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Oklahoma Senate Bill SB1737

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1737 Compare Versions

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4-An Act
5-ENROLLED SENATE
6-BILL NO. 1737 By: Stephens, Pederson, and
28+STATE OF OKLAHOMA
29+
30+2nd Session of the 58th Legislature (2022)
31+
32+CONFERENCE COMMITTEE SUBSTITUTE
33+FOR ENGROSSED
34+SENATE BILL 1737 By: Stephens, Pederson, and
735 Jett of the Senate
836
937 and
1038
1139 Patzkowsky, Hill, and Burns
1240 of the House
1341
1442
1543
1644
45+
46+CONFERENCE COMMITTEE S UBSTITUTE
47+
1748 An Act relating to medical marijuana; amending 63
18-O.S. 2021, Section 422, as last amended by Section 3
19-of Enrolled Senate B ill No. 1543 of the 2nd Session
20-of the 58th Oklahoma Legislature , which relates to
21-medical marijuana commercial grower licenses;
22-requiring all medical marijuana commercial grower
23-licensees to register as a n environmentally sensitive
24-crop owner; directing medical marijuana commer cial
25-grower licensees to provide certain information when
49+O.S. 2021, Section 422, which relates to medical
50+marijuana commercial grower licenses; requiring all
51+medical marijuana commercial grower licensees to
52+register as an environmentally sensitive crop owner;
53+directing medical marijuana commer cial grower
54+licensees to provide certain information when
2655 registering; updating statutory language; amending 63
2756 O.S. 2021, Section 427. 21, which relates to medical
2857 marijuana business advertising; requiring medical
2958 marijuana commercial grower licensees to display
3059 outdoor signage; stating requirements for signage
3160 postage; providing for immediate revocation of
3261 license; and providing an effective date.
3362
3463
3564
36-SUBJECT: Medical marijuana
3765
3866 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKL AHOMA:
67+SECTION 1. AMENDATORY 63 O.S. 2021, Section 422, is
68+amended to read as follows:
69+Section 422. A. The State Department of Health shall, within
70+thirty (30) days of passage of this initiative, make available on
3971
40-SECTION 1. AMENDATORY 63 O.S. 2021, Section 422, as last
41-amended by Section 3 of Enrolled Senate Bill No. 1543 of the 2nd
42-Session of the 58th Oklahoma Legislature , is amended to read as
43-follows:
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4496
45-Section 422. A. The Oklahoma Medical Marijuana Authority
46-shall, within thirty (30) days of passage of this initiative, make
47-
48-ENR. S. B. NO. 1737 Page 2
49-available on its website in an easy-to-find location an application
50-for a commercial grower license. The application fee shall be Two
97+its website in an easy-to-find location an application for a
98+commercial grower license . The application fee shall be Two
5199 Thousand Five Hundred Dollars ($ 2,500.00). A method of payment
52-shall be provided on the website of the Authority. The Authority
53-shall have ninety (90) days to review the application; approve,
54-reject or deny the application; and mail the approval, rejection or
55-denial letter stating the reasons for the rejection or denial to the
56-applicant.
57-
58-B. The Authority shall approve all applications which meet the
59-following criteria:
60-
100+shall be provided on the website of the Department. The State
101+Department of Health shall have ninety (90) days to review the
102+application; approve, reject or deny the application; and mail the
103+approval, rejection or denial letter stating the reasons for the
104+rejection or denial to the applicant.
105+B. The State Department of Health shall approve all
106+applications which m eet the following criteria:
61107 1. The applicant must be twenty-five (25) years of age or
62108 older;
63-
64109 2. The applicant, if applying as an individual, must show
65-residency in this state;
66-
110+residency in the State of Oklahoma;
67111 3. All applying entities must show that all members, managers,
68-and board members are residents of this state;
69-
70-4. An applying entity may show ownership of nonstate residents,
71-but that percentage ownership may not ex ceed twenty-five percent
72-(25%);
73-
112+and board members are Oklahoma residents;
113+4. An applying entity may show ownership of non -Oklahoma
114+residents, but that percentage ownership may not exceed twe nty-five
115+percent (25%);
74116 5. All applying individuals or entities must be registered to
75-conduct business in this state; and
76-
117+conduct business in the State of Oklahoma; and
77118 6. All applicants must disclose all ownership interests in the
78119 commercial grower operation.
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79145
80146 Applicants with a nonviolent felony conviction in the last two
81147 (2) years, any other felony conviction in the last five (5) years,
82148 inmates in the custody of the Department of Corrections or any
83149 person currently incarcerate d shall not qualify for a commercial
84150 grower license.
85-
86151 C. A licensed commercial grower may sell marijuan a to a
87152 licensed dispensary or a licensed processor. Further, sales by a
88153 licensed commercial grower shall be considered wholesale sales and
89154 shall not be subject to taxation. Under no circumstances may a
90155 licensed commercial grower sell marijuana directly t o a licensed
91-
92-ENR. S. B. NO. 1737 Page 3
93156 medical marijuana patient or licensed caregiver . A licensed
94157 commercial grower may only sell at the whole sale level to a license d
95158 dispensary, a licensed grower or a licensed processor. If the
96159 federal government lifts restrictions on buying an d selling
97160 marijuana between states, then a licensed commercia l grower would be
98161 allowed to sell and buy marijuana whole sale from, or to, an out-of-
99162 state wholesale provider. A licensed commercial grower shall be
100-required to complete a monthly yield and sales report to the
101-Authority. This report shall be due on the fifteenth of each month
102-and provide reporting on the previous month. This report shall
103-detail the amount of marijuana harvested in pounds, the amount of
104-drying or dried marijuana on hand, the amount of marijuana sold to
105-licensed processors in pounds, the amount of waste in pounds, and
163+required to complete a monthly yield and sale s report to the State
164+Department of Health. This report shall be due on the fifteenth of
165+each month and provide repor ting on the previous month . This report
166+shall detail the amount of marijuana harvested in pounds, the amount
167+of drying or dried marijuana on hand, the amount of marijuana sold
168+to licensed processors in pounds, the amount of waste in pounds, and
106169 the amount of marijuana sold to licensed dispensaries in pounds.
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107196 Additionally, this report shall show total wholesale sales in
108-dollars. The Authority shall have oversight and auditing
109-responsibilities to ensure that all marijuana being grown by
110-licensed commercial growers is accounted for.
111-
197+dollars. The State Department of Health shall have oversight and
198+auditing responsibilities to ensure that all marijuana being grown
199+by licensed commercial growers is accounted for.
112200 D. There shall be no limits on how much marijuana a li censed
113201 commercial grower can grow.
114-
115-E. Beginning on November 1, 2021, licensed commercial growers
116-shall be authorized to package and sell pre-rolled marijuana to
117-licensed medical marijua na dispensaries. The products described in
118-this subsection shall contain only the ground parts of t he marijuana
119-plant and shall not include marijuana concentrates or derivatives.
120-The total net weight of each pre-roll packaged and sold by medical
121-marijuana commercial growers shall not exceed one (1) g ram. These
122-products must be tested, packaged and lab eled in accordance with
123-state law and rules promulgated by the Executive Director of the
124-Oklahoma Medical Marijuana Au thority.
125-
202+E. Beginning on the effective date of this act November 1,
203+2021, licensed commercial growers shall be authorized to package and
204+sell pre-rolled marijuana to licensed medical marijuana
205+dispensaries. The products described in this subsect ion shall
206+contain only the ground par ts of the marijuana plant and shall not
207+include marijuana conc entrates or derivatives . The total net weight
208+of each pre-roll packaged and sold by medical marijuana commercia l
209+growers shall not exceed one (1) gram . These products must be
210+tested, packaged and labeled in accordance with Oklahoma law and
211+rules promulgated by the State Commissioner of Health.
126212 F. Beginning November 1, 2022, all medical marijuana commer cial
127213 grower licensees who operate an outdoor medic al marijuana production
128214 facility shall be required to register with the Oklahoma Department
129215 of Agriculture, Food, and Forestry as an environmentally sensitive
130216 crop owner. Registration shall provide notice to commercial and
131217 private pesticide applicators of the locations of medical marijuana
132218 crops and help minimize the potential for damaging pesticide drift .
133219 Medical marijuana commercial grower licensees shall provide their
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134246 business name, address, Global Positioning Sys tem (GPS) coordinates
135-
136-ENR. S. B. NO. 1737 Page 4
137247 for all outdoor medical marijuana production facilities, and any
138248 other information required by the Department when registering with
139249 the Environmentally Sensitive Area Registry.
140-
141250 SECTION 2. AMENDATORY 63 O.S. 2021, Section 427.21, is
142251 amended to read as follows:
143-
144252 Section 427.21. A. A medical marijuana busine ss shall not
145253 engage in advertising that is dec eptive, false or misleading.
146-
147254 B. Medical marijuana advert ising shall not contain any
148255 statement or illustration that:
149-
150256 1. Promotes overconsumption;
151-
152257 2. Represents that the use of marijuana has curative or
153258 therapeutic effects; or
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155259 3. Depicts a child or other person under legal age to consume
156260 marijuana, or includes :
157-
158261 a. objects such as toys or cartoon or other characters,
159262 which suggest the presence of a child, or any ot her
160263 depiction designed in any manner to be espe cially
161264 appealing to children or other persons under legal age
162265 to consume marijuana, or
163-
164266 b. any manner or design that would be especially
165267 appealing to children or other persons under eighteen
166268 (18) years of age.
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167294
168295 C. Upon the effective date of this act, all me dical marijuana
169296 commercial grower licensees sh all be required to post signage at the
170297 site of the commercial grow operation. Signage shall be located at
171298 the perimeter of the property with dimensions measuring no less than
172299 eighteen (18) inches by twenty -four (24) inches with a font size of
173300 no less than two (2) inches. Information required to be displayed
174301 on the sign shall be in black standardized font on a white
175302 background. The Oklahoma Medical Marijuana Autho rity shall
176303 promulgate rules as necessary regard ing the size, placement,
177304 issuance and specific ations of the required signage . The following
178305 information shall be included on the required signage:
179-
180-ENR. S. B. NO. 1737 Page 5
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182306 1. Business name;
183-
184307 2. Physical address of the licensed busin ess;
185-
186308 3. Phone number of the licensed business; and
187-
188309 4. Medical marijuana business license nu mber.
189-
190310 The required signage shall also comply with county regulations
191311 and local ordinances related to the real property where the
192312 commercial grow operation is locat ed. Failure to erect the proper
193313 signage within sixty (60) days after the renewal of each app lication
194314 for a medical marijuana commercial grower licens e in accordance with
195315 the provisions of this subsection shall result in the immediate
196316 revocation of the med ical marijuana commercial grower license. Upon
197317 issuance of a temporary license, all medical marijuana commercial
198318 grower licensees shall be required t o comply with the provisions of
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199345 this subsection prior to the prelicensure inspection conducted by
200346 the Authority.
201-
202347 SECTION 3. This act shall become effective November 1, 2022.
203348
204-
205-ENR. S. B. NO. 1737 Page 6
206-Passed the Senate the 17th day of May, 2022.
207-
208-
209-
210- Presiding Officer of t he Senate
211-
212-
213-Passed the House of Representatives the 19th day of May, 2022.
214-
215-
216-
217- Presiding Officer of the House
218- of Representatives
219-
220-OFFICE OF THE GOVERNOR
221-Received by the Office of the Governor this _______ _____________
222-day of _________________ __, 20_______, at _______ o'clock _______ M.
223-By: _______________________________ __
224-Approved by the Governor of the State of Oklahoma this _____ ____
225-day of _________________ __, 20_______, at _______ o'clock _______ M.
226-
227- _________________________________
228- Governor of the State of Oklahoma
229-
230-
231-OFFICE OF THE SECRETARY OF STATE
232-Received by the Office of the Secretary of State this __________
233-day of __________________, 20 _______, at _______ o'clock _______ M.
234-By: _______________________________ __
349+58-2-3893 MR 5/16/2022 9:23:47 AM