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SENATE FLOOR VERSION
April 10, 2023
ENGROSSED HOUSE
BILL NO. 2282 By: Echols of the House
and
Paxton of the Senate
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; declaring controlled
dangerous substances forfeited to the state as waste
and subject to destruction; deleting authorization
for assessing administrative penalties; deletin g
exception and construing provision; modifying and
deleting procedures for denying, suspending, or
revoking registrations; requiring the issuance and
service of written orders prior to annulling,
conditioning, suspending, or revoking registrations;
requiring specificity within written orders;
authorizing the use of disciplina ry actions; stating
procedures for issuing written orders and initiating
administrative procee dings; providing construing
provisions; declaring circumstances when abatement is
inapplicable; providing for the delegation of certain
duties; authorizing the im mediate suspension of
registrations; providing procedures for suspensions;
authorizing the assessment of penalties for
noncompliance; allowing registrants to apply for a
hearing; authorizing the assessment of administrative
penalties for certain violations ; deeming controlled
dangerous substances as contraband under certain
circumstances; providing for seizures and
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forfeitures; authorizing assessment of eradication or
destruction fine; prohibiting registrants from
reapplying for certain period of time ; amending 63
O.S. 2021, Section 2-325, which relates to the
Precursor Substances Act; providing for the annulment
of licenses or permits under 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:
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 da ta or omit
material information on an application for a
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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 applicant 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 ;
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 federal registration retired, suspended
or revoked by a competent federal authority and is no longer
authorized by federal law 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 contro lled
dangerous substance from schedules other tha n those specified in his
or her state or federal registration;
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6. Has had a restriction, suspension, revocation, limitation,
condition or probation placed on h is or her professional license or
certificate or practice as a result of a proceeding pursuant t o the
general statutes;
7. Is abusing or, within the past five (5) years, has abused or
excessively used drugs or controlled dangerous substances;
8. Has prescribed, sold, administered or ordered any contr olled
dangerous substance for an immediate family member, himself or
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 adminis tered
drugs or controlled dangerous substances fo r other than legitimate
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 nervou s
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 controlle d
dangerous substances, any provision of the Unif orm Controlled
Dangerous Substances Act or any rules of the Oklahoma State Burea u
of Narcotics and Dangerous Drugs Control.
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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 revoc ation order, as the case may be, may in
the discretion of the Direct or be impounded and preserve d. 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
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 suc h controlled dangerous
substances shall be forfeited to the state or otherwise considered
waste and submitted to a licensed medical marijuana waste disposal
service for destruction pursuant to Section 430 of this title.
C. The Drug Enforcement Administrat ion 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 finding is made that a registrant h as committed
any act in violation of federal law relating to any controlled
substance, any provision of the Uniform Controlled Dangerous
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Substances Act or an y rules of the Oklahoma State Bureau of
Narcotics and Dangerous D rugs Control, the Director is here by
authorized to assess an administrative penalty not to exceed Two
Thousand Dollars ($2,0 00.00) 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 s hall be
construed so as to permit the Director of the State Bureau of
Narcotics and Danger ous Drugs Control to assess administrative fines
for violations of the provisions of subsection G of Sectio n 2-309D
of this title.
SECTION 2. AMENDATORY 63 O.S. 2021, Section 2-305, is
amended to read as follows:
Section 2-305. A. Before denying In addition to any other
remedies provided for by law, the Director shall issue a written
order to be served on the parties before annulling, conditioning,
suspending or revoking a any registration, refusing a renewal of
registration or taking administrative action on a nonregistrant
engaged in manufacturing, distributing, dispensing, prescribin g,
administering or using for scientific purposes any controlled
dangerous substance within or into this state , that the Director
shall serve upon the applicant or registrant an order to show cause
why registration should not be denied, revoked or suspend ed or why
the renewal should not be refused . The order to show cause shall
contain a statement of the basi s therefor and shall call upon the
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applicant or registrant to appear before the appropriate person or
agency at a time and place within thirty (30) days after the date of
service of the order, but in the case of a denial or renewal of
registration the show cause order shall be served within thirt y (30)
days before the expiration of the registration. These has reason to
believe is operating inconsisten t with any provision of Section 2 -
303 or 2-304 of this title or otherwise, where there has been a
violation of any federal law, any rule or regulati on of the Drug
Enforcement Administration, any provision of the Uniform Controlled
Dangerous Substances Act, or any rules or regulations of the
Oklahoma State Bureau of Narcotics and Dangerous Drugs Control. The
provisions of this subsection shall not apply to a violation of
federal law regarding marijuana or any rule or reg ulation of the
Drug Enforcement Administration regarding mar ijuana.
B. The written order shall state with specifici ty the nature of
the violation or basi s for the action. The Director may impose any
disciplinary action authorized by the Uniform Controlle d Dangerous
Substances Act or rules of the Bureau including, but not limited to,
the assessment of monetary pena lties.
C. Any written order issued pursua nt to the provisions of this
section shall become a final ord er unless the registrant requests an
administrative hearing in accordance with the rules and regulations
promulgated by the Director within thirty (30) days of issuance.
Upon such request, the Di rector shall promptly initiate
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administrative proceedings an d serve formal notice of said
proceedings pursuant to Section 309 of Title 75 of the Oklahoma
Statutes. Nothing in this section shall be construed so as to
require an individual proceeding for th e denial of a new application
for registration.
D. The Director may authorize the Deputy Director or the
general counsel of the Bureau to initiate any individual proceedings
under this title. Nothing in this section shall be construed so as
to delegate the authority of the Director to issue a final agency
order adverse to a party.
E. 1. All proceedings shall be conducted in accordance with
the Administrative Procedures Act and the rules and regulations of
the Bureau without regard to any criminal prosecution or other
proceeding. Proceedings to refuse renewal of, revoke, or suspend a
registration shall not abate the existing registration which shall
remain in effect pending the outcome of the administrative hearing
proceedings.
B. The This abatement shall not apply wh en the Director shall
suspend, without an ord er 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 an imminent danger to
the public health or safety which warrants this action. The
requiring an immediate suspension shall continue in effect until the
conclusion of the proceedings, including judicial review thereof,
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unless sooner withdrawn by the Director or dissolved by a court of
competent jurisdiction.
2. The Director may delegate to an administrative hea ring
officer the authority to conduct hear ings and recommend action for
final agency orders in accordance with the rules and regulations of
the Bureau.
F. The Director may issue an order immediately suspending a
registration, without notice or a hearing, when he or she finds
there is imminent dan ger to the public health or safety which
warrants this action. The suspension shall continue in effec t until
the conclusion of any administrative proceedings, including judicial
review thereof, unless sooner withd rawn by the Director or dissolved
by a court of competent jurisdiction. The order shall state the
existence of an emergency requiring action be taken that the
Director deems necessary to meet the emergency. Such action may
include, but is not limited to, ordering the registrant to
immediately cease and desist operations. The order shall be
effective immediately upon issuance. Any person to whom th e order
is directed shall comply immediately with the provisions of the
order. The Director may assess a pe nalty not to exceed Ten Thousand
Dollars ($10,000.00) per day of noncompliance with the order. In
assessing such a penalty, the Director shall consid er the
seriousness of the violation and any efforts to comply with
applicable requirements. Upon application to the Director, the
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registrant shall be offered a hearing within thirty (30) days of the
issuance of the order.
G. 1. In lieu of, or in addition to any other remedies
available to the Director, if a finding 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 any rules of the Bureau, the
Director is hereby authorized to assess an administrative penalty
not to exceed Five Thousand Dollars ($5,000.00) per day for each
such act. The provisions of this subsection shall not apply to
violations of subsection G of Secti on 2-309D of this title. Nothing
in this section shall be construed so as to permit the Director of
the Bureau to assess administrative fines f or violations of the
provisions of subsection G of Section 2-309D of this title.
2. If a judge of competent jur isdiction finds probable cause
that a registrant has possessed, transferred, sold, or offered for
sale any controlled dangerous substance in violation of the Uniform
Controlled Dangerous Substances Act, any controlled dangerous
substance in Schedule I of Section 2-204 of this title, and any
controlled dangerous substance in Schedules II, III, IV, and V tha t
is not in properly labeled containers in accordance with the Uniform
Controlled Dangerous Substances Act then in the possession of the
registrant, shall be deemed contraband and shall be seized and
summarily forfeited pursuant to Section 2 -505 of this title.
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Samples shall be retained of all con trolled dangerous substances
seized in accordance with Section 2-508 of this title as required.
The Director is authorized to assess an eradication or destruction
fine not to exceed Fifty Thousand Dollars ($50,000.00) against the
registrant.
H. Upon an annulment, revocation, or denial of a registration,
the Director may prohibit the registrant or ap plicant from
reapplying for registration for a period up to five (5) years
following the date of the final order. The length of any
prohibition shall not be us ed as grounds to contest the validity of
the annulment, revocation, or denial of a registration.
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 p ursuant to
Sections 5 Section 2-323 or 6 2-324 of this act title, shall be
denied annulled, suspended, or revoke d by the Director upon finding
that the licensee or permit holder has:
1. Materially falsified any a pplication filed pursuant to this
act or required by this act;
2. Been convicted of a misdemeanor relating to any precur sor
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
3. Failed to maintain effective controls against the diversion
of said precursors to unauthorized persons or entities.
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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 order to show cause why a license or a
permit should not be denied annulled, suspended, or revoked. T he
order to show cause shall conta in a statement of the basis therefor
and shall call upon the applicant, licensee, or permit holder to
appear before the appropriate person or agency at the time and place
within thirty (30) sixty (60) days after the date o f service of the
order. The proceedings shall be conducted 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 this section if he the
Director finds there is imminent danger to the publ ic health or
safety which warrants this action. The suspension shall continue in
effect until the conclusion of the proceedings, including judicial
review thereof, unless withdrawn by the Director or dissolved by a
court of competent jurisdiction.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage an d approval.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE
April 10, 2023 - DO PASS