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SENATE FLOOR VERSION
February 27, 2023
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 813 By: Garvin
An Act relating to medical marijuana; amending 63
O.S. 2021, Section 427.17, as last amended by Section
1, Chapter 353, O.S.L. 2022 (63 O .S. Supp. 2022,
Section 427.17), which relates to the medical
marijuana testing laboratory license; providing
contract condition; allowing testing by Oklahoma
Medical Marijuana Authority assurance laboratory;
authorizing the Authority to operate a quality
assurance laboratory; allowing the Authority to use
quality assurance laboratory for cert ain purposes;
permitting the Authority to enter into certain
agreements and contracts; allowing the transfer and
transport of certain products; requiring the
Authority to submit certain report; providing for
promulgation of rules; providing for codification;
and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA :
SECTION 1. AMENDATORY 63 O.S. 2021, Section 427.17, as
last amended by Section 1, Chapter 353, O.S.L. 2022 (63 O.S. Supp.
2022, Section 427.17), is amended to read as follows:
Section 427.17. A. There is hereby created a medical marijuana
testing laboratory license as a category of the medical marijuana
business license. The Oklahoma Medical Marijuana Authority is
hereby enabled to monitor, inspect, and audit a licensed testing
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laboratory under the Oklahoma Medical Marijuana and Patient
Protection Act.
B. 1. The Authority is hereby authorized to operate a quality
assurance laboratory or to contract with a priv ate laboratory for
the purpose of conducting compliance testing of medical marijuana
testing laboratories licensed in this state. Any such laboratory
under contract for complian ce testing shall be prohibited from
conducting any other commercial medical ma rijuana testing in this
state. The laboratory If the Authority contracts with for
compliance testing a private laboratory to implement the
requirements of this section:
1. The laboratory shall not employ, or be owned by, the
following:
a. any individual that has a direct or indirect inter est
in a licensed medical marijuana business , or
b. any individual or his or her spouse, parent, child,
spouse of a child, sibling, or spouse of a sibling
that has an application for a medical marijuana
business license pending before the Authority or is a
member of the board of directors of a medi cal
marijuana business, or is an individual financially
interested in any licensee or medical marijuana
business located within this state.; and
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2. The private laboratory under contract with the Authority for
compliance testing and a board or committee comprised of licensed
Oklahoma medical mari juana laboratories currently accredited by the
International Organization for Standardization (ISO) shall provide
to the Authority its recommendations for all equipment and standards
to be utilized by licensed medical marijuana testing laboratories
when testing samples of medical marijuana, medical marijuana
concentrate, and medical marijuana products as well as standard
operating procedures when extracting and testing medical marijuana,
medical marijuana concentrate, and medical marijuana products. The
recommendations shall be submitted to the Authority no later than
June 1, 2023. The Authority shall have ninety (90) days from the
date it receives the recommendations to promulgate new rules or
modify its current rules for laboratory standards and testing.
Beginning June 1, 2024, medical marijuana testing laboratories
renewing their medical marijuana business license shall be subject
to and comply with any new or modified rules relating to the testing
of medical marijuana, medical marijuana concentrate, and medical
marijuana products. The refusal or failure of a medical marijuana
testing laboratory licensee to comply with new or modified rules
relating to laboratory standards and testing procedures p romulgated
under the provisions of this paragraph shall result in the permanent
revocation of the medical marijuana testing laboratory license.
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C. The Authority shall develop acceptable testing practices
including, but not limited to, testing, standards, qual ity control
analysis, equipment certification and calibration, and chemical
identification and substances used.
D. A person who is a direct beneficial owner of a medical
marijuana dispensary, medical marij uana commercial grower, or
medical marijuana proces sor shall not be an owner of a laboratory.
E. A laboratory and a laboratory applicant shall comply with
all applicable local ordinances including, but not limited to,
zoning, occupancy, licensing, and building codes.
F. A separate license shall be require d for each specific
laboratory.
G. A medical marijuana testing laboratory license may be issued
to a person who perform s testing on medical marijuana and medical
marijuana products for medical marijuana bu sinesses, medical
marijuana research facilities, m edical marijuana education
facilities, and testing on marijuana and marijuana products grown or
produced by a patient or caregiver on behalf of a patient, upon
verification of regi stration. A medical marijuana testing
laboratory may also conduct research related to the development and
improvement of its testing practices and procedures. No state-
approved medical marijuana testing facility shall operate unless a
medical laboratory director is on site during operational hours.
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H. Laboratory applicants and licensees shall comply with the
application requirements of this section and shall submit such other
information as required for a medical marijuana business applicant,
in addition to any information the Au thority may request for initial
approval and periodic evaluations during the approval period.
I. A medical marijuana testing laboratory may accept samples of
medical marijuana, medical marijuana concentrate, or medical
marijuana product from a medical mari juana business, medical
marijuana research facilit y, or medical marijuana education facility
for testing purposes only, which purposes may include the provision
of testing services for samples submitted by a medical marijuana
business for product developmen t. The Authority may require a
medical marijuana business to submit a sample of medical marijuana,
medical marijuana concentrate, or medical marijuana product to a
medical marijuana testing laboratory or the Authority’s quality
assurance laboratory upon demand.
J. A medical marijuana testing laboratory may accept sample s of
medical marijuana, medical marijuana concentrate, or medical
marijuana product from an individual person for testing only under
the following conditions:
1. The individual person is a patient or ca regiver pursuant to
the Oklahoma Medical Marijuana and Patient Protection Act or is a
participant in an approved clinical or observational study conducted
by a research facility; and
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2. The medical marijuana testing laboratory shall require the
patient or caregiver to produce a valid patient license and curr ent
and valid photo identification.
K. A medical marijuana testing laboratory may transfer samples
to another medical marijuana testing laboratory for testing. All
laboratory reports provided to or by a medical marijuana business or
to a patient or careg iver shall identify the medical marijuana
testing laboratory that actually conducted the test.
L. A medical marijuana testing laboratory may utilize a
licensed medical marijuana transporter to transpor t samples of
medical marijuana, medical marijuana conc entrate, and medical
marijuana product for testing, in accordance with the Oklahoma
Medical Marijuana and Patient Protection Act and the rules adopted
pursuant thereto, between the originating medical m arijuana business
requesting testing services and the d estination laboratory
performing testing services.
M. The medical marijuana testing laboratory shall establish
policies to prevent the existence of or appearance of undue
commercial, financial , or other influences that may diminish the
competency, impartia lity, and integrity of the testing processes or
results of the laboratory, or that may diminish public confidence in
the competency, impartiality, and integrity of the testing processes
or results of the laboratory. At a minimum, employees, owners , or
agents of a medical marijuana testing laboratory who participate in
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any aspect of the analysis and results of a sample are prohibited
from improperly influencing the testing process, improperly
manipulating data, or improperly benefiting from any ongoing
financial, employment, personal, or business relationship with the
medical marijuana business that provided the sample. A medical
marijuana testing laboratory shall not test samples for any medical
marijuana business in which an owner, employee, or agent of the
medical marijuana testing laboratory has any form of ownership or
financial interest in the medical marijuana business.
N. The Authority, pursuant to rules promulgated by the
Executive Director of the Authority, shall develop standards,
policies, and procedures as necessary for:
1. The cleanliness and orderliness of a laboratory premises and
the location of the laboratory in a secure location, and inspection,
cleaning, and maintenance of any equipment or utensils used for the
analysis of test samples;
2. Testing procedures, testing standards for cannabinoid and
terpenoid potency and safe levels of contaminants, and remediation
procedures;
3. Controlled access areas for storage of medical marijuana and
medical marijuana product test samples, waste, and reference
standards;
4. Records to be retained and computer systems to be utilized
by the laboratory;
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5. The possession, storage, and use by the laboratory of
reagents, solutions, and reference standards;
6. A certificate of analysis (COA) for each lot of reference
standard;
7. The transport and disposal of unused marijuana, marijuana
products, and waste;
8. The mandatory use by a laboratory of an inventory tracking
system to ensure all harvest and production batches or samples
containing medical marijuana, medical marijuana concentrate, or
medical marijuana products are identified and tracked from the point
they are transferred from a medical marijuana business, a patient,
or a caregiver through the point of transfer, destruction, or
disposal. The inventory tracking system reporting shall include the
results of any tests that are conducted on medical marijuana,
medical marijuana concentrate, or medical marijuana product;
9. Standards of performance;
10. The employment of laboratory personnel;
11. A written standard operating procedure manual to be
maintained and updated by the laboratory;
12. The successful participation in a proficiency testing
program approved by the Executive Director for each testing category
listed in this section, in order to obtain and maintain
certification;
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13. The establishment of and adherence to a quality assurance
and quality control program to ensure sufficient monitoring of
laboratory processes and quality of results reported;
14. The immediate recall of medical marijuana or medical
marijuana products that test above allowable thresholds or are
otherwise determined to be unsafe;
15. The establishment by the laboratory of a system to document
the complete chain of custody for samples from receipt through
disposal;
16. The establishment by the laboratory of a system to retain
and maintain all required records, including business records, and
processes to ensure results are reported in a timely and accurate
manner; and
17. Any other aspect of laboratory testing of medical marijuana
or medical marijuana product deemed necessary by the Executive
Director.
O. A medical marijuana testing laboratory shall promptly
provide the Authority or designee of the Authority access to a
report of a test and any underlying data that is conducted on a
sample at the request of a medical marijuana business or qualified
patient. A medical marijuana testing laboratory shall also provide
access to the Authority or designee of the Authority to laboratory
premises and to any material or information requested by t he
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Authority to determine compliance with the requirements of this
section.
P. A medical marijuana testing laboratory shall retain all
results of laboratory tests conducted on marijuana or products for a
period of at least seven (7) years and shall make them available to
the Authority upon request.
Q. A medical marijuana testing laboratory shall test samples
from each harvest batch or product batch, as appropriate, of medical
marijuana, medical marijuana concentrate, and medical marijuana
product for each of the following categories of testing, consistent
with standards developed by the Executive Director:
1. Microbials;
2. Mycotoxins;
3. Residual solvents;
4. Pesticides;
5. Tetrahydrocannabinol (THC) and other cannabinoid potency;
6. Terpenoid type and concentration ; and
7. Heavy metals.
R. A licensed medical marijuana testing laboratory shall test
each individual harvest batch. A grower shall separate each harvest
lot of usable marijuana into harvest batches containing no more than
fifteen (15) pounds, with the exception of any plant material to be
sold to a licensed processor for the purposes of turning the plant
material into concentrate which may be separated into harvest
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batches of no more than fifty (50) pounds. A processor shall
separate each medical marijuana producti on lot into production
batches containing no more than four (4) liters of concentrate or
nine (9) pounds for nonliquid products, and for final products, the
Oklahoma Medical Marijuana Authority shall be authorized to
promulgate rules on final products as n ecessary. Provided, however,
the Authority shall not require testing of final products less often
than every one thousand (1,000) grams of THC. As used in this
subsection, “final products” shall include, but not be limited to,
cookies, brownies, candies, gummies, beverages, and chocolates.
S. Medical marijuana testing laboratory licensure shall be
contingent upon successful on-site inspection, successful
participation in proficiency testing, and ongoing compliance with
the applicable requirements in this s ection.
T. A medical marijuana testing laboratory shall be inspected
prior to initial licensure and up to two (2) times per year any time
thereafter by an inspector approved by the Authority. The Authority
may enter the licensed premises of a testing lab oratory to conduct
investigations and additional inspections when the Authority
believes an investigation or additional inspection is necessary due
to a possible violation of applicable laws, rules, or regulations.
U. Medical marijuana testing laboratories shall obtain
accreditation by an accrediting body approved by the Executive
Director or the Authority’s quality assurance laboratory within one
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(1) year of the date the initial license is issued. Renewal of any
medical marijuana tes ting laboratory license shall be contingent
upon accreditation in accordance with this subsection. All medical
marijuana testing laboratories shall obtain accreditation prior to
applying for and receiving a medical marijuana testing laboratory
license.
V. Unless authorized by the provisions of this section, a
commercial grower shall not transfer or sell medical marijuana and a
processor shall not transfer, sell, or process into a concentrate or
product any medical marijuana, medical marijuana concentrate , or
medical marijuana product unless samples from each harvest batch or
production batch from which that medical marijuana, medical
marijuana concentrate, or medical marijuana product was derived has
been tested by a medical marijuana testing laboratory and passed all
contaminant tests required by the Oklahoma Medical Marijuana and
Patient Protection Act and applicable laws, rules, and regulations.
A licensed commercial grower may transfer medical marijuana that has
failed testing to a licensed processor only for the purposes of
decontamination or remediation and only i n accordance with the
provisions of the Oklahoma Medical Marijuana and Patient Protection
Act and the rules and regulations promulgated by the Executive
Director. Remediated and decontaminated medical marijuana may be
returned only to the originating lice nsed commercial grower.
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W. Kief shall not be transferred or sold except as authorized
in the rules and regulations promulgated by the Executive Director.
SECTION 2. NEW LAW A new section of la w to be codified
in the Oklahoma Statut es as Section 427.17a of Title 63, unless
there is created a duplication in numbering, reads as fol lows:
A. The Oklahoma Medical Marijuana Authority may operate a
quality assurance laboratory for the purpose of conducting
compliance testing of medical marijuana businesses licensed in this
state.
B. The Authority shall utilize the quality assurance laboratory
to:
1. Provide recommendations for all equipment and standards to
be utilized by licensed medical marijuana testing laboratories when
testing samples of medical marijuana, medical marijuana concentrate,
and medical marijuana products;
2. Provide standardized operating procedures when procuring,
collecting, extracting, and testing medical marijuana, med ical
marijuana concentrate, and medical marijuana products;
3. Procure, handle, transfer, transport, and test samples taken
from medical marijuana licensed businesses;
4. Implement the secret shopper program pursuant to Section
427.25 of Title 63 of the Oklahoma Statutes; and
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5. Detect and analyze any compounds that are not among the
targeted analytes and are unknown, unidentified, tentatively
identified, or known and injurious to human he alth if consumed.
C. In order to fulfill the provisions of subsection A of this
section, the Authority may:
1. Enter into interlocal agreements with any other government
agency pursuant to Section 1001 et seq. of Title 74 of the Oklahoma
Statutes;
2. Select a laboratory informat ion system through a competitive
bidding process pursuant to Section 85.7 of Title 74 of the Oklahoma
Statutes;
3. Isolate, sequester, embargo, or otherwise prohibit for
transfer or sale medical marijuana, med ical marijuana concentrate,
and medical marijuana product that may require additional testing
upon a determination by the Authority that such action is necessary
to protect the public health and safety; or
4. Collect samples from harvest batches that failed testing.
D. The quality assurance laboratory may transport and t ransfer
medical marijuana, medical marijuana concentrate, and medical
marijuana product for testing between the originating medical
marijuana business, the quality assurance laboratory, and other
licensed medical marijuana testing labo ratories pursuant to this
section.
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E. The quality assurance laboratory shall comply with the
provisions of the Oklahoma Medical Marijuan a and Patient Protection
Act when transporting samples of medical marijuana, medical
marijuana concentrate, and medical marijuana product for testing
between the originating medical marijuana business, the quality
assurance laboratory, and other licensed medical marijuana testing
laboratories pursuant to this section. Nothing in this section
shall require the quality assurance laboratory to apply for and
receive a license.
F. The Authority shall submit an annual report to the
Legislature on quality assurance activities and results.
G. The Authority may promulgate rules necessary for the
implementation of a quality assurance laboratory pursuant to this
section.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this ac t shall take effect and
be in full force from and a fter its passage and ap proval.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE
February 27, 2023 - DO PASS AS AMENDED BY CS