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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
SENATE BILL NO. 1848 By: Montgomery of the Senate
and
Hilbert of the House
COMMITTEE SUBSTITUTE
[ revenue and taxation - medical marijuana -
apportionment - effective date –
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 426, as
amended by Section 2, Chapter 563, O.S.L. 2021, is amended to read
as follows:
Section 426. A. The tax on retail medical marijuana sales will
be established at seven percent (7%) of the gross amount received by
the seller.
B. This tax will be collected at the point of sale. Except as
provided for in subsection D C of this section, tax proceeds will be
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applied primarily to finance the regulatory office shall be
appropriated in amounts as authorized by the Oklahoma Legislature .
C. Except as provided for in subsection D, if For the fiscal
year beginning July 1, 2022, and each su bsequent fiscal year,
proceeds from the levy authorized by subsection A of this section
exceed the budgeted amount for running the regulatory office, any
surplus shall be apportioned with seventy-five percent (75%) going
to the General Revenue Fund and may only be expended for common
education including as follows:
1. Thirty-five and seven-tenths percent (35.7%) of the total
proceeds of the levy to the Oklahoma Medical Marijuana Authority
Revolving Fund for operations, but in no event shall the total
amount apportioned in any fiscal year pursuant to this paragraph
exceed Twenty-three Million Six Hundred Thousand Dollars
($23,600,000.00);
2. Forty-four and six hundred twenty -five thousandths percent
(44.625%) of the total proceeds of the levy to the State P ublic
Common School Building Equalization Fund for the purpose of funding
redbud school grants pursuant to Section 3 -104 of Title 70 of the
Oklahoma Statutes. Twenty-five percent (25%) shall be apportioned ,
but in no event shall the total amount apportion ed in any fiscal
year pursuant to this paragraph exceed the amount of redbud school
grant funds awarded pursuant to subsection B of Section 3 -104 of
Title 70 of the Oklahoma Statutes;
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3. Fourteen and eight hundred seventy -five thousandths percent
(14.875%) of the total proceeds of the levy to the Oklahoma State
Department of Mental Health and Substance Abuse Services and
earmarked for drug and alcohol rehabilitation , but in no event shall
the total amount apportioned in any fiscal year pursuant to this
paragraph exceed Ten Million Dollars ($10,000,000.00); and
4. Four and eight-tenths percent (4.8%) of the total proceeds
of the levy to the County Sheriff Public Safety Grant Revolving Fund
created in Engrossed House Bill No. 3530 of the 2nd Session of the
58th Oklahoma Legislature, but in no event shall the total amount
apportioned in any fiscal year pursuant to this paragraph exceed
Three Million Two Hundred Thousand Dollars ($3,200,000.00) .
D. For fiscal year 2022, proceeds from the levy authorized by
subsection A of this section shall be apportioned as follows:
1. The first Sixty-five Million Dollars ($65,000,000.00) shall
be apportioned as follows:
a. fifty-nine and twenty-three hundredths percent
(59.23%) to the State Public Common School Building
Equalization Fund,
b. thirty-four and sixty-two hundredths percent (34.62%)
to the Oklahoma Medical Marijuana Authority, a
division within the Oklahoma State Department of
Health, and
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c. six and fifteen hundredths percent (6.15%) to the
Oklahoma State Departm ent of Health and earmarked for
drug and alcohol rehabilitation; and
2. Any surplus collections shall be apportioned to the General
Revenue Fund of the State Treasury.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 1353, is
amended to read as follows:
Section 1353. A. It is hereby declared to be the purpose of
the Oklahoma Sales Tax Code to provide funds for the financing of
the program provided for by the Oklahoma Social Security Act and to
provide revenues for the support of the fu nctions of the state
government of Oklahoma, and for this purpose it is hereby expressly
provided that, revenues derived pursuant to the provisions of the
Oklahoma Sales Tax Code, subject to the apportionment requirements
for the Oklahoma Tax Commission an d Office of Management and
Enterprise Services Joint Computer Enhancement Fund provided by
Section 265 of this title, shall be apportioned as follows:
1. Except as provided in subsections C and D of this section,
the following amounts shall be paid to the State Treasurer to be
placed to the credit of the General Revenue Fund to be paid out
pursuant to direct appropriation by the Legislature:
Fiscal Year Amount
FY 2003 and FY 2004 86.04%
FY 2005 85.83%
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FY 2006 85.54%
FY 2007 85.04%
FY 2008 through FY 2022 83.61%
FY 2023 through FY 2027 83.36%
FY 2028 and each fiscal year thereafter 83.61%;
2. The following amounts shall be paid to the State Treasurer
to be placed to the credit of the Education Reform Revolving Fund of
the State Department of Education:
a. for FY 2003, FY 2004 and FY 2005, ten and forty -two
one-hundredths percent (10.42%),
b. for FY 2006 through FY 2020, ten and forty -six one-
hundredths percent (10.46%),
c. for FY 2021:
(1) for the month beginning July 1, 2020, through the
month ending August 31, 2020, ten and forty -six
one-hundredths percent (10.46%), and
(2) for the month beginning September 1, 2020,
through the month ending June 30, 2021, eleven
and ninety-six one-hundredths percent (11.96%),
d. for FY 2022 and each fiscal year thereafter, ten and
forty-six one-hundredths percent (10.46%);
3. The following amounts shall be paid to the State Treasurer
to be placed to the credit of the Teachers' Retirement System
Dedicated Revenue Revolving Fund:
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Fiscal Year Amount
FY 2003 and FY 2004 3.54%
FY 2005 3.75%
FY 2006 4.0%
FY 2007 4.5%
FY 2008 through FY 2020 5.0%
FY 2021:
a. for the month beginning July
1, 2020, through the month
ending August 31, 2020 5.0%
b. for the month beginning
September 1, 2020, through
the month ending June 30,
2021 3.5%
FY 2022 5.0%
FY 2023 through FY 2027 5.25%
FY 2028 and each fiscal year thereafter 5.0%;
4. a. except as otherwise provided in subparagraph b of this
paragraph, for the fiscal year beginning July 1, 2015,
and for each fiscal year thereafter, eighty -seven one-
hundredths percent (0.87%) shall be paid to the State
Treasurer to be further apportioned as follows:
(1) thirty-six percent (36%) shall be placed to the
credit of the Oklahoma Tourism Promotion
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Revolving Fund, but in no event shall such
apportionment exceed Five Million Dollars
($5,000,000.00) in any fiscal year, and
(2) sixty-four percent (64%) shall be placed to the
credit of the Oklahoma Tourism Capital
Improvement Revolving Fund, but in no event shall
such apportionment exceed Nine Million Dollars
($9,000,000.00) in any fiscal year, and
b. any amounts which exceed the limitations of
subparagraph a of this paragraph shall be placed to
the credit of the General Revenue Fund; and
5. For the fiscal year beginning July 1, 2015, and for each
fiscal year thereafter, six one-hundredths percent (0.06%) shall be
placed to the credit of the Oklahoma Historical Society Capital
Improvement and Operations Revolving Fund, but in no event shall
such apportionment exceed the total amount apportioned pursuant to
this paragraph for the fiscal year ending on June 30, 2015. Any
amounts which exceed the limitations of this paragraph shall be
placed to the credit of the General Revenue Fund.
B. Provided, for the fiscal year beginning July 1, 2007, and
every fiscal year ther eafter, an amount of revenue shall be
apportioned to each municipality or county which levies a sales tax
subject to the provisions of Section 1357.10 of this title and
subsection F of Section 2701 of this title equal to the amount of
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sales tax revenue of such municipality or county exempted by the
provisions of Section 1357.10 of this title and subsection F of
Section 2701 of this title. The Oklahoma Tax Commission shall
promulgate and adopt rules necessary to implement the provisions of
this subsection.
C. From the monies that would otherwise be apportioned to the
General Revenue Fund pursuant to subsection A of this section, there
shall be apportioned the following amounts:
1. For the month ending August 31, 2019:
a. Nine Million Six Hundred Thousand D ollars
($9,600,000.00) to the credit of the State Highway
Construction and Maintenance Fund created in Section
1501 of Title 69 of the Oklahoma Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolvin g Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes;
2. For the month ending September 30, 2019:
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and Maintenance Fund
created in Section 1501 of Titl e 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
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created in Section 309 of Title 66 of the Oklahoma
Statutes;
3. For the month ending October 31, 2019:
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and Maintenance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes;
4. For the month ending November 30, 2019:
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and Maintenance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes; and
5. For the month ending December 31, 2019:
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and Maintenance Fund
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created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes.
D. For fiscal year 2023, and each subsequent fiscal year,
before any other apportionment otherwise required by this section is
made to the General Revenue Fund, there shall be apportioned to the
State Public Common School Building Equalization Fund an amount, if
any, as required pursuant to Section 3 -104 of Title 70 of the
Oklahoma Statutes amounts, not to exceed the state sales tax
generated by medical marijuana sales in the preceding fiscal year as
reported by the Oklahoma Tax Commission , as follows:
1. Thirty-five and seven-tenths percent (35.7%) of the total
proceeds of the levy to the Oklahoma Medical Marijuana Authority
Revolving Fund for operations, but in no eve nt shall the total
amount apportioned in any fiscal year pursuant to this paragraph
exceed Thirteen Million Four Hundred Thousand Dollars
($13,400,000.00);
2. Forty-four and six hundred twenty -five thousandths percent
(44.625%) of the total proceeds of th e levy to the State Public
Common School Building Equalization Fund for the purpose of funding
redbud school grants pursuant to Section 3 -104 of Title 70 of the
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Oklahoma Statutes, but in no event shall the total amount
apportioned in any fiscal year pursua nt to this paragraph exceed the
amount of redbud school grant funds awarded pursuant to subsection B
of Section 3-104 of Title 70 of the Oklahoma Statutes;
3. Fourteen and eight hundred seventy -five thousandths percent
(14.875%) of the total proceeds of t he levy to the Department of
Mental Health and Substance Abuse Services and earmarked for drug
and alcohol rehabilitation, but in no event shall the total amount
apportioned in any fiscal year pursuant to this paragraph exceed
Five Million Five Hundred Tho usand Dollars ($5,500,000.00);
4. Four and eight-tenths percent (4.8%) of the total proceeds
of the levy to the County Sheriff Public Safety Grant Revolving Fund
created in Engrossed House Bill No. 3530 of the 2nd Session of the
58th Oklahoma Legislature, but in no event shall the total amount
apportioned in any fiscal year pursuant to this paragraph exceed One
Million Eight Hundred Thousand Dollars ($1,800,000.00);
5. The dollar amounts otherwise prescribed by paragraphs 1
through 4 of this subsection sh all be subject to a final estimate as
determined by the Oklahoma Tax Commission each fiscal year; and
6. Any surplus amounts available pursuant to the provisions of
this subsection, shall be remitted to the General Revenue Fund .
SECTION 3. This act shall become effective July 1, 2022.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof this act shall take effect an d
be in full force from and after its passage and approval.
58-2-11301 AQH 04/07/22