Oklahoma 2024 Regular Session

Oklahoma House Bill HB1711 Compare Versions

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Version 2 (New)

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28		-	ENGROSSED HOUSE
29		-	BILL NO. 1711 By: Marti and Davis of the
30		-	House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	HOUSE BILL 1711 By: Marti of the House
31	36
32	37		and
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34	39		Garvin of the Senate
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	44	+
	45	+	AS INTRODUCED
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40	47		An Act relating to medical marijuana; requiring
41	48		licensed medical marijuana commercial growers to
42	49		inform retail suppliers or electric coope ratives as
43	50		to their license status; requiring transmission of
44	51		monthly usage reports in certain format to the
45	52		Oklahoma Medical Marijuana Authority; amending 63
46	53		O.S. 2021, Section 427.3, as amended by Section 8,
47	54		Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022, Section
48	55		427.3), which relates to the Oklahoma Medica l
49	56		Marijuana and Patient Protection Act; requiring
50	57		establishment of procedures to monitor, collect, and
51	58		transmit certain usage information of licensed
52	59		medical marijuana commercial growers; providing for
53	60		the transmission of monthly usage reports; requiring
54	61		the development of rules, exemptions, and procedures;
55	62		providing for license revocation; providing for
56	63		codification; and providing an effective date.
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62	69		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
63	70		SECTION 1. NEW LAW A new section of law to be codified
64	71		in the Oklahoma Statutes as Section 180.12 of Title 17, unless there
65	72		is created a duplication in numbering, reads as follows:
66		-	Every existing licensed medical marijuana commercial grower
67		-	shall be required to inform retail suppliers or electric
68		-	cooperatives utilized of their status as a licensed medical
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70		-	ENGR. H. B. NO. 1711 Page 2 1
	74	+	HB1711 HFLR Page 2
	75	+	BOLD FACE denotes Committee Amendments. 1
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	100	+	Every existing licensed medical marijuana commercial grower
	101	+	shall be required to inform retail suppliers or electric
	102	+	cooperatives utilized of their status as a licensed medical
95	103		marijuana commercial grower within thirty (30) days after the
96	104		effective date of this act. Every licensed medical marijuana
97	105		commercial grower that receives a license after the effective date
98	106		of this act shall inform retail suppliers or electric cooperatives
99	107		utilized of their status as a licensed medical marijuana commercial
100	108		grower at the time of the connection of services. As provided for
101	109		in paragraph 12 of subsection D of Section 427.3 of Title 63 of the
102	110		Oklahoma Statutes, a licensed medical marijuana commercial grower
103	111		shall transmit monthly reports to the Oklahoma Medical Marijuana
104	112		Authority providing the amount of electricity and water consumed.
105	113		The monthly reports shall be transmitted in an electro nic format
106	114		that can be integrated with the seed-to-sale software of the
107	115		Authority.
108	116		SECTION 2. AMENDATORY 63 O.S. 2021, Section 427.3, as
109	117		amended by Section 8, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022,
110	118		Section 427.3), is amended to read as follows:
111	119		Section 427.3 A. There is hereby created the Oklahoma Medical
112	120		Marijuana Authority which shall address issues related to the
113	121		medical marijuana program in this state including, but not limited
114	122		to, the issuance of patient licenses and medical marijuana business
115	123		licenses, and the dispensing, cultivating, processing, testing,
116		-	transporting, storage, research, and the use of and sale of medical
117		-	marijuana pursuant to the Oklahoma Medical Marijuana and Patient
118		-	Protection Act.
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120		-	ENGR. H. B. NO. 1711 Page 3 1
	125	+	HB1711 HFLR Page 3
	126	+	BOLD FACE denotes Committee Amendments. 1
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	151	+	transporting, storage, research, and the use of and sale of medical
	152	+	marijuana pursuant to the Oklahoma Medical Marijuana and Patient
	153	+	Protection Act.
145	154		B. 1. Beginning on the effective date of this act, the
146	155		Authority shall cease to be part of or a division of the State
147	156		Department of Health and shall be deemed to be a separate and
148	157		distinct agency, to be known as the Oklahoma Medical Marijuana
149	158		Authority. The Authority and the Executive Director of the
150	159		Authority shall continue to exercise their statutory powers, duties,
151	160		and contractual responsibilities. All records, property, equipment,
152	161		assets, monies, financial interests, liabilities, matters pending,
153	162		and funds of the division shall be transferred to the Authority.
154	163		2. All licenses granted by the Department pertaining to medical
155	164		marijuana shall maintain rights and privileges under the authority
156	165		of the Authority; provided, however, that all licenses shall be
157	166		subject to revocation, suspension, or disciplinary action for
158	167		violation of any of the provisions of the Oklahoma Medical Marijuana
159	168		and Patient Protection Act and rules promulgated by the Executive
160	169		Director.
161	170		3. The Authority shall succeed to any contract ual rights or
162	171		responsibilities incurred by the Department pertaining to medic al
163	172		marijuana.
164	173		4. Rules promulgated by the State Commissioner of Health
165	174		pertaining to medical marijuana that are in effect on the effective
166		-	date of this act shall be immediately adopted and enforced by the
167		-	Executive Director. The Executive Director maintains the autho rity
168		-	to further promulgate and enforce rules.
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170		-	ENGR. H. B. NO. 1711 Page 4 1
	176	+	HB1711 HFLR Page 4
	177	+	BOLD FACE denotes Committee Amendments. 1
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	202	+	date of this act shall be immediately adopted and enforced by the
	203	+	Executive Director. The Executive Director maintains the autho rity
	204	+	to further promulgate and enforce rules.
195	205		5. The Department and the Authority may enter into an agreement
196	206		for the transfer of personnel from the Department to the Authority.
197	207		No employee shall be transferred to the Authority except on the
198	208		freely given written consent of the employee. All employees who are
199	209		transferred to the Authority shall not be required to accept a
200	210		lesser grade or salary than presently received . All employees shall
201	211		retain leave, sick, and annual time earned, and any retirement and
202	212		longevity benefits which have accrued during their te nure with the
203	213		Department. The transfer of personnel between the state agencies
204	214		shall be coordinated with the Off ice of Management and Enterprise
205	215		Services.
206	216		6. The expenses incurred by the Authority as a result of the
207	217		transfer required by this subsection shall be paid by the Authority.
208	218		7. The division within the Department known as the Oklahoma
209	219		Medical Marijuana Aut hority shall be abolished by the Department
210	220		after the transfer has been completed .
211	221		8. The Office of Management and Enterprise Services shall
212	222		coordinate the transfer of records, property, equipment, assets,
213	223		funds, allotments, purchase orders, liabilities, outstanding
214	224		financial obligations, or encumbrances provided for in this
215	225		subsection.
216		-	C. The Authority shall implement the provisions of the Oklahoma
217		-	Medical Marijuana and Patient Protection Act consistently with the
218		-	voter-approved State Question No. 788, Initiative Petition No. 412,
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220		-	ENGR. H. B. NO. 1711 Page 5 1
	227	+	HB1711 HFLR Page 5
	228	+	BOLD FACE denotes Committee Amendments. 1
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	253	+	C. The Authority shall implement the provisions of the Oklahoma
	254	+	Medical Marijuana and Patient Protection Act consistently with the
	255	+	voter-approved State Question No. 788, Initiative Petition No. 412,
245	256		subject to the provisions of the Oklahoma Medical M arijuana and
246	257		Patient Protection Act.
247	258		D. The Authority shall exercise its respective powers and
248	259		perform its respective duties and functions as specified in the
249	260		Oklahoma Medical Marijuana and Patient Protection Act and this title
250	261		including, but not limited to, the following:
251	262		1. Determine steps the state shall take, whether administrative
252	263		or legislative in nature, to ensure that research on marijuana and
253	264		marijuana products is being conducted for public purposes including
254	265		the advancement of:
255	266		a. public health policy and public safety policy,
256	267		b. agronomic and horticultural best practices, and
257	268		c. medical and pharmacopoeia best practices;
258	269		2. Contract with third -party vendors and other governmental
259	270		entities in order to carry out the respective duties a nd functions
260	271		as specified in the Oklahoma Medical Marijuana and Patient
261	272		Protection Act;
262	273		3. Upon complaint or upon its own motion and upon a completed
263	274		investigation, levy fines as prescribed in applicable laws, rules
264	275		and regulations and suspend, revoke or not renew licenses pursuant
265	276		to applicable laws, rules and regulations;
266		-	4. Issue subpoenas for the appearance or production of persons,
267		-	records and things in connecti on with disciplinary or contested
268		-	cases considered by the Authority;
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270		-	ENGR. H. B. NO. 1711 Page 6 1
	278	+	HB1711 HFLR Page 6
	279	+	BOLD FACE denotes Committee Amendments. 1
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	304	+	4. Issue subpoenas for the appearance or production of persons,
	305	+	records and things in connecti on with disciplinary or contested
	306	+	cases considered by the Authority;
295	307		5. Apply for injunctive or declaratory relief to enforce the
296	308		provisions of applicable laws, rules and regulations;
297	309		6. Inspect and examine all licensed premises of medical
298	310		marijuana businesses, research facilities, education facilities and
299	311		waste disposal facilities in which medical marijuana is cultivated,
300	312		manufactured, sold, stored, transported, tested, distributed or
301	313		disposed of;
302	314		7. Upon action by the federal government by w hich the
303	315		production, sale and use of marijuana in this state does not violate
304	316		federal law, work with the Banking Department and the State
305	317		Treasurer to develop good practices and s tandards for banking and
306	318		finance for medical marijuana businesses;
307	319		8. Establish internal control procedures for licenses including
308	320		accounting procedures, reporting procedures and personnel policies;
309	321		9. Establish a fee schedule and collect fees for perf orming
310	322		background checks as the Executive Director deems appropriate. The
311	323		fees charged pursuant to this paragraph shall not exceed the actual
312	324		cost incurred for each background check;
313	325		10. Establish a fee schedule and collect fees for material
314	326		changes requested by the licensee; and
315		-	11. Establish regulations, which require a medical marijuana
316		-	business to submit information t o the Oklahoma Medical Marijuana
317		-	Authority, deemed reasonably necessary to assist the Authority in
318		-	the prevention of diversion of medical marijuana by a licensed
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320		-	ENGR. H. B. NO. 1711 Page 7 1
	328	+	HB1711 HFLR Page 7
	329	+	BOLD FACE denotes Committee Amendments. 1
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	354	+	11. Establish regulations, which require a medical marijuana
	355	+	business to submit information t o the Oklahoma Medical Marijuana
	356	+	Authority, deemed reasonably necessary to assist the Authority in
	357	+	the prevention of diversion of medical marijuana by a licensed
345	358		medical marijuana business. Such information required by the
346	359		Authority may include, but shall not be limited to:
347	360		a. the square footage of the licensed premises,
348	361		b. a diagram of the licensed premises,
349	362		c. the number and type of lights at the licensed medical
350	363		marijuana commercial grower business,
351	364		d. the number, type and production capacity of equipme nt
352	365		located at the medical marijuana processing facility,
353	366		e. the names, addresses and telephone numbers of
354	367		employees or agents of a medical marijuana business,
355	368		f. employment manuals and standard operating procedures
356	369		for the medical marijuana business, and
357	370		g. any other information as the Authority reasonably
358	371		deems necessary; and
359	372		12. Establish an electronic procedure for monitoring,
360	373		collecting, and transmitting license d medical marijuana commercial
361	374		growers' monthly usage of electricity and water provided by retail
362	375		suppliers or electric cooperatives. The Authority shall provide
363	376		licensed medical mariju ana commercial growers a means to transmit
364	377		monthly reports regarding th e amounts of electricity and water
365		-	consumed by licensed medical marijuana commercial growers. In
366		-	addition, the Authority shall develop rules, exemptions from the
367		-	requirements of this p aragraph, and any necessary procedures for the
368		-	metering of the usage of electricity and water by licensed medical
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370		-	ENGR. H. B. NO. 1711 Page 8 1
	379	+	HB1711 HFLR Page 8
	380	+	BOLD FACE denotes Committee Amendments. 1
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	405	+	consumed by licensed medical marijuana commercial growers. In
	406	+	addition, the Authority shall develop rules, exemptions from the
	407	+	requirements of this p aragraph, and any necessary procedures for the
	408	+	metering of the usage of electricity and water by licensed medical
395	409		marijuana commercial growers that are not supplied by retail
396	410		suppliers or electric cooperatives incl uding, but not limited to,
397	411		the usage of well water and gas-powered generators. Refusal or
398	412		failure to submit the re quired monthly usage reports or use of an
399	413		unpermitted water source by a licensed medical marijuana com mercial
400	414		grower shall result in the perm anent revocation of th e medical
401	415		marijuana commercial grower license.
402	416		SECTION 3. This act shall become effective November 1, 2023.
403		-	Passed the House of Representatives the 8th day of March, 2023.
404	417
405		-
406		-
407		-
408		-	Presiding Officer of the House
409		-
410		-	of Representatives
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413		-	Passed the Senate the ___ day of __________, 2023.
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417		-
418		-	Presiding Officer of the Senate
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420		-
	418	+	COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
	419	+	SUBSTANCES, dated 03/01/2023 - DO PASS, As Coauthored.