Oklahoma 2023 Regular Session

Oklahoma House Bill HB1616 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 1616 Page 1 1
	3	+	HB1616 HFLR Page 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 1616 By: Worthen of the House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
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31		-	~~and~~
	31	+	STATE OF OKLAHOMA
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33		-	Garvin of the Senate
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	COMMITTEE SUBSTITUTE
	36	+	FOR
	37	+	HOUSE BILL NO. 1616 By: Worthen
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	43	+	COMMITTEE SUBSTITUTE
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40	45		An Act relating to medical marijuana; amending 63
41	46		O.S. 2021, Section 427.14, as a mended by Section 4,
42	47		Chapter 332, O.S.L. 2022 (63 O.S. Supp. 2022, Section
43	48		427.14), which relates to the Oklahoma Medical
44	49		Marijuana and Patient Protection Ac t; requiring
45	50		disclosure of conflicts of interest from certain
46	51		elected officials; defining term; and providing an
47	52		effective date.
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54	59		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
55	60		SECTION 1. AMENDATORY 63 O.S. 2021, Section 427.14, as
56	61		amended by Section 4, Chapter 332, O.S.L. 2022 (63 O.S. Supp. 2022,
57	62		Section 427.14), is amended to read as follows:
58	63		Section 427.14 A. There is hereby created the medical
59	64		marijuana business license, which shall inc lude the following
60	65		categories:
61	66		1. Medical marijuana commercial grower;
62	67		2. Medical marijuana pr ocessor;
63		-	3. Medical marijuana dispensary;
64		-	4. Medical marijuana transporter; and
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66		-	ENGR. H. B. NO. 1616 Page 2 1
	69	+	HB1616 HFLR Page 2
	70	+	BOLD FACE denotes Committee Amendments. 1
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	95	+	3. Medical marijuana dispensary;
	96	+	4. Medical marijuana transporter; and
91	97		5. Medical marijuana testing laboratory.
92	98		B. The Oklahoma Medical Marijuana Authority, with the aid of
93	99		the Office of Management and Enterprise Services, shall develop a
94	100		website for medical marijuana business applications.
95	101		C. The Authority shall make available on it s website in an
96	102		easy-to-find location, applications for a medical m arijuana
97	103		business.
98	104		D. 1. The annual, nonrefundable fee for a medical marijuana
99	105		transporter license shall be Two Thousand Five Hundred Dollars
100	106		($2,500.00).
101	107		2. The initial fee for a medical marijuana commercial grower
102	108		license shall be calculated based upon the total amount of square
103	109		feet of canopy or acres the grower estimates will be harvested for
104	110		the year. The annual, nonrefundable license fee shall be based upon
105	111		the total amount of square feet of canopy harvested by the grower
106	112		during the previous twelve (12) months. The amount of the fees
107	113		shall be determined as follows:
108	114		a. For an indoor, greenhouse, or light deprivation
109	115		medical marijuana grow facility:
110	116		(1) Tier 1: Up to ten thousand (10,000) square feet
111	117		of canopy, the fee shall be Two Thousand Five
112	118		Hundred Dollars ($2,500.00),
113		-	(2) Tier 2: Ten thousand one (10,001) square feet of
114		-	canopy to twenty thousand (20,000) square feet of
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	146	+	(2) Tier 2: Ten thousand one (10,001) square feet of
	147	+	canopy to twenty thousand (20,000) square feet of
141	148		canopy, the fee shall be Five Tho usand Dollars
142	149		($5,000.00),
143	150		(3) Tier 3: Twenty thousand one (20,001) square fee t
144	151		of canopy to forty thousand (40,000) square feet
145	152		of canopy, the fee shal l be Ten Thousand Dollars
146	153		($10,000.00),
147	154		(4) Tier 4: Forty thousand one (40,001) square feet
148	155		of canopy to sixty thousand (60,000) square feet
149	156		of canopy, the fee shall be Twent y Thousand
150	157		Dollars ($20,000.00),
151	158		(5) Tier 5: Sixty thousand one (60,001) square feet
152	159		of canopy to eighty thousand (80,000) square feet
153	160		of canopy, the fee shall be Thirty Thousand
154	161		Dollars ($30,000.00),
155	162		(6) Tier 6: Eighty thousand one (80,001) square feet
156	163		of canopy to ninety-nine thousand nine hundred
157	164		ninety-nine (99,999) square feet of canopy, the
158	165		fee shall be Forty Thousand Dollars ($40,000.00),
159	166		and
160	167		(7) Tier 7: One hundred thousand (100,000) square
161	168		feet of canopy and beyond, the fee shall be Fifty
162	169		Thousand Dollars ($50,000. 00), plus an additional
163		-	twenty-five cents ($0.25) per square foot of
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	197	+	twenty-five cents ($0.25) per square foot of
190	198		canopy over one hundred thousand (100,000) square
191	199		feet.
192	200		b. For an outdoor medical marijuana grow facility:
193	201		(1) Tier 1: Up to two and one-half (2 1/2) acres,
194	202		the fee shall be Two Thousand Five Hundred
195	203		Dollars ($2,500.00),
196	204		(2) Tier 2: Two and one-half (2 1/2) acres up to
197	205		five (5) acres, the fee shall be Five Thousand
198	206		Dollars ($5,000.00),
199	207		(3) Tier 3: Five (5) acres up to ten (10) acres, the
200	208		fee shall be Ten Thousand Dollars ($10,000.00),
201	209		(4) Tier 4: Ten (10) acres up to twenty (20) acres,
202	210		the fee shall be Twenty Thousand Dollars
203	211		($20,000.00),
204	212		(5) Tier 5: Twenty (20) acres up to thirty (30)
205	213		acres, the fee shall be Thirty Thousand Dollars
206	214		($30,000.00),
207	215		(6) Tier 6: Thirty (30) acres up to forty (40)
208	216		acres, the fee shall be Forty Thousand Dollars
209	217		($40,000.00),
210	218		(7) Tier 7: Forty (40) acres up to fifty (50) acres,
211	219		the fee shall be Fifty Thousand Do llars
212	220		($50,000.00), and
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239	248		(8) Tier 8: If the amount of acreage exceeds fifty
240	249		(50) acres, the fee shall be Fifty Thousand
241	250		Dollars ($50,000.00) plus an additi onal Two
242	251		Hundred Fifty Dollars ($250.00) per acre.
243	252		c. For a medical marijuana commercial grower that has a
244	253		combination of both indoor and outdoor growing
245	254		facilities at one location, the medical marijuana
246	255		commercial grower shall be required to obtain a
247	256		separate license from the Authority for each type of
248	257		grow operation and shall be subject to the licensing
249	258		fees provided for in subparagraphs a and b of this
250	259		paragraph.
251	260		d. As used in this paragraph:
252	261		(1) "canopy" means the total surface area within a
253	262		cultivation area that is dedicated to the
254	263		cultivation of flowering marijuana plants. The
255	264		surface area of the plant canopy must be
256	265		calculated in square feet and mea sured and must
257	266		include all of the area within the boundaries
258	267		where the cultivation of the flowering marijuana
259	268		plants occurs. If the surface of the plant
260	269		canopy consists of noncontiguous areas, each
261	270		component area must be separat ed by identifiable
262	271		boundaries. If a tiered or shelving system is
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289	299		used in the cultivation area, the surface area of
290	300		each tier or shelf must be included in
291	301		calculating the area of the plant canopy.
292	302		Calculation of the area of the plant canopy may
293	303		not include the areas within the cult ivation area
294	304		that are used to cultivate immature marijuana
295	305		plants and seedlings, prior to flowering, a nd
296	306		that are not used at any time to cultivate mature
297	307		marijuana plants. If the flowering plants are
298	308		vertically grown in cylinde rs, the square footage
299	309		of the canopy shall be measu red by the
300	310		circumference of the cylinder multiplied by the
301	311		total length of the cylinder,
302	312		(2) "greenhouse" means a structure located outdoors
303	313		that is completely covered by a material that
304	314		allows a controlled level of light transmission,
305	315		and
306	316		(3) "light deprivation" means a structure that has
307	317		concrete floors and the ability to manipula te
308	318		natural light.
309	319		3. The annual, nonrefundable license fee for a medical
310	320		marijuana processor license shall be determined as follows:
311	321		a. Tier 1: Zero (0) to ten thousand (10,000) pounds of
312	322		biomass or production or use of up to one hundred
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314		-	ENGR. H. B. NO. 1616 Page 7 1
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339	350		(100) liters of cannabis concentrate, the annual fee
340	351		shall be Two Thousand Five Hundred Dollars
341	352		($2,500.00),
342	353		b. Tier 2: Ten thousand one (10,001) pounds to fifty
343	354		thousand (50,000) pounds of biomass or production or
344	355		use from one hundred one (101) to three hundred fifty
345	356		(350) liters of cannabis concentrate, the annual fee
346	357		shall be Five Thousand Dollars ($5,000.00),
347	358		c. Tier 3: Fifty thousand one (50,001) pounds to one
348	359		hundred fifty thousand (150,000) pounds of biomass or
349	360		production or use from three hundred fifty-one (351)
350	361		to six hundred fifty (650) liters of cannabis
351	362		concentrate, the annual fee shall be Ten Thousand
352	363		Dollars ($10,000.00),
353	364		d. Tier 4: One hundred fifty thou sand one (150,001)
354	365		pounds to three hundred thousand (300,000) pounds of
355	366		biomass or production or use from six hundred fifty-
356	367		one (651) to one thousand (1,000) liters of cannabis
357	368		concentrate, the annual fee shall be Fifteen Thousand
358	369		Dollars ($15,000.00), and
359	370		e. Tier 5: More than three hundred thousan d one
360	371		(300,001) pounds of biomass or production or use in
361	372		excess of one thousand one (1,001) liters of cannabis
362	373
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388	400		concentrate, the annual fee shall be Twenty Thousand
389	401		Dollars ($20,000.00).
390	402		For purposes of this paragraph only, if the cannabis concentrate
391	403		is in nonliquid form, every one thousand (1,000) grams of
392	404		concentrated marijuana shall be calculated as one (1) liter of
393	405		cannabis concentrate.
394	406		4. The initial fee for a medical marijuana dispensary license
395	407		shall be Two Thousand Five Hundred Dollars ($2,500.00). The annual,
396	408		nonrefundable license fee for a medical marij uana dispensary license
397	409		shall be calculated at ten percent (10%) of the sum of twelve (12)
398	410		calendar months of the combined annual state sales tax and state
399	411		excise tax of the dispensary . The minimum fee shall be not less
400	412		than Two Thousand Five Hundred Doll ars ($2,500.00) and the maximum
401	413		fee shall not exceed Ten Thousand Dollars ($10,000.00).
402	414		5. The annual, nonrefundable license fee for a medical
403	415		marijuana testing laboratory shall be Twenty Thousand Dollars
404	416		($20,000.00).
405	417		E. All applicants seeking licensure or licensure renewal as a
406	418		medical marijuana business shall comply with the following general
407	419		requirements:
408	420		1. All applications for licenses and registrations authorized
409	421		pursuant to this section shall be made upon forms prescribed by the
410	422		Authority;
411	423
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437	450		2. Each application shall identify the city or county in which
438	451		the applicant seeks to obtain licensure as a medical marijuana
439	452		business;
440	453		3. Applicants shall submit a complete application to the
441	454		Authority before the application may be accepted or considered;
442	455		4. All applications shall be comple te and accurate in every
443	456		detail;
444	457		5. All applications shall include all attachments or
445	458		supplemental information required by the forms supplied by the
446	459		Authority;
447	460		6. All applications shall be accompanied by a full remittance
448	461		for the whole amount of the appl ication fees. Application fees are
449	462		nonrefundable;
450	463		7. All applicants shall be approved for licensing review that,
451	464		at a minimum, meets the following criteria:
452	465		a. twenty-five (25) years of age or older,
453	466		b. if applying as an individual, proof that the applic ant
454	467		is an Oklahoma resident pursuant to paragraph 11 of
455	468		this subsection,
456	469		c. if applying as an entity, proof that seventy-five
457	470		percent (75%) of all members, managers, executive
458	471		officers, partners, board members or any other form of
459	472		business ownership are Ok lahoma residents pursuant to
460	473		paragraph 11 of this subsection,
461	474
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487	501		d. if applying as an individual or entity, proof that the
488	502		individual or entity is registered to conduct business
489	503		in the State of Oklahoma,
490	504		e. disclosure of all ownership interests pursuant to the
491	505		Oklahoma Medical Marijuana and Patient Protection Act,
492	506		and
493	507		f. proof that the medical marijuana business, medical
494	508		marijuana research facility, medical marijuana
495	509		education facility and medical marijuana waste
496	510		disposal facility applicant or licensee has not been
497	511		convicted of a nonviolent felony in the last two (2)
498	512		years, or any other felony conviction within the last
499	513		five (5) years, is not a current inmate in the custody
500	514		of the Department of Corrections, or currently
501	515		incarcerated in a jail or corrections fac ility;
502	516		8. There shall be no limit to the number of medical marijuana
503	517		business licenses or categories that an individual or entity can
504	518		apply for or receive, although each application and each category
505	519		shall require a separate application and application fe e. A
506	520		commercial grower, processor and dispensary, or any combination
507	521		thereof, are authorized to share the same address or physical
508	522		location, subject to the restrictions set forth in the Oklahoma
509	523		Medical Marijuana and Patient Protection Act;
510	524
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536	551		9. All applicants for a medical marijuana business license,
537	552		research facility license or education facility license authorized
538	553		by the Oklahoma Medical Marijuana and Patient Protection Act, or for
539	554		a renewal of such license, shall undergo an Oklahoma criminal
540	555		history background check conducted by the Oklahoma State Bureau of
541	556		Investigation (OSBI) within thirty (30) days prior to the
542	557		application for the license, including:
543	558		a. individual applicants applying on their own behalf,
544	559		b. individuals applying on behalf of an entity,
545	560		c. all principal officers of an entity, and
546	561		d. all owners of an entity as defined by the Oklahoma
547	562		Medical Marijuana and Patient Protection Act;
548	563		10. All applicable fees charged by the OSBI are the
549	564		responsibility of the applicant and shall not be higher than fees
550	565		charged to any other person or industry for such background checks;
551	566		11. In order to be considered an Oklahoma resident for purposes
552	567		of a medical marijuana business application, all applicants shall
553	568		provide proof of Oklahoma residency for at least two (2) years
554	569		immediately preceding the date of application or five (5) years of
555	570		continuous Oklahoma residency during the preceding twenty-five (25)
556	571		years immediately preceding the date of application. Sufficient
557	572		documentation of proof of residency shall include a combination of
558	573		the following:
559	574		a. an unexpired Oklahoma-issued driver license,
560	575
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586	602		b. an Oklahoma identification card,
587	603		c. a utility bill preceding the date of application,
588	604		excluding cellular telephone and Internet bill s,
589	605		d. a residential property deed to property in the State
590	606		of Oklahoma, and
591	607		e. a rental agreement preceding the date of application
592	608		for residential property located in the State of
593	609		Oklahoma.
594	610		Applicants that were issued a medical marijuana business license
595	611		prior to August 30, 2019, are hereby exempt from the two-year or
596	612		five-year Oklahoma residence requirement mentioned above;
597	613		12. All license applicants shall be required to submit a
598	614		registration with the Oklahoma State Bureau of Narcotics and
599	615		Dangerous Drugs Control as provided in Sections 2-302 through 2-304
600	616		of this title;
601	617		13. All applicants shall establish their identity through
602	618		submission of a color copy or digital image of one of the following
603	619		unexpired documents:
604	620		a. front of an Oklahoma driver license,
605	621		b. front of an Oklahoma identification card,
606	622		c. a United States passport or other photo identification
607	623		issued by the United States government, or
608	624
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634	651		d. a tribal identification card approved for
635	652		identification purposes by the Oklahoma Department of
636	653		Public Safety; and
637	654		14. All applicants shall submit an applicant photograph.
638	655		F. The Authority shall review the medical marijuana business
639	656		application; approve, reject or deny the application; and mail the
640	657		approval, rejection, denial or status-update letter to the a pplicant
641	658		within ninety (90) business days of receipt of the application.
642	659		G. 1. The Authority shall review the medical marijuana
643	660		business applications and conduct all investigations, inspections
644	661		and interviews before approving the application.
645	662		2. Approved applicants shall be issued a me dical marijuana
646	663		business license for the specific category applied under, which
647	664		shall act as proof of their approved status. Rejection and denial
648	665		letters shall provide a reason for the rejection or denial.
649	666		Applications may only be rejected or denied based on the applicant
650	667		not meeting the standards set forth in the provisions of the
651	668		Oklahoma Medical Marijuana and Patient Protection Act and Sections
652	669		420 through 426.1 of this title, improper completion of the
653	670		application, or for a reason provided for in the Oklahoma Medical
654	671		Marijuana and Patient Protection Act and Sections 420 through 426.1
655	672		of this title. If an application is rejected for failure to provide
656	673		required information, the applicant shall have thirty (30) days to
657	674		submit the required information for reconsideration. No additional
658	675
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684	702		application fee shall be charged for such reconsideration. Unless
685	703		the Authority determines otherwise, an application that has been
686	704		resubmitted but is still incomplete or contains errors tha t are not
687	705		clerical or typographical in nature shall be denied.
688	706		3. Status-update letters shall provide a reason for delay in
689	707		either approval, rejection or denial should a situation arise in
690	708		which an application was submitted properly but a delay in
691	709		processing the application occurred.
692	710		4. Approval, rejection, denial or status-update letters shall
693	711		be sent to the applicant in the same method the application was
694	712		submitted to the Authority.
695	713		H. A license for a medical marijuana business, medical
696	714		marijuana research facility, medical marijuana education facility or
697	715		medical marijuana waste disposal facility shall not be issued to or
698	716		held by:
699	717		1. A person until all required fees have been paid;
700	718		2. A person who has been convicted of a nonviolent felony
701	719		within two (2) years of the date of application, or within five (5)
702	720		years for any other felony;
703	721		3. A corporation, if the criminal history of any of its
704	722		officers, directors or stockholders indicates that the officer,
705	723		director or stockholder has been convicted of a nonviolent felony
706	724		within two (2) years of the date of application, or within five (5)
707	725		years for any other felony;
708	726
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734	753		4. A person under twenty-five (25) years of age;
735	754		5. A person licensed pursuant to this section who, during a
736	755		period of licensure, or who, at the time of application, has failed
737	756		to:
738	757		a. file taxes, interest or penalties due related to a
739	758		medical marijuana business, or
740	759		b. pay taxes, interest or penalties due related to a
741	760		medical marijuana business;
742	761		6. A sheriff, deputy sheriff, police officer or pros ecuting
743	762		officer, or an officer or employee of the Authority or municipality;
744	763		7. A person whose authority to be a caregiver, as defined in
745	764		Section 427.2 of this title, has been revoked by the Authority; or
746	765		8. A person who was involved in the man agement or operations of
747	766		any medical marijuana business, medical marijuana research facility,
748	767		medical marijuana education facility or medical marijuana waste
749	768		disposal facility that, after the initiation of a disciplinary
750	769		action, has had a medical marijuana license revoked, not renewed, or
751	770		surrendered during the five (5) years preceding submission of the
752	771		application and for the following violations:
753	772		a. unlawful sales or purchases,
754	773		b. any fraudulent acts, falsification of records or
755	774		misrepresentation to the Authority, medical marijuana
756	775		patient licensees, caregiver licensees or medical
757	776		marijuana business licensees,
758	777
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784	804		c. any grossly inaccurate or fraudulent reporting,
785	805		d. threatening or harming any medical marijuana patient,
786	806		caregiver, medical practitioner or employee of the
787	807		Authority,
788	808		e. knowingly or intentionally refusing to permit the
789	809		Authority access to premises or records,
790	810		f. using a prohibited, hazardous substance for processing
791	811		in a residential area,
792	812		g. criminal acts relating to t he operation of a medical
793	813		marijuana business, or
794	814		h. any violations that end anger public health and safety
795	815		or product safety.
796	816		I. In investigating the qualifications of an applicant or a
797	817		licensee, the Authority and municipalities may have access to
798	818		criminal history record information furnished by a criminal justice
799	819		agency subject to any restrictions imposed by such an agency.
800	820		J. The failure of an applicant or licensee to provide the
801	821		requested information by the Authority deadline may be grounds for
802	822		denial of the application.
803	823		K. All applicants and licensees shall submit information to the
804	824		Authority in a full, faithful, truthful and fair manner. The
805	825		Authority may recommend denial of an application where the appli cant
806	826		or licensee made misstatements, omissions, misrepresentations or
807	827		untruths in the application or in connection with the background
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834	855		investigation of the applicant. This type of conduct may be grounds
835	856		for administrative action against the applicant or licensee. Typos
836	857		and scrivener errors shall not be grounds for denial.
837	858		L. A licensed medical marijuana business premises shall be
838	859		subject to and responsible for compliance with applicable provisions
839	860		consistent with the zoning where such business is locate d as
840	861		described in the most recent versions of the Oklahoma Uniform
841	862		Building Code, the International Building Code and the International
842	863		Fire Code, unless granted an exemption by a municipality or
843	864		appropriate code enforcement entity.
844	865		M. All medical marijuana business, medical marijuana research
845	866		facility, medical marijuana education fa cility and medical marijuana
846	867		waste disposal facility licensees shall pay the relevant licensure
847	868		fees prior to receiving licensure to operate.
848	869		N. A medical marijuana business , medical marijuana rese arch
849	870		facility, medical marijuana education facility or med ical marijuana
850	871		waste disposal facility that attempts to renew its license after the
851	872		expiration date of the license shall pay a late renewal fee in an
852	873		amount to be determined by the Authority to reinstate the license.
853	874		Late renewal fees are nonrefundable. A license that has been
854	875		expired for more than ninety (90) days shall not be renewed.
855	876		O. No medical marijuana business, medical marijuana research
856	877		facility, medical marijuana education fa cility or medical marijuana
857	878		waste disposal facility shall possess, sell or transfer medical
858	879
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884	906		marijuana or medical marijuana products without a valid, unexpired
885	907		license issued by the Authority.
886	908		P. Any elected or appointed state, county, or munici pal
887	909		official shall disclose any conflict of interest or ownership
888	910		interest in the medical marijuana business to the Authority. For
889	911		purposes of this subsection, "interest" means an owner ship in any
890	912		entity that holds a medical marijuana license issued by the
891	913		Authority or an interest in any entity that receives a set
892	914		percentage of profit distribution from any entity that holds a
893	915		license issued by the Authority.
894	916		SECTION 2. This act shall become effective November 1, 2023.
895		-	Passed the House of Representatives the 8th day of March, 2023.
896	917
897		-
898		-
899		-
900		-	Presiding Officer of the House
901		-	of Representatives
902		-
903		-
904		-	Passed the Senate the ____ day of __________, 2023.
905		-
906		-
907		-
908		-
909		-	Presiding Officer of the Senate
910		-
911		-
	918	+	COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT, dated
	919	+	02/22/2023 - DO PASS, As Amended.