ENGR. H. A. to ENGR. S. B. NO. 801 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED HOUSE AMENDME NT TO ENGROSSED SENATE BILL NO . 801 By: Coleman of the Senate and Marti of the House An Act relating to medical marijuana; amendi ng 63 O.S. 2021, Section 425, as last amended by Section 5, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022, Section 425), which relates to discrimination against license holder; allowing for municipalities to modify their planning or zoning p rocedures to forbid medical marijuana businesses from operating in certain areas; and providing an effective date AUTHOR: Add the following House Coauthor: Bashore AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill and insert: "An Act relating to medical marijuana; requiring licensed medical marijuana commercial grow ers to inform retail suppliers or elect ric cooperatives as to their license status; requiring transmission of monthly usage reports in certain format to the Oklahoma Medical Marijuana Authority ; amending 63 O.S. 2021, Section 427.3, as amended by Section 8, Chapter 251, O.S.L. 2022 (63 O.S. Sup p. 2022, Section 427.3), which relates to the Oklahoma Medica l Marijuana and Patient Protection Act; requiring establishment of pro cedures to monitor, col lect, and transmit certain usage information of licensed medical marijuana commercial growers; providi ng for the transmission of monthly usage reports; requiring the development of rules, exemptions, and procedures; providing for license revocation; provid ing for codification; and providing an effective date. ENGR. H. A. to ENGR. S. B. NO. 801 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Secti on 180.12 of Title 17, unless there is created a duplication in numbering, reads as follows : Every existing licensed medical marijuana commercial grower shall be required to inform retail suppliers or electric cooperatives utilized of their status as a licensed medical marijuana commercial grower within thirty (30) days after the effective date of this act. Every licensed medical marijuana commercial grower that receives a license after the effective date of this act shall inform retail suppliers or electric cooperatives utilized of their status as a licensed medical marijuana commercial grower at the time of the connection of services. As provided for in paragraph 12 of subsection D of Section 427.3 of Title 63 of the Oklahoma Statutes, a licensed medical marijuana commercial g rower shall transmit monthly reports to the Oklahoma Medical Marijuana Authority providing the amount of electricity and water consumed. The monthly reports shall be transmitted in an electro nic format that can be integrated with the seed-to-sale software of the Authority. SECTION 2. AMENDATORY 6 3 O.S. 2021, Section 427.3, as amended by Section 8, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022, Section 427.3), is amended to read as follows: ENGR. H. A. to ENGR. S. B. NO. 801 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 427.3 A. There is hereby created the Oklahoma Medical Marijuana Authority which shall address issues related to the medical marijuana program in this state including, but not limited to, the issuance of patient licenses and medical marijuana business licenses, and the dispensing, cultivating, processing, testing, transporting, storage, research, and the use of and sale of medical marijuana pursuant to the Oklahoma Medical Marijuana and Patient Protection Act. B. 1. Beginning on the effective date of this act, the Authority shall cease to be part of or a division of the State Department of Health and shall be deemed to be a separate and distinct agency, to be known as the Oklahoma Medical Marijuana Authority. The Authority and the Executive Director of the Authority shall continue to exercise their statutory powers, duties, and contractual responsibilities. All records, property, equipment, assets, monies, financial interests, liabilities, matters pending, and funds of the division shall be transferred to the Authority. 2. All licenses granted by the Department pertaining to medical marijuana shall maintain rights and privileges under the authority of the Authority; provided, however, that all licenses shall be subject to revocation, suspension, or disciplinary action for violation of any of the provisions of the Oklahoma Medical Marijuana and Patient Protection Act and rules promulgated by the Executive Director. ENGR. H. A. to ENGR. S. B. NO. 801 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. The Authority shall succeed to any contract ual rights or responsibilities incurred by the Department pertaining to medic al marijuana. 4. Rules promulgated by the State Commissioner of Health pertaining to medical marijuana that are in effect on the effective date of this act shall be immediately adopted and enforced by the Executive Director. The Executive Director maintains the authority to further promulgate and enforce rules. 5. The Department and the Authority may enter into an agreement for the transfer of personnel from the Department to the Authority. No employee shall be transferred to the Authority except on the freely given written consent of the employee. All employees who are transferred to the Authority shall not be required to accept a lesser grade or salary than presently received . All employees shall retain leave, sick, and annual time earned, and any reti rement and longevity benefits which have accrued during their te nure with the Department. The transfer of personnel between the state agencies shall be coordinated with the Off ice of Management and Enterprise Services. 6. The expenses incurred by the Authority as a result of the transfer required by this subsection shall be paid by the Authority. 7. The division within the Department known as the Oklahoma Medical Marijuana Aut hority shall be abolished by the Department after the transfer has been complet ed. ENGR. H. A. to ENGR. S. B. NO. 801 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 8. The Office of Management and Enterprise Services shall coordinate the transfer of records, property, equipment, assets, funds, allotments, purchase orders, liabilities, outstanding financial obligations, or encumbrances provided for in this subsection. C. The Authority shall implement the provisions of the Oklahoma Medical Marijuana and Patient Protection Act consistently with the voter-approved State Question No. 788, Initiative Petition No. 412, subject to the provisions of the Oklahoma Medical M arijuana and Patient Protection Act. D. The Authority shall exercise its respective powers and perform its respective duties and functions as specified in the Oklahoma Medical Marijuana and Patient Protection Act and this title including, but not limited to, the following: 1. Determine steps the state shall take, whether administrative or legislative in nature, to ensure that research on marijuana and marijuana products is being conducted for public purposes including the advancement of: a. public health policy and public safety policy, b. agronomic and horticultural best practices, and c. medical and pharmacopoeia best practices; 2. Contract with third -party vendors and other governmental entities in order to carry out the respecti ve duties and functions ENGR. H. A. to ENGR. S. B. NO. 801 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 as specified in the Oklahoma Medical Marijuana and Patient Protection Act; 3. Upon complaint or upon its own motion and upon a completed investigation, levy fines as prescribed in applicable laws, rules and regulations and suspend, revoke or not renew licenses pursuant to applicable laws, rules and regulations; 4. Issue subpoenas for the appearance or production of persons, records and things in connecti on with disciplinary or contested cases considered by the Authority; 5. Apply for injunctive or declaratory relief to enforce the provisions of applicable laws, rules and regulations; 6. Inspect and examine all licensed premises of medical marijuana businesses, research facilities, education facilities and waste disposal facilities in which medical marijuana is cultivated, manufactured, sold, stored, transported, tested, distributed or disposed of; 7. Upon action by the federal government by which the production, sale and use of marijuana in this state does not violate federal law, work with the Banking Department and the State Treasurer to develop good practices and s tandards for banking and finance for medical marijuana businesses; 8. Establish internal control procedures for licenses including accounting procedures, reporting procedures and personnel policies; ENGR. H. A. to ENGR. S. B. NO. 801 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 9. Establish a fee schedule and collect fees for perf orming background checks as the Executive Director deems appropriate. The fees charged pursuant to this paragraph shall not exceed the actual cost incurred for each background check; 10. Establish a fee schedule and collect fees for material changes requested by the licensee; and 11. Establish regulations, which require a medical marijuana business to submit information t o the Oklahoma Medical Marijuana Authority, deemed reasonably necessary to assist the Authority in the prevention of diversion of medical marijuana by a licensed medical marijuana business. Such information required by the Authority may include, but shall not be limited to: a. the square footage of the licensed premises, b. a diagram of the licensed premises, c. the number and type of lights at the licensed medical marijuana commercial grower business, d. the number, type and production capacity of equipme nt located at the medical marijuana processing facility, e. the names, addresses and telephone numbers of employees or agents of a medical marijuana business, f. employment manuals and standard operating procedures for the medical marijuana business, and g. any other information as the Authority reasonably deems necessary; and ENGR. H. A. to ENGR. S. B. NO. 801 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 12. Establish an electronic procedure for monitoring, collecting, and transmitting licensed medical marijuana commercial growers' monthly usage of electricity and water provided by retail suppliers or electric cooperatives. The Authority shall provide licensed medical marijuana commercial growers a means to transmit monthly reports regarding the amounts of electricity and water consumed by licensed medical marijuana commercial growers. In addition, the Authority shall develop rul es, exemptions from the requirements of this paragraph, and any necessary procedures for th e metering of the usage of electricity and water by licensed medical marijuana commercial growers that are not supplied by retail suppliers or electric cooperatives including, but not limited to, the usage of well water and gas-powered generators. Refusal or failure to submit the required monthly usage reports or use of an unpermitted water source by a licensed medical marijuana com mercial grower shall result in the permanent revocation of the medical marijuana commercial grower license. SECTION 3. This act shall become effective November 1st, 2023." ENGR. H. A. to ENGR. S. B. NO. 801 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Passed the House of Representatives the 24th day of April, 2023. Presiding Officer of the House of Representatives Passed the Senate the ____ day of _______ ___, 2023. Presiding Officer of the Senate ENGR. S. B. NO. 801 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED SENATE BILL NO. 801 By: Coleman of the Senate and Marti of the House An Act relating to medical marijuana; amendi ng 63 O.S. 2021, Section 425, as last amended by Section 5, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022, Section 425), which relates to discrimination against license holder; allowing for municipalities to modify their planning or zoning p rocedures to forbid medical marijuana businesses from operating in certain areas; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 4. AMENDATORY 63 O.S. 2021, Section 425, as last amended by Section 5, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022 , Section 425), is amen ded to read as follows: Section 425. A. No school or landlord may refuse to enroll or lease to and may not otherwise penalize a person solely for his or her status as a medical marijuana patient licensee, unless failing to do so would cause the school or landlord the potential to lose a monetary or licensing-related benefit under federal law or regulations. B. Unless a failure to do so would cause an employer the potential to lose a monetary or licensing-related benefit under federal law or regulations, an employer may not discriminate against ENGR. S. B. NO. 801 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 a person in hiring, termination or imposing any term or condition o f employment or otherw ise penalize a person based upon the status of the person as a medical marijuana patient licensee. Employers may take action against a medical marijuana patient licensee if the licensee uses or possesses marijuana while in his or her place of employment or during the hours of employment. Employers may not take action against a medical marijuana patient licensee solely based upon the status of an employee as a medical marijuana patient licensee or the results of a drug test showing po sitive for marijuana or its components. C. For the purposes of medical care including organ transplants, the authorized use of marijuana by a medical marijuana patient licensee shall be considered the equivalent of the use of any other medication under th e direction of a phys ician and does not constitute the use of an illicit substance or otherwise disqualify a registered qualifying patient from medical care. D. No medical marijuana patient licensee may be denied custody of or visitation or parenting time with a minor child, and there is no presumption of neglect or child endangerment for conduct allowed under this law unless the behavior of the medical marijuana patient licensee creates an unreasonable danger to the safety of the minor child. E. No person who possesses a med ical marijuana patient license may be unduly withheld from holding another state-issued license by ENGR. S. B. NO. 801 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 virtue of his or her status as a medical marijuana patient licensee including, but not limited to, a concealed carry permit. F. 1. No city or local municip ality may unduly change or restrict zoning laws to prevent the opening of a medical marijuana dispensary. 2. For purposes of this subsection, an undue change or restriction of municipal zoning laws means an act which entirely prevents medical marijuana di spensaries from operating within municipal boundaries as a matter of law. G. 1. Municipalities may follow their standard planning and zoning procedures to determine if certain zones or districts would be appropriate for locating marijuana-licensed premises, med ical marijuana businesses, or any other premises where marijuana or its by-products are cultivated, grown, processed, stored, or manufactured. 2. After the effective date of this act, municipalities may modify their standard planning and zoning procedures to forbid certain zones or districts within the municipality for the operation of a marijuana-licensed premises, medical marijuana businesses, or any other premises where marijuana or its by-products are cultivated, grown, processed, stored, or manufactured; provided, any medical marijuana businesses licensed prior to the effecti ve date of this act may continue to operate until s uch time they are no longer licensed by the Oklahoma Medical Marijua na Authority. ENGR. S. B. NO. 801 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. A medical marijuana dispensary does not include those other entities licensed by the Oklah oma Medical Marijuana Authority as marijuana-licensed premises, medical marijuana businesses or other facilities or locations where marijuana or any product containing marijuana or its by-products are cultivated, grown, processed, stored or manufactured. G. H. The location of any medical marijuana dispensary is specifically prohibited within one thousand (1,000) feet of any public school or private school. The distance indicated in this subsection shall be measured from the nearest property line of such public school or private school to the nearest perimeter wall of the licensed premises of such medical marijuana dispensary. If a medical marijuana dispensary met the requirements of this subsection at the time of its initial licensure, the medical marijuana dispensary licensee s hall be permitted to continue operating at the licensed premises in the same manner and not be subject to nonrenewal or revocation due to subsequent events or changes in regulations occurring after licensure that would render the medic al marijuana dispensary in violation by being within one thousand (1,000) feet of a public school or private school. If any public school or private school is established within one thousand (1,000) feet of any medical marijuana dispensary after such medi cal marijuana dispensary has been licensed, the provisions of this subsection shall not be a deterrent to the renewal of such license ENGR. S. B. NO. 801 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 or warrant revocation of the license. For purposes of this subsection, a property owned, used or operated by a public sch ool or by a private school that is not used for classroom instruction on core curriculum, such as an administrative building, athletic facility, ballpark, field or stadium, shall not constitute a public school or private school unless such property is loca ted on the same campus as a building used for classroom instruction on core curriculum. H. I. Research shall be provided for under this law. A researcher may apply to the Oklahoma Medical Marijuana Authority for a special research license. The resear ch license shall be granted, provided the applicant meets the criteria listed in the Oklahoma Medical Marijuana and Patient Protection Act. Research licensees shall be required to file monthly consumption reports to the Authority with amounts of marijuana used for research. Biomedical and clinical research which is subject to federal regulations and institutional oversight shall not be subject to oversight by the Authority. SECTION 5. This act shall become effective November 1, 202 3. ENGR. S. B. NO. 801 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Passed the Senate the 22nd day of March, 2023. Presiding Officer of the Senate Passed the House of Rep resentatives the ____ day of __________, 2023. Presiding Officer of the House of Representatives