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53	53	STATE OF OKLAHOMA
54	54
55	55	1st Session of the 59th Legislature (2023)
56	56
57	57	SENATE BILL 117 By: Bergstrom
58	58
59	59
60	60
61	61
62	62
63	63	AS INTRODUCED
64	64
65	65	An Act relating to medical marijuana, amending 63
66	66	O.S. 2021, Sections 422 , as last amended by Section
67	67	2, Chapter 332, O.S.L. 2022, and 423, as amended by
68	68	Section 3, Chapter 332, O.S.L. 2022 (63 O.S. Supp.
69	69	2022, Sections 422 and 423), which relate to medical
70	70	marijuana commercial grower and processin g licenses;
71	71	requiring applicant to furni sh certain documents
72	72	before operating; requiring li censee or applicant to
73	73	acquire a permit or official permission to register
74	74	with Oklahoma Medical Marijuana Authority ;
75	75	authorizing Authority to revoke license if not in
76	76	compliance; updating statutory language; and
77	77	providing an effective date.
78	78
79	79
80	80
81	81
82	82
83	83	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
84	84	SECTION 1. AMENDATORY 63 O.S. 2021, Section 422, as last
85	85	amended by Section 2, Chapter 332, O.S .L. 2022 (63 O.S. Supp. 2022,
86	86	Section 422), is amended to read as follows:
87	87	Section 422. A. The Oklahoma Medical Marijuana Authority shall
88	88	make available on its website in an easy-to-find location an
89	89	application for a medical marijuana commercial grower license. The
90	90	application fee shall be paid by the applicant in the amounts
91	91	provided for in Section 427.14 of this title. A method of payment
92	92
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143	143	for the application fee shall be provided on the we bsite of the
144	144	Authority. The Authority shall have ninety (90) days to review the
145	145	application; approve, reject or deny the application; and mail the
146	146	approval, rejection or denial letter stating the reasons for the
147	147	rejection or denial to the applicant.
148	148	B. The Authority shall approve all applications which meet the
149	149	following criteria:
150	150	1. The applicant must be twenty-five (25) years of age or
151	151	older;
152	152	2. The applicant, if applying as an individual, must show
153	153	residency in the State of Oklahoma;
154	154	3. All applying entities must show that all members, managers,
155	155	and board members are Oklahoma resi dents;
156	156	4. An applying entity may show owner ship of non-Oklahoma
157	157	residents, but that percentage ownership may not exceed twenty-five
158	158	percent (25%);
159	159	5. All applying individuals or entities must be registered to
160	160	conduct business in the State of Oklahoma; and
161	161	6. All applicants must disclose all owner ship interests in the
162	162	commercial grower operation; and
163	163	7. The applicant shal l furnish documents evidencing compliance
164	164	with the provisions of subsection F of this section.
165	165	Applicants with a nonviolent felony conviction in the last two
166	166	(2) years, any other felony conviction in the last five (5) years,
167	167
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218	218	inmates in the custody of the D epartment of Corrections or any
219	219	person currently incarcerated shall not qualify for a commercial
220	220	grower license.
221	221	C. A licensed medical marijuana commercial grower may sell
222	222	marijuana to a licensed medical marijuana dispensary or a licensed
223	223	medical marijuana processor. Further, sales by a licensed medical
224	224	marijuana commercial grower shall be considered wholesale sales and
225	225	shall not be subject to taxation. Under no circumstances may a
226	226	licensed medical marijuana commercial grower sell marijuana directly
227	227	to a licensed medical marijuana patient or licensed medical
228	228	marijuana caregiver. A licensed medical marijuana commercial grower
229	229	may only sell at the wholesale level to a licensed medical marijuana
230	230	dispensary, a licensed medical marijuana commercial grower or a
231	231	licensed medical marijuana processor. If the federal government
232	232	lifts restrictions on buying and selling marijuana between states,
233	233	then a licensed medical marijuana commercial grower would be allowed
234	234	to sell and buy marijuana wholesale from, or to, a n out-of-state
235	235	wholesale provider. A licensed medical marijuana commercial grower
236	236	shall be required to complet e a monthly yield and sales report to
237	237	the Authority. This report shall be due on the fifteenth of each
238	238	month and provide reporting on the previo us month. This report
239	239	shall detail the amount of marijuana harvested in pounds, the amount
240	240	of drying or dried marijuana on hand, t he amount of marijuana sold
241	241	to licensed processors in pounds, the amount of waste in pounds, and
242	242
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293	293	the amount of marijuana sold to licensed medical marijuana
294	294	dispensaries in pounds. Additionally, this repor t shall show total
295	295	wholesale sales in dollars . The Authority shall have oversight and
296	296	auditing responsibilities to ensure that all marijuana being grown
297	297	by licensed medical marijuana commercial growers is accounted for.
298	298	D. There shall be no limits on how much marijuana a lic ensed
299	299	medical marijuana commercial grower can grow.
300	300	E. Beginning on the effective date of this act June 1, 2023,
301	301	licensed medical marijuana commercial growers shall be authorized to
302	302	package and sell pre-rolled marijuana to licensed medical marijuana
303	303	dispensaries. The products described in this subsection shall
304	304	contain only the ground parts of t he marijuana plant and shall not
305	305	include marijuana concentrates or derivatives. The total net weight
306	306	of each pre-roll packaged and sold by licensed medical marijuana
307	307	commercial growers shall not exc eed one (1) gram. These products
308	308	must be tested, package d and labeled in accordance with Oklahoma law
309	309	and rules promulgated by the Authority.
310	310	F. A commercial grower applicant or licensee shall, prior to
311	311	engaging in a commercial g rowing operation, either:
312	312	1. Acquire a water use permit from the Oklahoma Water Resources
313	313	Board pursuant to Section 105.9 of Title 8 2 of the Oklahoma Statutes
314	314	if the commercial growing operat ion uses groundwater or water from
315	315	an Oklahoma steam; or
316	316
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367	367	2. Acquire an official statement of permissi on from the county,
368	368	municipality, or other politica l subdivision that provides water if
369	369	the commercial growing operation uses rural or municipal water and
370	370	register the statement with the Authority.
371	371	Upon failure of a commercial grower licensee to register the
372	372	water source of a commercial growing operation with the Authority
373	373	or, if applicable, receive a permit by the Water Res ources Board
374	374	after ninety (90) days following license rene wal, the Authority
375	375	shall revoke the commercial grower license.
376	376	SECTION 2. AMENDATORY 63 O.S. 2021, Sec tion 423, as last
377	377	amended by Section 3, Chapter 332, O.S.L. 2022 (63 O. S. Supp. 2022,
378	378	Section 423), is amended to read as follows:
379	379	Section 423. A. The Oklahoma Medical Mar ijuana Authority shall
380	380	make available on its website in an easy-to-find location an
381	381	application for a medical marijuana processing lice nse. The
382	382	Authority shall be authorized to issue two t ypes of medical
383	383	marijuana processor licenses based on the lev el of risk posed by the
384	384	type of processing conducted:
385	385	1. Nonhazardous medical marijuana processor license; and
386	386	2. Hazardous medical marijua na processor license .
387	387	The application fee for a nonhazardous or hazardous medical
388	388	marijuana processor license shall be paid by the applicant in the
389	389	amounts provided for in Section 427.14 of this title . A method of
390	390	payment shall be provided on the website of the Authority. The
391	391
392	392
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442	442	Authority shall have ninety (90) days to review the application;
443	443	approve, reject or deny the application; and mail the approval,
444	444	rejection or denial letter stating the reasons for the rejection or
445	445	denial to the applicant.
446	446	B. The Authority shall approve all applications which mee t the
447	447	following criteria:
448	448	1. The applicant must be twenty-five (25) years of age or
449	449	older;
450	450	2. The applicant, if applying as an individual, must show
451	451	residency in the State of Oklahoma;
452	452	3. All applying entities must show that all members, managers,
453	453	and board members are Oklahoma residents;
454	454	4. An applying entity may show ownership of non -Oklahoma
455	455	residents, but that percentage ownership may not exceed t wenty-five
456	456	percent (25%);
457	457	5. All applying individuals or entities must be registered to
458	458	conduct business in the State of Oklahoma; and
459	459	6. All applicants must disclose all ownership interests in the
460	460	processing operation; and
461	461	7. The applicant shall furnish doc uments evidencing compliance
462	462	with the provisions of subsection G of this section .
463	463	Applicants with a nonviolent felony conviction in the last two
464	464	(2) years, any other felony conviction in the last five (5) years,
465	465	inmates in the custody of the Department of Corrections or any
466	466
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517	517	person currently incarcerate d shall not qualify for a medic al
518	518	marijuana processing license.
519	519	C. 1. A licensed processor may take marijuana plants and
520	520	distill or process these plants into concentrates, edibles, and
521	521	other forms for consumption.
522	522	2. As required by subsection D of this section, th e Authority
523	523	shall make available a set of standards which shall be used by
524	524	licensed processors in the preparation of edible marijuana products.
525	525	The standards should be in line with curr ent food preparation
526	526	guidelines. No excessive or punitive rules may b e established by
527	527	the Authority.
528	528	3. Up to two times a year, the Authority may inspect a
529	529	processing operation and de termine its compliance with the
530	530	preparation standards. If deficiencies are found, a written report
531	531	of the deficiency shall be issued to the licensed processor. The
532	532	licensed processor shall have one (1) month to correct the
533	533	deficiency or be subject to a f ine of Five Hundred Dollars ($500.00)
534	534	for each deficiency.
535	535	4. A licensed processor may sell marijuana pr oducts it creates
536	536	to a licensed dispensary or any other licensed processor. All sales
537	537	by a licensed proces sor shall be considered wholesale sales and
538	538	shall not be subject to taxation.
539	539	5. Under no circumstances may a licensed process or sell
540	540	marijuana or any marijuana product directly to a licensed medical
541	541
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592	592	marijuana patient or licensed caregiver. However, a licensed
593	593	processor may process cannabis into a concentrated form for a
594	594	licensed medical marijuana patient for a fee.
595	595	6. Licensed processors shall be required to complete a monthly
596	596	yield and sales report to the Authority. This report shall be due
597	597	on the fifteenth of each month and shall provide reporting on the
598	598	previous month. This report shall detail the amount of marijuana
599	599	and medical marijuana products purchased in pounds, the a mount of
600	600	marijuana cooked or processed in pounds, and the amount of waste i n
601	601	pounds. Additionally, this repor t shall show total wholesale sales
602	602	in dollars. The Authority shall have oversight and auditing
603	603	responsibilities to ensu re that all marijuana being processed is
604	604	accounted for.
605	605	D. The Authority shall oversee the inspection and compliance of
606	606	licensed processors producing products with marijuana as an
607	607	additive. The Authority shall be compelled to, within thirty (30)
608	608	days of passage of this initiative, appoin t twelve (12) Oklahoma
609	609	residents to the Medical Marijuana Advisory Council, who are
610	610	marijuana industry experts, to create a list of food safety
611	611	standards for processing and handling me dical marijuana in Oklahoma.
612	612	These standards shall be adopted by the Authority and the Authority
613	613	may enforce these standards for licensed processors. The Authority
614	614	shall develop a standards review procedure and these standards can
615	615	be altered by calling anothe r council of twelve (12) Oklahoma
616	616
617	617
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667	667	marijuana industry experts . A signed letter of twenty operating,
668	668	licensed processors shall constitute a need for a new council and
669	669	standards review.
670	670	E. If it becomes permissible under federal law, marijuana may
671	671	be moved across state lines.
672	672	F. Any device used for the processing or consumption of medical
673	673	marijuana shall be considered legal to be sold, manufactured,
674	674	distributed and possessed . No merchant, wholesaler, manufacturer or
675	675	individual may be unduly harassed or prosecuted for selling,
676	676	manufacturing or possessing marijuana paraphernalia .
677	677	G. A processor applicant or licensee shall, prior to engaging
678	678	in a processing operation, either:
679	679	1. Acquire a water use permit from the Oklahoma Water Resources
680	680	Board pursuant to Section 105.9 of Title 82 of the Oklahoma Statutes
681	681	if the processing operation uses groundwater or water from an
682	682	Oklahoma steam; or
683	683	2. Acquire an official statement of permission from the county,
684	684	municipality, or other political subdivision that provides water if
685	685	the processing operation uses rural or municipal water and regi ster
686	686	the statement with the Authority.
687	687	Upon failure of a processor licensee to register the water
688	688	source of a processing operation with the Authority or, if
689	689	applicable, receive a permit by the Oklahoma Water Resources Board
690	690
691	691
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741	741	after ninety (90) days following license rene wal, the Authority
742	742	shall revoke the processor license.
743	743	SECTION 3. This act shall become effective November 1, 2 023.
744	744
745	745	59-1-177 MR 1/3/2023 4:37:29 PM

Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB117 Compare Versions