SENATE FLOOR VERSION - HB1350 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION April 3, 2023 AS AMENDED ENGROSSED HOUSE BILL NO. 1350 By: Fetgatter of the House and Garvin of the Senate An Act relating to medical marijuana; amending 63 O.S. 2021, Sections 421, 422, and 423, as amended by Sections 1, 2, and 3, Chapter 332, O.S.L. 2022 , and 424 (63 O.S. Supp. 2022, Sections 421, 422, and 423), which relate to licensing requirements for medica l marijuana dispensaries, commercial growers , processors and transporters; provid ing for temporary and annual licenses; updating language; amending 63 O.S. 2021, Sections 427.8, 427.14, as amended by Section 4, Chapter 332, O.S.L. 2022 and 427.16, as 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; updating statutory references; modifying scope of certain definition ; creating temporary and annual licensing program for certain medical marijuana businesses; stating c onditions for temporary licenses; requiring adherence to certain rules and regulations; clarifying obligations of the Oklahoma Medical Marijuana Authority when issuing temporary licenses; stating length of term of temporary licenses; providing for extensio ns under certain circumstances; establishing fees for temporary licenses and extensions; requiring submission of certain information to the Authority; prohibiting issuance of license un til certain inspections are completed; authorizi ng rejection of applications; defining term; clarifying circumstances that allow for the is suance of annual medical marijuana business licenses; requiring current licensees to submit certain documentation pri or to renewal; establishing timelines and proced ures; requiring person issued a temporary and annual SENATE FLOOR VERSION - HB1350 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 license to annually submit certain doc umentation when seeking renewal of the license; updating language; creating temporary licensing program for medical marijuana transporters; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 63 O.S. 2021, Section 421, as 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 applications for a temporary medical marijuana dispensary license and annual medical marijuana dispensary license. The application fee to fees for the temporary or 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 all be residents of Oklahoma. Any entity applying for a temporary or annual medical marijuana dispensary license must be owned by an Oklahoma 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, SENATE FLOOR VERSION - HB1350 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 rejection or denial letter stating reasons for the rejection or denial to the applicant. B. The In addition to the requirements provided for in the Oklahoma Medical Marijuana 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 individual, must show residency in the State of Oklahoma; 3. All applying entities must show that a ll members, managers, and board members are Oklahoma residents; 4. An applying entity may show ownership of non-Oklahoma residents, but that percentage ownership may not exceed twenty-five percent (25%); 5. All applying individuals or entities must be registered to conduct business in the State of Oklahoma; and 6. All applicants must disclose all 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. SENATE FLOOR VERSION - HB1350 SFLR Page 4 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 any waste. The report shall show total sales in dollars, tax collected in dollars, and tax due in dollars. The Authority shall have oversight and auditing responsibilities to ensure that all marijuana being grown is accounted for. D. Only a licensed medical marijuan a dispensary may conduct retail sales of marijuana or marijuana derivatives. Beginning on the effective date of this act, licens ed medical marijuana dispensaries shall be authorized to package and sell pre-rolled marijuana to licensed medical marijuana pa tients and licensed caregivers. The products described in this subsection shall contain only the ground parts of the marijuana p lant and shall not include marijuana concentrates or der ivatives. The total net weight of each pre-roll packaged and sold by a medical 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 SENATE FLOOR VERSION - HB1350 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 preclude an employee of the medical marijuana dispensary from handling loose or nonpackaged medical marijuana to be placed in packaging consistent with the Oklahoma Medical Marijuana and Patient Protection Act and 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 c ases, jars or other containers and allowing medical marijuana patient licensees and caregiver licensees the ability to handle or smell the various samples as long as the sample medical marijuana is used for display purposes only and is not offered for reta il sale. SECTION 2. AMENDATORY 63 O.S. 2021, Section 422, as 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 annual medical marijuana commercial grower license. The application fee fees for the temporary o r annual license shall be paid by the applicant in the amounts provided for in Section 427.14 of this title. A method of payment SENATE FLOOR VERSION - HB1350 SFLR Page 6 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 for the application fee fees shall be provided on the website of the Authority. The Authority shall have ninety (90) days to review the application for a temporary medical marijuana commercial gro wer 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. B. The In addition to the requirements provided for in the Oklahoma Medical Marijuana 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; 3. All applying entities must show that all members, managers, and board members are Oklahoma residents; 4. An applying entity may show owner ship of non-Oklahoma residents, but that percentage ownership ma y not exceed twenty-five percent (25%); 5. All applying individuals or entities must be registered to conduct business in the State of Oklahoma; and 6. All applicants must disclose all owner ship interests in the commercial grower operation. Applicants with a nonviolent felony conviction in the last two (2) years, any other felony conviction in the last five (5) years, SENATE FLOOR VERSION - HB1350 SFLR Page 7 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 inmates in the custody of the Department of Corrections or any person currently incarcerated shall not qualify for a temporary or annual medical mariju ana commercial grower license. C. A licensed medical marijuana commercial grower may sell marijuana to a licensed medical marijuana dispensary or a licensed medical marijuana processor. Further, sales by a licensed medical marijuana commercial grower shall be considered wholes ale 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 selli ng 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 waste in pounds, and SENATE FLOOR VERSION - HB1350 SFLR Page 8 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the amount of marijuana sold to licensed medical marijuana dispensaries in pounds. Additionally, this repor t shall show total wholesale sales in dollars. The Authority shall have oversight and auditing responsibilities to ensure that all marijuana being grown by licensed medical marijuana commercial growers is accounted for. D. There shall be no limits on how much marijuana a licensed medical marijuana commercial grower can grow. E. Beginning on the effective date of this act, 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 the 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, packaged and labeled in accordance with Oklahoma law and rules promulgated by the Authority. SECTION 3. AMENDATORY 63 O.S. 2021, Section 423, as amended by Section 3 , Chapter 332, O.S.L. 2022 (63 O.S. Supp. 2022, Section 423), is ame nded 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 applications for a temporary medical marijuana processor license and annual medical marijuana processing processor license. SENATE FLOOR VERSION - HB1350 SFLR Page 9 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 The Authority shall be authorized to i ssue two types of annual medical marijuana proc essor licenses based on the lev el of risk posed by the type of processi ng conducted: 1. Nonhazardous medical marijuana processor license; and 2. Hazardous medical marijuana processor license . The application fee fees for a nonhazardous or hazardous medic al marijuana processor 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 application for a temporary medical marijuana processor 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. B. The Authority shall approve all applications which mee t the following criteria: 1. The applicant must be twenty-five (25) years of age or older; 2. The applicant, if applying as an individual, must show residency in the State of Oklahoma; 3. All applying entities must show that all members, managers, and board members are Oklahoma residents; SENATE FLOOR VERSION - HB1350 SFLR Page 10 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4. An applying entity may show ownership of non-Oklahoma residents, but that percentage ownership may not exceed t wenty-five percent (25%); 5. All applying individuals or entities must be registered to conduct business in the State of Oklahoma; and 6. All applicants must disclose all ownership interests in the processing operation. 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 incarcerated shall not qualify for a temporary or annual 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, 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 curr ent food preparation guidelines. No excessive or punitive rules may b e established by the Authority. 3. Up to two times a year, the Authority may inspect a processing operation and determine its compliance with the preparation standards. If deficiencies are found, a written report SENATE FLOOR VERSION - HB1350 SFLR Page 11 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 subject to a fine of Five Hundred Dollars ($500.00) fo r 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 licensed medical marijuana processor shall be considered wholesale sales and shall not be subject to taxation. 5. Under no circumstances may a licensed medical marijuana processor sell marijuana or a ny marijuana product directly to a licensed medical marijuana patient or licensed medical marijuana caregiver. However, a licensed medical marijuana processor may process cannabis 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 month. 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 repor t shall show total wholesale sales in dollars. The Authority shall have SENATE FLOOR VERSION - HB1350 SFLR Page 12 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 initiativ e, appoint twelve (12) Oklahoma residents to the Medical Marijuana A dvisory Council, who are marijuana industry exper ts, to create a list of 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 standards can be altered by calling another council of twelve (12) Oklahoma mariju ana industry experts. A signed letter of twenty operating, licensed medical marijuana processors shall constitute a need for a new council and standards review. E. If it becomes permissi ble under federal law, marijuana may be moved across state lines. F. Any device used for the processing or consumption of medical marijuana shall be considered legal to be sold, manufactured, distributed and possessed . No merchant, wholesaler, manufactur er or individual may be unduly harassed or prosecuted for sellin g, manufacturing or possessing marijuana paraphernalia . SENATE FLOOR VERSION - HB1350 SFLR Page 13 (Bold face denotes Committee Amendments) 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 4. AMENDATORY 63 O.S. 2021, Section 424, is amended to read as follows : Section 424. A. A temporary medical marijuana transportation transporter license will or an annual medical marijuana transporter license shall be issued to qualifying applicants for a medical marijuana retail dispensary, growing medical marijuana commercial grower, or processing 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, growing, or processing the temporary or annual medical marijuana dispensary, medical mari juana commercial grower, or medical marijuana processor license. The 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. B. A transportation medical marijuana transporter license will shall allow the holder to transport medical marijuana from an Oklahoma-licensed medical marijuana retailer dispensary, licensed growing medical marijuana commercial grower facility, or licensed medical marijuana processor facility to an Oklahoma -licensed medical marijuana retailer dispensary, licensed growing medical marijuana commercial grower facility, or licensed medical marijuana processing facility. SENATE FLOOR VERSION - HB1350 SFLR Page 14 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 C. All medical marijuana or medical marijuana products shall be transported in a locked cont ainer and clearly labeled "Medical Marijuana or Derivative". SECTION 5. AMENDATORY 63 O.S. 2021, Section 427.8, is amended to read as follows: Section 427.8 A. The rights to possess the marijuana products set forth in Section 42 0 of Title 63 of the Oklahoma Statutes this title are cumulative and a duly licensed individual may possess at any one time the totality of the items listed therein and not be in violation of this act so long as the individual holds a valid medical marijuana patient license or caregiver license. B. Municipal and county go verning bodies may not enact medical marijuana guidelines which restrict or interfere with the rights of a licensed patient or caregiver to p ossess, purchase, cultivate or transport medical marijuana within the legal limits set forth in this act the Oklahoma Medical Marijuana and Patient Protection Act or Section Sections 420 et seq. of Title 63 of the Ok lahoma Statutes through 426.1 of this title or require patients or caregivers to obtain permits or licenses in addition to the state-required licenses provided herein. C. Nothing in this act the Oklahoma Medical Marijuana and Patient Protection Act or Section Sections 420 et seq. of Title 63 of the Oklahoma Statutes through 426.1 of this title shall prohibit a residential or commercial property or business owner from SENATE FLOOR VERSION - HB1350 SFLR Page 15 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 prohibiting the consumption of medical marijuana or medical marijuana product by smoke or vaporization on the premises, within the structures of the premises or within ten (10) feet of the entryway to the premises. However, a medical marijuana patient shall not be denied the right to consume or use other medical marijuana products which are otherwise legal an d do not involve the smoking or vaporization of cannabis when lawfully recommended pursuant to Section 420 of Title 63 of the Oklahoma Stat utes this title. D. A medical marijuana patient or caregiver licensee shall not be denied eligibility in public assi stance programs includin g, but not limited to, Medicaid, Supplemental Nutrition Assistance Program (SNAP), Women, Infants, and Children Nut rition Program (WIC), Temporary Assistance for Needy Families (TANF) or other such public assistance programs based s olely on his or her stat us as a medical marijuana patient or caregiver licensee, unless required by federal law. E. A medical marijuana pa tient or caregiver licensee shall not be denied the right to own, purchase or possess a firearm, ammunition, or firea rm accessories based sol ely on his or her status as a medical marijuana patient or caregiver licensee. No state or local agency, municipal or county governing authority shall restrict, revoke, suspend or otherwise infringe upon the right of a person to own, purchase or possess a firearm, ammunition, or firearm SENATE FLOOR VERSION - HB1350 SFLR Page 16 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 accessories or any related firearms license or certification based solely on their status as a medical marijuana patient or caregiver licensee. F. A medical marijuana patient or caregiver in actual possession of a medical marijuana license shall not be subject to arrest, prosecution or penalty in any manner or denied any right, privilege or public assistance, under state law or municipal or county ordinance or resolution including without limitation a civil penalty or disciplinary action by a business, occupational or professional licensing board or bureau, for the medical use of marijuana in accordance with this act the Oklahoma Medical Marijuana and Patient Protection Act . G. A government medical a ssistance program shall not be required to reimburse a person for costs associated with the medical use of marijuana unless federal law req uires reimbursement. H. Unless otherwise required by federal law or required to obtain federal funding: 1. No employer may refuse to hire, discipline, discharge or otherwise penalize an applicant or employee solely on the basis of such applicant's or employee's status as a medical marijuana licensee; and 2. No employer may refuse to hire, discipline, discharge or otherwise penalize an applic ant or employee solely on the basis of a positive test for marijuana components or metabolites, unless: SENATE FLOOR VERSION - HB1350 SFLR Page 17 (Bold face denotes Committee Amendments) 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. the applicant or employee is not in possessio n of a valid medical marijuana license, b. the licensee possesses, consumes or i s under the influence of medical marijuana or medical marijuana product while at the place of employment or during the fulfillment of emplo yment obligations, or c. the position is one involving safety -sensitive job duties, as such term is defined in subsec tion K of this section. I. Nothing in this act the Oklahoma Medical Marijuana and Patient Protection Act or Section Sections 420 et seq. of Title 63 of the Oklahoma Statutes through 426.1 of this title shall: 1. Require an employer to permit or accommoda te the use of medical marijuana on the property or premises of any place of employment or during hours of employment; 2. Require an employ er, a government medical assistance program, private health insurer, worker 's compensation carrier or self-insured employer providing worker's compensation benefits to reimburse a person for costs associated with the use of medical marijuana; or 3. Prevent an employer from having written policies regarding drug testing and impairment in accordance with the Oklahoma Standards for Workplace Drug and Alcohol Testing Act, Section 551 et seq. of Title 40 of the Oklahoma Statutes. SENATE FLOOR VERSION - HB1350 SFLR Page 18 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 J. Any applicant or employee a ggrieved by a willful violation of this section shall have, as his or her exclusive remedy, the same remedies as provided for in the Oklahoma Standards for Workplace Drug and Alcohol Testing Act set forth in Section 563 of Title 40 of the Oklahoma Statutes . K. As used in this section: 1. "Safety-sensitive" means any job that includes tasks or duties that the employer r easonably believes could affect the safety and health of the employee performing the task or others including, but not limited to, any of t he following: a. the handling, packaging, processing, storage, disposal or transport of hazardous materials, b. the operation of a motor vehicle, other vehicle, equipment, machinery or power tools, c. repairing, maintaining or monitoring the performance or operation of any equipment, machinery or manufacturing process, the malfunction or disruption of which could result in injury or property damage, d. performing firefighting duties, e. the operation, maintenance or oversight of critical services and infrastructure including, but not limited to, electric, gas, and water utilities, power generation or distribution, SENATE FLOOR VERSION - HB1350 SFLR Page 19 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 f. the extraction, compression, processing, manufacturing, handling, packaging, storage, disposal, treatment or transport of potentially volati le, flammable, combustible materials, elements, chemicals or any other highly regulated component, g. dispensing pharmaceuticals, h. carrying a firearm, or i. direct patient care or direct child care; and 2. A "positive test for marijuana components or metabolites" means a result that is at or above the cutoff concentration level established by the United State s Department of Transpor tation or Oklahoma law regarding being under the influence, whichever is lower. L. All smokable, vaporized, vapable and e-cigarette medical marijuana product inhaled through vaporization or smoked by a medical marijuana licensee ar e subject to the same re strictions for tobacco under Section Sections 1-1521 through 1-1527 of Title 63 of the Oklahoma Statutes this title, commonly referred to as the "Smoking in Public Places and Indoor Workplaces Act ". SECTION 6. AMENDATORY 63 O.S. 2021, Section 427.14, as amended by Section 4, Chapter 33 2, O.S.L. 2022 (63 O.S. Supp. 2022, Section 427.14), is amended to read as follows: SENATE FLOOR VERSION - HB1350 SFLR Page 20 (Bold face denotes Committee Amendments) 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 427.14 A. There is hereby created the medical marijuana business license, which shall include the following categories: 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 it s website in an easy-to-find location, applications for a temporary medical marijuana business license and an nual medical marijuana business license. D. Beginning November 1, 2023, the Authority shall require all persons or entities seeking licensure as a medical marijuana commercial grower, medical marijuan a processor, medical marijuana dispensary, or medical m arijuana transporter to first apply for a temporary medical marijuana business license. 1. A temporary medical marijuana bus iness license is a conditional license and does not authorize the licensee t o conduct any sales of medical marijuana or marijuana p roducts, the growing or processing of marijuana, or the transportation of any medical SENATE FLOOR VERSION - HB1350 SFLR Page 21 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 marijuana or marijuana products by the licensee. A temporary medical marijuana business licensee shall follow all applicable rules and regulations promulgated by the Aut hority. 2. A temporary medical marijuana business license does not obligate the Authority to issue an annual medical marijua na business license nor does the temporary medical marijuana business licens e create a vested right in the holder to either an exte nsion of the temporary medical marijuana business license or to the granting of a subsequent annual medical marijuana busines s 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) mon ths if: a. an application for an annual license has bee n submitted to the Auth ority prior to the initial expiration date of the temporary medical marijuana business license, and b. the Authority determines that the application and required documentation su bmitted by the applicant for an annual medical marijuan a business license is deficient in some manner. SENATE FLOOR VERSION - HB1350 SFLR Page 22 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 5. A nonrefundable application fee for a temporary medical marijuana business license shall be assessed in the amount of 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 marijuana business license and subsequently granted by the Authori ty. 6. In addition to the general requirements provided for in subsection F of this section, persons or entitie s applying for a temporary medical marijuana business license or applying to renew a medical marijuana business license shall submit the followi ng to the Authority: a. business-formation documents, which may include, but not be limited to, articles of inco rporation, operating agreements, partnership agreements, and fictitious business name statements. The applicant shall also provide all document s filed with the Oklahoma 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 applica nt held in savings, checking, or other acc ounts maintained by a financial in stitution. The applicant shall provide for each accoun t the name SENATE FLOOR VERSION - HB1350 SFLR Page 23 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 each loan, the applicant shall provide the amount of the loan, the date of th e loan, term of the loan, security provided for the loan, and the name, address, and phone number of t he lender, (3) a list of investments made into the medical marijuana business. For each investment, the applicant shall provide th e amount of the investment, the date of the investment, term of the investment, and the name, address, and phone number of the investor, and (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 applyin g 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 gift, c. a complete list of every indi vidual who has a financial interest in the medical marijuana business who is not an owner of the medical marijuana business, SENATE FLOOR VERSION - HB1350 SFLR Page 24 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 d. whether the applicant has an o wnership or a financial interest in any other medical marijuana business licensed under the provis ions of the Oklahoma Me dical Marijuana and Patient Protection Act, e. a complete and detailed diagram of the proposed premises. If changes to the proposed pr emises occur during the application period, a revised set of plans shall be submitted to the Autho rity for final inspection. The diagram shall be to scale and shall show the following: (1) boundaries of the property and th e proposed premises to be license d, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, win dows, doorways, and common or shared entryways, and shall include a brief statement or description of the principal activity to be conducted therein, (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 SENATE FLOOR VERSION - HB1350 SFLR Page 25 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (4) if the proposed premi ses consists of only a portion of the prope rty, labels indicating which part of the property is th e proposed premises and what the remaining property is used for, f. if the applicant is not the landowner of the real property upon which the premises is loca ted, the applicant shall provide to the Aut hority a document from the landowner or the agent of th e landowner that states that the applicant has the right to occupy the property and acknowledging the applicant may use the property for the medical marijuana business activity for which the applicant is applying for licensure. An applicant shall also pro vide a copy of the rent al agreement, as applicable, g. 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, h. if the applicant is applying for a medic al 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 SENATE FLOOR VERSION - HB1350 SFLR Page 26 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 to, illumination, heating, cooling, and ventilation, (2) if the applicant is proposing to use a diversion from a waterbody, groundwater w ell, or rain catchment system as a water s ource for cultivation, include the following locations on the property diagram with locat ions also provided as coordinates in either latitude and longitude or the Oklahoma Coordinate System: (a) sources of water used, including the location of waterbody di version, pump location, and distri bution 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 i. evidence of insurance including, but not limited to: (1) general liability in surance, (2) workers' compensation insurance or a copy of an Affidavit of Exempt Status filed with the Workers' Compensation Commission if compensation coverage is not required pursuant to the Administrative Workers' Compensation Act, and SENATE FLOOR VERSION - HB1350 SFLR Page 27 (Bold face denotes Committee Amendments) 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) product liability insurance. 7. The Authority may request additional information from the applicant. 8. The Authority may reject an appl ication for an annual medical marijuana bu siness 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. 9. For purposes of this subsec tion, "financial interest" concerning a medical marijuana business shall inc lude any contractual agreements for profit sharing, sub contracting, or similar financial arrangements; provided, that such disclosures alone shall not automatically indicate owners hip of the license or require disclosure a s an owner of the license . E. 1. The Minus the fee of One Thousand Dollars ($1,000.00) for a temporary medical marijuana transporter license, the annual, nonrefundable fee for a medical marijuana transporter license shall be Two Thousand Five Hundred Dollars ($2,500.00). 2. The Minus the fee of One Thousand Dollars ($1,000.00) for a temporary medical marijuana business license, the initial fee for a medical marijuana commercial grower license shall be calculated based upon the total amount of square feet o f canopy or acres the grower estimates will be harvested for the year. The annual, nonrefundable license fee shall be based upon the total amount of SENATE FLOOR VERSION - HB1350 SFLR Page 28 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 square feet of canopy harvested by the grower during the previous twelve (12) months. The amount of the fees shall be determined as follows: a. For an indoor, greenhouse, or light deprivation medical marijuana grow facility: (1) Tier 1: Up to ten thousand (10,000) square feet of canopy, the fee shall be Two Thousand Five Hundred Dollars ($2,500.00), (2) Tier 2: Ten thousand one (10,001) square feet of canopy to twenty thousand (20,000) square feet of canopy, the fee shall be Five Thousand Dollars ($5,000.00), (3) Tier 3: Twenty thousand one (20,001) square fee t of canopy to forty thousand (40,000) s quare feet of canopy, the fee shal l be Ten Thousand Dollars ($10,000.00), (4) Tier 4: Forty thousand one (40,001) square feet of canopy to sixty thousand (60,000) square feet of canopy, the fee shall be Twenty Thousand Dollars ($20,000.00), (5) Tier 5: Sixty thousand one (60,001) square feet of canopy to eighty thousand (80,000) square feet of canopy, the fee shall be Thirty Thousand Dollars ($30,000.00), SENATE FLOOR VERSION - HB1350 SFLR Page 29 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (6) Tier 6: Eighty thousand one (80,001) square feet of canopy to ninety-nine thousand nine hundred ninety-nine (99,999) square feet of canopy, the fee shall be Forty Thousand Dollars ($40,000.00), and (7) Tier 7: One hundred thousand (100,000) square feet of canopy and beyond, the fee shall be Fifty Thousand Dollars ($50,000.00), plus an additional twenty-five cents ($0.25) per square foot of canopy over one hundred thousand (100,000) square feet. b. For an outdoor medical marijuana grow facility: (1) Tier 1: Up to two and one-half (2 1/2) acres, the fee shall be Two Thousand Five Hundred Dollars ($2,500.00), (2) Tier 2: Two and one-half (2 1/2) acres up to five (5) acres, the fee shall be Five Thousand Dollars ($5,000.00), (3) Tier 3: Five (5) acres up to ten (10) acres, the fee shall be Ten Thousand Dollars ($10,000.00), (4) Tier 4: Ten (10) acres up to twenty (20) acres, the fee shall be Twenty Thousand Dollars ($20,000.00), SENATE FLOOR VERSION - HB1350 SFLR Page 30 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (5) Tier 5: Twenty (20) acres up to thirty (30) acres, the fee shall be Thirty Thousand Dollars ($30,000.00), (6) Tier 6: Thirty (30) acres up to forty (40) acres, the fee shall be Forty Thousand Dollars ($40,000.00), (7) Tier 7: Forty (40) acres up to fifty (50) acres, the fee shall be Fifty Thousand Dollars ($50,000.00), and (8) Tier 8: If the amount of acreage exceeds fifty (50) acres, the fee shall be Fifty Thousand Dollars ($50,000.00) plus an additi onal Two Hundred Fifty Dollars ($250.00) per acre. c. For a medical marijuana commercial grower that has a combination of both indoor and outdoor growing facilities at one location, the medical marijuana commercial grower shall be required to obtain a separate license from the Authority for each type of grow operation and shall be subject to the licensing fees provided for in subparagraphs a and b of this paragraph. d. As used in this paragraph: (1) "canopy" means the total surface area within a cultivation area that is dedicated to the SENATE FLOOR VERSION - HB1350 SFLR Page 31 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 cultivation of flowering marijuana plants. The surface area of the plant canopy must be calculated in square feet and measured and must include all of the area within the boundaries where the cultivation of the flowering marijuana plants occurs. If the surface of the plant canopy consists of noncontiguous areas, each component area must be separated by identifiable boundaries. If a tiered or shelving system is used in the cultivation area, the surface area of each tier or shelf must be included in calculating the area of the plant canopy. Calculation of the area of the plant canopy may not include the areas within the cultivation area that are used to cultivate immature marijuana plants and seedlings, p rior to flowering, a nd that are not used at any time to cultivate mature marijuana plants. If the flowering plants are vertically grown in cylinders, the square footage of the canopy shall be measured by the circumference of the cylinder multiplied by the total length of the cylinder, (2) "greenhouse" means a structure located outdoors that is completely covered by a material that SENATE FLOOR VERSION - HB1350 SFLR Page 32 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 allows a controlled level of light transmission, and (3) "light deprivation" means a structure that has concrete floors and the ability to manipula te natural light. 3. The In addition to the nonrefundable application fee for a temporary medical marijuana business license, the annual, nonrefundable license fee for a medical marijuana processor license shall be determined as follows: a. Tier 1: Zero (0) to ten thousand (10,000) pounds of biomass or production or use of up to one hundred (100) liters of cannabis concentrate, the annual fee shall be Two Thousand Five Hundred Dollars ($2,500.00), b. Tier 2: Ten thousand one (10,001) pounds to fifty thousand (50,000) pounds of biomass or production or use from one hundred one (101) to three hundred fifty (350) liters of cannabis concentrate, the annual fee shall be Five Thousand Dollars ($5,000.00), c. Tier 3: Fifty thousand one (50,001) pounds to one hundred fifty thousand (150,000) pounds of biomass or production or use from three hundred fifty-one (351) to six hundred fifty (650) liters of cannabis SENATE FLOOR VERSION - HB1350 SFLR Page 33 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 concentrate, the annual fee shall be Ten Thousand Dollars ($10,000.00), d. Tier 4: One hundred fifty thou sand one (150,001) pounds to three hundred thousand (300,000) pounds of biomass or production or use from six hundred fifty- one (651) to one thousand (1,000) liters of cannabis concentrate, the annual fee shall be Fifteen Thousand Dollars ($15,000.00), and e. Tier 5: More than three hundred thousand on e (300,001) pounds of biomass or production or use in excess of one thousand one (1,001) liters of cannabis concentrate, the annual fee shall be Twenty Thousand Dollars ($20,000.00). For purposes of this paragraph only, if the cannabis concentrate is in nonliquid form, every one thousand (1,000) grams of concentrated marijuana shall be calculated as one (1) liter of cannabis concentrate. 4. The Minus the fee of One Thousand Dollars ($1,000.00) for a temporary medical marijuana business license, the initial fee for a medical marijuana dispensary license shall be Two Thousand Five Hundred Dollars ($2,500.00). The annual, nonrefundable license fee for a medical marijuana dispensary license shall be calculated at ten percent (10%) of the sum of twelve (12) calendar months of the combined annual state sales tax and state excise tax of the SENATE FLOOR VERSION - HB1350 SFLR Page 34 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 dispensary. The minimum fee shall be not less than Two Thousand Five Hundred Dollars ($2,500.00) and the maximum fee shall not exceed Ten Thousand Dollars ($10,000.00). 5. The Minus the fee of One Thousand Dollars ($1,000.00) for a temporary medical marijuana business license, the annual, nonrefundable license fee for a medical marijuana testing laboratory shall be Twenty Thousand Dollars ($20,000.00). E. F. All applicants seeking licensure or licensure renewal as a medical marijuana business shall comply with the following general requirements: 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 ide ntify the city or county in which the applicant seeks to obtain licensure as a medical marijuana business; 3. Applicants shall submit a complete application to the Authority before the application may be accepted 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; SENATE FLOOR VERSION - HB1350 SFLR Page 35 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 6. All applications shall be accompanied by a full remittance for the whole amount of the application fees. Application fees are nonrefundable; 7. All applicants shall be approved for licensing review that, at a minimum, meets the following criteria: a. twenty-five (25) years of age or older, b. if applying as an individual, proof that the applicant is an Oklahoma resident pursuant to paragraph 11 of this subsection, c. if applying as an entity, proof that seventy-five percent (75%) of all members, managers, executive officers, partners, board members or any other form of business ownership are Oklahoma residents pursuant to paragraph 11 of this subsection, d. if applying as an individual or entity, proof that the individual or entity is registered to conduct business in the State of Oklahoma, 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 marijuana education facility and medical marijuana waste disposal facility applicant or license e has not been SENATE FLOOR VERSION - HB1350 SFLR Page 36 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 convicted of a nonviolent felony in the last two (2) years, or any other felony conviction within the last five (5) years, is not 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 application and each category shall require a separate application and appli cation fee. A commercial grower, processor and dispensary, or any combination thereof, are authorized to share the same address or physical location, subject to the restrictions set forth 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 Medical Marijuana and Patient Protection Act, or for a renewal of such license, shall undergo an Oklahoma criminal history background check conducted by the Oklahoma State Bureau of Investigation (OSBI) within thirty (30) days prior to the application for the license, including: a. individual applicants applying on their own behalf, b. individuals applying on behalf of a n entity, c. all principal officers of an entity, and SENATE FLOOR VERSION - HB1350 SFLR Page 37 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 an Oklahoma resident for purposes of a medical marijuana business license application, all applicants shall provide proof of Oklahoma residency for at least two (2) years immediately preceding the date of application or five (5) years of continuous Oklahoma residency during the preceding twenty-five (25) years immediately preceding the date of application. Sufficient documentation of proof of residency shall include a combination of the following: a. an unexpired Oklahoma-issued driver license, b. an Oklahoma 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 the State of Oklahoma, and e. a rental agreement preceding the date of application for residential property located in the State of Oklahoma. SENATE FLOOR VERSION - HB1350 SFLR Page 38 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Applicants that were issued a medical marijuana business license prior to August 30, 2019, are hereby exempt from the two-year or five-year Oklahoma residence requirement mentioned 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 shall establish their identity through submission of a color copy or digital image of one of the following unexpired documents: a. front of an Oklahoma driver license, b. front of an Oklahoma identification card, c. a United States passport or other photo identification issued by the United States government, or d. a tribal identification card approved for identification purposes by the Oklahoma Department of Public Safety; and 14. All applicants shall submit an applicant photograph. F. G. The Authority shall review the temporary medical marijuana business license 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. SENATE FLOOR VERSION - HB1350 SFLR Page 39 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 G. H. 1. The Authority shall review the temporary medical marijuana business license applications and conduct all investigations, inspections and interviews before approving the application for an annual medical marijuana business license for the specific category applied under. The annual medical marijuana business license shall not be issued until t he Authority determines that all necessary inspections and reviews, including, but not limited to, plan reviews, safety inspections or compliance inspections, have been completed . 2. Approved applicants shall be issued a an annual medical marijuana business license for 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 business 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 marijuana business license, the provisions of the Oklahoma Medical Marijuana and Patient Protection 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 Protection 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) SENATE FLOOR VERSION - HB1350 SFLR Page 40 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 days be granted an extension of time as pro vided 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 of One Thousand Dollars ($1,000.00) for every ninety-day extension requested by the applicant and su bsequently 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. 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. Approval, rejection, denial or status-update letters shall be sent to the applicant in the same method the application was submitted to the Authority. 5. Medical marijuana businesses issued a medical marijuana business license prior to the effective date of this a ct shall be required to submit business -formation documents, financial information, and insurance information pertainin g to the operations of the medical marijuana business, as prescribed in subparagraphs a, b, c, d, e, f, and i of paragraph 6 of subsectio n D of this section, to the Authority prior to renewal of the medical marijuana business SENATE FLOOR VERSION - HB1350 SFLR Page 41 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 license. The medical marijuan a business licensee sha ll submit the required documentation not less than sixty (60) days prior to the date of renewal of the medical mar ijuana business license. The Authority shall have thirty (30) days to review the submitted documentation and an additi onal thirty (30) days i mmediately thereafter for purposes of resolving any inconsistencies, discrepancies, or disputed issues found withi n the submitted documentation. If the medical marijuana business licensee fails to submit the required documentation s ixty (60) days prior to the date of renewal, the license of the medical marijuana business shall be suspended until such time as the docu mentation is submitted to the Authority. 6. Medical marijuana businesses that have been issued a temporary and annual medical marijuana busin ess license pursuant to the provisions of subsection D of this section shall be required to annually submit update d business-formation documents, financial information, and insurance information pertaining to the operations of the medical marijuana busines s, as prescribed in subparagraphs a, b, c, d, e, f, and i of paragraph 6 of subsection D of this section, to the Authority when seeking renewal of the medical mar ijuana business license. H. I. A license for a medical marijuana business, medical marijuana research facility, medical marijuana education facility or SENATE FLOOR VERSION - HB1350 SFLR Page 42 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 felony within two (2) years of the date of application, 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 of 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; 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 SENATE FLOOR VERSION - HB1350 SFLR Page 43 (Bold face denotes Committee Amendments) 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. A person who was involved in the management or operations of any medical marijuana business, medical marijuana research facility, medical marijuana education facility or medical marijuana waste disposal facility that, after the initiation of a disciplinary action, has had a medical marijuana license revoked, not renewed, or surrendered during the five (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 licensees 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, g. criminal acts relating to t he operation of a medical marijuana business, or h. any violations that endanger public health and safety or product safety. SENATE FLOOR VERSION - HB1350 SFLR Page 44 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 I. J. 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 such an agency. J. K. 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. L. 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 ap plicant or licensee made misstatements, omissions, misrepresentations or untruths in the application or in connection with the background 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. M. 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 the Oklahoma Uniform Building Code, the International Building Code and the International Fire Code, unless granted an exemption by a municipality or appropriate code enforcement entity. M. N. All medical marijuana business, medical marijuana research facility, medical marijuana education facility and medical SENATE FLOOR VERSION - HB1350 SFLR Page 45 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 marijuana waste disposal facility licensees shall pay the relevant licensure fees prior to receiving licensure to operate. N. O. A medical marijuana business, medical marijuana rese arch facility, medical marijuana education facility 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 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. P. No medical marijuana business, medical marijuana research facility, medical marijuana education fa cility or medical marijuana waste disposal facility shall possess, sell or transfer medical marijuana or medical marijuana products without a valid, unexpired license issued by the Authority. SECTION 7. AMENDATORY 63 O.S. 2021, Section 427.16, as 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 shall issue a temporary and an annual medical marijuana transporter license to licensed medical marijuana commercial growers, licensed medical marijuana processors, and SENATE FLOOR VERSION - HB1350 SFLR Page 46 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 licensed medical marijuana dispensaries upon issuance of such licenses and upon each renewal. Medical marijuana transporter licenses shall also be issued to licensed m edical 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 Pat ient 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. D. A medical marijuana transporter license shall be valid 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 con trol 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 medical marijuana business, or from a SENATE FLOOR VERSION - HB1350 SFLR Page 47 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 transp orter licensee shall use the seed- to-sale tracking system developed pursuant to the Oklahoma Medical Marijuana and Patient Protection Act to create shipping manifests documenting the transport of medical marijuana, medical marijuana concentrate and medical 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 sh all 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 SENATE FLOOR VERSION - HB1350 SFLR Page 48 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 that i s 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. 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). SENATE FLOOR VERSION - HB1350 SFLR Page 49 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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. 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 knowingly violates any provision of this section, and the transporter is subject to any o ther 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 SENATE FLOOR VERSION - HB1350 SFLR Page 50 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 shall include the following information: 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 originating licensee; 2. For the end recipient license holder of the medical marijuana: SENATE FLOOR VERSION - HB1350 SFLR Page 51 (Bold face denotes Committee Amendments) 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. 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 time 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. 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 shall refuse to accept any medical marijuana, medical marijuana concentrat e or medical marijuana products that are not accompanied by an inventory manifest. SENATE FLOOR VERSION - HB1350 SFLR Page 52 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4. Originating and receiving licensees shall maintain copies of inventory manifests and logs of quantities of medical marijuana received for seven (7) years from date of re ceipt. SECTION 8. This act shall become effective November 1, 2023. COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE April 3, 2023 - DO PASS AS AMENDED