An Act
ENROLLED SENATE
BILL NO. 1737 By: Stephens, Pederson, and
Jett of the Senate
and
Patzkowsky, Hill, and Burns
of the House
An Act relating to medical marijuana; amending 63
O.S. 2021, Section 422, as last amended by Section 3
of Enrolled Senate B ill No. 1543 of the 2nd Session
of the 58th Oklahoma Legislature , which relates to
medical marijuana commercial grower licenses;
requiring all medical marijuana commercial grower
licensees to register as a n environmentally sensitive
crop owner; directing medical marijuana commer cial
grower licensees to provide certain information when
registering; updating statutory la nguage; 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.
SUBJECT: Medical marijuana
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKL AHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 422, as last
amended by Section 3 of Enrolled Senate Bill No. 1543 of the 2nd
Session of the 58th Oklahoma Legislature , is amended to read as
follows:
Section 422. A. The Oklahoma Medical Marijuana Authority
shall, within thirty (30) days of passage of this initiative, make
ENR. S. B. NO. 1737 Page 2
available on 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 Authority. The Authority
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 Authority shall approve all applications which meet the
following criteria:
1. The applicant must be twenty-five (25) years of age or
older;
2. The applicant, if applying as an individual, must show
residency in this state;
3. All applying entities m ust show that all members, managers,
and board members are residents of this state;
4. An applying entity may show ownership of nonstate residents,
but that percentage ownership may not ex ceed twenty-five percent
(25%);
5. All applying individuals or entities must be registered to
conduct business in this state; and
6. All applicants must disclose all o wnership interests in the
commercial grower operati on.
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 incarcerated shall not qualify for a commercial
grower license.
C. A licensed commercial grower may sell marijuana to a
licensed dispensary or a licensed processor. Further, sales by a
licensed commercial grower shall be considered wholesale sal es and
shall not be subject to taxation. Under no circumstances may a
licensed commercial grower sell marijuana directly to a licensed
ENR. S. B. NO. 1737 Page 3
medical marijuana patient or licensed caregiver. A licensed
commercial grower may only sell at the wholesale level to a licensed
dispensary, a licensed grower or a licensed processor. If the
federal government lifts restrictions on buying and selling
marijuana between states, then a licensed commercial grower would be
allowed to sell and buy marijuana wholesale from, or t o, an out-of-
state wholesale provider. A licensed commercial grower shall be
required to complete a monthly yield and sales report to the
Authority. This report shall be due on the fifteenth of each month
and provide reporting on the previous month. This report shall
detail the amount of marijuana harvested in pounds, the amount of
drying or dried marijuana on hand, the 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.
Additionally, this report shall show total wholesale sales in
dollars. The Authority 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 licensed
commercial grower can grow.
E. Beginning on November 1, 2021, licensed commercial growers
shall be authorized to package and sell pre-rolled marijuana to
licensed medical marijua na dispensaries. The products described in
this subsection shall contain only the ground parts of t he marijuana
plant and shall not include marijuana concentrates or derivatives.
The total net weight of each pre-roll packaged and sold by medical
marijuana commercial growers shall not exceed one (1) g ram. These
products must be tested, packaged and lab eled in accordance with
state law and rules promulgated by the Executive Director of the
Oklahoma Medical Marijuana Au thority.
F. Beginning November 1, 2022, all medical marijua na commercial
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 provid e 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
business name, address, Global Positioning Sys tem (GPS) coordinates
ENR. S. B. NO. 1737 Page 4
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 cont ain 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 o ther
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.
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 measuri ng 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 Au thority 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:
ENR. S. B. NO. 1737 Page 5
1. Business name;
2. Physical address of the licensed business;
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 located. 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 medical 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
this subsection prior to the prelicensure inspection conducted by
the Authority.
SECTION 3. This act shall become effective November 1, 2022.
ENR. S. B. NO. 1737 Page 6
Passed the Senate the 17th day of May, 2022.
Presiding Officer of t he Senate
Passed the House of Representatives the 19th day of May, 2022.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this _______ _____________
day of _________________ __, 20_______, at _______ o'clock _______ M.
By: _______________________________ __
Approved by the Governor of the State of Oklahoma this _____ ____
day of _________________ __, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _______________________________ __