Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1693 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. A. to ENGR. S. B. NO. 1693 Page 1 1
	3	+	SB1693 HFLR Page 1
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28		-	ENGROSSED HOUSE AMENDME NT
29		-	TO
30		-	ENGROSSED SENATE BILL NO . 1693 By: Bergstrom and Jett of the
31		-	Senate
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	2nd Session of the 58th Legislature (2022)
	34	+
	35	+	COMMITTEE SUBSTITUTE
	36	+	FOR ENGROSSED
	37	+	SENATE BILL NO. 1693 By: Bergstrom, Jett, and
	38	+	Pederson of the Senate
32	39
33	40		and
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35	42		West (Josh) of the House
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	47	+	COMMITTEE SUBSTITUTE
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41		-
42		-	[ medical marijuana - commercial grower and
43		-	processing licenses - permit or official permission
44		-	for water use prior to operating - effective date ]
45		-
46		-
47		-
48		-	AUTHOR: Add the following Senate Coauthor: Pederson
49		-
50		-	AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
51		-	and insert:
52		-
53		-
54		-
55		-
56		-	"An Act relating to medical marijuana ; amending 63
	49	+	An Act relating to medical marijuana ; amending 63
57	50		O.S. 2021, Sections 422 and 423, which relate to
58	51		medical marijuana commercial grower and processin g
59	52		licenses; requiring applicant to furnish certain
60	53		documents before operating; requiring lice nsee or
61	54		applicant to acquire a permit or official p ermission
62	55		for water use prior to operating; providing licensee
63	56		to register with Oklahoma Medical Marijuana
64		-	Authority; authorizing Authority to revoke license
65		-	if not in compliance; updating statutory langua ge;
66		-	~~and~~ providing an effective date.
	57	+	Authority; authorizing Authority to revoke license if
	58	+	not in compliance; updating statutory langua ge; and
	59	+	providing an effective date.
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72	65		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
	66	+	SECTION 1. AMENDATORY 63 O.S. 2021, Section 422, is
	67	+	amended to read as follows:
	68	+	Section 422. A. The State Department of Healt h shall, within
	69	+	thirty (30) days of passage of this initiative, make available o n
	70	+	its website in an easy-to-find location an application for a
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74		-	ENGR. H. A. to ENGR. S. B. NO. 1693 Page 2 1
	72	+	SB1693 HFLR Page 2
	73	+	BOLD FACE denotes Committee Amendments. 1
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99		-	SECTION 1. AMENDATORY 63 O.S. 2021, Section 422, is
100		-	amended to read as follows:
101		-	Section 422. A. The State Department of Healt h shall, within
102		-	thirty (30) days of passage of this initiative, make available o n
103		-	its website in an easy-to-find location an application for a
104	98		commercial grower license . The application fee shall be Two
105	99		Thousand Five Hundred Dollars ($2,500.00) . A method of payment
106	100		shall be provided on the website of the Department. The State
107	101		Department of Health shall have ninety (90) days to review the
108	102		application; approve, reject or deny the application; and mail the
109	103		approval, rejection or denial letter stating the reasons for the
110	104		rejection or denial to the applicant.
111	105		B. The State Department of Healt h shall approve all
112	106		applications which meet the following criteria:
113	107		1. The applicant must be twenty-five (25) years of age or
114	108		older;
115	109		2. The applicant, if applying as an individual, must show
116	110		residency in the State of Oklahoma this state;
117	111		3. All applying entities m ust show that all members, managers,
118	112		and board members are Oklahoma resident s;
119	113		4. An applying entity may show ownership of non -Oklahoma
120	114		residents, but that percentage ownership may not exceed twenty-five
121	115		percent (25%);
	116	+	5. All applying individuals or en tities must be registered to
	117	+	conduct business in the State of Oklahoma this state; and
	118	+	6. All applicants must disclose all ownership interests in the
	119	+	commercial grower operation; and
	120	+	7. The applicant shall furnish documents evidencing compl iance
	121	+	with the provisions of subsection F of this section .
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123		-	ENGR. H. A. to ENGR. S. B. NO. 1693 Page 3 1
	123	+	SB1693 HFLR Page 3
	124	+	BOLD FACE denotes Committee Amendments. 1
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148		-	5. All applying individuals or en tities must be registered to
149		-	conduct business in the State of Oklahoma this state; and
150		-	6. All applicants must disclose all ownership interests in the
151		-	commercial grower operation; and
152		-	7. The applicant shall furnish documents evidencing compl iance
153		-	with the provisions of subsection F of this section .
154	149		Applicants with a nonviolent felony conviction in the last two
155	150		(2) years, any other f elony conviction in the last five (5) years,
156	151		inmates in the custody of the Department of Corrections or any
157	152		person currently incarcerate d shall not qualify for a commercial
158	153		grower license.
159	154		C. A licensed commercial grower may sell marijuana to a
160	155		licensed dispensary or a licensed processor. Further, sales by a
161	156		licensed commercial grower shall be considered wholesale sales and
162	157		shall not be subject to taxation. Under no circumstances may a
163	158		licensed commercial grower sell marijuana directly to a licensed
164	159		medical marijuana patient or licensed careg iver. A licensed
165	160		commercial grower may only sell at the wholesale level to a license d
166	161		dispensary, a licensed grower or a licensed processor . If the
167	162		federal government lifts restrictions on buying and selling
168	163		marijuana between states, then a licensed comm ercial grower would be
169	164		allowed to sell and buy marijuana wholesale from, or to, a n out-of-
170	165		state wholesale provider. A licensed commercial growe r shall be
171	166		required to complete a monthly yield and sales report to th e State
	167	+	Department of Health . This report shall be due on the fifteenth of
	168	+	each month and provide reporting on the previous month . This report
	169	+	shall detail the amount of marijuana harvested in pounds, the amount
	170	+	of drying or dried marijuana on hand, the am ount of marijuana sold
	171	+	to licensed processors in pounds, the amount of waste in pounds, and
	172	+	the amount of marijuana sold t o licensed dispensaries in pounds.
172	173
173		-	ENGR. H. A. to ENGR. S. B. NO. 1693 Page 4 1
	174	+	SB1693 HFLR Page 4
	175	+	BOLD FACE denotes Committee Amendments. 1
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198		-	Department of Health . This report shall be due on the fifteenth of
199		-	each month and provide reporting on the previous month . This report
200		-	shall detail the amount of marijuana harvested in pounds, the amount
201		-	of drying or dried marijuana on hand, the am ount of marijuana sold
202		-	to licensed processors in pounds, the amount of waste in pounds, and
203		-	the amount of marijuana sold t o licensed dispensaries in pounds.
204	200		Additionally, this repor t shall show total wholesale sales in
205	201		dollars. The State Department of He alth shall have oversight and
206	202		auditing responsibilities to ensure that all marijuana being grown
207	203		by licensed commercial growers is accounted for.
208	204		D. There shall be no limits on how much marijuana a licens ed
209	205		commercial grower can grow.
210	206		E. Beginning on the effective date of this act November 1,
211	207		2021, licensed commercial growers shall be authorized to package and
212	208		sell pre-rolled marijuana to licensed medical marijuana
213	209		dispensaries. The products described in this subsection shall
214	210		contain only the ground parts of the mari juana plant and shall not
215	211		include marijuana concentrates or derivatives. The total net weight
216	212		of each pre-roll packaged and sold by medical marijuana commercial
217	213		growers shall not exceed one ( 1) gram. These products must be
218	214		tested, packaged and labeled in accordance with Oklahoma l aw and
219	215		rules promulgated by the State Commissioner of Health.
220	216		F. A commercial grower applicant or license e shall, prior to
221	217		engaging in a commercial growing operation, either:
	218	+	1. Acquire a water use permit from the Oklahoma Water R esources
	219	+	Board pursuant to Section 105.9 of Title 82 of the Oklahoma Statutes
	220	+	if the commercial growing operation uses gro undwater or water from
	221	+	an Oklahoma stream; or
	222	+	2. Acquire an offici al statement of permission from the county,
	223	+	municipality, or other political subd ivision that provides water if
222	224
223		-	ENGR. H. A. to ENGR. S. B. NO. 1693 Page 5 1
	225	+	SB1693 HFLR Page 5
	226	+	BOLD FACE denotes Committee Amendments. 1
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248		-	1. Acquire a water use permit from the Oklahoma Water R esources
249		-	Board pursuant to Section 105.9 of Title 82 of the Oklahoma Statutes
250		-	if the commercial growing operation uses groundwater or water from
251		-	an Oklahoma stream; or
252		-	2. Acquire an offici al statement of permission from the county,
253		-	municipality, or other political subd ivision that provides water if
254	251		the commercial growing operation uses rural or municipal water and
255	252		register the statement with the Oklahoma Medical Marijuana
256	253		Authority.
257	254		Upon failure of a commercial grower licensee to register the
258	255		water source of a commercial growing operation with the Authority
259		-	or, if applicable, receive a permit by the ~~Oklahoma~~ Water ~~Resources~~
260		-	~~Board~~ after ninety (90) days following license ren ewal, the
261		-	~~Authority~~ shall revoke the commercial grower license.
	256	+	or, if applicable, receive a permit by the Water R esources Board
	257	+	after ninety (90) days following license ren ewal, the Authority
	258	+	shall revoke the commercial grower license.
262	259		SECTION 2. AMENDATORY 63 O.S . 2021, Section 423, is
263	260		amended to read as follows:
264	261		Section 423. A. The State Department of Health shall , within
265	262		thirty (30) days of passage of this initiative, ma ke available on
266	263		its website in an easy-to-find location an applicat ion for a medical
267	264		marijuana processing license. The Department shall be authorized to
268	265		issue two types of medical marijuana proces sor licenses based on the
269	266		level of risk posed by the type o f processing conducted:
270	267		1. Nonhazardous medical marijuana processo r license; and
271	268		2. Hazardous medical marijuana processor license.
	269	+	The application fee for a nonhazardous or hazardous medical
	270	+	marijuana processor license shall be Two Thousand F ive Hundred
	271	+	Dollars ($2,500.00). A method of payment shall be provided on the
	272	+	website of the Department. The State Department of Health shall
	273	+	have ninety (90) days to review the application ; approve, reject or
	274	+	deny the application; and mail the approval, rejection o r denial
272	275
273		-	ENGR. H. A. to ENGR. S. B. NO. 1693 Page 6 1
	276	+	SB1693 HFLR Page 6
	277	+	BOLD FACE denotes Committee Amendments. 1
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298		-	The application fee for a nonhazardous or hazardous medical
299		-	marijuana processor license shall be Two Thousand F ive Hundred
300		-	Dollars ($2,500.00). A method of payment shall be provided on the
301		-	website of the Department. The State Department of Health shall
302		-	have ninety (90) days to review the applicati on; approve, reject or
303		-	deny the application; and mail the approval, rejection o r denial
304	302		letter stating the reasons for the rejection or denial to the
305	303		applicant.
306	304		B. The State Department of Health shall approve all
307	305		applications which meet the following criteria:
308	306		1. The applicant must be twenty-five (25) years of age or
309	307		older;
310	308		2. The applicant, if applying as an individual, must show
311	309		residency in the State of Oklahoma this state;
312	310		3. All applying entities must show that all members, managers,
313	311		and board members are Oklahoma res idents;
314	312		4. An applying entity may show ownership of non -Oklahoma
315	313		residents, but that percentage ownership may not exceed twenty -five
316	314		percent (25%);
317	315		5. All applying individuals or entities must be registered to
318	316		conduct business in the State of Oklahoma this state; and
319	317		6. All applicants must disclose all ownershi p interests in the
320	318		processing operation ; and
	319	+	7. The applicant shall furnish documents evid encing compliance
	320	+	with the provisions of subsection G of this section.
	321	+	Applicants with a nonviolent felony conviction in the last two
	322	+	(2) years, any other felony con viction in the last five (5) years,
	323	+	inmates in the custody of the Department of Corrections or any
	324	+	person currently incarcerated shall not qualify for a medical
	325	+	marijuana processing license.
321	326
322		-	ENGR. H. A. to ENGR. S. B. NO. 1693 Page 7 1
	327	+	SB1693 HFLR Page 7
	328	+	BOLD FACE denotes Committee Amendments. 1
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347		-	7. The applicant shall furnish documents evid encing compliance
348		-	with the provisions of subsection G of this section.
349		-	Applicants with a nonviolent felony conviction in the last two
350		-	(2) years, any other felony con viction in the last five (5) years,
351		-	inmates in the custody of the Department of Corrections or any
352		-	person currently incarcerated shall not qualify for a medical
353		-	marijuana processing license.
354	353		C. 1. A licensed processor may take marijuana plants and
355	354		distill or process these plants into concentrates, edibles, and
356	355		other forms for consumption.
357	356		2. As required by subsection D of this section, the State
358	357		Department of Health shall, within sixty (60) days of passage of
359	358		this initiative, make available a set of stan dards which shall be
360	359		used by licensed processors in the preparation of edible marijuana
361	360		products. The standards should be in line with current food
362	361		preparation guidelines . No excessive or punitiv e rules may be
363	362		established by the State Department of Healt h.
364	363		3. Up to two times a year, the State Department of Health may
365	364		inspect a processing oper ation and determine its compliance with the
366	365		preparation standards. If deficiencies are found, a written r eport
367	366		of the deficiency shall be issued to the licensed processor. The
368	367		licensed processor shall have one (1) month to correct the
369	368		deficiency or be subject to a fine of Five Hundred Dollars ($500.00)
370	369		for each deficiency.
	370	+	4. A licensed processor may sell m arijuana products it creates
	371	+	to a licensed dispensary or any other licensed processor . All sales
	372	+	by a licensed processor shall be considered wholesal e sales and
	373	+	shall not be subject to taxation.
	374	+	5. Under no circumstances may a licensed processor sell
	375	+	marijuana or any marijuana product directly to a licensed medical
	376	+	marijuana patient or licensed caregiver . However, a licensed
371	377
372		-	ENGR. H. A. to ENGR. S. B. NO. 1693 Page 8 1
	378	+	SB1693 HFLR Page 8
	379	+	BOLD FACE denotes Committee Amendments. 1
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397		-	4. A licensed processor may sell marijuana products it creates
398		-	to a licensed dispensary or any other licensed processor . All sales
399		-	by a licensed processor shall be considered wholesal e sales and
400		-	shall not be subject to taxation.
401		-	5. Under no circumstances may a license d processor sell
402		-	marijuana or any marijuana product directly to a licensed medical
403		-	marijuana patient or licensed caregiver . However, a licensed
404	404		processor may process can nabis into a concentrated form for a
405	405		licensed medical marijuana patient for a fee.
406	406		6. Licensed processors shall be required to complete a monthly
407	407		yield and sales report to the State Department of Health . This
408	408		report shall be due on the fifteenth of each month and shall provide
409	409		reporting on the previous month. This report shall detail the
410	410		amount of marijuana and medical marijuana products purchased in
411	411		pounds, the amount of marijuana cooked or processed in pounds, and
412	412		the amount of waste in pounds . Additionally, this report shall show
413	413		total wholesale sales in dollars. The State Department of Healt h
414	414		shall have oversight and auditing responsibilities to ensure that
415	415		all marijuana being processed is accounted for.
416	416		D. The Department shall oversee the inspection and compliance
417	417		of licensed processors producing products with marijuana as an
418	418		additive. The State Department of Health shall be compelled to,
419	419		within thirty (30) days of passage of this initiative, appoin t
420	420		twelve (12) Oklahoma residents to the Medical Marijuana Advisory
	421	+	Council, who are marijuana industry experts, to create a list of
	422	+	food safety standards f or processing and handling medical marijuana
	423	+	in Oklahoma. These standards shall be adopted by the Department and
	424	+	the Department may enforce these standards for licensed processors.
	425	+	The Department shall develop a standards review procedure and these
	426	+	standards can be altered by calling anothe r council of twelve (12)
	427	+	Oklahoma marijuana industry experts . A signed letter of twent y
421	428
422		-	ENGR. H. A. to ENGR. S. B. NO. 1693 Page 9 1
	429	+	SB1693 HFLR Page 9
	430	+	BOLD FACE denotes Committee Amendments. 1
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447		-	Council, who are marijuana industry experts, to create a list of
448		-	food safety standards for processing and handling medical marijuana
449		-	in Oklahoma. These standards shall be adopted by the Department and
450		-	the Department may enforce these standards for licensed processors.
451		-	The Department shall develop a standards review proce dure and these
452		-	standards can be altered by calling anothe r council of twelve (12)
453		-	Oklahoma marijuana industry experts . A signed letter of twent y
454	455		operating, licensed processors shall constitute a need for a new
455	456		council and standards review.
456	457		E. If it becomes permissible under federal law, marijuana may
457	458		be moved across state lines.
458	459		F. Any device used for the processing or consumption of medical
459	460		marijuana shall be considere d legal to be sold, manufactured,
460	461		distributed and possessed. No merchant, wholesaler, manufacturer or
461	462		individual may be unduly harassed or prosecuted for sellin g,
462	463		manufacturing or possessing marijuana paraphernalia.
463	464		G. A processor applicant or licensee s hall, prior to engaging
464	465		in a processing operation, either:
465	466		1. Acquire a water use permit from the Oklahom a Water Resources
466	467		Board pursuant to Section 105.9 of Title 82 of the Oklahoma Statutes
467	468		if the commercial growing operation uses gro undwater or water from
468	469		an Oklahoma stream; or
469	470		2. Acquire an official statement of permission from the county,
470	471		municipality, or other political subd ivision that provides water if
	472	+	the processing operation uses rural or municipal water and register
	473	+	the statement with the Oklahoma Medical Marijuana Authority.
	474	+	Upon failure of a processor licensee to register the water
	475	+	source of a processing operation with the Authority or, if
	476	+	applicable, receive a permit by the Water R esources Board after
	477	+	ninety (90) days following license ren ewal, the Authority shall
	478	+	revoke the processor license.
471	479
472		-	ENGR. H. A. to ENGR. S. B. NO. 1693 Page 10 1
	480	+	SB1693 HFLR Page 10
	481	+	BOLD FACE denotes Committee Amendments. 1
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497		-	the processing operation uses rural or municipal water and register
498		-	the statement with the Oklahoma Medical Marijuana Authority.
499		-	Upon failure of a processor licensee to register the water
500		-	source of a processing operation with the Authority or, if
501		-	applicable, receive a permit by the Oklahoma Water Resources Board
502		-	after ninety (90) days following license ren ewal, the Authority
503		-	shall revoke the processor license.
504		-	SECTION 3. This act shall become effective November 1, 2022. "
505		-	Passed the House of Representatives the 20th day of April, 2022.
	506	+	SECTION 3. This act shall become effective November 1, 2022.
506	507
507		-
508		-
509		-
510		-
511		-	Presiding Officer of the House of
512		-	Representatives
513		-
514		-
515		-	Passed the Senate the ____ day of _______ ___, 2022.
516		-
517		-
518		-
519		-
520		-
521		-	Presiding Officer of the Senate
522		-
523		-
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549		-	ENGROSSED SENATE
550		-	BILL NO. 1693 By: Bergstrom and Jett of the
551		-	Senate
552		-
553		-	and
554		-
555		-	West (Josh) of the House
556		-
557		-
558		-
559		-
560		-
561		-	[ medical marijuana - commercial grower and
562		-	processing licenses - permit or official permission
563		-	for water use prior to operating - effective date ]
564		-
565		-
566		-
567		-	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAH OMA:
568		-	SECTION 4. AMENDATORY 63 O.S. 2021, Section 422, is
569		-	amended to read as follows:
570		-	Section 422. A. The State Department of Healt h shall, within
571		-	thirty (30) days of passage of this initiative, make available o n
572		-	its website in an easy-to-find location an application for a
573		-	commercial grower license . The application fee shall be Two
574		-	Thousand Five Hundred Dollars ($2,500.00) . A method of payment
575		-	shall be provided on the website of the Department. The State
576		-	Department of Health shall have ninety (90) days to review the
577		-	application; approve, reject or deny the application; and mail the
578		-	approval, rejection or denial letter stating the reasons for the
579		-	rejection or denial to the applicant.
580		-	B. The State Department of Healt h shall approve all
581		-	applications which meet the following criteria:
582		-
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608		-	1. The applicant must be twenty-five (25) years of age or
609		-	older;
610		-	2. The applicant, if applying as an individual, must show
611		-	residency in the State of Oklahoma this state;
612		-	3. All applying entities m ust show that all members, managers,
613		-	and board members are Oklahoma residents;
614		-	4. An applying entity may show ownership of non -Oklahoma
615		-	residents, but that percentage owner ship may not exceed twenty-five
616		-	percent (25%);
617		-	5. All applying individuals or en tities must be registered to
618		-	conduct business in the State of Oklahoma this state; and
619		-	6. All applicants must disclose all ownership interests in the
620		-	commercial grower operation ; and
621		-	7. The applicant shall furnish documents evidencing compl iance
622		-	with the provisions of subsection F of this section .
623		-	Applicants with a nonviolent felony conviction in the last two
624		-	(2) years, any other f elony conviction in the last five (5) years,
625		-	inmates in the custody of the Department of Corrections or any
626		-	person currently incarcerate d shall not qualify for a commercial
627		-	grower license.
628		-	C. A licensed commercial grower may sell marijuana to a
629		-	licensed dispensary or a licensed processor. Further, sales by a
630		-	licensed commercial grower shall be considered wholesale sales and
631		-	shall not be subject to taxation. Under no circumstances may a
632		-
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658		-	licensed commercial grower sell marijuana directly to a licensed
659		-	medical marijuana patient or licensed caregiver . A licensed
660		-	commercial grower may only sell at the wholesale level to a license d
661		-	dispensary, a licensed grower or a licensed processor . If the
662		-	federal government lifts restrictions on buying and selling
663		-	marijuana between states, then a licensed commercial grower would be
664		-	allowed to sell and buy marijuana wholesale from, or to, a n out-of-
665		-	state wholesale provider. A licensed commercial growe r shall be
666		-	required to complete a monthly yield and sales report to th e State
667		-	Department of Health . This report shall be due on the fifteenth of
668		-	each month and provide reporting on the previous month . This report
669		-	shall detail the amount of marijuana harvested in pounds, the amount
670		-	of drying or dried marijuana on hand, the am ount of marijuana sold
671		-	to licensed processors in pounds, the amount of waste in pounds, and
672		-	the amount of marijuana sold t o licensed dispensaries in pounds.
673		-	Additionally, this repor t shall show total wholesale sales in
674		-	dollars. The State Department of He alth shall have oversight and
675		-	auditing responsibilities to ensure that all marijuana being grown
676		-	by licensed commercial growers is accounted for.
677		-	D. There shall be no limits on how much marijuana a licensed
678		-	commercial grower can grow.
679		-	E. Beginning on the effective date of this act November 1,
680		-	2021, licensed commercial growers shall be authorized to package and
681		-	sell pre-rolled marijuana to licensed medical marijuana
682		-
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707		-
708		-	dispensaries. The products described in this subsection shall
709		-	contain only the ground parts of the mari juana plant and shall not
710		-	include marijuana concentrates or derivatives. The total net weight
711		-	of each pre-roll packaged and sold by medical marijuana commercial
712		-	growers shall not exceed one (1) gram . These products must be
713		-	tested, packaged and labeled in accordance with Oklahoma law and
714		-	rules promulgated by the State Commissioner of Health.
715		-	F. A commercial grower applicant or license e shall, prior to
716		-	engaging in a commercial growing operation, either:
717		-	1. Acquire a water use permit from the Oklahoma Water R esources
718		-	Board pursuant to Section 105.9 of Title 82 of the Oklahoma Statutes
719		-	if the commercial growing operation uses gro undwater or water from
720		-	an Oklahoma stream; or
721		-	2. Acquire an official statement of permission from the county,
722		-	municipality, or other political subd ivision that provides water if
723		-	the commercial growing operation uses rural or muni cipal water and
724		-	register the statement with the Oklahoma Medical Marijuana
725		-	Authority.
726		-	Upon failure of a commercial grower licensee to register the
727		-	water source of a commercial growing operation with the Authority
728		-	or, if applicable, receive a permit by the Water R esources Board
729		-	after ninety (90) days following license ren ewal, the Authority
730		-	shall revoke the commercial grower license.
731		-
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756		-
757		-	SECTION 5. AMENDATORY 63 O.S. 2021, Section 4 23, is
758		-	amended to read as follows:
759		-	Section 423. A. The State Department of Health shall , within
760		-	thirty (30) days of passage of this initiative, make available o n
761		-	its website in an easy-to-find location an applicat ion for a medical
762		-	marijuana processing license. The Department shall be authorized to
763		-	issue two types of medical marijuana proces sor licenses based on the
764		-	level of risk posed by the type of processing conducted:
765		-	1. Nonhazardous medical marijuana processo r license; and
766		-	2. Hazardous medical marijuana processor license.
767		-	The application fee for a nonhazardous or hazardous medical
768		-	marijuana processor license shall be Two Thousand F ive Hundred
769		-	Dollars ($2,500.00). A method of payment shall be provided on the
770		-	website of the Department. The State Department of Health shall
771		-	have ninety (90) days to review the application ; approve, reject or
772		-	deny the application; and mail the approval, rejection or denial
773		-	letter stating the reasons for the rejection or denial to the
774		-	applicant.
775		-	B. The State Department of Health shall approve all
776		-	applications which meet the following criteria:
777		-	1. The applicant must be twenty-five (25) years of age or
778		-	older;
779		-	2. The applicant, if applying as an individual, must show
780		-	residency in the State of Oklahoma this state;
781		-
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807		-	3. All applying entities must show that all members, managers,
808		-	and board members are Oklahoma res idents;
809		-	4. An applying entity may show ownership of non -Oklahoma
810		-	residents, but that percentage ownership may not exceed twenty -five
811		-	percent (25%);
812		-	5. All applying individuals or entities must be registered to
813		-	conduct business in the State of Oklahoma this state; and
814		-	6. All applicants must disclose all ownership interests in the
815		-	processing operation ; and
816		-	7. The applicant shall furnish documents evidencing compl iance
817		-	with the provisions of subsection G of this section.
818		-	Applicants with a nonviolent felony conviction in the last two
819		-	(2) years, any other felony conviction i n the last five (5) years,
820		-	inmates in the custody of the Department of Corrections or any
821		-	person currently incarcerated shall not qualify for a medical
822		-	marijuana processing license.
823		-	C. 1. A licensed processor may take marijuana plants and
824		-	distill or process these plants into concentrates, edibles, and
825		-	other forms for consumption.
826		-	2. As required by subsection D of this section, the State
827		-	Department of Health shall, within sixty (60) days of passage of
828		-	this initiative, make available a set of standards w hich shall be
829		-	used by licensed processors in the preparation of edible marijuana
830		-	products. The standards should be in line with current food
831		-
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857		-	preparation guidelines . No excessive or punitiv e rules may be
858		-	established by the State Department of Health .
859		-	3. Up to two times a year, the State Department of Health may
860		-	inspect a processing operation and determi ne its compliance with the
861		-	preparation standards . If deficiencies are found, a written r eport
862		-	of the deficiency shall be issued to the licensed processor. The
863		-	licensed processor shall have one (1) month to correct the
864		-	deficiency or be subject to a fine o f Five Hundred Dollars ($500.00)
865		-	for each deficiency.
866		-	4. A licensed processor may sell m arijuana products it creates
867		-	to a licensed dispensary or any other licensed processor . All sales
868		-	by a licensed processor shall be considered wholesale sales and
869		-	shall not be subject to taxation.
870		-	5. Under no circumstances may a licensed processor sell
871		-	marijuana or any marijuana product directly to a licensed medical
872		-	marijuana patient or licensed caregiver . However, a licensed
873		-	processor may process cannabis into a conc entrated form for a
874		-	licensed medical marijuana patient for a fee.
875		-	6. Licensed processors shall be required to complete a monthly
876		-	yield and sales report to the State Department of Health . This
877		-	report shall be due on the fifteenth of each month and shall provide
878		-	reporting on the previous month. This report shall detail the
879		-	amount of marijuana and medical marijuana products purchased in
880		-	pounds, the amount of marijuana cooked or processed in pounds, and
881		-
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906		-
907		-	the amount of waste in pounds . Additionally, this repo rt shall show
908		-	total wholesale sales in dollars . The State Department of Healt h
909		-	shall have oversight and auditing responsibilities to ensure that
910		-	all marijuana being processed is accounted for.
911		-	D. The Department shall oversee the inspection and compliance
912		-	of licensed processors producing products with marijuana as an
913		-	additive. The State Department of Health shall be compelled to,
914		-	within thirty (30) days of passage of this initiative, appoin t
915		-	twelve (12) Oklahoma residents to the Medical Marijuana Advisory
916		-	Council, who are marijuana industry experts, to create a list of
917		-	food safety standards f or processing and handling medical marijuana
918		-	in Oklahoma. These standards shall be adopted by the Department and
919		-	the Department may enforce these standards for licensed processors.
920		-	The Department shall develop a standards review procedure and these
921		-	standards can be altered by calling anothe r council of twelve (12)
922		-	Oklahoma marijuana industry experts . A signed letter of twent y
923		-	operating, licensed processors shall constitute a need for a new
924		-	council and standards review.
925		-	E. If it becomes permissible under federal law, marijuana may
926		-	be moved across state lines.
927		-	F. Any device used for the processing or consumption of medical
928		-	marijuana shall be considered legal to be sol d, manufactured,
929		-	distributed and possessed . No merchant, wholesaler, manufacturer or
930		-
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955		-
956		-	individual may be unduly harassed or prosecuted for sellin g,
957		-	manufacturing or possessing marijuana paraphernalia.
958		-	G. A processor applicant or licensee shall, pr ior to engaging
959		-	in a processing operation, either:
960		-	1. Acquire a water use permit from the Oklahom a Water Resources
961		-	Board pursuant to Section 105.9 of Title 82 of the Oklahoma Statutes
962		-	if the commercial growing operation uses gro undwater or water fr om
963		-	an Oklahoma stream; or
964		-	2. Acquire an official statement of permission from the county,
965		-	municipality, or other political subd ivision that provides water if
966		-	the processing operation uses rural or municipal water and register
967		-	the statement with the Oklahoma Medical Marijuana Authority.
968		-	Upon failure of a processor licensee to register the water
969		-	source of a processing operation with the Authority or, if
970		-	applicable, receive a permit by the Water R esources Board after
971		-	ninety (90) days following license ren ewal, the Authority shall
972		-	revoke the processor license.
973		-	SECTION 6. This act shall become effective November 1, 2022.
974		-
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1000		-	Passed the Senate the 23rd day of March, 2022.
1001		-
1002		-
1003		-
1004		-	Presiding Officer of the Senate
1005		-
1006		-
1007		-	Passed the House of Representatives the ____ day of ________ __,
1008		-	2022.
1009		-
1010		-
1011		-
1012		-	Presiding Officer of the House
1013		-	of Representatives
1014		-
1015		-
	508	+	COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
	509	+	SUBSTANCES, dated 04/14/2022 - DO PASS, As Amended and Coa uthored.