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3 | 27 | ||
4 | - | An Act | |
5 | - | ENROLLED SENATE | |
6 | - | BILL NO. 1704 By: Paxton of the Senate | |
28 | + | STATE OF OKLAHOMA | |
29 | + | ||
30 | + | 2nd Session of the 58th Legislature (2022) | |
31 | + | ||
32 | + | CONFERENCE COMMITTEE SUBSTITUTE | |
33 | + | FOR ENGROSSED | |
34 | + | SENATE BILL 1704 By: Paxton of the Senate | |
7 | 35 | ||
8 | 36 | and | |
9 | 37 | ||
10 | 38 | Lowe (Dick) of the House | |
11 | 39 | ||
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44 | + | CONFERENCE COMMITTEE SUBSTITUTE | |
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14 | 46 | An Act relating to medical marijuana; amending 63 | |
15 | 47 | O.S. 2021, Section 427.6, as last amended by Section | |
16 | 48 | 1 of Enrolled Senate Bill No. 1367 of the 2nd Session | |
17 | - | of the 58th | |
18 | - | ||
49 | + | of the 58th Legislature , which relates to the | |
50 | + | Oklahoma Medical Marijuana and Patient Protection | |
19 | 51 | Act; authorizing the Oklahoma Medical Marijuana | |
20 | 52 | Authority to revoke lice nses under certain | |
21 | 53 | circumstances; amending 63 O.S. 2021, Section 427.14, | |
22 | 54 | as last amended by Section 15 of Enrolled Senate Bill | |
23 | 55 | No. 1543 of the 2nd Session of the 58th Oklahoma | |
24 | 56 | Legislature, which relates to medical marijuana | |
25 | 57 | business license; requiring licensees to submit | |
26 | 58 | employees to acquire certain credentials pr ior to | |
27 | 59 | employment; requiring employees of a medical | |
28 | 60 | marijuana business licensee to obtain credentialing; | |
29 | 61 | allowing Oklahoma Medical Marijuana Authority to | |
30 | 62 | contract with third-party vendor to provide certain | |
31 | 63 | services; directing Authority to determine services; | |
32 | 64 | directing third-party vendor to conduct certain | |
33 | 65 | functions for applicants; requiring third -party | |
34 | 66 | vendor to issue certain credential; providing for | |
35 | 67 | certain appeal; excluding third -party vendor from | |
36 | 68 | certain liability; directing promulgation of rules; | |
37 | 69 | providing for codification ; and providing an | |
38 | 70 | effective date. | |
39 | 71 | ||
40 | 72 | ||
41 | 73 | ||
42 | - | SUBJECT: Medical marijuana | |
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44 | 101 | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: | |
45 | - | ||
46 | - | ||
47 | - | ENR. S. B. NO. 1704 Page 2 | |
48 | 102 | SECTION 1. AMENDATORY 63 O.S. 2021, Section 427.6, as | |
49 | 103 | last amended by Section 1 of Enrolled Senate Bill No. 1367 of the | |
50 | 104 | 2nd Session of the 58th Legislature , is amended to read as follows: | |
51 | - | ||
52 | 105 | Section 427.6. A. The Oklahoma Medical Marijuana Authority | |
53 | 106 | shall address issues related t o the medical marijuana program in | |
54 | 107 | this state including, but not limited to, monitoring and | |
55 | 108 | disciplinary actions as they relate to the medical marijuana | |
56 | 109 | program. | |
57 | - | ||
58 | 110 | B. 1. The Authority or its designee may perform on -site | |
59 | 111 | inspections or investigations of a l icensee or applicant for any | |
60 | 112 | medical marijuana business license, research fac ility, education | |
61 | 113 | facility or waste disposal facility to determine compliance with | |
62 | 114 | applicable laws, rules and regulations or submissions made pursuant | |
63 | 115 | to this section. The Authori ty may enter the licensed premises of a | |
64 | 116 | medical marijuana business, research facility, education facility or | |
65 | 117 | waste disposal facility licensee or applicant to assess or monitor | |
66 | 118 | compliance or ensure qualifications for licensure. | |
67 | - | ||
68 | 119 | 2. Post-licensure inspection s shall be limited to twice per | |
69 | 120 | calendar year. However, investigations and a dditional inspections | |
70 | 121 | may occur when the Authority believes an investigation or additional | |
71 | 122 | inspection is necessary due to a possible violation of applicab le | |
72 | 123 | laws, rules or regulat ions. The State Commissioner of Health may | |
73 | 124 | adopt rules imposing penalties in cluding, but not limited to, | |
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74 | 151 | monetary fines and suspension or revocation of licensure for failure | |
75 | 152 | to allow the Authority reasonable access to the licensed premises | |
76 | 153 | for purposes of conducting an inspection. | |
77 | - | ||
78 | 154 | 3. The Authority may review relevant records of a licensed | |
79 | 155 | medical marijuana business, licensed medical marijuana research | |
80 | 156 | facility, licensed medical marijuana education facility or licensed | |
81 | 157 | medical marijuana waste disposal faci lity, and may require and | |
82 | 158 | conduct interviews wit h such persons or entities an d persons | |
83 | 159 | affiliated with such entities, for the purpose of determining | |
84 | 160 | compliance with Authority requirements and applicable laws, rules | |
85 | 161 | and regulations. | |
86 | - | ||
87 | 162 | 4. The Authority may re fer complaints alleging criminal | |
88 | 163 | activity that are made against a licensee to appropriate state or | |
89 | 164 | local law enforcement authorities. | |
90 | - | ||
91 | - | ENR. S. B. NO. 1704 Page 3 | |
92 | - | ||
93 | 165 | C. Disciplinary action may be taken against an applicant or | |
94 | 166 | licensee for not adhering to applica ble laws pursuant to the terms, | |
95 | 167 | conditions and guidelines set forth in th e Oklahoma Medical | |
96 | 168 | Marijuana and Patient Protection Act. | |
97 | - | ||
98 | 169 | D. Disciplinary actions may include revocation, suspension or | |
99 | 170 | denial of an application, license or final authorization and ot her | |
100 | 171 | action deemed appropr iate by the Authority. | |
101 | - | ||
102 | 172 | E. Disciplinary actions may be imposed upon a medical marijuana | |
103 | 173 | business licensee for: | |
104 | 174 | ||
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105 | 200 | 1. Failure to comply with or satisfy any provision of | |
106 | 201 | applicable laws, rules or regulations; | |
107 | - | ||
108 | 202 | 2. Falsification or misre presentation of any mater ial or | |
109 | 203 | information submitted to the Authority or other licensees; | |
110 | - | ||
111 | 204 | 3. Failing to allow or impeding entry by authorized | |
112 | 205 | representatives of the Authority; | |
113 | - | ||
114 | 206 | 4. Failure to adhere to any acknowledgement, verification or | |
115 | 207 | other representation made to the Authorit y; | |
116 | - | ||
117 | 208 | 5. Failure to submit or disclose information required by | |
118 | 209 | applicable laws, rules or regulations or otherwise requested by the | |
119 | 210 | Authority; | |
120 | - | ||
121 | 211 | 6. Failure to correct any violation of this section cited as a | |
122 | 212 | result of a review or audit of financial records or other materials; | |
123 | - | ||
124 | 213 | 7. Failure to comply with requ ested access by the Authority to | |
125 | 214 | the licensed premises or materials; | |
126 | - | ||
127 | 215 | 8. Failure to pay a required monetary penalty; | |
128 | - | ||
129 | 216 | 9. Diversion of medical marijuana or any medical marijuana | |
130 | 217 | product, as determined by the A uthority; | |
131 | - | ||
132 | - | ||
133 | - | ENR. S. B. NO. 1704 Page 4 | |
134 | 218 | 10. Threatening or harming a medical marijuana patient | |
135 | 219 | licensee, caregiver licensee, a medical practitioner or an employee | |
136 | 220 | of the Authority; and | |
137 | - | ||
138 | 221 | 11. Any other basis indicating a violation of the applicable | |
139 | 222 | laws and regulations as identified by the Authority. | |
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140 | 248 | ||
141 | 249 | F. Disciplinary actions against a licensee may include the | |
142 | 250 | imposition of monetary penalties, which may be assessed by the | |
143 | 251 | Authority. The Authority may suspend or revoke a license for | |
144 | 252 | failure to pay any monetary pen alty lawfully assessed by the | |
145 | 253 | Authority against a licensee. | |
146 | - | ||
147 | 254 | G. Penalties 1. In addition to any other penalties prescribed | |
148 | 255 | by law, penalties for sales, purchases or transfers for value of | |
149 | 256 | medical marijuana by a medical marijuana business or employees or | |
150 | 257 | agents of the medical mari juana business to persons other than those | |
151 | 258 | allowed by law occurring within an y one-year time period may include | |
152 | 259 | an initial fine of Five Thousand Dollars ($5,000.00) for a first | |
153 | 260 | violation and a fine of Fifteen Thousand Dollars ($15, 000.00) for | |
154 | 261 | any subsequent violation. | |
155 | - | ||
156 | 262 | 2. Penalties for grossly inaccur ate or fraudulent reporting | |
157 | 263 | occurring within any two -year time period may include an initial | |
158 | 264 | administrative fine of Five Thousand Dollars ($5,000.00) for a first | |
159 | 265 | violation and an admini strative fine of Ten Thousand Dollars | |
160 | 266 | ($10,000.00) for any subsequent v iolation. The medical mariju ana | |
161 | 267 | business shall be subject to a revocation of any license granted | |
162 | 268 | pursuant to the Oklahoma Medical Marijuana and Patient Protection | |
163 | 269 | Act upon a second inc ident of grossly inaccurate or fraudulent | |
164 | 270 | reporting in a ten-year period by the medical marijuana bu siness or | |
165 | 271 | any employee or agent thereof. | |
166 | 272 | ||
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167 | 298 | 3. After investigation by the Authority, the Authority may | |
168 | 299 | revoke the license of any person directly involved with the | |
169 | 300 | diversion of marijuana. | |
170 | - | ||
171 | 301 | 4. If the Authority, after investigation, is able to establish, | |
172 | 302 | by a preponderance of evidence, a pattern of diversion or negligence | |
173 | 303 | leading to diversion, the Authority may revoke any business licenses | |
174 | 304 | associated with the dive rsion and any entity with common ownership. | |
175 | - | ||
176 | - | ||
177 | - | ENR. S. B. NO. 1704 Page 5 | |
178 | 305 | H. 1. In addition to any other penalties prescribed by law, a | |
179 | 306 | first offense for intentional and impermissible diversion of medical | |
180 | 307 | marijuana, medical marijuana concentrate, or medical marijuana | |
181 | 308 | products for value by a patient or caregiver to an unauthorized | |
182 | 309 | person shall be subject to an administrative fine of not less than | |
183 | 310 | Four Hundred Dollars ($400.00). The Authority shall have the | |
184 | 311 | authority to enforce the provisions of this subsection. | |
185 | - | ||
186 | 312 | 2. In addition to any other penalties prescribed by law, an | |
187 | 313 | additional incident resulting in a second offense for impermissible | |
188 | 314 | diversion of medical marijuana, medical marijuana concentrate, or | |
189 | 315 | medical marijuana products by a patient or caregiver to an | |
190 | 316 | unauthorized person for v alue shall be subject to an administrative | |
191 | 317 | fine of not less than One Thousand Dollars ($1,000.00), and shall | |
192 | 318 | result in revocation of the license or licenses of the person. | |
193 | - | ||
194 | 319 | 3. Any person who shares less than three (3) grams of medical | |
195 | 320 | marijuana with an una uthorized person, without the transfer being | |
196 | 321 | for value or other consideration, shall not be subject to criminal | |
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197 | 348 | prosecution but shall be subject to an administrative fine of Four | |
198 | 349 | Hundred Dollars ($400.00). | |
199 | - | ||
200 | 350 | I. The intentional diversion of medical marijuana , medical | |
201 | 351 | marijuana concentrate or medical marijuana products by a lice nsed | |
202 | 352 | medical marijuana patient or caregiver, medical marijuana business | |
203 | 353 | or employee of a medical marijuana business to an unauthorized minor | |
204 | 354 | person who the licensed medical marijuana pa tient or caregiver, | |
205 | 355 | medical marijuana business or employee of a medical marijuana | |
206 | 356 | business knew or reasonably should have known to be a minor person | |
207 | 357 | shall be subject to an administrative fine of Two Thousa nd Five | |
208 | 358 | Hundred Dollars ($2,500.00). For an additi onal incident resulting | |
209 | 359 | in a second or subsequent offense, the license d medical marijuana | |
210 | 360 | patient or caregiver, medical marijuana business or employee of a | |
211 | 361 | medical marijuana business shall be subject to a cite and release | |
212 | 362 | citation and, upon a finding of gu ilt or a plea of no contest, a | |
213 | 363 | fine of Five Thousand Dollars ($5,000.0 0) and automatic revocation | |
214 | 364 | of the medical marijuana license. | |
215 | - | ||
216 | 365 | J. In addition to any other remedies provided for by law, the | |
217 | 366 | Authority, pursuant to its rules and regulations, may issue a | |
218 | 367 | written order to any licensee the Authority has reason to believe | |
219 | 368 | has violated Sections 420 through 426.1 of this title, the Oklahoma | |
220 | - | ||
221 | - | ENR. S. B. NO. 1704 Page 6 | |
222 | 369 | Medical Marijuana and Patient Protection Act, the Oklahoma Medical | |
223 | 370 | Marijuana Waste Management Act, or any rules promulgat ed by the | |
224 | 371 | State Commissioner of Health and to whom the Authority has served, | |
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225 | 398 | not less than thirty (30) days previously, a written notice of | |
226 | 399 | violation of such statutes or rules. | |
227 | - | ||
228 | 400 | 1. The written order sha ll state with specificity the nature of | |
229 | 401 | the violation. The Authority may impose any disciplinary action | |
230 | 402 | authorized under the provisions of this section including, but not | |
231 | 403 | limited to, the assessment of monetary penalties. | |
232 | - | ||
233 | 404 | 2. Any order issued pursuant to t he provisions of this section | |
234 | 405 | shall become a final ord er unless, not more than thirty (30) days | |
235 | 406 | after the order is served to the licensee, the licensee requests an | |
236 | 407 | administrative hearing in accordance with the rules and regulations | |
237 | 408 | of the Authority. Upon such request, the Authority shall promptly | |
238 | 409 | initiate administrative proceedings. | |
239 | - | ||
240 | 410 | K. Whenever the Authority finds that an emergency exists | |
241 | 411 | requiring immediate action in order to protect the health or welfare | |
242 | 412 | of the public, the Authority may issue an order, without providing | |
243 | 413 | notice or hearing, stating the exist ence of said emergency and | |
244 | 414 | requiring that action be taken as the Authority deems necessary to | |
245 | 415 | meet the emergency. Such action may include, but is not limited to, | |
246 | 416 | ordering the licensee to immediately c ease and desist operations by | |
247 | 417 | the licensee. The order shall be effective immediately upon | |
248 | 418 | issuance. Any person to whom t he order is directed shall comply | |
249 | 419 | immediately with the provisions of the order. The Authority may | |
250 | 420 | assess a penalty not to exceed Ten Thousand Dollars ($10,000.00) per | |
251 | 421 | day of noncompliance with the order. In assessing such a penalty, | |
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252 | 448 | the Authority shall c onsider the seriousness of the violation and | |
253 | 449 | any efforts to comply with applicable requirements. Upon | |
254 | 450 | application to the Authority, t he licensee shall be offered a | |
255 | 451 | hearing within ten (10) days of the issuance of the order. | |
256 | - | ||
257 | 452 | L. All hearings held pursuant t o this section shall be in | |
258 | 453 | accordance with the Oklahoma Administrative Procedures Act. | |
259 | - | ||
260 | 454 | SECTION 2. AMENDATORY 63 O.S. 2021, Section 427.14, as | |
261 | 455 | last amended by Section 15 of Enrolled Senate Bill No. 1543 of the | |
262 | 456 | 2nd Session of the 58th Oklahoma Legislature, is amended to read a s | |
263 | 457 | follows: | |
264 | - | ||
265 | - | ENR. S. B. NO. 1704 Page 7 | |
266 | - | ||
267 | 458 | Section 427.14. A. There is hereby crea ted the medical | |
268 | 459 | marijuana business license, which shall include the following | |
269 | 460 | categories: | |
270 | - | ||
271 | 461 | 1. Medical marijuana commercial grower; | |
272 | - | ||
273 | 462 | 2. Medical marijuana processor; | |
274 | - | ||
275 | 463 | 3. Medical marijuana dispensary; | |
276 | - | ||
277 | 464 | 4. Medical marijuana transporter; and | |
278 | - | ||
279 | 465 | 5. Medical marijuana testing laboratory. | |
280 | - | ||
281 | 466 | B. The Oklahoma Medical Marijuana Authority, with the aid of | |
282 | 467 | the Office of Management and Enterprise Services, shall develop a | |
283 | 468 | website for medical marijuana business applications. | |
284 | - | ||
285 | 469 | C. The Authority shall make available on its websit e in an | |
286 | 470 | easy-to-find location, applications for a medical marijuana | |
287 | 471 | business. | |
288 | 472 | ||
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289 | 498 | D. The annual, nonrefundable application fee for a medical | |
290 | 499 | marijuana business license shall be Two Thousand Five Hundred | |
291 | 500 | Dollars ($2,500.00). | |
292 | - | ||
293 | 501 | E. All applicants seeking licensur e or licensure renewal as a | |
294 | 502 | medical marijuana business shall comply with the following general | |
295 | 503 | requirements: | |
296 | - | ||
297 | 504 | 1. All applications for licenses and registrations authorized | |
298 | 505 | pursuant to this section shall be made upon forms prescribed by the | |
299 | 506 | Authority; | |
300 | - | ||
301 | 507 | 2. Each application shall identify the city or county in which | |
302 | 508 | the applicant seeks to obtai n licensure as a medical marijuana | |
303 | 509 | business; | |
304 | - | ||
305 | 510 | 3. Applicants shall submit a complete application to the | |
306 | 511 | Authority before the application may be accep ted or considered; | |
307 | - | ||
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310 | 512 | 4. All applications shall be complete and accurate in every | |
311 | 513 | detail; | |
312 | - | ||
313 | 514 | 5. All applications shall include all attachments or | |
314 | 515 | supplemental information required by the forms supplied by the | |
315 | 516 | Authority; | |
316 | - | ||
317 | 517 | 6. All applications shall be accompanie d by a full remittanc e | |
318 | 518 | for the whole amount of the application fees. Application fees are | |
319 | 519 | nonrefundable; | |
320 | - | ||
321 | 520 | 7. All applicants shall be approved for licensing review that, | |
322 | 521 | at a minimum, meets meet the following criteria: | |
323 | 522 | ||
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324 | 548 | a. twenty-five (25) years of age or older , | |
325 | - | ||
326 | 549 | b. if applying as an individual, proof that the applicant | |
327 | 550 | is a resident of this state pursuant to paragraph 11 | |
328 | 551 | of this subsection, | |
329 | - | ||
330 | 552 | c. if applying as an entity, proof that seventy-five | |
331 | 553 | percent (75%) of all members, managers, executive | |
332 | 554 | officers, partners, board m embers or any other form of | |
333 | 555 | business ownership are residents of this state | |
334 | 556 | pursuant to paragraph 11 of this subsection, | |
335 | - | ||
336 | 557 | d. if applying as an individual or entity, proof that the | |
337 | 558 | individual or entity is registered to conduct business | |
338 | 559 | in this state, | |
339 | - | ||
340 | 560 | e. disclosure of all ownership interests pursu ant to the | |
341 | 561 | Oklahoma Medical Marijuana and Patient Protection Act, | |
342 | 562 | and | |
343 | - | ||
344 | 563 | f. proof that the medical marijuana business, medical | |
345 | 564 | marijuana research facility, medical marijuana | |
346 | 565 | education facility and medical marijuana waste | |
347 | 566 | disposal facility applicant or license e has not been | |
348 | 567 | convicted of a nonviolent felony in the last two (2) | |
349 | 568 | years, or any other felony conviction within the last | |
350 | 569 | five (5) years, is not a current inmate in the custody | |
351 | - | ||
352 | - | ENR. S. B. NO. 1704 Page 9 | |
353 | 570 | of the Department of Corrections, or currently | |
354 | 571 | incarcerated in a jail or correc tions facility; | |
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356 | 598 | 8. There shall be no limit to the number of medical marijuana | |
357 | 599 | business licenses or categories that an individual or entity can | |
358 | 600 | apply for or receive, although each applica tion and each category | |
359 | 601 | shall require a separate application and appl ication fee. A | |
360 | 602 | commercial grower, processor and dispensary, or any combination | |
361 | 603 | thereof, are authorized to share the same address or physical | |
362 | 604 | location, subject to the restrictions set fort h in the Oklahoma | |
363 | 605 | Medical Marijuana and Patient Protection Act; | |
364 | - | ||
365 | 606 | 9. All applicants for a medical marijuana business license, | |
366 | 607 | research facility license or education facility license authorized | |
367 | 608 | by the Oklahoma Medical Marijuana and Patient Protection Act, or for | |
368 | 609 | a renewal of such license, shall undergo a state criminal history | |
369 | 610 | background check conducted by the Oklahoma State Bureau of | |
370 | 611 | Investigation (OSBI) within thirty (30) days prior to the | |
371 | 612 | application for the license including: | |
372 | - | ||
373 | 613 | a. individual applicant s applying on their own behalf, | |
374 | - | ||
375 | 614 | b. individuals applying on behalf of an entity, | |
376 | - | ||
377 | 615 | c. all principal officers of an entity, and | |
378 | - | ||
379 | 616 | d. all owners of an entity as defined by the Oklahoma | |
380 | 617 | Medical Marijuana and Patient Protection Act; | |
381 | - | ||
382 | 618 | 10. All applicable fees charged by the OSBI are the | |
383 | 619 | responsibility of the applicant and shall not be higher than fees | |
384 | 620 | charged to any other person or industry for such background checks; | |
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385 | 646 | ||
386 | 647 | 11. In order to be considered a resident of this state for | |
387 | 648 | purposes of a medica l marijuana business application, all applicants | |
388 | 649 | shall provide proof of state residency for at least two (2) years | |
389 | 650 | immediately preceding the date of application or five (5) years of | |
390 | 651 | continuous state residency during the preceding twenty -five (25) | |
391 | 652 | years immediately preceding the date of application. Sufficient | |
392 | 653 | documentation of proof of state residency shall include a | |
393 | 654 | combination of the following: | |
394 | - | ||
395 | - | ||
396 | - | ENR. S. B. NO. 1704 Page 10 | |
397 | 655 | a. an unexpired state-issued driver license, | |
398 | - | ||
399 | 656 | b. a state-issued identification card, | |
400 | - | ||
401 | 657 | c. a utility bill preceding the date of appli cation, | |
402 | 658 | excluding cellular telephone and Internet bills, | |
403 | - | ||
404 | 659 | d. a residential property deed to property in this state, | |
405 | 660 | and | |
406 | - | ||
407 | 661 | e. a rental agreement p receding the date of application | |
408 | 662 | for residential property located in this state. | |
409 | - | ||
410 | 663 | Applicants that were issued a medical marijuana business license | |
411 | 664 | prior to August 30, 2019, are hereby exempt from the two-year or | |
412 | 665 | five-year state residence requirement menti oned above; | |
413 | - | ||
414 | 666 | 12. All license applicants shall be required to su bmit a | |
415 | 667 | registration with the Oklahoma State Bureau of Narcotics and | |
416 | 668 | Dangerous Drugs Control as provided in Sections 2-302 through 2-304 | |
417 | 669 | of this title; | |
418 | 670 | ||
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419 | 696 | 13. All applicants shall establish their identity through | |
420 | 697 | submission of a color copy or digital image of one of the following | |
421 | 698 | unexpired documents: | |
422 | - | ||
423 | 699 | a. front of a state-issued driver license, | |
424 | - | ||
425 | 700 | b. front of a state-issued identification card, | |
426 | - | ||
427 | 701 | c. a United States passport or othe r photo identification | |
428 | 702 | issued by the United States government, or | |
429 | - | ||
430 | 703 | d. a tribal identification card approved for | |
431 | 704 | identification purposes by the Department of Public | |
432 | 705 | Safety; and | |
433 | - | ||
434 | 706 | 14. All applicants shall submit an applicant photograph. | |
435 | - | ||
436 | 707 | F. The Authority shall review the medical marijuana business | |
437 | 708 | application; approve, reject or deny the application; and mail the | |
438 | - | ||
439 | - | ENR. S. B. NO. 1704 Page 11 | |
440 | 709 | approval, rejection, denial or status-update letter to the applicant | |
441 | 710 | within ninety (90) business days of receipt of the application. | |
442 | - | ||
443 | 711 | G. 1. The Authority shall review the medical marijuana | |
444 | 712 | business applications and conduct all investigations, inspections | |
445 | 713 | and interviews before approving the application. | |
446 | - | ||
447 | 714 | 2. Approved applicants shall be issued a medical marijuana | |
448 | 715 | business license for the specifi c category applied under, which | |
449 | 716 | shall act as proof of their approved status. Rejection and denial | |
450 | 717 | letters shall provide a reason for the rejection or denial. | |
451 | 718 | Applications may only be rejected or denied based on the applicant | |
452 | 719 | not meeting the standards set forth in the provisions of the | |
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453 | 746 | Oklahoma Medical Marijuana and Patient Protection Act and Sections | |
454 | 747 | 420 through 426.1 of this title, improper completion of the | |
455 | 748 | application, or for a reason provided for in the Oklahoma Medical | |
456 | 749 | Marijuana and Patient Protectio n Act and Sections 420 through 426.1 | |
457 | 750 | of this title. If an application is rejected for failure to provide | |
458 | 751 | required information, the applicant shall have thirty (30) days to | |
459 | 752 | submit the required information for reconsideration. No additional | |
460 | 753 | application fee shall be charged for such reconsideration. Unless | |
461 | 754 | the Authority determines otherwise, an application that has been | |
462 | 755 | resubmitted but is still incomplete or contains errors that are not | |
463 | 756 | clerical or typographical in nature shall be denied. | |
464 | - | ||
465 | 757 | 3. Status-update letters shall provide a reason for delay in | |
466 | 758 | either approval, rejection or denial should a situation arise in | |
467 | 759 | which an application was submitted properly but a delay in | |
468 | 760 | processing the application occurred. | |
469 | - | ||
470 | 761 | 4. Approval, rejection, denial or statu s-update letters shall | |
471 | 762 | be sent to the applicant in the same method the application was | |
472 | 763 | submitted to the Authority. | |
473 | - | ||
474 | 764 | H. A license for a medical marijuana business, medical | |
475 | 765 | marijuana research facilit y, medical marijuana education facility or | |
476 | 766 | medical marijuana waste disposal facility shall not be issued to or | |
477 | 767 | held by: | |
478 | - | ||
479 | 768 | 1. A person until all required fees have been paid; | |
480 | 769 | ||
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481 | 794 | ||
482 | - | ENR. S. B. NO. 1704 Page 12 | |
483 | 795 | 2. A person who has been convicted of a nonviolent felony | |
484 | 796 | within two (2) years of the date of application, or within five (5) | |
485 | 797 | years for any other felony; | |
486 | - | ||
487 | 798 | 3. A corporation, if the crimina l history of any of its | |
488 | 799 | officers, directors or stockholders indicates that the officer, | |
489 | 800 | director or stockholder has been convicted of a nonviolent fe lony | |
490 | 801 | within two (2) years of the date of applicati on, or within five (5) | |
491 | 802 | years for any other felony; | |
492 | - | ||
493 | 803 | 4. A person under twenty-five (25) years of age; | |
494 | - | ||
495 | 804 | 5. A person licensed pursuant to this section who, during a | |
496 | 805 | period of licensure, or who, at the time o f application, has failed | |
497 | 806 | to: | |
498 | - | ||
499 | 807 | a. file taxes, interest or penalties due related to a | |
500 | 808 | medical marijuana busines s, or | |
501 | - | ||
502 | 809 | b. pay taxes, interest or penalties due related to a | |
503 | 810 | medical marijuana business; | |
504 | - | ||
505 | 811 | 6. A sheriff, deputy sheriff, police officer or prosecuting | |
506 | 812 | officer, or an officer or employee of the Authority or municipality; | |
507 | - | ||
508 | 813 | 7. A person whose authority to be a ca regiver, as defined in | |
509 | 814 | Section 427.2 of this title, has been revoked by the Authority; or | |
510 | - | ||
511 | 815 | 8. A person who was involved in the management or operations of | |
512 | 816 | any medical marijuana business, m edical marijuana research facility, | |
513 | 817 | medical marijuana education facility or medical marijuana waste | |
514 | 818 | disposal facility that, after the initiation of a disciplinary | |
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515 | 845 | action, has had a medical marijuana license re voked, not renewed, or | |
516 | 846 | surrendered during the f ive (5) years preceding submission of the | |
517 | 847 | application and for t he following violations: | |
518 | - | ||
519 | 848 | a. unlawful sales or purchases, | |
520 | - | ||
521 | 849 | b. any fraudulent acts, falsification of records or | |
522 | 850 | misrepresentation to the Authority, medical marijuana | |
523 | 851 | patient licensees, caregiver l icensees or medical | |
524 | 852 | marijuana business licensees, | |
525 | - | ||
526 | - | ENR. S. B. NO. 1704 Page 13 | |
527 | - | ||
528 | 853 | c. any grossly inaccurate or fraudulent reporting, | |
529 | - | ||
530 | 854 | d. threatening or harming any medical marijuana patient, | |
531 | 855 | caregiver, medical practitioner or employee of the | |
532 | 856 | Authority, | |
533 | - | ||
534 | 857 | e. knowingly or intentionally refusing to permit the | |
535 | 858 | Authority access to premises or records, | |
536 | - | ||
537 | 859 | f. using a prohibited, hazardous substance for processing | |
538 | 860 | in a residential area, | |
539 | - | ||
540 | 861 | g. criminal acts relating to the operation of a medical | |
541 | 862 | marijuana business, or | |
542 | - | ||
543 | 863 | h. any violations that endanger public health and safety | |
544 | 864 | or product safety. | |
545 | - | ||
546 | 865 | I. In investigating the qualifications of an applicant or a | |
547 | 866 | licensee, the Authority and municipalities may have access to | |
548 | 867 | criminal history record information furnished by a criminal justice | |
549 | 868 | agency subject to any restrictions imposed by such an ag ency. | |
550 | 869 | ||
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551 | 895 | J. The failure of an applicant or licensee to provide the | |
552 | 896 | requested information by the Authority deadline may be grounds for | |
553 | 897 | denial of the application. | |
554 | - | ||
555 | 898 | K. All applicants and licensees shall submit information to the | |
556 | 899 | Authority in a full, faithful, truthful and fair manner. The | |
557 | 900 | Authority may recommend denial of an application where the applicant | |
558 | 901 | or licensee made misstatements, omissions, mis representations or | |
559 | 902 | untruths in the application or in connection with the backgrou nd | |
560 | 903 | investigation of the applicant. This type of conduct may be grounds | |
561 | 904 | for administrative action against the applicant or licensee. Typos | |
562 | 905 | and scrivener errors shall not be g rounds for denial. | |
563 | - | ||
564 | 906 | L. A licensed medical marijuana business premises shall be | |
565 | 907 | subject to and responsible for compliance with applicable provisions | |
566 | 908 | consistent with the zoning where such business is located as | |
567 | 909 | described in the most recent versions of the Ok lahoma Uniform | |
568 | 910 | Building Code, the International Building Code and the International | |
569 | - | ||
570 | - | ENR. S. B. NO. 1704 Page 14 | |
571 | 911 | Fire Code, unless granted an exemption by a municipality or | |
572 | 912 | appropriate code enforcement entity. | |
573 | - | ||
574 | 913 | M. All medical marijuana business, medical marijuana research | |
575 | 914 | facility, medical marijuana education facility and medical marijuana | |
576 | 915 | waste disposal facility licensees shall pay the relevant licensure | |
577 | 916 | fees prior to receiving licensure to operate. | |
578 | - | ||
579 | 917 | N. A medical marijuana business, medical marijuana research | |
580 | 918 | facility, medical marijuana education fac ility or medical marijuana | |
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581 | 945 | waste disposal facility that attempts to renew its license after the | |
582 | 946 | expiration date of the license shall pay a late renewal fee in an | |
583 | 947 | amount to be determined by the Executive Director of the Authority | |
584 | 948 | to reinstate the license. Late renewal fees are nonrefundable. A | |
585 | 949 | license that has been expired for more than ninety (90) days shall | |
586 | 950 | not be renewed. | |
587 | - | ||
588 | 951 | O. No medical marijuana business, medical marijuana research | |
589 | 952 | facility, medical marijuana education facility or medical mari juana | |
590 | 953 | waste disposal facility shall possess, sell or t ransfer medical | |
591 | 954 | marijuana or medical marijuana products without a valid, unexpired | |
592 | 955 | license issued by the Authority. | |
593 | - | ||
594 | 956 | P. A medical marijuana business license holder shall require | |
595 | 957 | all individuals employed under their license to be issued a | |
596 | - | credential pursuant to the provisions of Section | |
958 | + | credential pursuant to the provisions of Section 4 of this act prior | |
597 | 959 | to employment. | |
598 | - | ||
599 | 960 | SECTION 3. NEW LAW A new section of law to be codified | |
600 | 961 | in the Oklahoma Statutes as Section 427. 14a of Title 63, unless | |
601 | 962 | there is created a duplication in numbering, reads as follows: | |
602 | - | ||
603 | 963 | A. Beginning January 1, 2024, the Oklahoma Medical Marijuana | |
604 | 964 | Authority shall require employees of a medical marijuana business | |
605 | 965 | licensee to apply for and receive a credential authorizing the | |
606 | 966 | employee to work in a li censed medical marijuana business. | |
607 | 967 | ||
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608 | 993 | B. The Authority may contract with one or more third-party | |
609 | 994 | vendors to provide the credentialing services necessary to carry out | |
610 | 995 | the provisions of this section. | |
611 | - | ||
612 | - | ||
613 | - | ENR. S. B. NO. 1704 Page 15 | |
614 | 996 | C. The Authority shall determin e the services to be provided by | |
615 | 997 | such third-party vendor and shall establish costs and prices. If | |
616 | 998 | contracted for credentialing services, a third-party vendor shall on | |
617 | 999 | behalf of the Authority conduct the background checks and verify | |
618 | 1000 | eligibility and suitability for any employees of a medical marijuana | |
619 | 1001 | business license holder to obtain a credential . | |
620 | - | ||
621 | 1002 | D. Upon successful completion by the third -party vendor of the | |
622 | 1003 | statutorily required background checks and verificatio n of | |
623 | 1004 | eligibility and suitability for a n employee, the third-party vendor | |
624 | 1005 | shall issue a credential to the employee. The results of background | |
625 | 1006 | checks and verificat ions shall be provided to the Authority by the | |
626 | 1007 | third-party vendor. | |
627 | - | ||
628 | 1008 | E. If the third-party vendor determines that an employee of a | |
629 | 1009 | medical marijuana business holder does not meet the minimum | |
630 | 1010 | statutory requirements for a credential, the applicant or employee | |
631 | 1011 | shall have no recourse against the third-party vendor but may appeal | |
632 | 1012 | such adverse determination to the Authority. | |
633 | - | ||
634 | 1013 | F. The third-party vendor shall not be civilly liable to an | |
635 | 1014 | applicant, licensee, or employee of a licensee for any acts taken in | |
636 | 1015 | good-faith compliance with the prov isions of Section 420 et seq. of | |
637 | 1016 | Title 63 of the Oklahoma Statutes and the Oklahoma Medical Marijuana | |
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638 | 1043 | and Patient Protection Act and the rules promulgated by the Oklahoma | |
639 | 1044 | Medical Marijuana Authority . | |
640 | - | ||
641 | 1045 | G. The Executive Director of the Authority may promulgate rules | |
642 | 1046 | to implement the provisions of this section. | |
643 | - | ||
644 | 1047 | SECTION 4. This act shall beco me effective November 1, 2022. | |
645 | 1048 | ||
646 | - | ||
647 | - | ENR. S. B. NO. 1704 Page 16 | |
648 | - | Passed the Senate the 17th day of May, 2022. | |
649 | - | ||
650 | - | ||
651 | - | ||
652 | - | Presiding Officer of the Senat e | |
653 | - | ||
654 | - | ||
655 | - | Passed the House of Representatives the 19th day of May, 2022. | |
656 | - | ||
657 | - | ||
658 | - | ||
659 | - | Presiding Officer of the House | |
660 | - | of Representatives | |
661 | - | ||
662 | - | OFFICE OF THE GOVERNOR | |
663 | - | Received by the Office of the Governor this _______ _____________ | |
664 | - | day of _________________ __, 20_______, at _______ o'clock _______ M. | |
665 | - | By: _______________________________ __ | |
666 | - | Approved by the Governor of the State of Oklahoma this _____ ____ | |
667 | - | day of _________________ __, 20_______, at _______ o'clock _______ M. | |
668 | - | ||
669 | - | _________________________________ | |
670 | - | Governor of the State of Oklahoma | |
671 | - | ||
672 | - | ||
673 | - | OFFICE OF THE SECRETARY O F STATE | |
674 | - | Received by the Office of the Secretary of State this _______ ___ | |
675 | - | day of __________________, 20 _______, at _______ o'clock _______ M. | |
676 | - | By: _______________________________ __ | |
1049 | + | 58-2-3916 MR 5/16/2022 3:22:40 PM |