An Act ENROLLED 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 subj ect to destruction; deleting authorization for assessing administrative penalties; deleting exception and construing provision; modifying and deleting procedures for denying, suspending, or revoking registrations; requiring the issuance and service of writ ten orders prior to annulling, conditioning, suspending, or revoking registrations; requir ing specificity within written orders; authorizing the use of disciplinary 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 ass essment of penalties for noncompliance; allowing registrants to apply for a hearing; autho rizing the assessment of administrative pen alties for certain violations ; deeming controlled dangerous substances as contraband under certain circumstances; pr oviding for seizures and forfeitures; authorizing assessment of eradication or destruction fine; prohibiting registrants from reapplying for certain ENR. H. B. NO. 2282 Page 2 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 . SUBJECT: Public health and Safety 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 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 ; ENR. H. B. NO. 2282 Page 3 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; 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 ENR. H. B. NO. 2282 Page 4 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 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 S ection 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 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 ENR. H. B. NO. 2282 Page 5 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 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 order unless the registrant requests an administrative hearing in acco rdance with the rules and regulations promulgated by the Director within thirty (30) days of issuance. Upon such request, the Di rector shall promptly initiate administrative proceedings and 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 ENR. H. B. NO. 2282 Page 6 to delegate the authority of the Director to issue a fina l agency order adverse to a party. E. 1. All proceedings shall be conducted in acc ordance 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 reg istration 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 order to show cause, any registration simultaneously with the instituti on 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 eff ect until the conclusion of the proce edings, including judicial review thereof, unless sooner withdrawn by the Director or dissolved by a court of competent jurisdiction. 2. The Director may delegate to an administrative hearing 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 n otice or a hearing, when he or she finds there is imminent dan ger to the public health o r 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 withdrawn by the Director or dissolved by a court of competent jurisdicti on. 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 penalty not to exceed Ten Thousand Dollars ($10,000.00) per day of non compliance 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 ENR. H. B. NO. 2282 Page 7 registrant shall be offered a hearing withi n 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 regist rant 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 administrati ve 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 per mit 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, sol d, 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 that 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 Se ction 2-505 of this title. Samples shall be retained of all con trolled dangerous substanc es 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 de nial 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 o f the final order. The length of any prohibition shall not be us ed as grounds to contest t he 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 follows: 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 ENR. H. B. NO. 2282 Page 8 denied annulled, suspended, or revoke d by the Director upon finding that the licensee or permit holder has: 1. Materially falsified any application 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. B. Before denying annulling, suspending, or revoking a license or permit, the Director shall cause to be served upo n 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 Procedure s Act without regard to any criminal prosecution or other proceeding. Nothing in this section sh all 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 simult aneously with the institution of proceedings described in subs ection 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 co ntinue 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 preservatio n of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereo f this act shall take effect and be in full force from and after its passage an d approval. ENR. H. B. NO. 2282 Page 9 Passed the House of Representatives the 21st day of March, 2023. Presiding Officer of the House of Representatives Passed the Senate the 25th day of April, 2023. Presiding Officer of the Senate OFFICE OF THE GOVERNOR Received by the Office of the Governor this ____________________ day of ______________ _____, 20_______, at _______ o'clock _______ M. By: _________________________________ Approved by the Governor of the State of Oklahoma this _____ ____ day of ___________________, 20_______, at _______ o'clock _______ M. _________________________________ Governor of the State of Oklahoma OFFICE OF THE SECRETARY OF STATE Received by the Office of the Secretary of State this __________ day of ___________________, 20_______, at _______ o'clock _______ M. By: _________________________________