Req. No. 6087 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 59th Legislature (2023) HOUSE BILL 2282 By: Echols AS INTRODUCED An Act relating to public health and safety; amending 63 O.S. 2021, Sections 2 -304 and 2-305, which relate to the Uniform Controlled Dangerous Substances Act; providing for the annulment of registrations; allowing for the impounding and preserving of controlled dangerous substances upon revocation of registration; requiring registrants to maintain controlled dangerous substances not subject to impoundment or revocation; prohibiting the purchase, distribution, sale, or transfer of controlled dangerous substances until conclusion of appeals; providing for the assessment of adm inistrative penalties; authorizing forfeiture of controlled dangerous substances upon certain finding; providing for the assessment of drug cleanup fines; increasing time limit when ordering registrants to appear for show cause hearings; providing construing provisions ; providing agents and inspectors the authority to issue citations; stating contents of citations; allowing certain personnel the ability to initiate individual proceedings against registrants; amending 63 O.S. 2021, Section 2-325, which relates to the Precursor Substances Act; providing for the annulment of licenses or permits un der certain circumstances; increasing time limit when ordering registrants to appear for show cause hearings; providing construing provision; and declaring an emergency . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: Req. No. 6087 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 1. AMENDATORY 63 O.S. 2021 , Section 2-304, is amended to read as follows: Section 2-304. A. A registration, pursuant to Section 2 -303 of this title, to manufacture, distribute, dispense, prescribe, administer or use for scientific purposes a controlled dan gerous substance shall be limited, conditioned, denied, suspended , annulled, or revoked by the Director upon a finding that the registrant: 1. Has materially falsified any application filed pursuant to the Uniform Controlled Dangerous Substances Act or required by t he Uniform Controlled Dangerous Substances Act . It shall be unlawful to knowingly and willfully: a. make false statements, include false dat a or omit material information on an application for a registration with the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, or b. provide false data or omit material information in any records or reports required by rule or law to be created, maintained or submitted to the Bureau . Any registrant or applic ant for a registration or any official, agent or employee of any registrant or applicant for a registration who violates the provisions of this paragraph shall be guilty of a misdemeanor and additionally subject to administrative action ; Req. No. 6087 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. Has been found guilty of, entered a plea of guilty or entered a plea of nolo contendere to a misdemeanor relating to any substance defined herein as a controlled dangerous substance or any felony under the laws of any state or the United States; 3. Has had his or her f ederal registration retired, suspended or revoked by a competent federal authority and is no longer authorized by federal la w to manufacture, distribute, dispense, prescribe, administer or use for scientific purposes controlled dangerous substances; 4. Has failed to maintain effective controls against the diversion of controlled dangerous substances to unauthorized persons or entities; 5. Has prescribed, dispensed or administered a control led dangerous substance from schedules other than those specified i n his or her state or federal registration; 6. Has had a restriction, suspension, revocation, limitation, condition or probation placed on his or her professional license or certificate or practice as a result of a proceeding pursuant to the general statutes; 7. Is abusing or, within the past five (5) years, has abused or excessively used drugs or controlled dangerous sub stances; 8. Has prescribed, sold, administered or ordered any contro lled dangerous substance for an immediate family member, himself or Req. No. 6087 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 herself; provided that this shall not apply to a medical emergency when no other doctor is available to respond to the emergency ; 9. Has possessed, used, prescribed, dispensed or administered drugs or controlled dangerous substances for other than legiti mate medical or scientific purposes or for purposes outsid e the normal course of his or her professional practice; 10. Has been under the influence of alcohol or another intoxicating substance which adversely affected the central nervous system, vision, hearing or other sensory or motor functioning to such degree the person was impaired during the performance of his or her job; or 11. Has violated any federal law relating to any controlled dangerous substances, any provision of the Uniform Controlled Dangerous Substances Act or any rules of the Oklahoma State Burea u of Narcotics and Dangerous Drugs Control. B. In the event the Director suspends or revokes a registration granted under Section 2 -303 of this title, all controlled dangerous substances owned or possessed by the registrant pursuant to such registration at the time of denial revocation or suspension or the effective date of the revocation order, as the case may be, may in the discretion of the Direct or be impounded and preserved . All controlled dangerous substances not imp ounded or preserved by the Director shall be maintained by the registrant. No disposition, purchase, distribution, sale, or transfer may be made of substances Req. No. 6087 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 impounded and preserv ed until the time for taking an appeal has elapsed or until all appeals have been concluded unless a court, upon application therefor, orders the sale of perishable substances and the deposit of the proceeds of the sale with the court . Upon a revocation order becoming final, all such co ntrolled dangerous substances shall be forfeited to the state or otherwise considered waste and submitted to a l icensed medical marijuana waste disposal service for destruction pursuant to S ection 430 of this title . C. The Drug Enforcement Administration shall promptly be notified of all orders suspending or revoking registration and all forfeitures of controlled dangerous substances. D. In lieu of or in addition to any other remedies available to the Director, if a f inding is made that a registrant has committed any act in violation of federal law relating to any controlled dangerous substance, any provision of the Uniform Controlled Dangerous Substances Act or an y rules of the Oklahoma State Bureau of Narcotics and Dangerous D rugs Control, the Director is hereby authorized to assess an administrative penalty not to exceed Two Thousand Dollars ($2,000.00) for each such act . The provisions of this subsection shall not apply to violations of subsection G of Section 2-309D of this title. Nothing in this section shall be construed so as to permit the Director of the State Bureau of Narcotics and Dangerous Drugs Control to assess administrative fines for violations of the provisions of subsection G of Section 2 -309D Req. No. 6087 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of this title. Administrative penalties may be assessed pe r individual transaction and incurr ed daily. E. In addition to any other remedies available to the Director, if a judge of competent jurisdiction finds probable cause th at a registrant has committed any act in violatio n of Oklahoma law relating to any controlled dangerous substance, all controlled dangerous substances possessed by the registrant shall be c onsidered contraband or hazardous material and shall be subject to forfeiture under Section 2-505 or 2-506 of this title as applicable, and the Director is hereby authorized to assess a drug cleanup fine not to exceed Fifty Thousand Dollars ($50,00 0.00). The drug cleanup fine shall apply only to the registrant; provided, however, the Director may refuse to authorize a ny new registration at the same locati on until such fine is paid. SECTION 2. AMENDATORY 63 O.S. 2021, Section 2-305, is amended to read as follows: Section 2-305. A. Before denying annulling, suspending or revoking a registration , refusing a renewal of registration or taking administrative action on a n onregistrant engaged in manufacturing, distributing, dispensing, prescribing, administeri ng or using for scientific purposes any controlled dangerous substance within or into this state , the Director shall serve upon t he applicant or registrant an order to show cause why registr ation should not be denied annulled, revoked or suspended or why the Req. No. 6087 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 renewal should not be refused . The order to show cause shall contain a statement of the basi s therefor and shall call upon th e applicant or registrant to appear before the appropriate person or agency at a time and place within thirty (30) sixty (60) days after the date of service of the order, but in the case of a denial or renewal of registrati on the show cause order shall be served within thirty (30) days before the expiration of th e registration. These proceedings shall be conducted in accordance with the Administrati ve Procedures Act without regard to any criminal prosecution or other proceeding. Proceedings to refuse rene wal of registration shall not abate the existing registrat ion which shall remain in effect pending the outcome of the administrative hearing. Nothing in this secti on shall be construed so as to require an individual proceeding for the denial of a new registration. B. The Director shall suspend, without an order to show cause, any registration simultaneously with the institution of proceedings under Section 2-304 of this title, if he or she finds there is imminent danger to the public health or safety whic h warrants this action. The suspension shall continue in eff ect until the conclusion of the proceedings , including judicial review thereof, unless sooner withdrawn by the Director or dissolved by a court of competent jurisdiction. C. The Director is auth orized to give agents and inspectors of the Oklahoma State Bu reau of Narcotics and Dangerous Drugs Control Req. No. 6087 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 authority to issue citations for violation of any rules o f the Bureau under subsection D of Section 2-304 of this title. Citations shall contain a statement of the basis therefor and shall call upon the registrant to appear before the appropriate person or agency at a time and place no more than sixty (60) days after the date of service of the citation. D. The Director may authorize the deputy director, general counsel, or other designee of the Bureau to initiate any individual proceeding against a registrant ; provided that, citations issued by agents or inspectors are approved by the Director, deputy director, general counsel, or other designee. Nothing in this section shall be construed so as to delegate the authority of the Director to issue a final agency order. SECTION 3. AMENDATORY 63 O.S. 2021, Section 2 -325, is amended to read as follo ws: Section 2-325. A. A license or permit, obtained pursuant to Sections 5 Section 2-323 or 6 2-324 of this act title, shall be denied annulled, suspended, or revoked by the Director upon finding that the licensee or permit holder has: 1. Materially falsified any application fil ed pursuant to this act or required by this act; 2. Been convicted of a misdemeanor relating to any precursor substance defined in Section 4 2-322 of this act title or any felony under the laws of this state or the United States; or Req. No. 6087 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. Failed to maintain effect ive controls against the div ersion of said precursors to unau thorized persons or entities. B. Before denying annulling, suspending, or revoking a license or permit, the Director shall cause to be served upon the applicant, licensee, or permit holder an or der to show cause why a lice nse or a permit should not be denied annulled, suspended, or revoked. The order to show cause shall contain a s tatement of the basis therefor and shall call upon the applicant, licensee, or permit holder to appear before the ap propriate person or agency a t the time and place within thirty (30) sixty (60) days after the date of service of the order. The proceedings shall be c onducted in accordance with the Administrative Procedures Act without regard to any criminal prosecution or other proceeding. Nothing in this section shall be construed so as to require an individual proceeding for the denial of a new license or permit. C. The Director shall suspend, without an order to show cause, any license or permit simultaneously with the institution of proceedings described in subsection B of t his section if he the Director finds there is imminent danger to the public health or safety which warrants this action. The suspension shall continue in effect until the conclusion of the proce edings, including judicial review thereof, unless withdrawn b y the Director or dissolved by a court of competent jurisdiction. Req. No. 6087 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 4. It being immediately necessary for the preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof this act sh all take effect and be in full force from and after its passage an d approval. 59-1-6087 GRS 12/28/22