Oklahoma 2023 Regular Session

Oklahoma House Bill HB2282 Latest Draft

Bill / Enrolled Version Filed 04/26/2023

                            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: _________________________________