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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
SENATE BILL 1693 By: Bergstrom
AS INTRODUCED
An Act relating to medical marijuana; amending 63 O.S
2021, Section 427.14, as last amended by Section 8,
Chapter 554, O.S.L. 2021, which relates to medical
marijuana business lic ense; requiring license
applicants to receive water permit prior to
initiating a commercial grow or process operation;
requiring commercial license holder to receive
permitting from Oklahoma Water Resources Board under
certain conditions; providing for revocation of
license under certain conditions ; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Secti on 427.14, as
last amended by Section 8, Chapter 554, O.S.L. 2021, is amended to
read as follows:
Section 427.14. A. There is hereby created the medical
marijuana business license, which shall i nclude the following
categories:
1. Medical marijuana comme rcial grower;
2. Medical marijuana processor;
3. Medical marijuana dispensary;
4. Medical marijuana transporter; and
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5. Medical marijuana testing laboratory.
B. The Oklahoma Medical Marijuana Authority, with the aid of
the Office of Management and Ent erprise Services, shall develop a
website for medical marijuana business applications.
C. The Authority shall make available on its website in an
easy-to-find location, applications for a medical marijuana
business.
D. The nonrefundable application fee f or a medical marijuana
business license shall be Two Thousand Five Hundred Dollars
($2,500.00).
E. All applicants seeking licensure as a medical marijuana
business shall comply with the following general requirements:
1. All applications for licenses and registrations authorized
pursuant to this secti on shall be made upon forms prescribed by the
Authority;
2. Each application shall identify the city or cou nty in which
the applicant seeks to obta in licensure as a medical marijuana
business;
3. Applicants shall submit a complete application to the
Authority before the application may be accepted or considered;
4. All applications shall be compl ete and accurate in every
detail;
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5. All applications shall include all attachments or
supplemental information required by the forms supplied by the
Authority;
6. All applications shall be ac companied by a full remittance
for the whole amount of the a pplication fees. Application fees are
nonrefundable;
7. All applicants shall be approved for licensing review tha t,
at a minimum, meets the following criteria:
a. all applicants shall be age twe nty-five (25) years of
age or older,
b. any applicant applying as an individual shall show
proof that the applicant is an Oklahoma resident
pursuant to paragraph 11 of this su bsection,
c. any applicant applying as an entity shall show that
seventy-five percent (75%) of all members, managers,
executive officers, partners, board members or any
other form of business owne rship are Oklahoma
residents pursuant to paragraph 11 of thi s subsection,
d. all applying individuals or ent ities shall be
registered to conduct business in this state,
e. all applicants shall disclose all ownership interests
pursuant to the Oklahoma Medical Marijuana and Patient
Protection Act, and
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f. applicants shall not have been convicted o f a
nonviolent felony in the last two (2) years, an d 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 marijuana
business licenses or categories that an individual or entity can
apply for or receive, although each application and each categor y
shall require a separate application and application fee. A
commercial grower, proc essor and dispensary, or any c ombination
thereof, are authorized to share the sam e address or physical
location, subject to the restrictions set forth in the Oklahoma
Medical Marijuana and Patient Protection Act;
9. All applicants for a medical marijuana business license,
research facility license or education facility license authori zed
by the Oklahoma Medical Marijuana and Patient Protection Act shall
undergo an Oklahoma criminal history backgro und check conducted by
the Oklahoma State Bureau of Investig ation (OSBI) within thirty (30)
days prior to the application for the license including:
a. individual applicants applying on their own behalf,
b. individuals applying on behalf of an entity,
c. all principal officers of an entity, and
d. all owners of an entity as defined by Section 427.2 of
this title;
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10. All applicable fees charged by OSBI are the responsibility
of the applicant and s hall not be higher than fees charged to any
other person or industry for such background checks;
11. In order to be con sidered an Oklahoma resident for purpo ses
of a medical marijuana business application, all applicants shall
provide proof of Oklahoma r esidency for at least two (2) years
immediately preceding the date of application or five (5) years of
continuous Oklahoma residency during the preceding twent y-five (25)
years immediately preceding the date of application. Sufficient
documentation of pro of 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 this state,
and
e. a rental agreement preceding the date of application
for residential property located in this state.
Applicants that were issued a medical marijuana business license
prior to the enactment of the Oklahoma Medical Marijuana and Patient
Protection Act are hereby exempt from the two-year or five-year
Oklahoma residence requirement mentioned above;
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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 Secti ons 2-302 through 2-304
of this title;
13. All license applicants shall acquire a water use permit by
the Oklahoma Water Resources Board pursuant to Section 105.9 of
Title 82 of the Oklahoma Statutes prior to initiating a commercial
growing or processing operation;
14. All applicants shall establish their identit y 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 identifica tion card,
c. a United States passport or other photo identifica tion
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. 15. All applicants shall submit an applicant photograph.
F. The Authority shall review the medical marijuana bu siness
application, approve or reje ct the application and mail the
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approval, rejection or status -update letter to the applicant within
ninety (90) business d ays of receipt of the application.
G. 1. The Authority shall review the medical marijuana
business applications and conduct all inve stigations, inspections
and interviews before approving the app lication.
2. Approved applicants shall be issued a medical marijuana
business license for the specific category applied under which shall
act as proof of their approved status. Rejection lett ers shall
provide a reason for the rejection. Applications ma y only be
rejected based on the applicant not meeting the st andards set forth
in the provisions of this section, improper completion of the
application or for a reason provided for in the Oklahoma Medical
Marijuana and Patient Protection Act . If an application is rejected
for failure to provide required informatio n, the applicant shall
have thirty (30) days to submit the required information for
reconsideration. No additional application fee sh all be charged for
such reconsideration.
3. Status-update letters shall provide a reason for delay in
either approval or rejection should a situation arise in which an
application was submitted properly, but a delay in processing the
application occurred.
4. Approval, rejection or status-update letters shall be s ent
to the applicant in the s ame method the application was su bmitted to
the Authority.
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H. A medical marijuana business license shall not b e issued to
or held by:
1. A person until a ll required fees have been paid;
2. A person who has been convicte d of a nonviolent felony
within two (2) years of the date of applic ation, or within five (5)
years for any other felony;
3. A corporation, if th e criminal history of any of its
officers, directors or stockholders indicates that the officer,
director or stockholder has been convicted of a nonviolent felony
within two (2) years of the date of application, or within five (5)
years for any other felon y;
4. A person under twenty -five (25) years of age;
5. A person licensed pursuant to this section who, dur ing a
period of licensure, or who, at the time of application, has fai led
to:
a. file taxes, interest or penalties due related to a
medical marijuana business, or
b. pay taxes, interest or penalties due related to a
medical marijuana business;
6. A sheriff, deputy sheriff, police officer or prosecuting
officer, or an office r or employee of the Authority or municipality;
or
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7. A person whose authorit y to be a caregiver as defined in the
Oklahoma Medical Marijuana and Patient Protection Act has been
revoked by the Authority.
I. In investigating the qualifications of an appli cant or a
licensee, the Authority and municipa lities may have access to
criminal history record information furnished by a criminal ju stice
agency subject to any restrictions imposed by such an agency. In
the event the Authority considers the criminal his tory record of the
applicant, the Authority shall also consider any information
provided by the applicant regarding such crimin al history record
including but not limited to evidence of rehabilitation, character
references and educational achievements, esp ecially those items
pertaining to the period of time betwe en the last criminal
conviction of the applicant and the considerati on of the application
for a state license.
J. The failure of an applicant to provide the request ed
information by the Authority d eadline may be grounds for denial of
the application.
K. All applicants shall submit information to the Authority in
a full, faithful, truthful and fair manner. The Authority may
recommend denial of an application where t he applicant made
misstatements, omissions, misrepresentati ons or untruths in the
application or in connection with the backgro und investigation of
the applicant. This type of conduct may be considered as the ba sis
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for additional administrative action aga inst the applicant. Typos
and scrivener errors shall not b e grounds for denial.
L. A licensed medical marijuana business pre mises shall be:
1. Be subject to and responsible for compliance with applicable
provisions for medical marijuana business facilities as d escribed in
the most recent versions of the Oklahoma Unifo rm Building Code, the
International Building Code , and the International Fire Code, unless
granted an exemption by the Authority or municipality
2. Be subject to the application requirements for permitting
for water use by the Oklahoma Water Resources Board pursuant to
Section 105.9 of Title 82 of the Oklahoma Statutes if the licensee
engages in a commercial growing or processing operation. Upon
failure to receive a permit by the Water Resources Board after
ninety (90) days following initial application or denial of
application by the Water Resource Board, the Authority shall revoke
the medical marijuana business license.
M. All medical marijuana business licensees s hall pay the
relevant licensure f ees prior to receiving licensure to operate a
medical marijuana business, as defined in the Oklahoma Medical
Marijuana and Patient Protection Act for each class of license.
N. An original medical marijuana business license issued on or
after June 26, 2018, by the Authorit y, for a medical marijuana
commercial grower, a medical marijuana proces sor 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 wa s first issued for
purposes of determining the aut hority of the business to conduct and
continue the same type of business at that location under a license
issued by the Authority, exc ept as may be provided in Sections 425
and 426.1 of this title. Any cha nge in ownership after the original
medical marijuana business license 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
license or 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 2. This act shall become effective November 1, 2022.
58-2-2643 MR 1/20/2022 5:44:09 PM