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SENATE FLOOR VERSION
February 22, 2021
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 445 By: Paxton
An Act relating to medical marijuana; amending
Section 6, Chapter 11, O.S.L. 2019, as amended by
Section 7, Chapter 477, O.S.L. 2019 (63 O.S . Supp.
2020, Section 427.6), which relates to disciplinary
actions; providing cumulative penal ties; specifying
type of fine; clarifying language ; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 6, Chapter 11, O.S.L.
2019, as amended by Section 7, Chapter 477, O.S.L. 2019 (63 O.S.
Supp. 2020, Section 427.6), is amended to read as follows:
Section 427.6. A. The State Department of Health shall address
issues related to the medical marijuana program in Oklahoma this
state including, but not limited to, monitoring and disciplinary
actions as they relate to the medical marijuana program.
B. 1. The Department or it s designee may perform on-site
assessments of a licensee or applicant for any medical marijuana
business license issued pursuant to this act the Oklahoma Medical
Marijuana and Patient Protection Act to determine compliance with
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this act or submissions made pursuant to this section. The
Department may enter the licensed premises of a medical marijuana
business licensee or applicant to assess or monitor compliance.
2. Inspections shall be limited to twice per calendar year and
twenty-four (24) hours of noti ce shall be provided to a medical
marijuana business applicant or licensee prior to an o n-site
assessment. However, additional inspections may occur when the
Department shows that an additional inspection is necessary due to a
violation of this act the Oklahoma Medical Marijuana and Patient
Protection Act. Such inspection may be without notice if the
Department believes that such notice will resul t in the destruction
of evidence.
3. The Department may review relevant records of a licensed
medical marijuana business, licensed medical marijuana rese arch
facility or licensed medical marijuana education facility, and may
require and conduct interviews with such persons or entities and
persons affiliated with such entities, for the pu rpose of
determining compliance with Department requirements and appli cable
laws. However, prior to conducting any interviews with the medical
marijuana business, research facility or education facility, the
licensee shall be afforded sufficient time to s ecure legal
representation during such questioning if requested by the business
or facility or any of its agents or employees or contractors.
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4. The Department shall refer complaints alleging criminal
activity that are made against a licensee to appropria te Oklahoma
state or local law enforcement authorities.
C. Disciplinary action may be taken against an applicant or
licensee under this act the Oklahoma Medical Marijuana and Patient
Protection Act for not adhering to the law pur suant to the terms,
conditions and guidelines set fo rth in this act.
D. Disciplinary actions may include revocation, suspension or
denial of an application, license or final aut horization and other
action deemed appropriate by the Department.
E. Disciplinary actions may be imposed upon a medical marijuana
business licensee for:
1. Failure to comply with or satisfy any provision of this
section;
2. Falsification or misrepresent ation of any material or
information submitted to the Department;
3. Failing to allow or impeding a monitoring visit by
authorized representatives of the Department;
4. Failure to adhere to any acknowledgement, verification or
other representation made t o the Department;
5. Failure to submit or disclose information required by th is
section or otherwise requested by the Department;
6. Failure to correct any violation of this section cited as a
result of a review or audit of financial records or other mat erials;
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7. Failure to comply with requested access by the Department to
the licensed premises or materials;
8. Failure to pay a required monetary penalty;
9. Diversion of medical marijuana or any medical marijuana
product, as determined by the Departmen t;
10. Threatening or harming a patient, a medical practitioner or
an employee of the Department; and
11. Any other basis indica ting a violation of the applicable
laws and regulations as identified by the Department.
F. Disciplinary actions against a li censee may include the
imposition of monetary penalties, which may be assessed by the
Department.
G. Penalties In addition to any other penalties provided by
law, penalties for sales by a medical marijuana business to persons
other than those allowed b y law occurring within any two -year time
period may include an ini tial administrative fine of One Thousand
Dollars ($1,000.00) for a first violation and a an administrative
fine of Five Thousand Dollars ($5,000.00) for any subsequent
violation. The medical marijuana busine ss may be subject to a
revocation of any license granted pursua nt to this act the Oklahoma
Medical Marijuana and Pa tient Protection Act upon a showing that the
violation was willful or grossly negligent.
H. 1. First In addition to any other penalties provided under
the Uniform Controlled Dan gerous Substance Act , a first offense for
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intentional and impermissible diver sion of medical marijuana,
concentrate, or products by a patient or caregiver to an
unauthorized person shall not be punished unde r a criminal statute
but may be subject to a an administrative fine of Two Hundred
Dollars ($200.00).
2. The In addition to any other penalties provided under the
Uniform Controlled Dangerous Substance Act, the second offense for
impermissible diversion of medical marijuana, concentrate, or
products by a patient or caregiv er to an unauthorized person shall
not be punished under a criminal statute but may be subject to a an
administrative fine of not to exceed Five Hu ndred Dollars ($500.00)
and may result in revocation of the license upon a showing that the
violation was willful or grossly negligent.
I. The following persons or e ntities may request a hearing to
contest an action or proposed action of the Department:
1. A medical marijuana business, research facility or education
facility licensee whose license has been summ arily suspended or who
has received a notice of contempla ted action to suspend or revoke a
license or take other disciplinary action; and
2. A patient or caregiver licensee whose license has been
summarily suspended or who has received notice of contempla ted
action to suspend or revoke a license or take other d isciplinary
action.
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J. All hearings held pu rsuant to this section shall be in
accordance with the Oklahoma Administrative Procedures Act, Section
250 et seq. of Title 75 of the Oklahoma Statutes.
SECTION 2. This act shall become effective November 1, 2021.
COMMITTEE REPORT BY: COMM ITTEE ON HEALTH AND HUMAN SERVICES
February 22, 2021 - DO PASS AS AMENDED