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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
SENATE BILL NO. 1693 By: Bergstrom and Jett of the
Senate
and
West (Josh) of the House
COMMITTEE SUBSTITUTE
An Act relating to medical marijuana ; amending 63
O.S. 2021, Sections 422 and 423, which relate to
medical marijuana commercial grower and processin g
licenses; requiring applicant to furnish certain
documents before operating; requiring licens ee or
applicant to acquire a permit or official p ermission
for water use prior to operating; providing licensee
to register with Oklahoma Medical Marijuana
Authority; authorizing Authority to revoke license if
not in compliance; updating statutory language ; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 422, is
amended to read as follows:
Section 422. A. The State Department of Healt h shall, within
thirty (30) days of passage of this initiative, make available o n
its website in an easy-to-find location an application for a
commercial grower license . The application fee shall be Two
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Thousand Five Hundred Dollars ($2,500.00) . A method of payment
shall be provided on the website of the Department. The State
Department of Health shall have ninety (90) days to review the
application; approve, reject or deny the application; and mail the
approval, rejection or denial letter stating the reasons for the
rejection or denial to the applicant.
B. The State Department of Healt h shall approve all
applications which meet the following criteria:
1. The applicant must be twenty-five (25) years of age or
older;
2. The applicant, if applying as an individual, must show
residency in the State of Oklahoma this state;
3. All applying entities m ust show that all members, managers,
and board members are Oklahoma resident s;
4. An applying entity may show ownership of non -Oklahoma
residents, but that percentage owner ship may not exceed twenty-five
percent (25%);
5. All applying individuals or en tities must be registered to
conduct business in the State of Oklahoma this state; and
6. All applicants must disclose all ownership interests in the
commercial grower operation ; and
7. The applicant shall furnish documents evidencing compl iance
with the provisions of subsection F of this section .
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Applicants with a nonviolent felony conviction in the last two
(2) years, any other f elony conviction in the last five (5) years,
inmates in the custody of the Department of Corrections or any
person currently incarcerate d shall not qualify for a commercial
grower license.
C. A licensed commercial grower may sell marijuana to a
licensed dispensary or a licensed processor. Further, sales by a
licensed commercial grower shall be considered wholesale sales and
shall not be subject to taxation. Under no circumstances may a
licensed commercial grower sell marijuana directly to a licensed
medical marijuana patient or licensed caregiver . A licensed
commercial grower may only sell at the wholesale level to a license d
dispensary, a licensed grower or a licensed processor . If the
federal government lifts restrictions on buying and selling
marijuana between states, then a licensed commercial grower would be
allowed to sell and buy marijuana wholesale from, or to, a n out-of-
state wholesale provider. A licensed commercial growe r shall be
required to complete a monthly yield and sales report to th e State
Department of Health . This report shall be due on the fifteenth of
each month and provide reporting on the previous month . This report
shall detail the amount of marijuana harvested in pounds, the amount
of drying or dried marijuana on hand, the am ount of marijuana sold
to licensed processors in pounds, the amount of waste in pounds, and
the amount of marijuana sold t o licensed dispensaries in pounds.
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Additionally, this repor t shall show total wholesale sales in
dollars. The State Department of He alth shall have oversight and
auditing responsibilities to ensure that all marijuana being grown
by licensed commercial growers is accounted for.
D. There shall be no limits on how much marijuana a licens ed
commercial grower can grow.
E. Beginning on the effective date of this act November 1,
2021, licensed commercial growers shall be authorized to package and
sell pre-rolled marijuana to licensed medical marijuana
dispensaries. The products described in this subsection shall
contain only the ground parts of the mari juana plant and shall not
include marijuana concentrates or derivatives. The total net weight
of each pre-roll packaged and sold by medical marijuana commercial
growers shall not exceed one ( 1) gram. These products must be
tested, packaged and labeled in accordance with Oklahoma law and
rules promulgated by the State Commissioner of Health.
F. A commercial grower applicant or license e shall, prior to
engaging in a commercial growing operation, either:
1. Acquire a water use permit from the Oklahoma Water R esources
Board pursuant to Section 105.9 of Title 82 of the Oklahoma Statutes
if the commercial growing operation uses gro undwater or water from
an Oklahoma stream; or
2. Acquire an offici al statement of permission from the county,
municipality, or other political subd ivision that provides water if
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the commercial growing operation uses rural or municipal water and
register the statement with the Oklahoma Medical Marijuana
Authority.
Upon failure of a commercial grower licensee to register the
water source of a commercial growing operation with the Authority
or, if applicable, receive a permit by the Water R esources Board
after ninety (90) days following license ren ewal, the Authority
shall revoke the commercial grower license.
SECTION 2. AMENDATORY 63 O.S. 2021, Section 4 23, is
amended to read as follows:
Section 423. A. The State Department of Health shall , within
thirty (30) days of passage of this initiative, ma ke available on
its website in an easy-to-find location an applicat ion for a medical
marijuana processing license. The Department shall be authorized to
issue two types of medical marijuana proces sor licenses based on the
level of risk posed by the type o f processing conducted:
1. Nonhazardous medical marijuana processo r license; and
2. Hazardous medical marijuana processor license.
The application fee for a nonhazardous or hazardous medical
marijuana processor license shall be Two Thousand F ive Hundred
Dollars ($2,500.00). A method of payment shall be provided on the
website of the Department. The State Department of Health shall
have ninety (90) days to review the application ; approve, reject or
deny the application; and mail the approval, rejection o r denial
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letter stating the reasons for the rejection or denial to the
applicant.
B. The State Department of Health shall approve all
applications which meet the following criteria:
1. The applicant must be twenty-five (25) years of age or
older;
2. The applicant, if applying as an individual, must show
residency in the State of Oklahoma this state;
3. All applying entities must show that all members, managers,
and board members are Oklahoma res idents;
4. An applying entity may show ownership of non -Oklahoma
residents, but that percentage ownership may not exceed twenty -five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma this state; and
6. All applicants must disclose all ownershi p interests in the
processing operation ; and
7. The applicant shall furnish documents evidencing compl iance
with the provisions of subsection G of this section.
Applicants with a nonviolent felony conviction in the last two
(2) years, any other felony con viction in the last five (5) years,
inmates in the custody of the Department of Corrections or any
person currently incarcerated shall not qualify for a medical
marijuana processing license.
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C. 1. A licensed processor may take marijuana plants and
distill or process these plants into concentrates, edibles, and
other forms for consumption.
2. As required by subsection D of this section, the State
Department of Health shall, within sixty (60) days of passage of
this initiative, make available a set of stan dards which shall be
used by licensed processors in the preparation of edible marijuana
products. The standards should be in line with current food
preparation guidelines . No excessive or punitiv e rules may be
established by the State Department of Healt h.
3. Up to two times a year, the State Department of Health may
inspect a processing operation and determi ne its compliance with the
preparation standards. If deficiencies are found, a written r eport
of the deficiency shall be issued to the licensed processor. The
licensed processor shall have one (1) month to correct the
deficiency or be subject to a fine o f Five Hundred Dollars ($500.00)
for each deficiency.
4. A licensed processor may sell m arijuana products it creates
to a licensed dispensary or any other licensed processor . All sales
by a licensed processor shall be considered wholesale sales and
shall not be subject to taxation.
5. Under no circumstances may a licensed processor sell
marijuana or any marijuana product directly to a licensed medical
marijuana patient or licensed caregiver . However, a licensed
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processor may process cannabis into a conc entrated form for a
licensed medical marijuana patient for a fee.
6. Licensed processors shall be required to complete a monthly
yield and sales report to the State Department of Health . This
report shall be due on the fifteenth of each month and shall provide
reporting on the previous month. This report shall detail the
amount of marijuana and medical marijuana products purchased in
pounds, the amount of marijuana cooked or processed in pounds, and
the amount of waste in pounds . Additionally, this repo rt shall show
total wholesale sales in dollars. The State Department of Healt h
shall have oversight and auditing responsibilities to ensure that
all marijuana being processed is accounted for.
D. The Department shall oversee the inspection and compliance
of licensed processors producing products with marijuana as an
additive. The State Department of Health shall be compelled to,
within thirty (30) days of passage of this initiative, appoin t
twelve (12) Oklahoma residents to the Medical Marijuana Advisory
Council, who are marijuana industry experts, to create a list of
food safety standards f or processing and handling medical marijuana
in Oklahoma. These standards shall be adopted by the Department and
the Department may enforce these standards for licensed processors.
The Department shall develop a standards review procedure and these
standards can be altered by calling anothe r council of twelve (12)
Oklahoma marijuana industry experts . A signed letter of twent y
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operating, licensed processors shall constitute a need for a new
council and standards review.
E. If it becomes permissible under federal law, marijuana may
be moved across state lines.
F. Any device used for the processing or consumption of medical
marijuana shall be considered legal to be sol d, manufactured,
distributed and possessed. No merchant, wholesaler, manufacturer or
individual may be unduly harassed or prosecuted for sellin g,
manufacturing or possessing marijuana paraphernalia.
G. A processor applicant or licensee shall, pr ior to engaging
in a processing operation, either:
1. Acquire a water use permit from the Oklahom a Water Resources
Board pursuant to Section 105.9 of Title 82 of the Oklahoma Statutes
if the commercial growing operation uses gro undwater or water fr om
an Oklahoma stream; or
2. Acquire an official statement of permission from the county,
municipality, or other political subd ivision that provides water if
the processing operation uses rural or municipal water and register
the statement with the Oklahoma Medical Marijuana Authority.
Upon failure of a processor licensee to register the water
source of a processing operation with the Authority or, if
applicable, receive a permit by the Water R esources Board after
ninety (90) days following license ren ewal, the Authority shall
revoke the processor license.
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SECTION 3. This act shall become effective November 1, 2022.
58-2-11387 JL 04/14/22