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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 134 By: Rogers
AS INTRODUCED
An Act relating to medical marijuana; amending 63
O.S. 2021, Sections 421, as last amended by Section
1, Chapter 332, O.S.L. 2022 , 422, as last amended by
Section 2, Chapter 332, O.S.L. 2022 , 423, as last
amended by Section 3, Chapter 332, O.S.L. 2022 , and
424 (63 O.S. Supp. 2022, Sectio ns 421, 422, and 423),
which relate to licensing requirements for medical
marijuana dispensaries, commerc ial growers,
processors, and transporters; providing for temporary
and annual licenses; providing statutory references
for fees; updating language; amending 63 O.S. 2021,
Sections 427.14, as amended by Section 2, Chapter
328, O.S.L. 2022 and 427.16, as last amended by
Section 16, Chapter 251, O.S.L. 2022 (63 O.S. Supp.
2022, Sections 427.14 and 427.16), which relate to
the Oklahoma Medical Marijuana and Patient Protection
Act; creating temporary and annual licensing program
for certain medical marijuana businesses; stating
conditions for temporary licenses; requiring
adherence to certain rules and regulations;
clarifying obligations of the Ok lahoma Medical
Marijuana Authority when issuing temporary licenses;
stating length of term of temporary licenses;
providing for extensions under certain circumstances;
establishing fees for temporary licenses and
extensions; requiring submission of certain
information to the Authority; authorizin g rejection
of applications; clarifying circumstances that allow
for the issuance of annual medical marijuana busin ess
licenses; updating language; creating temporary
licensing program for medical marijuana transporters;
and declaring an emergency .
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BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 421, as last
amended by Section 1, Chapter 332, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 421), is amended to read as follows:
Section 421. A. The Oklahoma Medical Marijuana Authority shall
make available on its website in an easy-to-find location an
application for a temporary medical marijuana dispensary license and
an annual medical marijuana dispensary license. The application fee
to fees for the temporary and annual license shall be paid by the
applicant shall be in the amounts provided for in Section 427.14 of
this title. A method of payment for the application fee fees shall
be provided on the website of the Authority. Dispensary Medical
marijuana dispensary applicants must shall all be residents of
Oklahoma. Any entity applying for a temporary or annual medical
marijuana dispensary license must be owned by an Oklahom a resident
and must be registere d to do business in Oklahoma. The Authority
shall have ninety (90) business days to review the application for a
temporary medical marijuana dispensary license ; approve, reject or
deny the application; and mail the approval, rejection or denial
letter stating reasons for the rejection or denial to the applicant.
B. The In addition to the requirements p rovided for in the
Oklahoma Medical Marijuana and P atient Protection Act, the Authority
shall approve all applications which m eet the following criteria:
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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 this state;
3. All applying entities must show that a ll members, managers,
and board members are Oklahoma residents;
4. An applying entity may sh ow ownership of non-Oklahoma
residents, but that pe rcentage ownership may not exceed twe nty-five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma this state; and
6. All applicants must disclose all ownership interests in the
dispensary.
Applicants with a nonviolent felony conviction in the last two
(2) years, any other felony conviction i n the last five (5) years,
inmates in the custody of the Department of Corrections or any
person currently incarcerated shall not qualify for a temporary or
annual medical marijuana dispensary license.
C. Licensed medical marijuana dispensaries shall be required to
complete a monthly sal es report to the Authority. This report shall
be due on the fifteenth of each month and provide reporting on the
previous month. This report shall detail the weight of marijuana
purchased at wholesale and the weight of marijuan a sold to licensed
medical marijuana patients and license d caregivers and account for
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any waste. The report shall show total sales in dollars, tax
collected in dollars, and tax due in d ollars. The Authority shall
have oversight and auditing responsibilities to ensure that all
marijuana being grown is accounted for.
D. Only a licensed medical mar ijuana dispensary may conduct
retail sales of marijuana or marijuana derivatives. Beginning on
the effective date of this act November 1, 2021, licensed medical
marijuana dispensaries shall be authorized to package and sell pre -
rolled marijuana to licensed medical marijuana pati ents and licensed
caregivers. The products described in t his subsection shall contain
only the ground parts of the marijuana p lant and shall not include
marijuana concentrates or derivatives . The total net weight of each
pre-roll packaged and sold by a m edical marijuana dispensary shall
not exceed one (1) gram. These products shall be tested, packaged
and labeled in accordance with Oklahoma law and rules promulgated by
the Authority.
E. No medical marijuana dispensary shall offer or allow a
medical marijuana patient licensee, caregiver licensee or other
member of the public to handle or otherwise have physical contact
with any medical marijuana not contained in a sealed or separate
package. Provided, such prohibition shall not pr eclude an employee
of the medical marijuana dispensary from handling loose or
nonpackaged medical marijuana to be place d in packaging consistent
with the Oklahoma Medical Marijuana and Patient Protection Act and
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the rules promulgated by the Authority for the packaging of medical
marijuana for retail sale. Provided, further, such prohibition
shall not prevent a medical marijuana dispensary from displaying
samples of its medical marijuana in separate display cases, jars or
other containers and allowing medic al marijuana patient licensees
and caregiver licensees the ability to handle or smell the various
samples as long as th e sample medical marijuana is used for display
purposes only and is not offered for retail sale.
SECTION 2. AMENDATORY 63 O.S. 2021, Sec tion 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 Authori ty shall
make available on its website in an easy-to-find location an
application applications for a temporary medical marijuana
commercial grower license and an annual medical marijuana commercial
grower license. The application fee fees for the temporary or
annual license shall be paid by the applicant in the amounts
provided for in Section 427.14 of this title. A method of payment
for the application fee fees shall be provided on the we bsite of the
Authority. The Authority shall have ninety (90) days to review the
application for a temporary medical marijuana commercial grower
license; 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.
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B. The In addition to the requirements provided for in the
Oklahoma Medical Mari juana and Patient Protection Act, 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 individua l, must show
residency in the State of Oklahoma this state;
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 owners hip may not exceed twenty-five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma this state; and
6. All applicants must disclose all owner ship interests in the
commercial grower operation.
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 D epartment of Corrections or any
person currently incarcerated shall not qualify for a temporary or
annual medical marijuana 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
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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 complete 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, the amount of marijuana sold
to licensed processors in pounds, the amount of wa ste in pounds, and
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 th at all marijuana being grown
by licensed medical marijuana commercial growers is accounted for.
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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 exceed one (1) gram. These products
must be tested, package d and labeled in accordance with Oklahoma law
and rules promulgated by the Authority.
SECTION 3. AMENDATORY 63 O.S. 2021, Section 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 temporary medical marijua na processor license and
annual medical marijuana processing processor license. The
Authority shall be authorized to issue two t ypes of annual medical
marijuana processor licenses based on the level of risk posed by the
type of processing conducted:
1. Nonhazardous medical marijuana processor license; and
2. Hazardous medical marijua na processor license .
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The application fee for a nonhazardous or hazardous medical
marijuana processor license fees for the temporary or annual 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 Authority shall have ninety
(90) days to review the temporary medical marijuana p rocessor
license application; approve, reject or deny the application; and
mail the approval, rejection or deni al 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 sho w
residency in the State of Oklahoma this state;
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 pe rcentage ownership may not excee d twenty-five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma this state; and
6. All applicants must disclose all ownership interests in the
processing operation.
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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
person currently incarcerate d shall not qualify for a temporary
medical marijuana processing processor license.
C. 1. A licensed medical marijuana processor may take
marijuana plants and dis till or process these plants into
concentrates, edibles, and other forms for consumption.
2. As required by subsection D of this section, th e The
Authority shall make available a set of standards which shall be
used by licensed medical marijuana processors in the preparation of
edible marijuana products . The standards should be in line with
current food preparation guidelines . No excessive or punitive rules
may be established by the Authority.
3. Up to two times a year, the Authority may inspect a
processing operation and determine its compliance with the
preparation standards . If deficiencies are found, a written report
of the deficiency shall be issued to the licensed medical marijuana
processor. The licensed medical marijuana processor shall have one
(1) month to correct the deficiency or be subje ct to a fine of Five
Hundred Dollars ($500.00) for each deficiency.
4. A licensed medical marijuana processor may sell marijuana
products it creates to a licensed medical marijuana dispensary or
any other licensed medical marijuana processor. All sales by a
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licensed medical marijuana processor shall be considered wholesale
sales and shall not be subject to taxation.
5. Under no circumstances may a licensed processor sell
marijuana or any marijuana product directly to a licensed medical
marijuana patient or licensed medical marijuana caregiver. However,
a licensed medical marijuana processor may process cannab is into a
concentrated form for a licensed medical marijuana patient for a
fee.
6. Licensed medical marijuana 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 mo nth. This report shall detail the
amount of marijuana and medical marijuana products purchased in
pounds, the amount of marijuana cooked or processed in pounds, and
the amount of waste i n pounds. Additionally, this report shall show
total wholesale sales in dollars. The Authority shall have
oversight and auditing responsibilities to ensure that all marijuana
being processed is accounted for.
D. The Authority shall oversee the inspection and compliance of
licensed medical marijuana processors producing products with
marijuana as an additive . The Authority shall be compelled to,
within thirty (30) days of passage of this initiative, appoint
twelve (12) Oklahoma residents to the Medical Marijuana Advisory
Council, who are marijuana industry experts, to create a list of
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food safety standards for processing and handling medical marijuana
in Oklahoma. These standards shall be adopted by the Authority and
the Authority may enforce these standards for licensed medical
marijuana processors. The Authority shall develop a standards
review procedure and these stan dards can be altered by calling
another council of twelve (12) Oklahoma 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 unde r 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 poss essed. No merchant, wholesaler, manufacturer or
individual may be unduly harassed or prosecuted f or selling,
manufacturing or possessing marijuana paraphernalia .
SECTION 4. AMENDATORY 63 O.S. 2021, S ection 424, is
amended to read as follows:
Section 424. A. A temporary medical marijuana transporter
license or an annual medi cal marijuana transportation transporter
license will shall be issued to qualifying applicants for a medical
marijuana retail, growing, or processing dispensary, medical
marijuana commercial growe r, or medical marijuana processor license.
The transportation temporary or annual medical marijuana transporter
license will shall be issued at the time of approval of a retail,
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growing, or processing the temporary or annual medical marijuana
dispensary, medical marij uana commercial grower, or medical
marijuana processor license. The fees for the temporary or annual
license shall be paid by the app licant in the amounts provided for
in Section 427.14 of this title.
B. A transportation medical marijuana transporter license will
shall allow the holder to transport medical marijuana from an
Oklahoma licensed Oklahoma-licensed medical marijuana retailer,
licensed growing facility, or licensed processor facility to an
Oklahoma licensed medical marijuana retailer, licensed g rowing
facility, or licensed processing facility dispensary, medical
marijuana commercial grower facility, or medical marijuana proces sor
facility to an Oklahoma -licensed medical marijuana dispensary,
medical marijuana commercial grower facility, or medical marijuana
processing facility.
C. All medical marijuana or medical marijuana products shall be
transported in a locked container an d clearly labeled “Medical
Marijuana or Derivative ”.
SECTION 5. AMENDATORY 63 O.S. 2021, Sec tion 427.14, as
amended by Section 2, Chapter 3 28, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 427.14), is amended to read as follows:
Section 427.14. A. There is hereby crea ted the medical
marijuana business license, which shall include the following
categories:
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1. Medical marijuana commercial grower;
2. Medical marijuana processor;
3. Medical marijuana dispensary;
4. Medical marijuana transporter; and
5. Medical marijuana testing laboratory.
B. The Oklahoma Medical Marijuana Authority, with the aid of
the Office of Management and Enterprise Services, shall develop a
website for medical marijuana business license applications.
C. The Authority shall make available on its websit e in an
easy-to-find location, applications for a temporary medical
marijuana business license and annual medical marijuana busin ess
license.
D. The annual, nonrefundable application fee for a medical
marijuana business license shall be Two Thousand Five Hundred
Dollars ($2,500.00) Upon the effective date of this act, the
Authority shall require all per sons or entities seeking init ial
licensure as a medical marijuana commer cial grower, medical
marijuana processor, medical marijuana dispensary, or medic al
marijuana transporter to first apply for a temporary medical
marijuana business license.
1. A temporary medical marijuana business license is a
conditional license and does not authorize the licensee to conduct
any sales of medical marijuana or marijuana products, the growing or
processing of marijuana, or the transportation of any medical
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marijuana or marijuana products by the licensee. A temporary
medical marijuana business licensee shall follow all applicable
rules and regulations promulgated by the Authority.
2. A temporary medical marijuana business license does not
obligate the Authority to issue an annual medical mariju ana business
license nor does the temporary medical marijuana business license
create a vested right in the holder to either an extension of the
temporary medical marijuana business license or to the granting of a
subsequent annual medical marijuana business license.
3. A temporary medical marijuana business license issued under
the provisions of this subsection shall be valid for one hundred
eighty (180) days from its effective date.
4. A temporary medical marijuana business license may be
extended by the Authority for additional ninety-day periods not to
exceed eighteen (18) months if:
a. an application for an annual license has been
submitted to the Authority prior to the initial
expiration date of the tempor ary medical marijuana
business license, and
b. the Authority determines that the application and
required documentation submitted by the applicant for
an annual medical marijuana business license is
deficient in some manner.
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5. The nonrefundable applicati on fee for a temporary medical
marijuana business license shall be One Thousand Dollars
($1,000.00). A nonrefundable fee of One Thousand Dollars
($1,000.00) shall be assessed for every ninety-day extension
requested by the holder of a temporary medical ma rijuana business
license and subsequently granted by the Authority.
6. In addition to the general requirements provided for in
subsection E of this section, applicants for a temporary medical
marijuana business license or applicants applying to renew a medical
marijuana business license shall submit the following to the
Authority:
a. business-formation documents, which may include, but
not be limited to, articles of incorporatio n,
operating agreements, partnership agreements, and
fictitious business name s tatements. The applicant
shall also provide all documents filed with the
Secretary of State,
b. financial information pertaining to the operations of
the medical marijuana business, which shall include
the following:
(1) a list of funds belonging to the a pplicant held
in savings, checking, or ot her accounts
maintained by a financial institution. The
applicant shall provide for each account the name
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of the financial institution, the address of the
financial institution, account type, account
number, and the amount of money in the account,
(2) a list of loans made to the applicant for the
purposes of applying for or operating a medical
marijuana business. For each loan, the applicant
shall provide the amount of the loan, the date of
the loan, term of the loan, security provided for
the loan, and the name, address, and phone number
of the lender,
(3) a list of investments made into the medical
marijuana business. For each investment, the
applicant shall provide the amount of the
investment, the date of the investment, term of
the investment, and the name, address, and phone
number of the investor,
(4) a list of all monetary gifts, equipment, and
property of any kind given to the applicant for
the purpose of or in exchange for applying for or
operating a medical marijuana business. For each
gift, the applicant shall provide the value or a
description of the gift and the name, address,
and phone number of the provider of the g ift,
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(5) a complete list of every individual who has a
financial interest in the medical marijuana
business not otherwise disclosed in divisions (1)
through (4) of this subparagraph, along with a
description of the financial interest, and
(6) whether the applicant has an ownership or a
financial interest in any other medical marijuana
business licensed under the provisions of the
Oklahoma Medical Marijuana and Patient Protection
Act,
c. a complete and detailed diagram of the proposed
premises. If changes to the proposed premises occur
during the application period, a revised set of plans
shall be submitted to the Authority for fi nal
inspection. The diagram shall be to scale and shall
show the following:
(1) boundaries of the property and the proposed
premises to be licensed, showing all boundaries,
dimensions, entrances and exits, interior
partitions, walls, rooms, windows, doorways, and
common or shared ent ryways, and shall include a
brief statement or description of the principal
activity to be conducted therein,
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(2) the location of medical marijuana business
activities that will take place in each area of
the premises, and limited-access areas,
(3) where all cameras are located and a number
assigned to each camera for identification
purposes, and
(4) if the proposed premises consists of only a
portion of the property, labels indicating which
part of the property is the proposed premises and
what the remaining prope rty is used for,
d. if the applicant is not the landowner of the real
property upon which the premises is located, the
applicant shall provide to the Authority a document
from the landowner or the agent of the landowner that
states that the applicant has t he right to occupy the
property and acknowledging the applica nt may use the
property for the medical marijuana business activity
for which the applicant is applying for licensure. An
applicant shall also provide a copy of the rental
agreement, as applicab le,
e. if the applicant is the landowner of the real property
upon which the premises is located, the applicant
shall provide to the Authority a copy of the title or
deed to the property,
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f. if the applicant is applying for a medical marijuana
commercial grower license, the applicant shall also
submit the following:
(1) for indoor and mixed light cultivation,
identification of all power sources for
cultivation activities including, but not limited
to, illumination, heating, cooling, and
ventilation,
(2) if the applicant is proposing to use a diversion
from a waterbody, groundwater well, or rain
catchment system as a water source for
cultivation, include the following locations on
the property diagram with locations also provided
as coordinates in either la titude and longitude
or the Oklahoma Coordinate System:
(a) sources of water used, including the
location of waterbody diversion , pump
location, and distribution system, and
(b) location, type, and capacity of each storage
unit to be used for cultivation , and
(3) a proposed cultivation plan, which shall include
identification of all water sources used for
cultivation activities , and
g. evidence of insurance including, but not limited to:
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(1) general liability insurance,
(2) workers’ compensation insurance or a copy of an
Affidavit of Exempt St atus filed with the
Workers’ Compensation Commission if compensation
coverage is not required pursuant to the
Administrative Workers’ Compensation Act, and
(3) product liability insurance.
7. The Authority may request additional information from the
applicant.
8. The Authority may reject an application for an annual
medical marijuana business license if the requirements for a
temporary medical marijuana business license or any provision of the
Oklahoma Medical Marijuana and Patient Protection Act are not
satisfied.
For purposes of this subsection, “financial interest” shall
include any contractual agreements for profit-sharing,
subcontracting, or similar financial arrangements; provided, that
such disclosures alone shall not automatically indicate ownership of
the license or require disclosure as an owner of the l icense.
E. All applicants seeking licensure or licensure renewal as a
medical marijuana business shall comply with the follow ing general
requirements:
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1. All applications for licenses and registrations authorized
pursuant to this section shall be made upon forms prescribed by the
Authority;
2. Each application shall identify the city or county in which
the applicant seeks to o btain licensure as a medical marijuana
business;
3. Applicants shall submit a complete application to the
Authority before the application may be accep ted or considered;
4. All applications shall be complete and accurate in every
detail;
5. All applications shall include all attachments or
supplemental information required by the forms supplied by the
Authority;
6. All applications shall be accompanied by a full remittance
for the whole amount of the application fees. Application fe es are
nonrefundable;
7. All applicants shall be approved for licensing review that,
at a minimum, meet the following criteria:
a. twenty-five (25) years of age or older,
b. if applying as an individual, proof that the applicant
is a resident of this state pursuant to paragraph 11
of this subsection,
c. if applying as an entity, proof that seventy-five
percent (75%) of all members, managers, executive
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officers, partners, board m embers or any other form of
business ownership are residents of this state
pursuant to paragraph 11 of this subsection,
d. if applying as an individual or entity, proof that the
individual or entity is r egistered to conduct busin ess
in this state,
e. disclosure of all ownership interests pursu ant to the
Oklahoma Medical Marijuana and Patient Protection Act,
and
f. proof that the medical marijuana business, medical
marijuana research facility, medical mari juana
education facility and medical marijuana waste
disposal facility applicant or license e has not been
convicted of a nonviolent felony in the last two (2)
years, or any other felony conviction within the last
five (5) years, is no t a current inmate in the custody
of the Department of Corrections, or currently
incarcerated in a jail or correc tions facility;
8. There shall be no limit to the number of medical marijuana
business licenses or categories that an individual or entity can
apply for or receive , although each applica tion and each category
shall require a separate application and appl ication fee. A
commercial grower, processor and dispensary, or any combination
thereof, are authorized to share the same address or physical
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location, subject to th e restrictions set fort h in the Oklahoma
Medical Marijuana and Patient Protection Act;
9. All applicants for a medical marijuana business license,
research facility license or education facility license authorized
by the Oklahoma Medi cal Marijuana and Pa tient Protection Act, or for
a renewal of such license, shall undergo a state criminal history
background check conducted by the Oklahoma State Bureau of
Investigation (OSBI) within thirty (30) days prior to the
application for the lice nse including:
a. individual applicants applying on their own behalf,
b. individuals applying on behalf of an entity,
c. all principal officers of an entity, and
d. all owners of an entity as defined by the Oklahoma
Medical Marijuana and Patient Protection Act;
10. All applicable fees charged by the OSBI are the
responsibility of the applicant and shall not be higher than fees
charged to any other person or industry for such background checks;
11. In order to be considered a resident of this state for
purposes of a medical marijuana business application, all applicants
shall provide proof of state residency for at least two (2) years
immediately preceding the date of application or five (5) years of
continuous state residency during the preceding twenty -five (25)
years immediately preceding the date of application. Sufficient
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documentation of proof of state residency shall include a
combination of the following:
a. an unexpired state-issued driver license,
b. a state-issued identification card,
c. a utility bill preceding the date of application,
excluding cellular telephone and Internet bills,
d. a residential property deed to property in this state,
and
e. a rental agreement preceding the date of application
for residential property located in this state.
Applicants that were issued a medical marijuana business license
prior to August 30, 2019, are hereby exempt from the two-year or
five-year state residence requirement menti oned above;
12. All license applicants shall be required to submit a
registration with the Oklahoma State Bureau of Narcotics and
Dangerous Drugs Control as provided in Sections 2-302 through 2-304
of this title;
13. All applicants sh all establish their identity through
submission of a color copy or digital image of one of the following
unexpired documents:
a. front of a state-issued driver license,
b. front of a state-issued identification card,
c. a United States passport or other photo identification
issued by the United States government, or
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d. a tribal identification card approved for
identification purposes by the Department of Public
Safety; and
14. All applicants shall submit an applicant photograph.
F. The Authority shall review the medical marijuana business
application; approve, reject or deny the application; and mail the
approval, rejection, denial or status-update letter to the applicant
within ninety (90) business days of receipt of the application.
G. 1. The Authority shall review the medical marijuana
business license applications and conduct all investigations,
inspections, and interviews before approving the application for an
annual medical marijuana business license .
2. The annual, nonrefundable application fee f or a medical
marijuana business license shall be One Thousand Five Hundred
Dollars ($1,500.00).
3. Approved applicants shall be issued a an annual medical
marijuana business license f or the specific category applied under,
which shall act as proof of their approved status. Rejection and
denial letters shall provide a reason for the rejection or denial.
Applications for an annual medical marijuana bus iness license may
only be rejected or denied based on the applicant not meeting the
standards set forth in the provisions of subsection D of this
section for a temporary medical marijuan a business license, the
provisions of the Oklahoma Medical Marijuana and Patient Protection
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Act and Sections 420 through 426.1 of this title, improper
completion of the application, or for a reason provided for in the
Oklahoma Medical Marijuana and Patient Protectio n Act and Sections
420 through 426.1 of this title. If an application for an annual
medical marijuana business license is rejected for failure to
provide required information, the applicant shall have thirty (30)
days be granted an extension of time as provided for in paragraph 4
of subsection D of this section to submit the required information
for reconsideration. No additional application fee and shall be
charged for such reconsideration assessed a nonrefundable fee o f One
Thousand Dollars ($1,000.00) for every ninety-day extension
requested by the applicant and subsequently granted by the
Authority. Unless the Authority determines otherwise, an
application that has been resubmitted but is still incomplete or
contains errors that are not clerical or typographical in nature
shall be denied.
3. 4. Status-update letters shall provide a reason for delay in
either approval, rejection or denial should a situation arise in
which an application was submitted properly but a delay in
processing the application occurred.
4. 5. Approval, rejection, denial or statu s-update letters
shall be sent to the applicant in the same method the application
was submitted to the Authority.
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6. Medical marijuana businesses issued a medical marijuana
business license prior to the effe ctive date of this act shall be
required to submit business-formation documents, financial
information, and insurance information pertaining to the operations
of the medical marijuana business, as prescribed in subparagraphs a,
b, c, d, and g of paragraph 6 of subsection D of this section, to
the Authority upon renewal of the medical marijuana business
license. The medical marijuana business licensee shall have ninety
(90) days after the date of renewal to submit the required
documentation to the Authority. The medical marijuana business
licensee shall be aut horized to continue operations dur ing the
ninety-day period; provided, that if the medical marijuana business
licensee fails to submit the required documentation prior to the
expiration of the ninety-day period, the license of the medical
marijuana business shall be suspended until such time as the
documentation is submitted to the Authori ty.
7. Medical marijuana businesses that have been issued a
temporary and annual medical marijuana business license pursuant to
the provisions of subs ection D of this sec tion shall be required to
annually submit updated business-formation documents, finan cial
information, and insurance information pertaining to the o perations
of the medical marijuana business, as prescribed in subparagraphs a,
b, c, d, and g of paragraph 6 of subsection D of this section, to
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the Authority when seeking renewal of the medical marijuana business
license.
H. A license for a medical marijuana business, medical
marijuana research facilit y, medical marijuana education facility or
medical marijuana waste disposal facility shall not be issued to or
held by:
1. A person until all required fees have been paid;
2. A person who has been convicted of a nonviolent felony
within two (2) years of the date of application, or within five (5)
years for any other felony;
3. A corporation, if the criminal history of any of its
officers, directors or stockholders indicates that the officer,
director or stockholder has been convicted of a nonviolent fe lony
within two (2) years of the date of applicati on, or within five (5)
years for any other felony;
4. A person under twenty-five (25) years of age;
5. A person licensed pursuant to this section who, during a
period of licensure, or who, at the time o f application, has failed
to:
a. file taxes, interest or penalties due related to a
medical marijuana business, or
b. pay taxes, interest or penalties due related to a
medical marijuana business;
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6. A sheriff, deputy sheriff, police officer or prosecuting
officer, or an officer or employee of the Authority or municipality;
7. A person whose authority to be a caregiver, as defined in
Section 427.2 of this title, has been revoked by the Authority; or
8. A person who was involved in the management or operations of
any medical marijuana business, m edical marijuana research facility,
medical marijuana ed ucation facility or medical marijuana waste
disposal facility that, after the initiation of a disciplinary
action, has had a medical marijuana license re voked, not renewed, or
surrendered during the f ive (5) years preceding submission of the
application and for the following violations:
a. unlawful sales or purchases,
b. any fraudulent acts, falsification of records or
misrepresentation to the Authority, medical marijuana
patient licensees, caregiver l icensees or medical
marijuana business licensees,
c. any grossly inaccurate or fraudulent reporting,
d. threatening or harming any medical marijuana patient,
caregiver, medical practitioner or employee of the
Authority,
e. knowingly or intentionally refusing to permit the
Authority access to premises or records,
f. using a prohibited, hazardous substance for processing
in a residential area,
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g. criminal acts relating to the operation of a medical
marijuana business, or
h. any violations that endanger public health and safety
or product safety.
I. In investigating the qualifications of an applicant or a
licensee, the Authority and municipalities may have access to
criminal history record information furnished by a criminal justice
agency subject to any restrictions imposed by su ch an agency.
J. The failure of an applicant or licensee to provide the
requested information by the Authority deadline may be grounds for
denial of the application.
K. All applicants and licensees shall submit information to the
Authority in a full, faithful, truthful and fair manner. The
Authority may recommend denial of an application where the applicant
or licensee made mis statements, omissions, misrepresentations or
untruths in the application or in connection with the backgrou nd
investigation of the applicant. This type of conduct may be grounds
for administrative action against the applicant or licensee. Typos
and scrivener errors shall not be grounds for denial.
L. A licensed medical marijuana business premises shall be
subject to and responsible for compliance with applicable provisions
consistent with the zoning where such business is located as
described in the most recent versions of th e Oklahoma Uniform
Building Code, the International Building Code and the International
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Fire Code, unless granted an exemption by a municipality or
appropriate code enforcement entity.
M. All medical marijuana business, medical marij uana research
facility, medical marijuana education facility and medical marijuana
waste disposal facility licensees shall pay the relevant licensure
fees prior to receiving licensure to operate.
N. A medical marijuana business, medical marijuana research
facility, medical mar ijuana education fac ility or medical marijuana
waste disposal facility that attempts to renew its license after the
expiration date of the license shall pay a late renewal fee in an
amount to be determined by the Executive Director of the Authority
to reinstate the license. Late renewal fees are nonrefundable. A
license that has been expired for more than ninety (90) days shall
not be renewed.
O. No medical marijuana business, medical marijuana research
facility, medical marijuana education facility or m edical marijuana
waste disposal facility shall possess, sell or t ransfer medical
marijuana or medical marijuana products without a valid, unexpired
license issued by the Authority.
P. A medical marijuana business license holder shall require
all individuals employed under their license to be issued a
credential pursuant to the provisions of Section 3 of this act
427.14a of this title prior to employment.
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SECTION 6. AMENDATORY 63 O.S. 2021, Sec tion 427.16, as
last amended by Section 16, Chapter 251, O.S.L. 2022 (63 O.S. Supp.
2022, Section 427.16), is amended to read as follows:
Section 427.16. A. There is hereby created a medical marijuana
transporter license as a category of the medical marijuana business
license.
B. Pursuant to Section 424 of this title, the Oklahoma Medical
Marijuana Authority sh all issue a temporary and an annual medical
marijuana transporter license to licensed medical marijuana
commercial growers, licensed medical marij uana processors, and
licensed medical marijuana dispensaries upon issuance of such
licenses and upon each renewal. Medical marijuana transporter
licenses shall also be issued to licensed medical marijuana research
facilities, licensed medical marijuana education facilities and
licensed medical marijuana testing laboratories upon issuance of
such licenses and upon each renewal.
C. A temporary or annual medical marijuana transporter license
may also be issued to qualifying appli cants who are registered with
the Secretary of State and otherwise meet the requirements for a
medical marijuana business license set forth in Section 427.14 of
this title, the Oklahoma Medical Marijuana and P atient Protection
Act, and the requirements set forth in this section to provide
logistics, distribution and storage of medical marijuana, medical
marijuana concentrate and medical marijuana products.
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D. A medical marijuana transporter license shall be va lid for
one (1) year and shall not be transferred with a change of
ownership. A licensed medical marijuana transporter shall be
responsible for all medical marijuana, medical marijuana concentrate
and medical marijuana products once the transporter takes control of
the product.
E. A transporter license shall be required for any person or
entity to transport or transfer medical marijuana, medical marijuana
concentrate or medical marijuana products from a licensed medical
marijuana business to another medic al marijuana business, or from a
medical marijuana business to a medical marijuana research facility
or medical marijuana education facility.
F. A medical marijuana transporter licensee may contract with
multiple licensed medical marijuana businesses.
G. A medical marijuana transporter may maintain a licensed
premises to temporarily store medical marijuana, medical marijuana
concentrate and medical marijuana products and to use as a
centralized distribution point. A medical marijuana transporter may
store and distribute medical marijuana, medical marijuana
concentrate and medical marijuana products from the licensed
premises. The licensed premises shall meet all security
requirements applicable to a medical marijuana business.
H. A medical marijuana tra nsporter licensee shall use the seed-
to-sale tracking system developed pursuant to the Oklahoma Medical
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Marijuana and Patient Protection Act to create shipping manifests
documenting the transport of medical marijuana, medical marijuana
concentrate and medi cal marijuana products throughout the state.
I. A licensed medical marijuana transporter may maintain and
operate one or more warehouses in the state to handle medical
marijuana, medical marijuana concentrate and medical marijuana
products. Each location shall be registered and inspected by the
Authority prior to its use.
J. With the exception of a lawful transfer between medical
marijuana businesses who are licensed to operate at the same
physical address, all medical marijuana, medical marijuana
concentrate and medical marijuana products shall be transported:
1. In vehicles equipped with Global Positioning System (GPS)
trackers;
2. In a locked container and clearly labeled “Medical Marijuana
or Derivative”; and
3. In a secured area of the vehicle tha t is not accessible by
the driver during transit.
K. A transporter agent may possess marijuana at any location
while the transporter agent is transferring marijuana to or from a
licensed medical marijuana business, licensed medical marijuana
research facility or licensed medical marijuana education facility.
The Authority shall administer and enforce the provisions of this
section concerning transportation.
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L. The Authority shall issue a transporter agent license to
individual agents, employees, officers or owners of a transporter
license in order for the individual to qualify to transport medical
marijuana, medical marijuana concentrate or medical marijuana
products.
M. The annual fee for a transporter agent license shall be
Twenty-five Dollars ($25.00) and shall be paid by the transporter
license holder or the individual applicant. Transporter license
reprints shall be Twenty Dollars ($20.00).
N. The Authority shall issue each transporter agent a registry
identification card within thirty (30) days of receipt of:
1. The name, address and date of birth of the person;
2. Proof of current state residency;
3. Proof of identity as required for a medical marijuana
business license;
4. Possession of a valid state-issued driver license;
5. Verification of employment with a licensed transporter;
6. The application and affiliated fee; and
7. A copy of the criminal background check conducted by the
Oklahoma State Bureau of Investigation, paid for by the applicant.
O. If the transporter agent application is denied, the
Authority shall notify the transporter in writing of the reason for
denying the registry identification card.
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P. A registry identification card for a transporter shall
expire one (1) year after the date of issuance or upon notification
from the holder of the transporter l icense that the transporter
agent ceases to work as a transporter.
Q. The Authority may revoke the registry identification card of
a transporter agent who knowi ngly violates any provision of this
section, and the transporter is subject to any other penalties
established by law for the violation.
R. The Authority may revoke or suspend the transporter license
of a transporter that the Authority determines knowingly aided or
facilitated a violation of any provision of this se ction, and the
license holder is subject to any other penalties established in law
for the violation.
S. Vehicles used in the transport of medical marijuana or
medical marijuana product shall be:
1. Insured at or above the legal requirements in this state;
2. Capable of securing medical marijuana during transport; and
3. In possession of a shipping container as defined in Section
427.2 of this title capable of securing all transported products.
T. Prior to the transport of any medical marijuan a, medical
marijuana concentrate or medical marijuana products, an inventory
manifest shall be prepared at the origination point of the medical
marijuana. The inventory manifest shal l include the following
information:
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1. For the origination point of the medical marijuana:
a. the licensee number for the commercial grower,
processor or dispensary,
b. address of origination of transport, and
c. name and contact information for the orig inating
licensee;
2. For the end recipient license holder of the medical
marijuana:
a. the license number for the dispensary, commercial
grower, processor, research facility or education
facility destination,
b. address of the destination, and
c. name and contact information for the destination
licensee;
3. Quantities by weig ht or unit of each type of medical
marijuana product contained in transport;
4. The date of the transport and the approximate time of
departure;
5. The arrival date and estimated ti me of arrival;
6. Printed names and signatures of the personnel accompan ying
the transport; and
7. Notation of the transporting licensee.
U. 1. A separate inventory manifest shall be prepared for each
licensee receiving the medical marijuana.
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2. The transporter agent shall provide the other medical
marijuana business with a copy of the inventory manifest at the time
the product changes hands and after the other licensee prints his or
her name and signs the inventory manifest.
3. A receiving licensee s hall refuse to accept any medical
marijuana, medical marijuana concentrat e or medical marijuana
products that are not accompanied by an inventory manifest.
4. Originating and receiving licensees shall maintain copies of
inventory manifests and logs of qua ntities of medical marijuana
received for seven (7) years from date of re ceipt.
SECTION 7. It being immediately necessa ry for the preservation
of the public peace, health or saf ety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and app roval.
59-1-12 MR 1/4/2023 2:50:20 PM