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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 1350 By: Fetgatter
AS INTRODUCED
An Act relating to medical marijuana; amending 63
O.S. 2021, Sections 421, 422 and 423, as amended by
Sections 1, 2 and 3, Chapter 332, O.S.L. 2022 (63
O.S. Supp. 2022, Sections 421, 422 and 423) and 424,
which relate to licensing requirements for medica l
marijuana dispensaries, commercial growers ,
processors and transporters; providing for tempor ary
and annual licenses; updating language; amending 63
O.S. 2021, Sections 427.14, as amended by Section 4,
Chapter 332, O.S.L. 2022 and 427.16, as amended by
Section 16, Chapter 251, O.S.L. 2022 (63 O.S. Supp.
2022, Sections 427.14 and 427.16), which relate to
the Oklahoma Medical Marijuana and Patient Protection
Act; creating temporary and annual licensing program
for certain medical marijuana businesses; stating
conditions for temporary licenses; requiring
adherence to certain rules and regulations;
clarifying obligations of the Oklahoma Medic al
Marijuana Authority when issuing temporary licenses;
stating length of term of temporary licenses;
providing for extensions under certain circumstances;
establishing fees for temporary licenses and
extensions; requiring submission of certain
information to the Authority; prohibiting issuance of
license until certain inspections are completed;
authorizing rejection of applications; defining term;
clarifying circumstances that allow for the issuance
of annual medical marijuana business licenses;
requiring current licensees to submit certain
documentation prior to renewal; establishing
timelines and procedures; requiring person issued a
temporary and annual lic ense to annually submit
certain documentation when seeking renewal of the
license; updating languag e; creating temporary
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licensing program for medical marijuana transporters;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 421, as
amended by Section 1, Chapter 332, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 421), is amended to read as follows:
Section 421. A. The Oklahoma Medical Marijuana Authority shall
make available on its website in an easy-to-find location an
application applications for a temporary medical marijuana
dispensary license and annual medical marijuana dispensary license.
The application fee to fees for the temporary or annual lice nse
shall be paid by the applicant shall be in the amounts provided for
in Section 427.14 of this title. A method of payment for the
application fee fees shall be provided on the website of the
Authority. Dispensary Medical marijuana dispensary applicants must
all be residents of Oklahoma. Any entity applying for a temporary
or annual medical marijuana dispensary license must be owned by an
Oklahoma resident and must be registere d to do business in Oklahoma.
The Authority shall have ninety (90) business days to review the
application for a temporary medical marijuana dispensary license;
approve, reject or deny the application; and mail the approval,
rejection or denial letter stating reasons for the rejection or
denial to the applicant.
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B. The In addition to the requirements provided for in the
Oklahoma Medical Marijuana and Patient Protection Act, the Authority
shall approve all applications which m eet 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 the State of Oklahoma;
3. All applying entities must show that a ll members, managers,
and board members are Oklahoma residents;
4. An applying entity may show ownership of non -Oklahoma
residents, but that percentage ownership may not exceed twe nty-five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma; and
6. All applicants must disclose all ownership interests in the
dispensary.
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 incarcerate d shall not qualify for a temporary or
annual medical marijuana dispensary license.
C. Licensed medical marijuana dispensaries shall be required to
complete a monthly sal es report to the Authority. This report shall
be due on the fifteenth of each month and provide reportin g on the
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previous month. This report shall detail the weight of marijuana
purchased at wholesale and the weight of marijuan a sold to licensed
medical marijuana patients and license d caregivers and account for
any waste. The report shall show total sales in dollars, tax
collected in dollars, and tax due in d ollars. The Authority shall
have oversight and auditing responsibilities to ensure that all
marijuana being grown is accounted for.
D. Only a licensed medical marijuan a dispensary may conduct
retail sales of marijuana or marijuana derivatives. Beginning on
the effective date of this act, licens ed medical marijuana
dispensaries shall be authorized to package and sell pre -rolled
marijuana to licensed medical marijuana pati ents and licensed
caregivers. The products described in this subsection shall contain
only the ground parts of the marijuana p lant and shall not include
marijuana concentrates or derivatives . The total net weight of each
pre-roll packaged and sold by a m edical marijuana dispensary shall
not exceed one (1) gram. These products shall be tested, packaged
and labeled in accordance with Oklahoma law and rules promulgated by
the Authority.
E. No medical marijuana dispensary shall offer or allow a
medical marijuana patient licensee, careg iver licensee or other
member of the public to handle or otherw ise have physical contact
with any medical marijuana not contained in a sealed or separate
package. Provided, such prohibition shall not preclude an employe e
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of the medical marijuana dispensary from handling loose or
nonpackaged medical marijuana to be pl aced in packaging consistent
with the Oklahoma Medical Marijuana and Patient Protection Act and
the rules promulgated by the Authority for the packaging of m edical
marijuana for retail sale. Provided, further, such prohibition
shall not prevent a medical marijuana dispensary from displaying
samples of its medical marijuana in separate display cases, jars or
other containers and allowing medical marijuana pati ent licensees
and caregiver licensee s the ability to handle or smell the various
samples as long as the sample medical marijuana is used f or display
purposes only and is not offered for retail sale.
SECTION 2. AMENDATORY 63 O.S. 2021, Section 422, as
amended by Section 2, Chapter 332, O.S.L. 2022 (63 O.S. Su pp. 2022,
Section 422), is amended to read as follows:
Section 422. A. The Oklahoma Medical Marijuana Authori ty shall
make available on its website in an easy-to-find location an
application applications for a temporary medical marijuana
commercial grower license and annual medical marijuana commercial
grower license. The application fee fees for the temporary or
annual license shall be paid by the applicant in the amounts
provided for in Section 427.14 of this title. A method of payment
for the application fee fees shall be provided on the website of the
Authority. The Authority shall have ninety (90) days to review the
application for a temporary medical marijuana commercial grower
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license; 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 In addition to the requirements provided for in the
Oklahoma Medical Marijuana and Pat ient Protection Act, 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 individua l, must show
residency in the State of Oklahoma;
3. All applying entities must show that all members, managers,
and board members are Oklahoma residents;
4. An applying entity may show owner ship of non-Oklahoma
residents, but that percentage ownership ma y not exceed twenty-five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma; and
6. All applicants must disclose all owner ship interests in the
commercial grower operation.
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 temporary or
annual medical marijuana commercial grower lice nse.
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C. A licensed medical marijuana commercial grower may sell
marijuana to a licensed medical marijuana dispensary or a licensed
medical marijuana processor. Further, sales by a licensed medical
marijuana commercial grower shall be considered wholesale sales and
shall not be subject to taxation. Under no circumstances may a
licensed medical marijuana commercial grower sell marijuana directly
to a licensed medical marijuana patient or licensed medical
marijuana caregiver. A licensed medical marijuana commercial grower
may only sell at the wholesale level to a licensed medical marijuana
dispensary, a licensed medical marijuana commercial grower or a
licensed medical marijuana processor. If the federal government
lifts restrictions on buying and selling marijuana between states,
then a licensed medical marijuana commercial grower would be allowed
to sell and buy marijuana wholesale from, or to, an out-of-state
wholesale provider. A licensed medical marijuana commercial grower
shall be required to complet e 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, t he amount of marijuana sold
to licensed processors in pounds, the amount of waste in pounds, and
the amount of marijuana sold to licensed medical marijuana
dispensaries in pounds. Additionally, this repor t shall show total
wholesale sales in dollars . The Authority shall have oversight and
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auditing responsibilities to ensure t hat all marijuana being grown
by licensed medical marijuana commercial growers is accounted for.
D. There shall be no limits on how much marijuana a lic ensed
medical marijuana commercial grower can grow.
E. Beginning on the effective date of this act, licensed
medical marijuana commercial growers shall be authorized to package
and sell pre-rolled marijuana to licensed medical marijuana
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 licensed medical marijuana
commercial growers shall not exc eed one (1) gram. These products
must be tested, package d and labeled in accordance with Oklahoma law
and rules promulgated by the Authority.
SECTION 3. AMENDATORY 63 O.S. 2021, Section 423, as
amended by Section 3, Chap ter 332, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 423), is amended to read as follows:
Section 423. A. The Oklahoma Medical Marijuana Authority shall
make available on its website in an easy-to-find location an
application applications for a temporary medical marijuana processor
license and annual medical marijuana processing processor license.
The Authority shall be authorized to issue two types of annual
medical marijuana processor licenses based on the lev el of risk
posed by the type of processing conducted:
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1. Nonhazardous medical marijuana processor license; and
2. Hazardous medical ma rijuana processor license .
The application fee fees for a nonhazardous or hazardous medical
marijuana processor the temporary or annual license shall be paid by
the applicant in the amounts provided for in Section 427.14 of this
title. A method of payment shall be provided on the website of the
Authority. The Authority shall have ninety (90) days to review the
application for a temporary medical marijuana processor license ;
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 mee t 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 the State of Oklahoma;
3. All applying entities must show that all members, managers,
and board members are Oklahoma residents;
4. An applying entity may show ownership of non -Oklahoma
residents, but that pe rcentage ownership may not exceed t wenty-five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma; and
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6. All applicants must disclose all ownership interests in the
processing operation.
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 incarcerate d shall not qualify for a temporary or
annual medical marijuana processing processor license.
C. 1. A licensed medical marijuana processor may take
marijuana plants and dis till or process these plants into
concentrates, edibles, and other forms for consumption.
2. As required by subsection D of this section, the Authority
shall make available a set of standards which shall be used by
licensed medical marijuana processors in the preparation of edible
marijuana products. The standards should be in line with curr ent
food preparation guidelines . No excessive or punitive rules may b e
established by the Authority.
3. Up to two times a year, the Authority may inspect a
processing operation and de termine its compliance with the
preparation standards . If deficiencies are found, a written report
of the deficiency shall be issued to the licensed medical marijuana
processor. The licensed medical marijuana processor shall have one
(1) month to correct the deficiency or be subject to a f ine of Five
Hundred Dollars ($500.00) for each deficiency.
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4. A licensed medical marijuana processor may sell marijuana
products it creates to a licensed medical marijuana dispensary or
any other licensed medical marijuana processor. All sales by a
licensed medical marijuana processor shall be considered wholesale
sales and shall not be subject to taxation.
5. Under no circumstances may a licensed medical marijuana
processor sell marijuana or a ny marijuana product directly to a
licensed medical marijuana patient or licensed medical marijuana
caregiver. However, a licensed medical marijuana processor may
process cannabis into a concentrated form for a licensed medical
marijuana patient for a fee.
6. Licensed medical marijuana processors 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 shall provide
reporting on the previous month . This report shall detail the
amount of marijuana and medical marijuana products purchased in
pounds, the amount of marijuana cooked or processed in p ounds, and
the amount of waste i n pounds. Additionally, this repor t shall show
total wholesale sales in dolla rs. The Authority shall have
oversight and auditing responsibilities to ensu re that all marijuana
being processed is accounted for.
D. The Authority shall oversee the inspection and compliance of
licensed medical marijuana processors producing products with
marijuana as an additive . The Authority shall be compelled to,
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within thirty (30) days of passage of this initiative, appoint
twelve (12) Oklahoma residents to the Medical Marijuan a Advisory
Council, who are marijuana industry experts, to create a list of
food safety standards for processing and handling me dical marijuana
in Oklahoma. These standards shall be adopted by the Authority and
the Authority may enforce these standards fo r licensed medical
marijuana processors. The Authority shall develop a standards
review procedure and these stan dards can be altered by calling
another council of twelve (12) Oklahoma marijuana industry experts .
A signed letter of twenty operating, licensed medical marijuana
processors shall constitute a need for a new council and standards
review.
E. If it becomes permissible unde r federal law, marijuana may
be moved across state lines.
F. Any device used for the processing or consumption of medical
marijuana shall be considered legal to be sold, manufactured,
distributed and possessed . No merchant, wholesaler, manufacturer or
individual may be unduly harassed or prosecuted for sellin g,
manufacturing or possessing marijuana paraphernalia .
SECTION 4. AMENDATORY 63 O.S. 2021, Section 424, is
amended to read as follows :
Section 424. A. A temporary medical marijuana transportation
transporter license will or an annual medical marijuana tra nsporter
license shall be issued to qualify ing applicants for a medical
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marijuana retail dispensary, growing medical marijuana commercial
grower, or processing medical marijuana processor license. The
transportation temporary or annual medical marijuana tran sporter
license will shall be issued at the time of approval of a retail,
growing, or processing the temporary or annual medical marijuana
dispensary, medical marijuana commercial grower, or medical
marijuana processor license. The fees for the temporary or annual
license shall be paid by the applicant in the amounts provided for
in Section 427.14 of th is title.
B. A transportation medical marijuana transporter license will
shall allow the holder to transport medical marijuana from an
Oklahoma-licensed medical marijuana retailer dispensary, licensed
growing medical marijuana commercial grower facility, or licensed
medical marijuana processor facility to an Oklahoma -licensed medical
marijuana retailer dispensary, licensed growing medical marijuana
commercial grower facility, or licensed medical marijuana processing
facility.
C. All medical marijuana or medical marijuana products shall be
transported in a locked container and clearly labeled "Medical
Marijuana or Derivative ".
SECTION 5. AMENDATORY 63 O.S. 2021, Section 42 7.14, as
amended by Section 4, Chapter 332, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 427.14), is amended to read as follows:
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Section 427.14 A. There is hereby created the medical
marijuana business license, which shall include the following
categories:
1. Medical marijuana commercial grower;
2. Medical marijuana processor;
3. Medical marijuana dispensary;
4. Medical marijuana transporter; and
5. Medical marijuana testing laboratory.
B. The Oklahoma Medical Marijuana Authority, with the aid of
the Office of Management and Enterprise Services, shall develop a
website for medical marijuana business license applications.
C. The Authority shall make available on it s website in an
easy-to-find location, applications for a temporary medical
marijuana business license and annual medical marijuana business
license.
D. Beginning November 1, 2023, the Authority shall require all
persons or entities seeking licensure as a medical marijuana
commercial grower, medical marijuan a processor, medical marijuana
dispensary, or medical marijuana transporter to first apply for a
temporary medical marijuana busi ness license.
1. A temporary medical marijuana bus iness license is a
conditional license and does not authorize the licensee t o conduct
any sales of medical mariju ana or marijuana products, the growing or
processing of marijuana, or the transportation of any medical
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marijuana or marijuana products by the licensee. A temporary
medical marijuana business licensee shall follow all applicable
rules and regulations prom ulgated by the Authority.
2. A temporary medical marijuana busines s license does not
obligate the Authority to issue an annual medical marijua na business
license nor does the temporary medical marijuana business licens e
create a vested right in the holder to either an extension of the
temporary medical marijuana business license or to the granti ng of a
subsequent annual medical marijuana busines s license.
3. A temporary medical marijuana business license issued under
the provisions of this subsection shal l be valid for one hundred
eighty (180) days from its effective dat e.
4. A temporary medica l marijuana business license may be
extended by the Authority for additional ninety-day periods not to
exceed eighteen (18) mon ths if:
a. an application for an annu al license has been
submitted to the Authority prior to the initial
expiration date of the t emporary medical marijuana
business license, and
b. the Authority determines that the application and
required documentation su bmitted by the applicant for
an annual medical marijuana business license is
deficient in some manner.
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5. A nonrefundable application fee for a temporary medical
marijuana business license shall be assessed in the amount of One
Thousand Dollars ($1,000.00 ). A nonrefundable fee of One Thousa nd
Dollars ($1,000.00) shall be assessed for every ninety -day extension
requested by the holder of a temporary medical marijuana business
license and subsequently granted by the Authori ty.
6. In addition to the general requirements provided for in
subsection F of this section, persons or entities applying for a
temporary medical marijuana busin ess license or applying to renew a
medical marijuana business license shall submit the followi ng to the
Authority:
a. business-formation documents, which may include , but
not be limited to, articles of incorporation,
operating agreements, partnership agree ments, and
fictitious business name statements. The applicant
shall also provide all document s filed with the
Oklahoma Secretary of State,
b. financial information pertaining to the operations of
the medical marijuana business, which shall include
the following:
(1) a list of funds belonging to the applica nt held
in savings, checking, or other acc ounts
maintained by a financial in stitution. The
applicant shall provi de for each account, the
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name of the financial institution, the address of
the financial institution, account type, account
number, and the amount of money in the account,
(2) a list of loans made to the applicant. For each
loan, the applicant shall provi de the amount of
the loan, the date of the loan, term of the loan,
security provided for th e loan, and the name,
address, and phone number of t he lender,
(3) a list of investments made into the medical
marijuana business. For each investment, the
applicant shall provide the amount of the
investment, the date of the investment, term of
the investment, and the name, address, and phone
number of the investor, and
(4) a list of all monetary gifts, equipment, and
property of any kind given to the applicant for
the purpose of or in exchange for applying for or
operating a medical marijuana business. For each
gift, the applicant shall provide the value or a
description of the gift and the name, address,
and phone number of the provider of the gift,
c. a complete list of every individual who has a
financial interest in the medical marijuana business
who is not an owner of the medical marijuana business,
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d. whether the applicant has an o wnership or a financial
interest in any other medical marijuana business
licensed under the provisions of the Oklahoma Medical
Marijuana and Patient Protection Act,
e. a complete and detailed diagram of the proposed
premises. If changes to the proposed pr emises occur
during the application period, a revised set of plans
shall be submitted to the Authority for final
inspection. The diagram shall be to scale and shall
show the following:
(1) boundaries of the property and th e proposed
premises to be license d, showing all boundaries,
dimensions, entrances and exits, interior
partitions, walls, rooms, windows, doorways, and
common or shared entryways, and shall include a
brief statement or description of the principal
activity to be conducted therein,
(2) the location of medical marijuana business
activities that will take place in each a rea of
the premises, and limited -access areas,
(3) where all cameras are located and a numb er
assigned to each camera for identification
purposes, and
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(4) if the proposed premi ses consists of only a
portion of the prope rty, labels indicating which
part of the property is the proposed premises and
what the remaining property is used for,
f. if the applicant is not the landowner of the real
property upon which the premises is loca ted, the
applicant shall provide to the Aut hority a document
from the landowner or the agent of the landowner that
states that the applicant has the right to occupy the
property and acknowledging the applicant may use the
property for the medical marijuana business activity
for which the applicant is applying for licensure. An
applicant shall also provide a copy of the rental
agreement, as applicable,
g. if the applicant is the landowner of the real property
upon which the premises is located, the applicant
shall provide to the Authority a copy of the title or
deed to the property,
h. if the applicant is applying for a medical marijuana
commercial grower license, the applicant shall also
submit the following:
(1) for indoor and mixed light cultivation,
identification of all power sources for
cultivation activities including, but not li mited
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to, illumination, heating, cooling, and
ventilation,
(2) if the applicant is proposing to use a diversion
from a waterbody, groundwater w ell, or rain
catchment system as a water s ource for
cultivation, include the following locations on
the property diagram with locations also provided
as coordinates in either latitude an d longitude
or the Oklahoma Coordinate System:
(a) sources of water used, including the
location of waterbody di version, pump
location, and distri bution system, and
(b) location, type, and capacity of each storage
unit to be used for cultivation, and
(3) a proposed cultivation plan, which shall include
identification of all water sources used for
cultivation activities, and
i. evidence of insurance including, but not limited to:
(1) general liability insurance,
(2) workers' compensation insurance or a copy of an
Affidavit of Exempt Status filed with the
Workers' Compensation Commission if compensation
coverage is not required pursuant to the
Administrative Workers' Compensation Act, and
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(3) product liability insurance.
7. The Authority may request additiona l information from the
applicant.
8. The Authority may reject an appl ication for an annual
medical marijuana bu siness license if the requirements for a
temporary medical marijuana bu siness license or any provision of the
Oklahoma Medical Marijuana and Patient Protection Ac t are not
satisfied.
9. For purposes of this subsec tion, "financial interest"
concerning a medical marijuana business shall inc lude any
contractual agreements for p rofit sharing, subcontracting, or
similar financial arrangements; provided, that such discl osures
alone shall not automatically indicate owners hip of the license or
require disclosure a s an owner of the license .
E. 1. The Minus the fee of One Thousand Dollars ($1,000.00)
for a temporary medical marij uana transporter license, the annual,
nonrefundable fee for a medical marijuana transporter license shall
be Two Thousand Five Hundred Dollars ($2,500.00).
2. The Minus the fee of One Thousand Dollars ($1,000 .00) for a
temporary medical marijuana business license, the initial fee for a
medical marijuana commercial grower license shall be calculated
based upon the total amount of square feet o f canopy or acres the
grower estimates will be harve sted for the year. The annual,
nonrefundable license fee shall be based upon the total a mount of
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square feet of canopy harvested by the grower during the previous
twelve (12) months. The amount of the fees shall be determined as
follows:
a. For an indoor, greenhouse, or light deprivation
medical marijuana grow facility:
(1) Tier 1: Up to ten thousand (10,000) square feet
of canopy, the fee shall be Two Thousand Five
Hundred Dollars ($2,500.00),
(2) Tier 2: Ten thousand one (10,001) square feet of
canopy to twenty thousand (20,000) square feet of
canopy, the fee shall be Five Tho usand Dollars
($5,000.00),
(3) Tier 3: Twenty thousand one (20,001) square fee t
of canopy to forty thousand (40,000) s quare feet
of canopy, the fee shal l be Ten Thousand Dollars
($10,000.00),
(4) Tier 4: Forty thousand one (40,001) square feet
of canopy to sixty thousand (60,000) squar e feet
of canopy, the fee shall be Twent y Thousand
Dollars ($20,000.00),
(5) Tier 5: Sixty thousand one (60,001) square feet
of canopy to eighty thousand (80,000) square feet
of canopy, the fee shall be Thirty Thou sand
Dollars ($30,000.00),
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(6) Tier 6: Eighty thousand one (80,001) square feet
of canopy to ninety-nine thousand nine hundred
ninety-nine (99,999) square feet of canopy, the
fee shall be Forty Thousand Dollars ($40,000.00),
and
(7) Tier 7: One hundred thousand (100,000) square
feet of canopy and beyond, the fee shall be Fifty
Thousand Dollars ($50,000.00), plus an additional
twenty-five cents ($0.25) per square foot of
canopy over one hundred thousand (100,000) square
feet.
b. For an outdoor medical marijuana grow facility:
(1) Tier 1: Up to two and one-half (2 1/2) acres,
the fee shall be Two Thousand Five Hundred
Dollars ($2,500.00),
(2) Tier 2: Two and one-half (2 1/2) acres up to
five (5) acres, the fee shall be Five Thousand
Dollars ($5,000.00),
(3) Tier 3: Five (5) acres up to ten (10) acres, the
fee shall be Ten Thousand Dollars ($10,000.00),
(4) Tier 4: Ten (10) acres up to twenty (20) acres,
the fee shall be Twenty Thousand Dollars
($20,000.00),
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(5) Tier 5: Twenty (20) acres up to thirty (30)
acres, the fee shall be Thirty Thousand Dollars
($30,000.00),
(6) Tier 6: Thirty (30) acres up to forty (40)
acres, the fee shall be Forty Thousand Dollars
($40,000.00),
(7) Tier 7: Forty (40) acres up to fifty (50) acres,
the fee shall be Fifty Thousand Do llars
($50,000.00), and
(8) Tier 8: If the amount of acreage exceeds fifty
(50) acres, the fee shall be Fifty Thousand
Dollars ($50,000.00) plus an additi onal Two
Hundred Fifty Dollars ($250.00) per acre.
c. For a medical marijuana commercial grower that has a
combination of both indoor and outdoor growing
facilities at one location, the medical marijuana
commercial grower shall be required to obtain a
separate license from the Authority for each type of
grow operation and shall be subject to the licensing
fees provided for in subparagraphs a and b of this
paragraph.
d. As used in this paragraph:
(1) "canopy" means the total surface area within a
cultivation area that is dedicated to the
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cultivation of flowering marijuana plants. The
surface area of the plant canopy must be
calculated in square feet and measured and must
include all of the area within the boundaries
where the cultivation of the flowering marijuana
plants occurs. If the surface of the plant
canopy consists of noncontiguous areas, each
component area must be separat ed by identifiable
boundaries. If a tiered or shelving system is
used in the cultivation area, the surface area of
each tier or shelf must be included in
calculating the area of the plant canopy.
Calculation of the area of the plant canopy may
not include the areas within the cultivation area
that are used to cultivate immature marijuana
plants and seedlings, p rior to flowering, a nd
that are not used at any time to cultivate mature
marijuana plants. If the flowering plants are
vertically grown in cylinde rs, the square footage
of the canopy shall be measu red by the
circumference of the cylinder multiplied by the
total length of the cylinder,
(2) "greenhouse" means a structure located outdoors
that is completely covered by a material that
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allows a controlled level of light transmission,
and
(3) "light deprivation" means a structure that has
concrete floors and the ability to manipula te
natural light.
3. The In addition to the nonrefundable application fee for a
temporary medical marijuana business license, the annual,
nonrefundable license fee for a medical marijuana processor license
shall be determined as follows:
a. Tier 1: Zero (0) to ten thousand (10,000) pounds of
biomass or production or use of up to one hundred
(100) liters of cannabis concentrate, the annual fee
shall be Two Thousand Five Hundred Dollars
($2,500.00),
b. Tier 2: Ten thousand one (10,001) pounds to fifty
thousand (50,000) pounds of biomass or production or
use from one hundred one (101) to three hundred fifty
(350) liters of cannabis concentrate, the annual fee
shall be Five Thousand Dollars ($5,000.00),
c. Tier 3: Fifty thousand one (50,001) pounds to one
hundred fifty thousand (150,000) pounds of biomass or
production or use from three hundred fifty-one (351)
to six hundred fifty (650) liters of cannabis
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concentrate, the annual fee shall be Ten Thousand
Dollars ($10,000.00),
d. Tier 4: One hundred fifty thou sand one (150,001)
pounds to three hundred thousand (300,000) pounds of
biomass or production or use from six hundred fifty-
one (651) to one thousand (1,000) liters of cannabis
concentrate, the annual fee shall be Fifteen Thousand
Dollars ($15,000.00), and
e. Tier 5: More than three hundred thousand one
(300,001) pounds of biomass or production or use in
excess of one thousand one (1,001) liters of cannabis
concentrate, the annual fee shall be Twenty Thousand
Dollars ($20,000.00).
For purposes of this paragraph only, if the cannabis concentrate
is in nonliquid form, every one thousand (1,000) grams of
concentrated marijuana shall be calc ulated as one (1) liter of
cannabis concentrate.
4. The Minus the fee of One Thousand Dollars ($1,000.00) for a
temporary medical marijuana business license, the initial fee for a
medical marijuana dispensary license shall be Two Thousand Five
Hundred Dollars ($2,500.00). The annual, nonrefundable license fee
for a medical marijuana dispensary license shall be calculated at
ten percent (10%) of the sum of twelve (12) calendar months of the
combined annual state sales tax and state excise tax of the
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dispensary. The minimum fee shall be not less than Two Thousand
Five Hundred Dollars ($2,500.00) and the maximum fee shall not
exceed Ten Thousand Dollars ($10,000.00).
5. The Minus the fee of One Thousand Dollars ($1,000.00) for a
temporary medical marijuana business license, the annual,
nonrefundable license fee for a medical marijuana testing laboratory
shall be Twenty Thousand Dollars ($20,000.00).
E. F. All applicants seeking licensure or licensure renewal as
a medical marijuana business shall comply with the following general
requirements:
1. All applications for licenses and registrations authorized
pursuant to this section shall be made upon forms prescribed by the
Authority;
2. Each application shall identify the city or co unty in which
the applicant seeks to obtain licensure as a medical marijuana
business;
3. Applicants shall submit a complete application to the
Authority before the application may be accepted or considered;
4. All applications shall be comple te and accurate in every
detail;
5. All applications shal l include all attachments or
supplemental information required by the forms supplied by the
Authority;
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6. All applications shall be accompanied by a full remittance
for the whole amount of the appl ication fees. Application fees are
nonrefundable;
7. All applicants shall be approved for licensing review that,
at a minimum, meets the following criteria:
a. twenty-five (25) years of age or older,
b. if applying as an individual, proof that the applic ant
is an Oklahoma resident pursuant to paragraph 11 of
this subsection,
c. if applying as an entity, proof that seventy-five
percent (75%) of all members, managers, executive
officers, partners, board members or any other form of
business ownership are Ok lahoma residents pursuant to
paragraph 11 of this subsection,
d. if applying as an individual or entity, proof that the
individual or entity is registered to conduct business
in the State of Oklahoma,
e. disclosure of all ownership interests pursuant t o the
Oklahoma Medical Marijuana and Patient Protection Act,
and
f. proof that the medical marijuana business, medical
marijuana research facility, medical marijuana
education facility and medical marijuana waste
disposal facility applicant or licensee has not been
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convicted of a nonviolent felony in the last two (2)
years, or any other felony conviction within the last
five (5) years, is not a current inmate in the custody
of the Department of Corrections, or currently
incarcerated in a jail or corrections fac ility;
8. There shall be no limit to the number of medica l marijuana
business licenses or categories that an individual or entity can
apply for or receive, although each application and each category
shall require a separate application and application fe e. A
commercial grower, processor and dispensary, or any combination
thereof, are authorized to share the same address or physical
location, subject to the restrictions set forth in the Oklahoma
Medical Marijuana and Patient Protection Act;
9. All applicants for a medical marijuana business license,
research facility license or education facility license authorized
by the Oklahoma Medical Marijuana and Patient Protection Act, or for
a renewal of such license, shall undergo an Oklahoma criminal
history background check conducted by the Oklahoma State Bureau of
Investigation (OSBI) within thirty (30) days prior to the
application for the license, including:
a. individual applicants applying on their own behalf,
b. individuals applying on behalf of an entity,
c. all principal officers of an entity, and
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d. all owners of an entity as defined by the Oklahoma
Medical Marijuana and Patient Protection Act;
10. All applicable fees charged by the OSBI are the
responsibility of the applicant and shall not be higher than fees
charged to any other person or industry for such background checks;
11. In order to be considered an Oklahoma resident for purposes
of a medical marijuana business license application, all applicants
shall provide proof of Oklahoma residency for at le ast two (2) years
immediately preceding the date of applicatio n or five (5) years of
continuous Oklahoma residency during the preceding twenty-five (25)
years immediately preceding the date of application. Sufficient
documentation of proof of residency sh all include a combination of
the following:
a. an unexpired Oklahoma-issued driver license,
b. an Oklahoma identification card,
c. a utility bill preceding the date of application,
excluding cellular telephone and Internet bills,
d. a residential property deed to property in the State
of Oklahoma, and
e. a rental agreement preceding the date of application
for residential property located in the State of
Oklahoma.
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Applicants that were issued a medical marijuana business license
prior to August 30, 2019, are hereby exempt from the two-year or
five-year Oklahoma residen ce requirement mentioned above;
12. All license applicants shall be required to submit a
registration with the Oklahoma State Bureau of Narcotics and
Dangerous Drugs Control as provided in Sections 2-302 through 2-304
of this title;
13. All applicants shall establish their identity through
submission of a color copy or digital image of one of the following
unexpired documents:
a. front of an Oklahoma driver license,
b. front of an Oklahoma identification card,
c. a United States passport or other photo id entification
issued by the United States government, or
d. a tribal identification card approved for
identification purposes by the Oklahoma Department of
Public Safety; and
14. All applicants shall submit an applicant photograph.
F. G. The Authority shall review the temporary medical
marijuana business license application; approve, reject or deny the
application; and mail the approval, rejection, denial or status-
update letter to the a pplicant within ninety (90) business days of
receipt of the application.
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G. H. 1. The Authority shall review the temporary medical
marijuana business license applications and conduct all
investigations, inspections and interviews before approving the
application for an annual medical marijuana business license for the
specific category applied under. The annual medical marijuana
business license shall not be issued until t he Authority determines
that all necessary inspections an d reviews including, bu t not
limited to, plan reviews, safety inspections or complia nce
inspections, have been completed .
2. Approved applicants shall be issued a an annual medical
marijuana business license for the specific category applied under,
which shall act as proof of their approved status. Rejection and
denial letters shall provide a reason for the rejection or denial.
Applications for an annual medical marijuana business license may
only be rejected or denied based on the applicant not meeting the
standards set forth in the provisions of subsection D of this
section for a temporary medical marijuana business license, the
provisions of the Oklahoma Medical Marijuana and Patient Protection
Act and Sections 420 through 426.1 of this title, improper
completion of the application, or for a reason provided for in the
Oklahoma Medical Marijuana and Patient Protection Act and Sections
420 through 426.1 of this title. If an application for an annual
medical marijuana business license is rejected for failure to
provide required information, the applicant shall have thirty (30)
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days be granted an extension of time as pro vided for in paragraph 4
of subsection D of this section to submit the required information
for reconsideration. No additional application fee and shall be
charged for such reconsideration assessed a nonrefundable fee of O ne
Thousand Dollars ($1,000.00) for every ninety-day extension
requested by the applicant and su bsequently granted by the
Authority. Unless the Authority determines otherwise, an
application that has been resubmitted but is still incomplete or
contains errors that are not clerical or typographical in nature
shall be denied.
3. Status-update letters shall provide a reason for delay in
either approval, rejection or denial should a situation arise in
which an application was submitted properly but a delay in
processing the application oc curred.
4. Approval, rejection, denial or status-update letters shall
be sent to the applicant in the same method the application was
submitted to the Authority.
5. Medical marijuana businesses issued a medical m arijuana
business license prior to the effective date of this a ct shall be
required to submit business -formation documents, financial
information, and insurance information pertaining to the operations
of the medical marijuana business, as prescribed in su bparagraphs a,
b, c, d, e, f, and i of paragraph 6 of subsectio n D of this section,
to the Authority prior to renewal of the medical marijuana business
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license. The medical marijuana business licensee shall submit the
required documentation not less than sixty (60) days prior to the
date of renewal of the medical mar ijuana business license. The
Authority shall have thirty (30) days to review the submitted
documentation and an addition al thirty (30) days immediately
thereafter for purposes of resolving any inconsistencies,
discrepancies, or disputed issues found withi n the submitted
documentation. If the medical marijuana business licensee fails to
submit the required documentation six ty (60) days prior to the date
of renewal, the license of the medical ma rijuana business shall be
suspended until such time as the docu mentation is submitted to the
Authority.
6. Medical marijuana businesses that have been issued a
temporary and annual me dical marijuana business license pursuant to
the provisions of subsectio n D of this section shall be required to
annually submit update d business-formation documents, financial
information, and insurance information pertaining to the operations
of the medical marijuana business, as prescribed in subparagraphs a,
b, c, d, e, f, and i of paragraph 6 of subsection D of this section,
to the Authority when seeking renewal of the medical mar ijuana
business license.
H I. A license for a medical marijuana business, medical
marijuana research facility, medical marijuana education facility or
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medical marijuana waste disposal facility shall not be issued to or
held by:
1. A person until all required fees have been paid;
2. A person who has been convicted of a nonviolent felony
within two (2) years of the date of application, or within five (5)
years for any other felony;
3. A corporation, if the criminal history of any of its
officers, directors or stockholders indicates that the officer,
director or stockholder has been convicted of a nonviolent felony
within two (2) years of the date of application, or within five (5)
years for any other felony;
4. A person under twenty-five (25) years of age;
5. A person licensed pursuant to this section who, during a
period of licensure, or who, at the time of application, has failed
to:
a. file taxes, interest or penalties due related to a
medical marijuana business, or
b. pay taxes, interest or penalties due related to a
medical marijuana business;
6. A sheriff, deputy sheriff, police officer or pros ecuting
officer, or an officer or employee of the Authority or municipality;
7. A person whose authority to be a caregiver, as defined in
Section 427.2 of this title, has been revoked by the Authority; or
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8. A person who was involved in the management or operations of
any medical marijuana business, medical mar ijuana research facility,
medical marijuana education facility or medical marijuana waste
disposal facility that, after the initiation of a disciplinary
action, has had a medical marijuana license revoked, not renewed, or
surrendered during the five (5) ye ars preceding submission of the
application and for the following violations:
a. unlawful sales or purchases,
b. any fraudulent acts, falsification of records or
misrepresentation to the Authority, medical marijuana
patient licensees, caregiver licensees o r medical
marijuana business licensees,
c. any grossly inaccurate or fraudulent reporting,
d. threatening or harming any medical marijuana patient,
caregiver, medical practitioner or employee of the
Authority,
e. knowingly or intentionally refus ing to permit the
Authority access to premises or records,
f. using a prohibited, hazardous substance for processing
in a residential area,
g. criminal acts relating to the operation of a medical
marijuana business, or
h. any violations that end anger public health and safety
or product safety.
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I J. In investigating the qualifications of an applicant or a
licensee, the Authority and municipalities may have access to
criminal history record information furnished by a criminal justice
agency subject to any restrictions imposed by such an agency.
J K. The failure of an applicant or licensee to provide the
requested information by the Authority deadline may be grounds for
denial of the application.
K L. All applicants and licensees shall submit information to
the Authority in a full, faithful, truthful and fair manner. The
Authority may recommend denial of an application where the ap plicant
or licensee made misstatements, omissions, misrepresentations or
untruths in the application or in connection with the background
investigation of the applicant. This type of conduct may be grounds
for administrative action against the applicant or licensee. Typos
and scrivener errors shall not be grounds for denial.
L M. A licensed medical marijuana business premises shall be
subject to and responsible for compliance with applicable provisions
consistent with the zoning where such business is located as
described in the most recent versions of the Oklahoma Uniform
Building Code, the International Building Code and the International
Fire Code, unless granted an exemption by a municipality or
appropriate code enforcement entity.
M N. All medical marijuana business, medical marijuana research
facility, medical marijuana education facility and medical marijuana
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waste disposal facility licensees shall pay the relevant licensure
fees prior to receiving licensure to operate.
N O. A medical marijuana business, medical marijuana rese arch
facility, medical marijuana education facility or medical marijuana
waste disposal facility that attempts to renew its license after the
expiration date of the license shall pay a late renewal fee in an
amount to be determined by the Authority to reinstate the license.
Late renewal fees are nonrefundable. A license that has been
expired for more than ninety (90) days shall not be renewed.
O P. No medical marijuana business, medical marijuana research
facility, medical marijuana education fa cility or medical marijuana
waste disposal facility shall possess, sell or transfer medical
marijuana or medical marijuana products without a valid, unexpired
license issued by the Authority.
SECTION 6. AMENDATORY 63 O.S. 2021, Section 427.16, as
amended by Section 16, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 427.16), is amended to read as follows:
Section 427.16 A. There is hereby created a medical marijuana
transporter license as a category of the medical marijuana business
license.
B. Pursuant to Sect ion 424 of this title, the Oklahoma Medical
Marijuana Authority sh all issue a temporary and an annual medical
marijuana transporter license to licensed medical marijuana
commercial growers, licensed medical marijuana processors, and
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licensed medical marijuana dispensaries upon issuance of such
licenses and upon each renewal. Medical marijuana transporter
licenses shall also be issued to licensed m edical marijuana research
facilities, licensed medical marijuana education facilities and
licensed medical marijuana testing laboratories upon issuance of
such licenses and upon each renewal.
C. A temporary or annual medical marijuana transporter license
may also be issued to qualifying appli cants who are registered with
the Secretary of State and otherwise meet the requirements for a
medical marijuana business license set forth in Section 427.14 of
this title, the Oklahoma Medical Marijuana and Pat ient Protection
Act and the requirements set forth in this section to provide
logistics, distribution and storage of medical marijuana, medical
marijuana concentrate and medical marijuana products.
D. A medical marijuana transporter license shall be valid for
one (1) year and shall not be transferred with a change of
ownership. A licensed medical marijuana transporter shall be
responsible for all medical marijuana, medical marijuana concentrate
and medical marijuana products once the transporter takes con trol of
the product.
E. A transporter license shall be required for any person or
entity to transport or transfer medical marijuana, medical marijuana
concentrate or medical marijuana products from a licensed medical
marijuana business to another medical marijuana business, or from a
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medical marijuana business to a medical marijuana research facility
or medical marijuana education facility.
F. A medical marijuana transporter licensee may contract with
multiple licensed medical marijuana businesses.
G. A medical marijuana transporter may maintain a licensed
premises to temporarily store medical marijuana, medical marijuana
concentrate and medical marijuana products and to use as a
centralized distribution point. A medical marijuana transporter may
store and distribute medical marijuana, medical marijuana
concentrate and medical marijuana products from the licensed
premises. The licensed premises shall meet all security
requirements applicable to a medical marijuana business.
H. A medical marijuana transp orter licensee shall use the seed-
to-sale tracking system developed pursuant to the Oklahoma Medical
Marijuana and Patient Protection Act to create shipping manifests
documenting the transport of medical marijuana, medical marijuana
concentrate and medical marijuana products throughout the state.
I. A licensed medical marijuana transporter may maintain and
operate one or more warehouses in the state to handle medical
marijuana, medical marijuana concentrate and medical marijuana
products. Each location sh all be registered and inspected by the
Authority prior to its use.
J. With the exception of a lawful transfer between medical
marijuana businesses who are licensed to operate at the same
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physical address, all medical marijuana, medical marijuana
concentrate and medical marijuana products shall be transported:
1. In vehicles equipped with Global Positioning System (GPS)
trackers;
2. In a locked container and clearly labeled "Medical Marijuana
or Derivative"; and
3. In a secured area of the vehicle that i s not accessible by
the driver during transit.
K. A transporter agent may possess marijuana at any location
while the transporter agent is transferring marijuana to or from a
licensed medical marijuana business, licensed medical marijuana
research facility or licensed medical marijuana education facility.
The Authority shall administer and enforce the provisions of this
section concerning transportation.
L. The Authority shall issue a transporter agent license to
individual agents, employees, officers or owners of a transporter
license in order for the individual to qualify to transport medical
marijuana, medical marijuana concentrate or medical marijuana
products.
M. The annual fee for a transporter agent license shall be
Twenty-five Dollars ($25.00) and shall be paid by the transporter
license holder or the individual applicant. Transporter license
reprints shall be Twenty Dollars ($20.00).
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N. The Authority shall issue each transporter agent a registry
identification card within thirty (30) days of receipt of:
1. The name, address and date of birth of the person;
2. Proof of current state residency;
3. Proof of identity as required for a medical marijuana
business license;
4. Possession of a valid state-issued driver license;
5. Verification of employment with a licensed transporter;
6. The application and affiliated fee; and
7. A copy of the criminal background check conducted by the
Oklahoma State Bureau of Investigation, paid for by the applicant.
O. If the transporter agent application is denied, the
Authority shall notify the transporter in writing of the reason for
denying the registry identification card.
P. A registry identification card for a transporter shall
expire one (1) year after the date of issuance or upon notification
from the holder of the transporter l icense that the transporter
agent ceases to work as a transporter.
Q. The Authority may revoke the registry identification card of
a transporter agent who knowi ngly violates any provision of this
section, and the transporter is subject to any o ther penalties
established by law for the violation.
R. The Authority may revoke or suspend the transporter license
of a transporter that the Authority determines knowingly aided or
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facilitated a violation of any provision of this se ction, and the
license holder is subject to any other penalties established in law
for the violation.
S. Vehicles used in the transport of medical marijuana or
medical marijuana product shall be:
1. Insured at or above the legal requirements in this state;
2. Capable of securing medical marijuana during transport; and
3. In possession of a shipping container as defined in Section
427.2 of this title capable of securing all transported products.
T. Prior to the transport of any medical marijuan a, medical
marijuana concentrate or medical marijuana products, an inventory
manifest shall be prepared at the origination point of the medical
marijuana. The inventory manifest shall include the following
information:
1. For the origination point of the medical marijuana:
a. the licensee number for the commercial grower,
processor or dispensary,
b. address of origination of transport, and
c. name and contact information for the originating
licensee;
2. For the end recipient license holder of the medical
marijuana:
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a. the license number for the dispensary, commercial
grower, processor, research facility or education
facility destination,
b. address of the destination, and
c. name and contact information for the destination
licensee;
3. Quantities by weig ht or unit of each type of medical
marijuana product contained in transport;
4. The date of the transport and the approximate time of
departure;
5. The arrival date and estimate d time of arrival;
6. Printed names and signatures of the personnel accompan ying
the transport; and
7. Notation of the transporting licensee.
U. 1. A separate inventory manifest shall be prepared for each
licensee receiving the medical marijuana.
2. The transporter agent shall provide the other medical
marijuana business with a copy of the inventory manifest at the time
the product changes hands and after the other licensee prints his or
her name and signs the inventory manifest.
3. A receiving licens ee shall refuse to accept any medical
marijuana, medical marijuana concentrat e or medical marijuana
products that are not accompanied by an inventory manifest.
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4. Originating and receiving licensees shall maintain copies of
inventory manifests and logs of quantities of medical marijuana
received for seven (7) years from date of re ceipt.
SECTION 7. This act shall become effective November 1, 2023.
59-1-5846 GRS 01/04/23