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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
CONFERENCE COMMITTEE SUBSTITUTE
FOR ENGROSSED
SENATE BILL 1737 By: Stephens, Pederson, and
Jett of the Senate
and
Patzkowsky, Hill, and Burns
of the House
CONFERENCE COMMITTEE S UBSTITUTE
An Act relating to medical marijuana; amending 63
O.S. 2021, Section 422, which relates to medical
marijuana commercial grower licenses; requiring all
medical marijuana commercial grower licensees to
register as an environmentally sensitive crop owner;
directing medical marijuana commer cial grower
licensees to provide certain information when
registering; updating statutory language; amending 63
O.S. 2021, Section 427. 21, which relates to medical
marijuana business advertising; requiring medical
marijuana commercial grower licensees to display
outdoor signage; stating requirements for signage
postage; providing for immediate revocation of
license; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKL AHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 422, is
amended to read as follows:
Section 422. A. The State Department of Health shall, within
thirty (30) days of passage of this initiative, make available on
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its website in an easy-to-find location an application for a
commercial grower license . The application fee shall be Two
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 Health shall approve all
applications which m eet 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;
3. All applying entities must show that all members, managers,
and board members are Oklahoma residents;
4. An applying entity may show ownership of non -Oklahoma
residents, but that percentage ownership may not exceed twe nty-five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma; and
6. All applicants must disclose all ownership interests in the
commercial grower operation.
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Applicants with a nonviolent felony conviction in the last two
(2) years, any other felony 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 marijuan a 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 t o a licensed
medical marijuana patient or licensed caregiver . A licensed
commercial grower may only sell at the whole sale level to a license d
dispensary, a licensed grower or a licensed processor. If the
federal government lifts restrictions on buying an d selling
marijuana between states, then a licensed commercia l grower would be
allowed to sell and buy marijuana whole sale from, or to, an out-of-
state wholesale provider. A licensed commercial grower shall be
required to complete a monthly yield and sale s report to the State
Department of Health. This report shall be due on the fifteenth of
each month and provide repor ting 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 amount of marijuana sold
to licensed processors in pounds, the amount of waste in pounds, and
the amount of marijuana sold to licensed dispensaries in pounds.
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Additionally, this report shall show total wholesale sales in
dollars. The State Department of Health 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 li censed
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 subsect ion shall
contain only the ground par ts of the marijuana plant and shall not
include marijuana conc entrates or derivatives . The total net weight
of each pre-roll packaged and sold by medical marijuana commercia l
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. Beginning November 1, 2022, all medical marijuana commer cial
grower licensees who operate an outdoor medic al marijuana production
facility shall be required to register with the Oklahoma Department
of Agriculture, Food, and Forestry as an environmentally sensitive
crop owner. Registration shall provide notice to commercial and
private pesticide applicators of the locations of medical marijuana
crops and help minimize the potential for damaging pesticide drift .
Medical marijuana commercial grower licensees shall provide their
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business name, address, Global Positioning Sys tem (GPS) coordinates
for all outdoor medical marijuana production facilities, and any
other information required by the Department when registering with
the Environmentally Sensitive Area Registry.
SECTION 2. AMENDATORY 63 O.S. 2021, Section 427.21, is
amended to read as follows:
Section 427.21. A. A medical marijuana busine ss shall not
engage in advertising that is dec eptive, false or misleading.
B. Medical marijuana advert ising shall not contain any
statement or illustration that:
1. Promotes overconsumption;
2. Represents that the use of marijuana has curative or
therapeutic effects; or
3. Depicts a child or other person under legal age to consume
marijuana, or includes :
a. objects such as toys or cartoon or other characters,
which suggest the presence of a child, or any ot her
depiction designed in any manner to be espe cially
appealing to children or other persons under legal age
to consume marijuana, or
b. any manner or design that would be especially
appealing to children or other persons under eighteen
(18) years of age.
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C. Upon the effective date of this act, all me dical marijuana
commercial grower licensees sh all be required to post signage at the
site of the commercial grow operation. Signage shall be located at
the perimeter of the property with dimensions measuring no less than
eighteen (18) inches by twenty -four (24) inches with a font size of
no less than two (2) inches. Information required to be displayed
on the sign shall be in black standardized font on a white
background. The Oklahoma Medical Marijuana Autho rity shall
promulgate rules as necessary regard ing the size, placement,
issuance and specific ations of the required signage . The following
information shall be included on the required signage:
1. Business name;
2. Physical address of the licensed busin ess;
3. Phone number of the licensed business; and
4. Medical marijuana business license nu mber.
The required signage shall also comply with county regulations
and local ordinances related to the real property where the
commercial grow operation is locat ed. Failure to erect the proper
signage within sixty (60) days after the renewal of each app lication
for a medical marijuana commercial grower licens e in accordance with
the provisions of this subsection shall result in the immediate
revocation of the med ical marijuana commercial grower license. Upon
issuance of a temporary license, all medical marijuana commercial
grower licensees shall be required t o comply with the provisions of
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this subsection prior to the prelicensure inspection conducted by
the Authority.
SECTION 3. This act shall become effective November 1, 2022.
58-2-3893 MR 5/16/2022 9:23:47 AM