pursuant to a change in
ownership at that location, or
c. revoke any license due to an error in measurement or
failure to measure the setback distance, except as
otherwise provided by law.
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The retail marijuana dispensary shall be grand fathered in as to
the setback distance, subject only to the municipal compl iance
provisions of Section 426.1 of this title.
3. For purposes of this subsection:
a. "school" means the same as defined in Section 427.2 of
this title, 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 dispensary and a school is miscalculated due
to mathematical error or th e method used to measure
the setback distance is 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 unde r this law. A researcher
may apply to the State Department of Health for a special research
license. The license shall be granted, provided the ap plicant meets
the criteria listed under subsection B of Section 421 of th is title.
Research licensees shall be required to file monthly consumption
reports to the State Department of Health with amounts of marijuana
used for research. Biomedical and clin ical research which is
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subject to federal regulations and institutional o versight shall not
be subject to State Department of Health oversight.
SECTION 3. AMENDATORY Section 4, Chapt er 509, O.S.L.
2019 (63 O.S. Supp. 2020, Section 4 26.1), is amended to read as
follows:
Section 426.1. A. Except for revo cation hearings concerning
licensed patients, as defined in Section 2 of Enrolled House Bill
No. 2612 of the 1st Session of the 57th Oklahoma Legislature 427.2
of this title, all licensure revocation hearings conducted pursuant
to marijuana licenses establ ished in the Oklahoma Statutes shal l be
recorded. A party may request a copy of the recording of the
proceedings. Copies shall be p rovided to local law enforcement if
the revocation was based on alleged criminal activity.
B. The State Department of Heal th 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 jur isdiction. Except for license information
concerning licensed patients, as defined in Section 2 of Enrolled
House Bill No. 2612 of the 1st Session of the 57th Oklahoma
Legislature 427.2 of this title, the Department shall share
information with law enforc ement agencies upon request without a
subpoena or search warrant.
C. The State Department of Health shall m ake available all
information displayed on medical marijuana licenses, as well as
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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 gove rnments in
identifying locations within their jurisdiction and ensure
compliance with local regula tions.
E. 1. All marijuana-licensed premises, me dical marijuana
businesses or any other premises where marijuana or its b y-products
are licensed to be culti vated, grown, processed, stored or
manufactured shall submit with their application, after notifyi ng
the political subdivision of their intent, a ce rtificate of
compliance from the political subdivision where the facility of the
applicant or use is to be l ocated certifying compliance with zoning
classifications, applicable municipal ordinances and all applicable
safety, electrical, fire, plumbing, was te, construction and building
specification codes.
2. Beginning on the effective date of this act, upon the
initial request for renewal or transfer of a retail marijuana
dispensary license, a municipal gov ernment may object to the
continued licensure of t he medical marijuana dispensary if the
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municipal government determines it is operating contrary to the
required setback distance from a school including the error in
measurement allowance authorized by Sect ion 425 of this title.
3. To prevent the granting of the grandfather provisions of
Section 425 of this title as a matter o f law, the municipal
government shall provide the following documentation prior to the
initial renewal or transfer of a license:
a. a municipal resolution finding that the marijuana
dispensary is located within the prohibited setback
distance from a school that was openly in existence in
such a way that the public generally would have known
of the school's existence and operation in tha t
location prior to the original marijuana dispens ary
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 o r
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 th e
marijuana dispensary license applicant. "Openly in
existence" shall not mean any school that ope rated
secretly or discreetly without any signs or other
markings on any building, location or structure on the
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school site, undeveloped land or a structure o wned 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 bee n established
and licensed by the Authority, and
b. documentation of the measured distance from the school
to the marijuana dispensary utilizing the method for
determining the setback distance less any allo wable
error in measurement calculated and remeasur ed on and
after the effective date of this act as authorized by
Section 425 of this title.
4. Prior to initial renewal or t ransfer of a license and upon
receipt of documentation required by p aragraph 3 of this subsection,
if the Authority determines that the medical marijuana dispensary is
operating contrary to the required se tback distance from a school
including the error in measurement allo wance authorized by Section
425 of this title, the Authority may deny the renewal or transfer of
the medical marijuana dispensary license and shall cause the license
to be revoked.
5. For purposes of this subsection, "school" means the same as
defined in Section 427.2 of this title.
SECTION 4. AMENDATORY Section 2, Chapter 11, O.S.L.
2019, as last amended by Section 48, Chapter 161, O.S.L. 2020 (63
O.S. Supp. 2020, Section 427.2), is amended to read as follows:
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Section 427.2. As used in this act the Oklahoma Medical
Marijuana and Patient Prote ction Act:
1. "Advertising" means the act of prov iding consideration for
the publication, dissemination, solicitation , or circulation, of
visual, oral, or written communication to induce directly or
indirectly any person to patronize a particular medical marijuana
business, or to purchase particular medi cal marijuana or a medical
marijuana product. Advertising includes marke ting, but does not
include packaging and labeling;
2. "Authority" means the Oklahoma Medical Marijuana Authority;
3. "Batch number" means a unique numeric or alphanumeric
identifier assigned prior to testing to allow for inventory tracking
and traceability;
4. "Cannabinoid" means any of the chemical compounds that are
active principles of marijuana;
5. "Caregiver" means a family member or assistant who regularly
looks after a medical marijuana license holder whom a physician
attests needs assistance;
6. "Child-resistant" means special packaging that is:
a. designed or constructed to be significantly difficult
for children under five (5) years of age to open and
not difficult for no rmal adults to use properly as
defined by 16 C.F.R. 1700.15 (1995) and 16 C.F.R.
1700.20 (1995),
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b. opaque so that the outermost packaging does not allow
the product to be seen without opening the packaging
material, and
c. resealable to maintain its child -resistant
effectiveness for multiple openings for any product
intended for more than a single use or conta ining
multiple servings;
7. "Clone" means a nonflowering plant cut from a mother plant
that is capable of developing into a new plant and has shown no
signs of flowering;
8. "Commissioner" means the State Commissioner of Health;
9. "Complete application " means a document prepared in
accordance with the provisions set forth in this act the Oklahoma
Medical Marijuana and Patient Protection Act , rules promulgated
pursuant thereto, and the forms and instructions provided by the
Department, including any supporting documentation required and the
applicable license application fee;
10. "Department" means the State Department of Health;
11. "Director" means the Executive Director of the Oklahoma
Medical Marijuana Authority;
12. "Dispense" means the selling of medical marijuana or a
medical marijuana product to a qualified patient or the designated
caregiver of the patient that is packaged in a suitable co ntainer
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appropriately labeled for subsequent administration to or use by a
qualifying patient;
13. "Dispensary" means a medical marijuana dispensary, an
entity that has been licensed by the Department purs uant to this act
the Oklahoma Medical Marijuana an d Patient Protection Act to
purchase medical marijuana or medical marijua na products from a
licensed medical marijuana commercial grower or medical marijuana
processor, sell medical marijuana or medical mar ijuana products to
patients and caregivers as defi ned under this act the Oklahoma
Medical Marijuana and Patient Protection Act, or sell or transfer
products to another dispensary;
14. "Edible medical marijuana product " means any medical-
marijuana-infused product for which the intended use is oral
consumption including, but not limited to, any type of food, drink
or pill;
15. "Entity" means an individual, gen eral partnership, limited
partnership, limited liability company, trust, estate, association,
corporation, cooperative, or any other legal or commerc ial entity;
16. "Flower" means the reproductive organs of the marijuana or
cannabis plant referred to as t he bud or parts of the plant that are
harvested and used to consume in a variety of medical marijua na
products;
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17. "Flowering" means the reproducti ve state of the marijuana
or cannabis plant in which there are physical s igns of flower or
budding out of the nodes of the stem;
18. "Food-based medical marijuana concentrate " means a medical
marijuana concentrate that was produced by extracting cannabino ids
from medical marijuana through the use of propylene glycol,
glycerin, butter, olive oil, coconut oil or other typical food-safe
cooking fats;
19. "Good cause" for purposes of an initial, renewal or
reinstatement license application, or for purposes of discipline of
a licensee, means:
a. the licensee or applicant has violat ed, does not meet,
or has failed to comply with any of the terms,
conditions or provisions of the act, any rules
promulgated pursuant thereto, or any supplemental
relevant state or lo cal law, rule or regulation,
b. the licensee or applicant has failed to c omply with
any special terms or co nditions that were placed upon
the license pursuant to an order of the State
Department of Health, Oklahoma Medical Marijuana
Authority or the munici pality, or
c. the licensed premises of a medical marijuana business
or applicant have been operated in a ma nner that
adversely affects the public health or welfare or the
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safety of the immediate vicinity in which the
establishment is located;
20. "Harvest batch" means a specifically identified quantity of
medical marijuana tha t is uniform in strain, cultivated utilizing
the same cultivation practices, harvested at the same time from the
same location and cu red under uniform conditions;
21. "Harvested marijuana" means post-flowering medical
marijuana not including trim, concent rate or waste;
22. "Heat- or pressure-based medical marijuana concentrate "
means a medical marijuana concentrate that was produced b y
extracting cannabinoids from medical marijuana t hrough the use of
heat or pressure;
23. "Immature plant" means a nonflowering marijuana plant that
has not demonstrated signs of flowering;
24. "Inventory tracking system " means the required tracking
system that accounts for medical marijuana from either the seed or
immature plant stage until the medical marijuana or medical
marijuana product is sold to a pat ient at a medical marijuana
dispensary, transferred to a medical marijuana research facility,
destroyed by a medical marijuana business or used in a research
project by a medical marijuana research facility;
25. "Licensed patient" or "patient" means a person who has been
issued a medical marijuana patient license by the State Department
of Health or Oklahoma Medical Marijuana Authority;
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26. "Licensed premises" means the premises specified in an
application for a medical m arijuana business license, medical
marijuana research facility license or medical marijuana education
facility license pursuant to this act the Oklahoma Medical Marijuana
and Patient Protection Act that are owned or in possession of the
licensee and within which the licensee is authorized to cultivate,
manufacture, distribute, sell, store, transport, test or research
medical marijuana or medical marijuana products in accordance with
the provisions of this act the Oklahoma Medical Marijuana and
Patient Protection Act and rules promulgated pu rsuant thereto;
27. "Manufacture" means the production, propagation,
compounding or processing of a medical marijuana product, excluding
marijuana plants, either directly or indirectly by extraction from
substances of natural or synthetic origin, or independently by means
of chemical synthesis, or by a combination of extraction and
chemical synthesis;
28. "Marijuana" shall have the same meaning as su ch term is
defined in Section 2-101 of Title 63 of the Oklahoma Statutes this
title and shall not include any plant or material containing delta -8
or delta-10 tetrahydrocannabinol which is grown, processed or sold
pursuant to the provisions of the Oklahoma Industrial Hemp Program;
29. "Material change" means any change that wo uld require a
substantive revision to the standard operating procedures of a
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licensee for the cultivation or production of medical ma rijuana,
medical marijuana concentrate or medical marijuana products;
30. "Mature plant" means a harvestable female mariju ana plant
that is flowering;
31. "Medical marijuana business (MMB) " means a licensed medical
marijuana dispensary, medical marijuana processor, medical marijuana
commercial grower, m edical marijuana laboratory, medical marijuana
business operator, or a medical marijuana transporter;
32. "Medical marijuana concentrate " or "concentrate" means a
specific subset of medical marijuana that was produced by extracting
cannabinoids from medic al marijuana. Categories of medical
marijuana concentrate include water -based medical marijuana
concentrate, food-based medical marijuana concentrate, solvent -based
medical marijuana concentrate, and heat - or pressure-based medical
marijuana concentrate;
33. "Medical marijuana commercial grower " or "commercial
grower" means an entity licensed to cultivate, prepare and package
medical marijuana and transfer or contract for transfer medical
marijuana to a medical marijuana dispensary, medical marijuana
processor, any other medical marijuana commercial grower, medical
marijuana research facility, medical marijuana education facility
and pesticide manufacturers. A commercial grower may sell seeds,
flower or clones to commercial growers pursuant to this act the
Oklahoma Medical Marijuana and Patient Protection Act ;
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34. "Medical marijuana education facility" or "education
facility" means a person or entity approved pursuant to this act the
Oklahoma Medical Marij uana and Patient Protection Act to operate a
facility providing training and education to individuals involving
the cultivation, growing, harvesting, curing, preparing, packaging
or testing of medical marijuana, or the production, manufacture,
extraction, processing, packaging or creation of medical -marijuana-
infused products or medical marijuana products as described in this
act the Oklahoma Medical Marijuana and Patient Protection Act ;
35. "Medical-marijuana-infused product" means a product infused
with medical marijuana including, but not limited to, e dible
products, ointments and tinctures;
36. "Medical marijuana product " or "product" means a product
that contains cannabinoids that have been extracted from plant
material or the resin therefrom by physi cal or chemical means and is
intended for administ ration to a qualified patient including, but
not limited to, oils, tinctu res, edibles, pills, topical forms,
gels, creams, vapors, patches, liquids , and forms administered by a
nebulizer, excluding live pla nt forms which are considered medical
marijuana;
37. "Medical marijuana processor" means a person or entity
licensed pursuant to this act the Oklahoma Medical Marijuana and
Patient Protection Act to operate a business including the
production, manufacture , extraction, processing, packaging or
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creation of concentrate, medical-marijuana-infused products or
medical marijuana pro ducts as described in this act the Oklahoma
Medical Marijuana and Patient Protection Act ;
38. "Medical marijuana research facility " or "research
facility" means a person or entity ap proved pursuant to this act the
Oklahoma Medical Marijuana and Patient Pr otection Act to conduct
medical marijuana research. A medical marijuana research facility
is not a medical marijuana business;
39. "Medical marijuana testing laboratory " or "laboratory"
means a public or private laboratory licensed pursuant to this act
the Oklahoma Medical Marijuana and Patient Protection Act , to
conduct testing and research on medical marijuana and medical
marijuana products;
40. "Medical marijuana transporter " or "transporter" means a
person or entity that is licensed pursuant to this act the Oklahoma
Medical Marijuana and Patient Protection Act . A medical marijuana
transporter does not include a medical marijuana business that
transports its own medical marijuana , medical marijuana concentrate
or medical marijuana products to a proper ty or facility adjacent to
or connected to the licensed premises if the property is another
licensed premises of the same medical mar ijuana business;
41. "Medical marijuana waste " or "waste" means unused, surplus,
returned or out-of-date marijuana, plant debris of the plant of the
genus Cannabis, including dead plants and all unused plant parts and
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roots, except the term shall not incl ude roots, stems, stalks and
fan leaves;
42. "Medical use" means the acquisition, possession, use,
delivery, transfer or t ransportation of medical marijuana, medical
marijuana products, medical marijuana devices or paraphernalia
relating to the administra tion of medical marijuana to treat a
licensed patient;
43. "Mother plant" means a marijuana plant that is grown or
maintained for the purpose of generating clones, and that will not
be used to produce plant material for sale to a medical marijuana
processor or medical marijuana dispensary;
44. "Oklahoma physician" or "physician" means a physician
licensed by and in good stan ding with the State Board of Medical
Licensure and Supervision, the State Board of Osteopathic Examiners
or the Board of Podiatric Me dical Examiners;
45. "Oklahoma resident" means an individual who can provide
proof of residency as required by this act the Oklahoma Medical
Marijuana and Patient Protection Act ;
46. "Owner" means, except where the context otherwise requires,
a direct beneficial owner including, but not limited to, all persons
or entities as follows:
a. all shareholders owning an interest of a corporate
entity and all officers of a corporate entity,
b. all partners of a general partnership,
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c. all general partners and all limited partners that own
an interest in a limite d partnership,
d. all members that own an interest in a limited
liability company,
e. all beneficiaries that hold a beneficial interest in a
trust and all trustees of a trust,
f. all persons or entities tha t own interest in a joint
venture,
g. all persons or entities that own an interest in an
association,
h. the owners of any other type of legal entity, and
i. any other person holding an interest or convertible
note in any entity which owns, operates or man ages a
licensed facility;
47. "Package" or "packaging" means any container or wrapper
that may be used by a medical mariju ana business to enclose or
contain medical marijuana;
48. "Person" means a natural person, partnership, association,
business trust, company, corporation, estate, limited liability
company, trust or any other legal entity or organization, or a
manager, agent, owner, director, servant, officer or employee
thereof, except that "person" does not include any governmental
organization;
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49. "Pesticide" means any substance or mi xture of substances
intended for preventing, destroying, repelling or mitigating any
pest or any substance or mixture of substances intended for use as a
plant regulator, defoliant or desiccant, except that the term
"pesticide" shall not include any articl e that is a "new animal
drug" as designated by the United States Food and Drug
Administration;
50. "Production batch" means:
a. any amount of medical marijuana concentrate of the
same category and produced using the s ame extraction
methods, standard opera ting procedures and an
identical group of harvest batch of medical marijuana,
or
b. any amount of medical marijuana product of the same
exact type, produced using the same ingredients,
standard operating procedures and the same production
batch of medical marijuana concentrate;
51. "Public institution" means any entity established or
controlled by the federal government, state government, or a local
government or municipality including, but not limited to,
institutions of higher education or related resear ch institutions;
52. "Public money" means any funds or money obtained by the
holder from any governmental entity including, but not limited to,
research grants;
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53. "Recommendation" means a document that is signed or
electronically submitted by a physici an on behalf of a patient for
the use of medical marijuana pursuant to this act the Oklahoma
Medical Marijuana and Patient Protection Act ;
54. "Registered to conduct business " means a person that has
provided proof that the business applicant is in good s tanding with
the Oklahoma Secretary of State and Oklahoma Tax Commission;
55. "Remediation" means the process by which the medical
marijuana flower or trim, which has failed microbial testing, is
processed into solven t-based medical marijuana concentrate and
retested as required by this act the Oklahoma Medical Marijuana and
Patient Protection Act;
56. "Research project" means a discrete scientific endeavor to
answer a research question or a set of research questions related to
medical marijuana and is re quired for a medical marijuana research
license. A research project shall include a description of a
defined protocol, clearly articulated goals, defined methods and
outputs, and a defined start and end date. The des cription shall
demonstrate that the re search project will comply with all
requirements in this act the Oklahoma Medical Mar ijuana and Patient
Protection Act and rules promulgated pursuant thereto. All research
and development conducted by a medical mariju ana research facility
shall be conducted in furtherance of an approved research project;
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57. "Revocation" means the final decision by the Department
that any license issued pursuant to this act the Oklahoma Medical
Marijuana and Patient Protection Act is rescinded because the
individual or entity does not comply with the applicable
requirements set forth in this act the Oklahoma Medical Marijuana
and Patient Protection Act or rules promulgated pursuant thereto;
58. "School" means a public or private presc hool or a public or
private elementary or secondary school which is primarily used for
school classes and classroom instruction. A homeschool, daycare or
child-care facility shall not be considered a "school" as used in
this act the Oklahoma Medical Marij uana and Patient Protection Act ;
59. "Shipping container" means a hard-sided container with a
lid or other enclosure that can be secured in place. A shipping
container is used solely for the transport of medical marijuana,
medical marijuana concentrate, or medical marijuana products between
medical marijuana businesses, a medical marijuana research facility,
or a medical marijuana education facility;
60. "Solvent-based medical marijuana concentrate " means a
medical marijuana con centrate that was produced by extracting
cannabinoids from medical marijuana through the use of a solvent
approved by the Department;
61. "State Question" means Oklahoma State Question No. 788,
Initiative Petition No. 412, approved by a majority vote of t he
citizens of Oklahoma on June 26, 2018;
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62. "Strain" means the classifica tion of marijuana or cannabis
plants in either pure sativa, indica, afgha nica, ruderalis or hybrid
varieties;
63. "THC" means tetrahydrocannabinol, which is the primary
psychotropic cannabinoid in marijuan a formed by decarboxylation of
naturally tetrahydrocannabinolic acid, which generally occurs by
exposure to heat;
64. "Test batch" means with regard to usable marijuana, a
homogenous, identified quantity of usable marijuana by st rain, no
greater than ten (10) pounds, that is harvested during a seven -day
period from a specified cultivation area, and with regard to oils,
vapors and waxes derived from usable marijuana, means an identified
quantity that is uniform, that is intended to meet specifications
for identity, strength and composition, and that is man ufactured,
packaged and labeled during a specified time period according to a
single manufacturing, packaging and labeling protocol;
65. "Transporter agent" means a person who transports medical
marijuana or medical marijuana products for a licensed trans porter
and holds a transporter agent license pursuant to this act the
Oklahoma Medical Marijuana and Patient Protection Act ;
66. "Universal symbol" means the image established by the State
Department of Health or Oklahoma Medical Marijuana Authority and
made available to licensees through its website indicating that the
medical marijuana or the medical marijuana product contains THC;
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67. "Usable marijuana" means the dried leaves, flowers, oils,
vapors, waxes and other portions of the marijuana plant and a ny
mixture or preparation thereof, excluding seed seeds, roots, stems,
stalks and fan leaves; and
68. "Water-based medical marijuana conc entrate" means a
concentrate that was produced by extracting cannabi noids from
medical marijuana through the use of on ly water, ice, or dry ice.
SECTION 5. AMENDATORY Section 3, Chapter 11, O.S.L.
2019, as amended by Section 6, Chapter 477, O.S.L. 2019 (63 O.S.
Supp. 2020, Section 427.3), is amended to read as follows:
Section 427.3. A. There is hereby created the Oklahoma Medical
Marijuana Authority within the State Department of Health which
shall address issues related to the medical marijua na program in
Oklahoma including, but not limited to, the issuance of patient
licenses and medical mariju ana business licenses, and the
dispensing, cultivating, processing, testi ng, transporting, storage,
research, and the use of and sale of medical mariju ana pursuant to
this act.
B. The Department shall provide support staff to perform
designated duties of the Authority. The Department shall also
provide office space for meetin gs of the Authority.
C. The Department shall implement the provisions of this act
consistently with the voter -approved State Question No. 788,
Initiative Petition No. 412, subject to the provisions of this act.
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D. The Department shall exercise its respec tive powers and
perform its respective duties and functions as specified in th is act
and Title 63 of the Oklahoma Statutes including, but not limited to,
the following:
1. Determine steps the state shall take, whether administrative
or legislative in natu re, to ensure that research on marijuana and
marijuana products is being condu cted for public purposes, including
the advancement of:
a. public health policy and public safety policy,
b. agronomic and horticultural best practices, and
c. medical and pharmacopoeia best practices;
2. Contract with third -party vendors and other govern mental
entities in order to carry out the respective duties and functions
as specified in this act;
3. Upon complaint or upon its own motion and upon a completed
investigation, levy fines as prescribed in this act and suspend or
revoke licenses pursuant t o this act;
4. Issue subpoenas for the appearance or production of persons,
records and things in connec tion with disciplinary or contested
cases considered by the Department;
5. Apply for injunctive or declaratory relief to enforce the
provisions of this section and any rules promulgated pursuant to
this section;
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6. Inspect and examine, with notice provid ed in accordance with
this act, all licensed premises of medical marijuan a businesses,
research facilities and education facilities in which medical
marijuana is cultivated, manufactured, sold, stored, transported,
tested or distributed;
7. Upon action by the federal government by which the
production, sale and use of marijuan a in Oklahoma does not violate
federal law, work with the Oklahoma State Banki ng Department and the
State Treasurer to develop good practices and standards for banking
and finance for medical marijuana businesses;
8. Establish internal control procedures for licenses including
accounting procedures, reporting procedures and personn el policies;
9. Establish a fee schedule and collect fees for performing
background checks as the Commis sioner deems appropriate. The fees
charged pursuant to this paragraph sh all not exceed the actual cost
incurred for each background check; and
10. Require verification for sources of finance for medical
marijuana businesses.
E. The Department shall be a uthorized to enter into and
negotiate the terms of a Memorandum of Unders tanding between the
Department and other state agencies concerning the enforce ment of
laws regulating medical marijuana in this state.
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SECTION 6. AMENDATORY Section 4, Chapter 11, O.S.L. 2019
(63 O.S. Supp. 2020, Section 427.4), is amended to read as follows:
Section 427.4. A. The Oklahoma Medical Marijuana Authority, in
conjunction with the State Department of Health, shall employ an
Executive Director and other personnel as necessary to assist the
Authority in carryin g out its duties.
B. The Authority shall not employ an individual i f any of the
following circumstances exist:
1. The individual has a direct or indirect interest in a
licensed medical marij uana business; or
2. The individual or his or her spouse, paren t, child, spouse
of a child, sibling, or spouse of a sibling has an application for a
medical marijuana business license pending before the Department or
is a member of the board of directors of a medical marijuana
business, or is an individual financially interested in any licensee
or medical marijuana business.
C. All officers and employees of the Authority shall be in the
exempt unclassified service as provided for in Section 840 -5.5 of
Title 74 of the Oklahoma Statutes.
D. The Commissioner may delegat e to any officer or employee of
the Department any of the powers of the Executive Director and may
designate any officer or employee of the Department to perform any
of the duties of the Execu tive Director.
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E. The Executive Director shall be authorized to suggest rules
governing the oversight and implementation of this ac t.
F. The Department is hereby authorized to create employment
positions necessary for the implementation of its obligation s
pursuant to this act the Oklahoma Medical Marijuana and Patien t
Protection Act, including but not limited to Authority investigato rs
and a senior director of enforcement. The Department and the
Authority, the senior director of enforcement, the Executiv e
Director, and Department investigators shall have all the powe rs of
any peace officer to:
1. Investigate violations or suspected violations of this act
the Oklahoma Medical Marijuana and Patient Protection Act and any
rules promulgated pursuant thereto;
2. Serve all warrants, summonses, subpoenas, administrative
citations, notices or other processes relating to the enforcement of
laws regulating medical marijuana, concentrate, and medical
marijuana product;
3. Assist or aid any law enforcement officer in the performance
of his or her duties upon such law enforcemen t officer's request or
the request of other local officials having j urisdiction;
4. Require As provided in Section 427.6 of this title, require
any business applicant or licensee, upon twenty -four (24) hours
notice or upon a showing of necessity, to permi t an inspection of
licensed premises during business hours or at any time of apparent
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operation, marijuana equipment, and marijuana accessories, or books
and records; and to permit the testing of or examination of medical
marijuana, concentrate, or product ; and
5. Require applicants to submit complete and current
applications, information required by this act and fees, and approve
material changes made by the applicant or licensee.
SECTION 7. AMENDATORY Section 13, Chapter 11, O.S .L.
2019 (63 O.S. Supp. 2020, Section 427.13), is amended to read as
follows:
Section 427.13. A. All medical marijuana and medical marijuana
products shall be purchased solely from an Oklaho ma-licensed medical
marijuana business, and shall not be purchas ed from any out-of-state
providers.
B. 1. The Oklahoma Medical Mar ijuana Authority shall have
oversight and auditing responsibilities to ensure that all marijuana
being grown in Oklahoma is accounted for and shall implement an
inventory tracking system. Pursuant to these duties, the Authority
shall require that each med ical marijuana business keep records for
every transaction with another medical marijuana business, patient
or caregiver. Inventory shall be tracked and updated after each
individual sale and reported to the Authority.
2. The inventory tracking system li censees use shall allow for
integration of other seed -to-sale systems and, at a minimum, shall
include the following:
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a. notification of when marijuana seeds are planted,
b. notification of when ma rijuana plants are harvested
and destroyed,
c. notification of when marijuana is transported, sold,
stolen, diverted or lost,
d. a complete inventory of all marijuana, seeds, plant
tissue, clones, plants, usable marijuana or trim,
leaves and other plant ma tter, batches of extract, and
marijuana concentrates,
e. all samples sent to a testing laboratory, an unused
portion of a sample returned to a licensee, all
samples utilized by licens ee for purposes of
negotiating a sale, and
f. all samples used for qualit y testing by a licensee.
3. Each medical marijuana busines s, medical marijuana research
facility, medical marijuana education facility and medical marijuana
waste disposal facility shall develop written standard operating
procedures outlining the manner i n which it operates as prescribed
by the Authority and shal l use a seed-to-sale tracking system or
integrate its own seed -to-sale tracking system with the seed -to-sale
tracking system established by the Authority in accordance with t he
limitations set fort h herein.
4. These records shall include, but not be limit ed to, the
following:
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a. the name and license number of the medical marijuana
business that cultivated, manufactured or sold the
medical marijuana or medical marijuana produc t,
b. the address and phone number of the medical marijuana
business that cultivat ed, manufactured or sold the
medical marijuana or medical marijuana product,
c. the type of product received during the tran saction,
d. the batch number of the marijuana plan t used,
e. the date of the transaction,
f. the total spent in dollars,
g. all point-of-sale records,
h. marijuana excise tax records, and
i. any additional information as may be reasonably
required by the Department.
5. All inventory tracking records cont aining patient
information shall comply with all relevant state and federal laws
including, but not limited to, the Health Insurance Portability and
Accountability Act of 1996 (HIPAA), and shall not be reta ined by any
medical marijuana business for more th an sixty (60) days.
SECTION 8. AMENDATORY Section 14, Chap ter 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 amend ed to read as follows:
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Section 427.14. A. There is hereby created the m edical
marijuana business license, which shall include the following
categories:
1. Medical marijuana commercial grower;
2. Medical marijuana processor;
3. Medical marijuana dispen sary;
4. Medical marijuana transporter; and
5. Medical marijuana testin g 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 ap plications.
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 Dollars
($2,500.00).
E. All applicants seeking licensure as a medical ma rijuana
business shall comply with the following general re quirements:
1. All applications for licenses and registrations authorized
pursuant to this section shall be made upon forms prescribed by the
Authority;
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2. Each application shall identify the cit y or county in which
the applicant seeks to obtain licensur e 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;
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 t he 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
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other form of business owne rship 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
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 i nmates, or currently
incarcerated in a jail or corrections facility;
8. There shall be no limit to the number of medical ma rijuana
business licenses or categories that an individual or entity can
apply for or receive, although each application and each ca tegory
shall require a separate application and application fee. A
commercial grower, processor and dispensary, or any comb ination
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
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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
d. all owners of an entity as defi ned by this act Section
427.2 of this title;
10. All applicable fees cha rged 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 consider ed an Oklahoma resident for purposes
of a medical marijuana business appl ication, 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 res idency 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 applica tion,
excluding cellular telephone and Inte rnet bills,
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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 bu siness license
prior to the enactment of the Oklahoma Medical Marijuana and Patient
Protection Act are hereby exempt from th e 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 s hall 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 passpor t 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
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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 busin ess
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 medical marijuana
business applications and conduct all investigations, inspections
and interviews before approving the application.
2. Approved applicants sha ll be issued a medical marijuana
business license for the specific category applied under which shall
act as proof of their approved status. Rejection letters shall
provide a reason for the reject ion. Applications may only be
rejected based on the applic ant 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 Patien t 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.
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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 del ay in processing the
application occurred.
4. Approval, rejection or sta tus-update letters shall be sent
to the applicant in the sa me method the application was submitted to
the Department Authority.
H. A medical marijuana business license shall not be i ssued 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 c riminal history of any of its
officers, directors or stockholders indicat es that the officer,
director or stockholder has been convi cted 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 p ursuant 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
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b. pay taxes, interest or penalties due related to a
medical marijuana business;
6. A sheriff, deputy sheriff, police o fficer or prosecuting
officer, or an officer or employee of the Authority or municipality;
or
7. A person whose authority t o be a caregiver as defined in
this act the Oklahoma Medical Marijuana an d 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 municipalit ies may have
access to criminal history record information furnished by a
criminal justice agency subject to any restrictions impose d 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 appl icant
regarding such criminal history record , including but not limited to
evidence of rehabilitation, character references and educational
achievements, especially those items pertai ning to the period of
time between the last criminal conviction of the ap plicant and the
consideration of the application for a stat e license.
J. The failure of an applicant to provide the requested
information by the Authority deadline may be grounds for denial of
the application.
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K. All applicants shall submit information t o the Department
and Authority in a full, faithful, truthfu l and fair manner. The
Department and Authority may recommend denial of an application
where the applicant made misstatemen ts, omissions,
misrepresentations or untruths in the application or in co nnection
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 an d scrivener errors shall not
be grounds for denial.
L. A licensed medical marijuana business premises shall be
subject to and respo nsible 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 Pat ient Protection Act for each class of
license.
N. An original medical marijuana business license issued on or
after June 26, 2018, 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
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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 at that location 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 marijuana business license has been iss ued by the Authority
shall be construed by the Authority to be a continuatio n of the same
type of business originally licensed at that location. Nothing
shall authorize the Authority to deny issuance or renewal of a
license or transfer of license due to a change in ownership for the
same business location previously licensed, exc ept when a revocation
is otherwise authorized by law or a protest is made under the
municipal compliance provisions of Secti on 426.1 of this title.
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as S ection 427.15a of Title 63, unless
there is created a duplication in numb ering, reads as follows:
For purposes of this secti on, "publicly traded company" means a
business entity organized under the laws of the United States or
Canada where the domicile for the business entity permits the sale
of marijuana and such business entity has a class of securities that
are registered and traded for investment pursuant to the Security
Exchange Act of 1934 or listed and traded for investment on a
reputable recognized foreign stock exchange or foreign market
exchange.
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On and after the effective date of this act, a publicly traded
company as defined herein is authorized to purchase up to forty
percent (40%) of the equity in an existing Oklahoma business that
holds a valid Oklahoma medical mariju ana grower, processo r or
transporter license; provided, however, the only Oklahoma business
qualified for investment or equity purchase under this section must
have held a valid medical marijuana grower, processor or transport er
license for at last eighteen (18) months prior to the investment or
equity purchase and must be currently operating in good standing in
this state. A licensed medial marij uana dispensary shall not b e
qualified for investment or equity purchase under t he provisions of
this section.
SECTION 10. AMENDATORY Section 16, Chapter 11, O.S.L.
2019 (63 O.S. Supp. 2020, Section 427.16), is amended to read as
follows:
Section 427.16. A. There is hereby created a medical marijuana
transporter license as a category of the medical marijuan a business
license.
B. Pursuant to Section 424 of Title 63 of the Oklahoma Sta tutes
this title, the Oklahoma Medical Marijuana Authority shall issue a
medical marijuana transporter license to licensed medic al marijuana
commercial growers, processors and d ispensaries upon issuance of
such licenses and upon each renewal.
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C. A medical marijuana transporter license may also be issued
to qualifying applicants who are registered with the Oklahoma
Secretary of State and otherwise meet the requirements for a medi cal
marijuana business license set forth in this act the Oklahoma
Medical Marijuana and Patient Protection Act and the requirements
set forth in this sec tion to provide logistics, distribution and
storage of medical marijuana, medical marijuana concentrate and
medical marijuana products.
D. A medical marijuana transporter license sh all be valid for
one (1) year and shall not be transferred with a change o f
ownership. A licensed medical marijuana transporter shall be
responsible for all medical marijuana, concentrate and products once
the transporter takes control of the product.
E. A transporter license shall be required for any person or
entity to transport or transfer medical marijuana, concentrate or
product from a licensed medical marijuana business t o another
medical marijuana business, or from a medical marijuana business to
a medical marijuana research facility or medical marijuana education
facility.
F. A medical marijuana transporter licensee may c ontract with
multiple licensed medical marijuana businesses.
G. A medical marijuana transporter may maintain a licensed
premises to temporarily store medical marijuana, concentrate and
products and to use as a centralized distribution point. A medical
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marijuana transporter may store and distribute medi cal marijuana,
concentrate and products from the licensed premises. The licens ed
premises shall meet all security requirements applicable to a
medical marijuana business.
H. A medical marijuana transporter licensee shall use the seed -
to-sale tracking system developed pursuant to this act the Oklahoma
Medical Marijuana and Patient P rotection Act to create shipping
manifests documenting the transport of me dical marijuana,
concentrate and products throughout t he state.
I. A licensed medical marijuana transp orter may maintain and
operate one or more warehouses in the state to handle me dical
marijuana, concentrate and products . Each location shall be
registered and inspected by the Authority prior to its use .
J. All medical marijuana, concentrate and product shall be
transported:
1. In vehicles equipped with Global Positioning System (GPS)
trackers;
2. In a locked container and clearly labeled "Medical Marijuana
or Derivative"; and
3. In a secured area of th e vehicle that is not accessible by
the driver during transit.
K. A transporter agent may possess marijuana at any location
while the transporter agent is transferring marijuana to or from a
licensed medical marijuana business, medical marijuana research
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facility or medical marijuana education facility. The Department
shall administer and enforce the provisions of this section
concerning transportation.
L. The Authority shall issue a transporter agent license to
individual agents, employees, officers or owners of a transporter
license in order for the individual to qualify to transport medical
marijuana or product.
M. The annual fee for a transporter agent license shall be One
Hundred Dollars ($100.00 ) and shall be paid by the transporter
license holder or the individual applicant.
N. The Authority sh all issue each transporter agent a registry
identification card within thirty ( 30) days of receipt of:
1. The name, address and date of birth of the per son;
2. Proof of residency as required for a medical marijuana
business license;
3. Proof of identity as required for a medical marijuana
business license;
4. Possession of a vali d Oklahoma driver license;
5. Verification of employment with a licensed transporter;
6. The application and affiliated fee; a nd
7. A criminal background check conducted by t he Oklahoma State
Bureau of Investigation, paid for by the applicant.
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O. If the transporter agent application is denied, the
Department shall notify the transporter in writing of the reason for
denying the registry identification card.
P. A registry identification card for a transporter shall
expire one (1) year after the date of i ssuance or upon notification
from the holder of the transporter license that the transporter
agent ceases to work as a transport er.
Q. The Department may revoke the registry id entification card
of a transporter agent who knowingly violates any provision o f this
section, and the transporter is subject to any other pena lties
established by law for the violation.
R. The Department m ay revoke or suspend the transporter license
of a transporter that the Department determines knowingly aided or
facilitated a violation of any provision of this section, and the
licenseholder license-holder is subject to any other penalties
established in law for the violation.
S. Vehicles used in the t ransport of medical marijuana or
medical marijuana product shall be:
1. Insured at or above the legal requirements in Oklahoma this
state;
2. Capable of securing medical marijuana during transport; and
3. In possession of a shipping container as defined in Section
427.2 of this act title capable of securing all transported product .
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T. Prior to the transport of any medical marijuana or product s,
an inventory manifest shall be prepared at the origination po int of
the medical marijuana. The inventory mani fest shall include the
following information:
1. For the origination point of the medical marijuana:
a. the licensee number for the commercial grower,
processor or dispensary,
b. address of origination of t ransport, and
c. name and contact information for the originating
licensee;
2. For the end recipient license holder of the medi cal
marijuana:
a. the license number for the dispensary, commerc ial
grower, processor, research facility or education
facility destination,
b. address of the destination, and
c. name and contact information for the destination
licensee;
3. Quantities by weight or unit of each type of medical
marijuana product containe d in transport;
4. The date of the transport and the approximat e time of
departure;
5. The arrival date and est imated time of arrival;
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6. Printed names and signatures of the personnel accom panying
the transport; and
7. Notation of the transporting lice nsee.
U. 1. A separate inventory manifest shall be prepared fo r each
licensee receiving the medical marijuana.
2. The transporter agent shall provide the other medical
marijuana business wi th a copy of the inventory manifest at the time
the product changes hands and after the other licensee prints his or
her name and signs the inventory manifest.
3. An inventory manifest shall not be altered after departing
the originating premises other th an in cases where the printed name
and signature of receipt by t he receiving licensee is necessary.
4. A receiving licensee sha ll refuse to accept any medical
marijuana or product that is not accompanied by an inventory
manifest.
5. Originating and recei ving licensees shall maintain copies of
inventory manifests and logs of quantities of medical marijuana
received for three (3) y ears from date of receipt.
SECTION 11. AMENDATORY Section 2, Chapter 337, O.S.L.
2019 (63 O.S. Supp. 2020, Section 428.1), is amended to read as
follows:
Section 428.1. As used in this act the Oklahoma Medical
Marijuana Waste Mana gement Act:
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1. "Authority" shall mean the Oklaho ma Medical Marijuana
Authority, or successor agency;
2. "Commercial licensee" shall mean any person or entity issued
a license by the Oklahoma Medical M arijuana Authority, or successor
agency, to conduct co mmercial business in this state;
3. "Disposal" shall mean the final disposition of medical
marijuana waste by either a process which renders the waste unusable
and unrecognizable through physical destr uction or a recycling
process;
4. "Facility" shall mean a location where the disposal of
medical marijuana waste takes pla ce by a licensee;
5. "License" shall mean a medical mariju ana waste disposal
license;
6. "Licensee" shall mean the holder of a medi cal marijuana
waste disposal license;
7. "Medical marijuana waste" shall mean:
a. unused, surplus, ret urned or out-of-date marijuana and
plant debris of the plant of the genus Cannabis,
including dead plants and all unused plant parts,
except the term shall not include seeds, roots, stems,
stalks and fan leaves; and,
b. all product which is deemed to fail laboratory testing
and cannot be remediated or decontaminated, and
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c. all product and inventory from commercial licensees or
medical marijuana education facilities that:
(1) have gone out of business,
(2) are not subject to the provisions of Section 1560
of Title 12 of the Ok lahoma Statutes, and
(3) are unable to lawfully transfer or sell the
product and inventory to another commercial
licensee;
8. "Medical marijuana waste disposal license " shall mean a
license issued by the Oklahoma Medical Marijuana Auth ority, or
successor agency.
SECTION 12. AMENDATORY Sec tion 4, Chapter 337, O.S.L.
2019 (63 O.S. Supp. 2020, Section 430), is ame nded to read as
follows:
Section 430. A. There is he reby created and authorized a
medical marijuana waste disposal licens e. A person or entity in
possession of a medical marijuana waste disposal license shall be
entitled to possess, transport and dispos e of medical marijuana
waste. No person or entity sha ll possess, transport or dispose of
medical marijuana waste without a valid medical marijuana waste
disposal license. The Oklah oma Medical Marijuana Authority shall
issue licenses upon proper applicati on by a licensee and
determination by the Authority th at the proposed site and facility
are physically and technically suit able. Upon a finding that a
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proposed medical marijuana was te disposal facility is not physically
or technically suitable, the Author ity shall deny the license. The
Authority may, upon d etermining that public health or safety
requires emergency action, is sue a temporary license for treatment
or storage of medical marijuana waste for a period not to exceed
ninety (90) days. The Authori ty shall not, for the first year of
the licensure program until November 1, 2021 , issue more than ten
medical marijuana wa ste disposal licenses. Upon the conclusion of
the first year, the Authority shall assess the need for additional
licenses and shall, if demonstrated, increase Beginning November 1,
2021, there shall be no limit to the number of medical marijuana
waste disposal licenses as deemed necessary issued by the Authority.
B. Entities applying for a medical marijuana waste disposal
license shall undergo the following screening process:
1. Complete an application form, as prescribed by the
Authority, which shall in clude:
a. an attestation that the applicant is authorized to
make application on behalf of the entity,
b. full name of the organizatio n,
c. trade name, if applicable,
d. type of business organization,
e. complete mailing address,
f. an attestation that the commercial entity will not be
located on tribal land,
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g. telephone number and email address of the entity, and
h. name, residential address and date of birth of each
owner and each member , manager and board member, if
applicable;
2. The application for a medical marijuana waste disposal
license made by an individ ual on his or her own behalf shall be on
the form prescribed by the Author ity and shall include, but not be
limited to:
a. the first, middle and last name of the applicant and
suffix, if applicable,
b. the residence address and mailing address of the
applicant,
c. the date of birth of the applicant,
d. the preferred telephone nu mber and email address of
the applicant,
e. an attestation that the information provided by the
applicant is true and correct, and
f. a statement signed by the applicant pledging not to
divert marijuana to any individual or entity that is
not lawfully entitled to possess marijuana; and
3. Each application sh all be accompanied by the following
documentation:
a. a list of all persons or entities that have an
ownership interest in the e ntity,
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b. a certificate of good standing from the Oklahoma
Secretary of State, if applicable,
c. an Affidavit of Lawful Presence for each owner,
d. proof that the proposed loca tion of the disposal
facility is at least one thousand (1,000) feet from a
public or private school. The distance shall be
measured from any the nearest entrance of the school
to the nearest property line point front entrance of
the disposal facility. If any school is established
within one thousand (1,000) feet of any disposal
facility after such disposal facility has been
licensed, the provisions of thi s subparagraph shall
not be a deterrent to the renewal of such license or
warrant revocation of the li cense, and
e. documents establishing the applicant, the members,
managers and board members, if applicable, and
seventy-five percent (75%) of the ownershi p interests
are Oklahoma residents as established in S ection 420
et seq. of Title 63 of the Oklahoma S tatutes this
title, as it relates to proof of residency.
For purposes of this pa ragraph, "school" means the same as defined
in Section 427.2 of this title .
C. No license shall be issued except upon proof of sufficient
liability insurance and financial res ponsibility. Liability
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insurance shall be provided by the applicant and shall a pply to
sudden and nonsudden bodily injury or property damage on, below or
above the surface, as required by the rules of the Au thority. Such
insurance shall be maintained for the period of operation of the
facility and shall provide coverage for damages resulting from
operation of the facility during operation and after closin g. In
lieu of liability insurance required by this su bsection, an
equivalent amount of cash, securiti es, bond or alternate financial
assurance, of a type and in an amount acceptable to the Authority,
may be substituted; provided, that such deposit shall b e maintained
for a period of five (5) years after the date of last operation of
the facility.
D. Submission of an application for a medical marijuana waste
disposal license shall co nstitute permission for entry to and
inspection of the facility of the lic ensee during hours of operation
and other reasonable t imes. Refusal to permit such entry of
inspection shall constitute grounds for the nonrenewal, suspension
or revocation of a lic ense. The Authority may perform an annual
unannounced on-site inspection of the operations and any facility of
the licensee. If the Authority receives a complaint concerning
noncompliance by a licensee with the provisions of this act the
Oklahoma Medical Marijuana Waste Management Act , the Authority may
conduct additional unan nounced, on-site inspections beyond an annual
inspection. The Authority shall refer all complaints al leging
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criminal activity that are made against a licensed facility to
appropriate state or local law enforcement authorities.
E. The Authority shall issu e a permit for each medical
marijuana waste disposal f acility operated by a licensee. A permit
shall be issued only upon proper application by a licensee and
determination by the Au thority that the proposed site and facility
are physically and technically suitable. Upon a finding that a
proposed medical mar ijuana waste disposal facility is not physically
or technically suitable, the Authority shall deny the permit. The
Authority shall have the authority to revoke a permit upon a finding
that the site and facility are not physically and technically
suitable for processing. The Authority may, upon determi ning that
public health or safety requires emergency action, issue a temporary
permit for treatment or storage of medical marijuana waste for a
period not to exceed ninety (90) days.
F. The cost of a medical marijuana waste disposal license shall
be Five Thousand Dollars ($5,000.00) for the initial license. The
cost of a medical mar ijuana waste disposal facility permit shall be
Five Hundred Dollars ($500. 00). A medical marijuana waste disposal
facility permit that has been revoked shall be reinstated upo n
remittance of a reinstatement fee of Five Hundred Dollars ($500.00)
to restore the facility permit. All license and permit fees shall
be deposited into the Public Health Special Oklahoma Medical
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Marijuana Authority Revolving Fund as provided in Section 1-107
427.5 of Title 63 of the Oklahoma Statutes this title.
G. The holder of a medical marijuana waste disposal license
shall not be required to obtain a medical marijuana transporter
license provided for i n the Oklahoma Medical Marijuana and Patient
Protection Act for purposes of transporting medical marijuana waste.
H. All commercial licensees, as defined in Section 2 428.1 of
this act title, shall utilize a licensed medical marijuana waste
disposal service to process all medical marijuana waste genera ted by
the licensee.
I. The State Commissioner of Health shall promulgate rules for
the implementation of this act the Oklahoma Medical Marijuana Waste
Management Act. Promulgated rules shall address dispos al process
standards, site security and any othe r subject matter deemed
necessary by the Authority.
SECTION 13. AMENDATORY Section 7, State Question No.
788, Initiative Petition No. 412 (63 O.S. Supp. 2020, Section 426),
is amended to read as follows:
Section 426. A. The tax on retail medical marijuana sales will
be established at seven percent (7%) of th e gross amount received by
the seller.
B. This tax will be collected at t he point of sale. Tax
proceeds will be applied primar ily to finance the regulatory office.
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C. If proceeds from the levy authorized by subsection A of this
section exceed the budget ed amount for running the regulatory
office, any surplus shall be apportio ned with seventy-five percent
(75%) going to the Gener al Revenue Fund and may only be expended for
common education. Twenty -five percent (25%) shall be apportioned to
the Oklahoma State Department of Health and earmarked for drug and
alcohol rehabilitatio n.
D. Pursuant to Section 14 of this act, the Oklahom a Tax
Commission shall have authority to assess, collect and enforce the
tax specified in subsection A of this section including any interest
and penalty thereon.
SECTION 14. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 255.2 of Title 68, unles s there
is created a duplication in numbering, reads as follows:
As provided in Section 426 of Title 63 of the Oklahoma Statutes,
the State Department of Health and the Oklahoma Tax Commission shall
enter into a contract whereby the Tax Commission shall ha ve
authority to assess, collect and enforce the seven percent (7%) tax
on retail medical marijuana sales and any penalties and interest
thereon. Such assessment, collection and enforcement authority
shall apply to any tax and any penalty or interest liabi lity on
retail medical marijuana sales existing at the time of contracting.
The contract shall provide for the assessment, collection and
enforcement of the tax on retail medical marijuana sales in the same
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manner as the administration, collection and enf orcement of any tax
payable by any taxpayer subject to taxation under any state tax law.
For providing such collection assistance, the Tax Commission sha ll
charge the State Department of Health a fee of one and five-tenths
percent (1.5%) of the gross coll ection proceeds. All funds retained
by the Tax Commission for the collection se rvices shall be deposited
in the Tax Commission Reimbursement Fund in the State Treasury.
SECTION 15. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by re ason whereof this act shall take effect and
be in full force from and afte r its passage and approval.
58-1-2219 NP 5/25/2021 1:02:55 PM