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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 117 By: Bergstrom
AS INTRODUCED
An Act relating to medical marijuana, amending 63
O.S. 2021, Sections 422 , as last amended by Section
2, Chapter 332, O.S.L. 2022, and 423, as amended by
Section 3, Chapter 332, O.S.L. 2022 (63 O.S. Supp.
2022, Sections 422 and 423), which relate to medical
marijuana commercial grower and processin g licenses;
requiring applicant to furni sh certain documents
before operating; requiring li censee or applicant to
acquire a permit or official permission to register
with Oklahoma Medical Marijuana Authority ;
authorizing Authority to revoke license if not in
compliance; updating statutory language; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 422, as last
amended by Section 2, Chapter 332, O.S .L. 2022 (63 O.S. Supp. 2022,
Section 422), is amended to read as follows:
Section 422. A. The Oklahoma Medical Marijuana Authority shall
make available on its website in an easy-to-find location an
application for a medical marijuana commercial grower license. The
application fee shall be paid by the applicant in the amounts
provided for in Section 427.14 of this title. A method of payment
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for the application fee shall be provided on the we bsite of the
Authority. The Authority shall have ninety (90) days to review the
application; approve, reject or deny the application; and mail the
approval, rejection or denial letter stating the reasons for the
rejection or denial to the applicant.
B. The Authority shall approve all applications which meet the
following criteria:
1. The applicant must be twenty-five (25) years of age or
older;
2. The applicant, if applying as an individual, must show
residency in the State of Oklahoma;
3. All applying entities must show that all members, managers,
and board members are Oklahoma resi dents;
4. An applying entity may show owner ship of non-Oklahoma
residents, but that percentage ownership may not exceed twenty-five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma; and
6. All applicants must disclose all owner ship interests in the
commercial grower operation; and
7. The applicant shal l furnish documents evidencing compliance
with the provisions of subsection F of this section.
Applicants with a nonviolent felony conviction in the last two
(2) years, any other felony conviction in the last five (5) years,
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inmates in the custody of the D epartment of Corrections or any
person currently incarcerated shall not qualify for a commercial
grower license.
C. A licensed medical marijuana commercial grower may sell
marijuana to a licensed medical marijuana dispensary or a licensed
medical marijuana processor. Further, sales by a licensed medical
marijuana commercial grower shall be considered wholesale sales and
shall not be subject to taxation. Under no circumstances may a
licensed medical marijuana commercial grower sell marijuana directly
to a licensed medical marijuana patient or licensed medical
marijuana caregiver. A licensed medical marijuana commercial grower
may only sell at the wholesale level to a licensed medical marijuana
dispensary, a licensed medical marijuana commercial grower or a
licensed medical marijuana processor. If the federal government
lifts restrictions on buying and selling marijuana between states,
then a licensed medical marijuana commercial grower would be allowed
to sell and buy marijuana wholesale from, or to, a n out-of-state
wholesale provider. A licensed medical marijuana commercial grower
shall be required to complet e a monthly yield and sales report to
the Authority. This report shall be due on the fifteenth of each
month and provide reporting on the previo us month. This report
shall detail the amount of marijuana harvested in pounds, the amount
of drying or dried marijuana on hand, t he amount of marijuana sold
to licensed processors in pounds, the amount of waste in pounds, and
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the amount of marijuana sold to licensed medical marijuana
dispensaries in pounds. Additionally, this repor t shall show total
wholesale sales in dollars . The Authority shall have oversight and
auditing responsibilities to ensure that all marijuana being grown
by licensed medical marijuana commercial growers is accounted for.
D. There shall be no limits on how much marijuana a lic ensed
medical marijuana commercial grower can grow.
E. Beginning on the effective date of this act June 1, 2023,
licensed medical marijuana commercial growers shall be authorized to
package and sell pre-rolled marijuana to licensed medical marijuana
dispensaries. The products described in this subsection shall
contain only the ground parts of t he marijuana plant and shall not
include marijuana concentrates or derivatives. The total net weight
of each pre-roll packaged and sold by licensed medical marijuana
commercial growers shall not exc eed one (1) gram. These products
must be tested, package d and labeled in accordance with Oklahoma law
and rules promulgated by the Authority.
F. A commercial grower applicant or licensee shall, prior to
engaging in a commercial g rowing operation, either:
1. Acquire a water use permit from the Oklahoma Water Resources
Board pursuant to Section 105.9 of Title 8 2 of the Oklahoma Statutes
if the commercial growing operat ion uses groundwater or water from
an Oklahoma steam; or
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2. Acquire an official statement of permissi on from the county,
municipality, or other politica l subdivision that provides water if
the commercial growing operation uses rural or municipal water and
register the statement with the Authority.
Upon failure of a commercial grower licensee to register the
water source of a commercial growing operation with the Authority
or, if applicable, receive a permit by the Water Res ources Board
after ninety (90) days following license rene wal, the Authority
shall revoke the commercial grower license.
SECTION 2. AMENDATORY 63 O.S. 2021, Sec tion 423, as last
amended by Section 3, Chapter 332, O.S.L. 2022 (63 O. S. Supp. 2022,
Section 423), is amended to read as follows:
Section 423. A. The Oklahoma Medical Mar ijuana Authority shall
make available on its website in an easy-to-find location an
application for a medical marijuana processing lice nse. The
Authority shall be authorized to issue two t ypes of medical
marijuana processor licenses based on the lev el of risk posed by the
type of processing conducted:
1. Nonhazardous medical marijuana processor license; and
2. Hazardous medical marijua na processor license .
The application fee for a nonhazardous or hazardous medical
marijuana processor license shall be paid by the applicant in the
amounts provided for in Section 427.14 of this title . A method of
payment shall be provided on the website of the Authority. The
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Authority shall have ninety (90) days to review the application;
approve, reject or deny the application; and mail the approval,
rejection or denial letter stating the reasons for the rejection or
denial to the applicant.
B. The Authority shall approve all applications which mee t the
following criteria:
1. The applicant must be twenty-five (25) years of age or
older;
2. The applicant, if applying as an individual, must show
residency in the State of Oklahoma;
3. All applying entities must show that all members, managers,
and board members are Oklahoma residents;
4. An applying entity may show ownership of non -Oklahoma
residents, but that percentage ownership may not exceed t wenty-five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma; and
6. All applicants must disclose all ownership interests in the
processing operation; and
7. The applicant shall furnish doc uments evidencing compliance
with the provisions of subsection G of this section .
Applicants with a nonviolent felony conviction in the last two
(2) years, any other felony conviction in the last five (5) years,
inmates in the custody of the Department of Corrections or any
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person currently incarcerate d shall not qualify for a medic al
marijuana processing license.
C. 1. A licensed processor may take marijuana plants and
distill or process these plants into concentrates, edibles, and
other forms for consumption.
2. As required by subsection D of this section, th e Authority
shall make available a set of standards which shall be used by
licensed processors in the preparation of edible marijuana products.
The standards should be in line with curr ent food preparation
guidelines. No excessive or punitive rules may b e established by
the Authority.
3. Up to two times a year, the Authority may inspect a
processing operation and de termine its compliance with the
preparation standards. If deficiencies are found, a written report
of the deficiency shall be issued to the licensed processor. The
licensed processor shall have one (1) month to correct the
deficiency or be subject to a f ine of Five Hundred Dollars ($500.00)
for each deficiency.
4. A licensed processor may sell marijuana pr oducts it creates
to a licensed dispensary or any other licensed processor. All sales
by a licensed proces sor shall be considered wholesale sales and
shall not be subject to taxation.
5. Under no circumstances may a licensed process or sell
marijuana or any marijuana product directly to a licensed medical
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marijuana patient or licensed caregiver. However, a licensed
processor may process cannabis into a concentrated form for a
licensed medical marijuana patient for a fee.
6. Licensed processors shall be required to complete a monthly
yield and sales report to the Authority. This report shall be due
on the fifteenth of each month and shall provide reporting on the
previous month. This report shall detail the amount of marijuana
and medical marijuana products purchased in pounds, the a mount of
marijuana cooked or processed in pounds, and the amount of waste i n
pounds. Additionally, this repor t shall show total wholesale sales
in dollars. The Authority shall have oversight and auditing
responsibilities to ensu re that all marijuana being processed is
accounted for.
D. The Authority shall oversee the inspection and compliance of
licensed processors producing products with marijuana as an
additive. The Authority shall be compelled to, within thirty (30)
days of passage of this initiative, appoin t twelve (12) Oklahoma
residents to the Medical Marijuana Advisory Council, who are
marijuana industry experts, to create a list of food safety
standards for processing and handling me dical marijuana in Oklahoma.
These standards shall be adopted by the Authority and the Authority
may enforce these standards for licensed processors. The Authority
shall develop a standards review procedure and these standards can
be altered by calling anothe r council of twelve (12) Oklahoma
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marijuana industry experts . A signed letter of twenty operating,
licensed processors shall constitute a need for a new council and
standards review.
E. If it becomes permissible under federal law, marijuana may
be moved across state lines.
F. Any device used for the processing or consumption of medical
marijuana shall be considered legal to be sold, manufactured,
distributed and possessed . No merchant, wholesaler, manufacturer or
individual may be unduly harassed or prosecuted for selling,
manufacturing or possessing marijuana paraphernalia .
G. A processor applicant or licensee shall, prior to engaging
in a processing operation, either:
1. Acquire a water use permit from the Oklahoma Water Resources
Board pursuant to Section 105.9 of Title 82 of the Oklahoma Statutes
if the processing operation uses groundwater or water from an
Oklahoma steam; or
2. Acquire an official statement of permission from the county,
municipality, or other political subdivision that provides water if
the processing operation uses rural or municipal water and regi ster
the statement with the Authority.
Upon failure of a processor licensee to register the water
source of a processing operation with the Authority or, if
applicable, receive a permit by the Oklahoma Water Resources Board
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after ninety (90) days following license rene wal, the Authority
shall revoke the processor license.
SECTION 3. This act shall become effective November 1, 2 023.
59-1-177 MR 1/3/2023 4:37:29 PM