Req. No. 2763 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 2nd Session of the 58th Legislature (2022) SENATE BILL 1847 By: Rogers AS INTRODUCED An Act relating to medical marijuana; amending 63 O.S. 2021, Section 427.17, which rel ates to medical marijuana testing laboratory license; allowing process validation as an acceptable testing practi ce; requiring process validation not to be mandatory by a licensee; allowing for mi nimum testing once a licensee achieves process v alidation; providing retention policies for the validation process; providing conditions to be maintained if significant process changes are made by licensee; allowing for inspection or audit by Authority; providing punishment for violation; accessing a registration fee; allowing for no law, rule , or regulation to prohibit testing labs for offering services to licensees; providing for samples consistent with process validation rules; declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHO MA: SECTION 1. AMENDATORY 63 O.S. 2021, Section 427.17, is amended to read as follows: Section 427.17. A. There is hereby created a medical marijuana testing laboratory license as a category of the medical marijuana business license. The Oklahoma Medical Marijuana Authority is hereby enabled to monitor, inspec t and audit a licensed testing Req. No. 2763 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 laboratory under the Oklahoma Medical Marijuana and Patient Protection Act. B. The Authority is hereby authorized to contract with a private laboratory for the purpose of conducting complian ce testing of medical marijuana t esting laboratories licensed in this state . Any such laboratory under contract for compliance testing shall be prohibited from conducting any other commercial medical marij uana testing in this state . The laboratory the Au thority contracts with for compliance testing shall not employ, or be owned by, the following: 1. Any individual that has a direct or indirect interest in a licensed medical marijuana business; or 2. Any individual or his or her spouse, parent, child, sp ouse of a child, sibling or spo use of a sibling that has an application for a medical marijuana business license pending before the Department or is a member of the board of directors of a medical marijuana business, or is an individual financially interes ted in any licensee or medical marijuana business located within this state. C. The Authority shall develop acceptable testin g practices including, but not limited to, testing, standards, quality control analysis, equipment certification and calibration, process validation, and chemical identification an d substances used. Req. No. 2763 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 D. A person who is a direct beneficial owner of a medical marijuana dispensary, medical marijuana commercial grower or medical marijuana processor shall not be an owner of a laboratory. E. A laboratory and a l aboratory applicant sha ll comply with all applicable local or dinances including, but not limited to, zoning, occupancy, licensing and building codes. F. A separate license shall be required for each specific laboratory. G. A medical marijuana testing lab oratory license may b e issued to a person who performs testin g on medical marijuana and medical marijuana products for medical marijuana businesses, medical marijuana research facili ties, medical marijuana education facilities, and testing on marijuana and marijuana products g rown or produced by a patient or caregiv er on behalf of a patient, upon verification of registration . A medical marijuana testing laboratory may also conduct re search related to the development and improvement of its testing practices and procedures. No state- approved medical marijuana testing facility shall operate unless a medical laboratory director is on site during operational hours. H. Laboratory applicants and licensees shall comply with the application requirements of this se ction and shall submit such other information as required for a medical marijuana business applicant, in addition to any information the Authority may request for initial approval and periodic evaluations during the approval period. Req. No. 2763 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 I. A medical marijuana testing laboratory may accept samples of medical marijuana, medical marijuana concentrate or medical marijuana product from a medical marijuana business , medical marijuana research facility or medical marijuana education facility for testing purposes only, which purposes may include the provision of testing services for samples submitted by a medical marijuana business for product development . The Department may require a medical marijuana business to submit a sample of medical mar ijuana, medical marijuana concentrate or medical marijuana product to a medical marijuana testing or quality assurance laboratory upon demand. J. A medical marijuana testing laboratory may accept samples o f medical marijuana, medical marijuana concentrate or medical marijuana product from an individual person for testing only under the following conditions: 1. The individual person is a patient or caregiver pursuant t o the Oklahoma Medical Marijuana and Pa tient Protection Act or is a participant in an app roved clinical or observ ational study conducted by a research facility; and 2. The medical marijuana testing laboratory shall require the patient or caregiver to produce a valid patient license and current and valid photo identification. K. A medical marijuana testing laborator y may transfer samples to another medical marijuana testing l aboratory for testing. All Req. No. 2763 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 laboratory reports provided to or by a medical marijuana business or to a patient or caregive r shall identify the medical marijuana testing laboratory that actually co nducted the test. L. A medical marijuana testing laboratory may utilize a licensed medical marijuana transporter to transport samples of medical marijuana, medical marijuana concent rate and medical marijuana product for testing, in accordance with the Oklahoma Medical Marijuana and Patient Protection Act and the rules adopted pursuant thereto, between the originating medical marijuana business requesting testing services and the dest ination laboratory performing testing services. M. The medical marijuana testing laboratory shall establish policies to prevent the ex istence of or appearance of undue commercial, financial or other influences that may diminish the competency, impartialit y and integrity of the testing processes or results of the laboratory, or that may diminish public confidence in the competency, impart iality and integrity of the testing processes or results of the laboratory . At a minimum, employees, owners or agents of a medical marijuana testing laboratory who partic ipate in any aspect of the analysis and results of a sample are prohibited from improperly influencing the testing process, improperly manipulating data or improperly benefiting from any ongoing financial, employment, personal or business relationship with the medical marijuana business that provided the sample. A medical Req. No. 2763 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 marijuana testing laboratory shall not test samples for any medical marijuana business in which an owner, employee or agent of the medical marijuana testing laboratory has any form of own ership or financial interest in the medical marijuana business. N. The Department, pursuant to rules promulgated by the State Commissioner of Health, shall develop standards, policies and procedures as necessary for: 1. The cleanliness and orderliness of a laboratory premises a nd the location of the laboratory in a secure location, and i nspection, cleaning and maintenance of any equipment or utensils used for the analysis of test samples; 2. Testing procedures, testing standards for cannabinoid and terpenoid potency and safe le vels of contaminants, process validation, and remediation procedures. Process validation shall be voluntary, and no licensee shall be required to validate their process. The Department shall develop standards and requirements for a licensee to achieve process validation. The standards, policies, and procedures for process validation shall include, but not be limited to: a. initial requirements to achieve process validation and ongoing minimum testing requirements once a licensee has achieved process validation , b. requiring licensees to track their marijuana and marijuana product inventory with the Department's Req. No. 2763 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 designated seed-to-sale system provided the Department has selected a seed-to-sale system. This requirement for compliance with the seed-to-sale system shall be mandatory for licensees whether compliance with seed- to-sale system is mandatory for all licensees , c. record and document retention policies, which at a minimum shall require licensees to retain all documents and records related to process val idation. Such records shall be main tained by the licensee for as long as the licensee is continuing to operate under that validated process. L icensees must retain all such documents and records for at least four (4) years after the licensee has stopped using the validated process or after the licensee has made a significant process change to a validated process change. Any significant process to a licensee's validated processes is subject to the same document retention requirements and must be retained for as long as the significant process change is part of an ongoing validated process, and for at least four (4) years after the licensee has stopped using the validated process or after the licensee has made a subsequent significant process change to the validated process , Req. No. 2763 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 d. testing requirements to maintain process validation when a licensee has made a significant process change to a validated process, e. requiring licensees to keep all records and documents related to their pro cess validation read y and accessible at the address listed on their marijuana business license for inspection or audit by the Authority without any notice from the Authority, f. a process to revoke a lice nsee's authority to operate under process validation, g. punishment for willful violations of process validation that, at a min imum, would prohibit a licensee from operating under process validation for five (5) years and the assessment of fine and fees by the Authority as allowed by law, h. an annual registration fee not to exceed Two Thousand Five Hundred Dollars ($2,500.00) per licensee to be deposited in the Oklahoma Medical Marijuana Revolving Fund for the enforcement of law and regulation by the Authority, and i. provided no law, rule, or regulation sh all prohibit medical marijuana testing labs from offering services to licensees to achieve and manage pro cess validation for consideration; Req. No. 2763 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. Controlled access areas for storage of medical mariju ana and medical marijuana product test samples, waste and r eference standards; 4. Records to be retained and computer systems to be utilized by the laboratory; 5. The possession, storage and use by the laborator y of reagents, solutions and reference stan dards; 6. A certificate of analysis (COA) for each lot of reference standard; 7. The transport and disposal of unused marijuana, marijuana products and waste; 8. The mandatory use by a laboratory of an inventor y tracking system to ensure all harvest and production batches or samples containing medical marijuana , medical marijuana concentrate or medical marijuana products are identified and tracked f rom the point they are transferred from a medical marijuana busi ness, a patient or a caregiver through the point of transfer, destruction or disposal . The inventory tracking system reporting shall include the results of any tests that are conducted on med ical marijuana, medical marijuana concentrate or medical marijua na product; 9. Standards of performance; 10. The employment of laboratory personnel; 11. A written standard operating procedure manual to be maintained and updated by the laboratory; Req. No. 2763 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 12. The successful participation in a Department -approved proficiency testing program for each testing category listed in this section, in order to obtain and maintain cer tification; 13. The establishment of and adherence to a quality assurance and quality control program to ensure sufficient monitoring of laboratory processes and quality of results reported; 14. The immediate recall of medical marijuana or medical marijuana products that test above allowable thresholds or are otherwise determined to be unsa fe; 15. The establishment by the laboratory of a system to docume nt the complete chain of custody for sample s from receipt through disposal; 16. The establishment by the laboratory of a system to retain and maintain all required records , including business records, and processes to ensure results are reported in a time ly and accurate manner; and 17. Any other aspect of laboratory testing of medical marijuana or medical marijuana product deemed necessary by the Department. O. A medical marijuana test ing laboratory shall promptly provide the Department or designee of th e Department access to a report of a test and any underlying data that is conducted on a sample at the request of a medical marijuana business or qualified patient. A medical marijuana testing laboratory shall also provide access to the Department or desi gnee of the Department to laboratory Req. No. 2763 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 premises and to any material or information requested by the Department to determine compliance with the requirements of this section. P. A medical marijuana testing laboratory shall retain all results of laboratory te sts conducted on marijuana or products for a period of at least seven (7) years and shall make them av ailable to the Department upon request. Q. A medical marijuana testing laboratory shall test samples from each harvest batch or, product batch, or samples consistent with the promulgated rules fo r process validation, as appropriate, of medical marijuana, medical marijuana concentrate and medical marijuana product for each of the following categories of testi ng, consistent with standards developed by the Co mmissioner: 1. Microbials; 2. Mycotoxins; 3. Residual solvents; 4. Pesticides; 5. Tetrahydrocannabinol (THC) and other cannabinoid potency; 6. Terpenoid type and concentration ; and 7. Heavy metals. R. A licensed medical marijuana testing laboratory shall test each individual harvest batch . A grower shall separate each harvest lot of usable marijua na into harvest batches containing no more tha n fifteen (15) pounds, with the exception of any plant mate rial to be Req. No. 2763 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 sold to a licensed processor for the purposes of turning the plant material into concentrate which may be separated into harvest batches of no more than fifty (50) pounds . A processor shall separate each medical marijuana production lot into pr oduction batches containing no more tha n four (4) liters of concentrate or nine (9) pounds for nonliquid products, and for final products, the Oklahoma Medical Marijuana Authority shall be authorized to promulgate rules on final products as necessary . Provided, however, the Authority shall not req uire testing of final products less often than every one thousand (1,000) grams of THC. As used in this subsection, "final products" shall include, but not be limited to, cookies, brownies, candies, gummies, beve rages and chocolates . S. Medical marijuana testing laboratory licensure shall be contingent upon successful on-site inspection, successful participation in proficiency testing and ongoing compliance with the applicable requirements in this section. T. A medical marijuana testing laboratory shal l be inspected prior to initial licensure and up to two (2) times per year thereafter by an inspector approved by the Authority. The Authority may enter the licensed premises of a testing laboratory to conduct investigations and additional inspections whe n the Authority believes an investigation or additi onal inspection is necessary due to a possible violation of applicable laws, rules or regulations. Req. No. 2763 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 U. Medical marijuana testing laboratories shall obtain accreditation by an accrediting body approved by the Commissioner within one (1) year of the date the initial license is issued. Renewal of any medical marijua na testing laboratory license shall be contingent upon accreditation in accordance with this subsection . All medical marijuana testing laborator ies shall obtain accreditation prior to applying for and receiving a medical marijuana testing laboratory licen se. V. Unless authorized by the provisions of this section, a commercial grower shall not transfer or se ll medical marijuana and a processor shall not transfer, sell or process into a concentrate or product any medical marijuana, medical marijuana concent rate or medical marijuana product unless samples from each harvest batch or, production batch, or samples consistent with the promulgated rules for process validation from which that medical mariju ana, medical marijuana concentrate or med ical marijuana product was derived has been tested by a medical marijuana testin g laboratory and passed all contaminant tests required by the Oklahoma Medical Marijuana and Patient Protection Act and applicable laws , rules and regulations. A licensed commercial grower may transfer medical marijuana that has failed testing to a licensed processor only for the purposes of decontamination or remediation and only in accordance with the provisions of the Oklahoma Medical Marijuana and Patient Protection Act and the rules and regulations of the Department . Remediated and Req. No. 2763 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 decontaminated medical marijuana may be returned only to the originating licensed commercial grower. W. Kief shall not be transferred or sold except as authorized in the rules and regulations o f the Department. SECTION 2. It being immediately neces sary for the preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof this act shall take effec t and be in full force from and after its passage an d approval. 58-2-2763 MR 1/20/2022 10:31:26 PM