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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1717 By: Marti
COMMITTEE SUBSTITUTE
An Act relating to marijuana; amending 63 O.S. 2021,
Section 421, as amended by S ection 1, Chapter 332,
O.S.L. 2022 (63 O.S. Supp. 2022, Section 421), which
relates to licensing for medical marijuana
dispensaries; updating name of agency; providing
applications for adult use marijuana dispensary
licenses; modifying procedures and guidelines to
allow for adult use marijuana dispensary licenses;
amending 63 O.S. 2021, Section 422, as amended by
Section 2, Chapter 332, O.S.L. 2022 (63 O.S. Supp.
2022, Section 422), which relates to licensing for
medical marijuana commercial growers; updating name
of agency; providing applications for adult use
marijuana commercial grower licenses; modifying
procedures and guidelines to allow for adult use
marijuana commercial grower licenses; amending 63
O.S. 2021, Section 423, as amended by Section 3,
Chapter 332, O.S.L. 2022 (63 O.S. Supp. 2022, Section
423), which relates to licensing for medical
marijuana processors; updating name of agency;
providing applications for adult use marijuana
processor licenses; modifying procedures and
guidelines to allow for adult use marijuana processor
licenses; amending 63 O.S. 2021, Section 424, which
relates to marijuana tra nsportation licenses;
providing for the issuance of adult use marijuana
transportation licenses ; modifying procedures and
guidelines to allow for adult use marijuana
transportation licenses; amending 63 O.S. 2021,
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Section 425, as amended by Section 2, Chapter 317,
O.S.L. 2022 (63 O.S. Supp. 2022, Section 425), which
relates to license holder protections; updating city
and local municipality restrictions to include adult
use marijuana dispensaries; prohibiting adult use
marijuana dispensaries from being located near public
or private schools; deleting references to the State
Department of Health; updating name of agency;
amending 63 O.S. 2021, Section 426.1, as amended by
Section 6, Chapter 251, O.S.L. 2 022 (63 O.S. Supp.
2022, Section 426.1), which relates to licensure
revocation hearings; updating name of agency;
directing the Oklahoma Medical Marijuana Authority to
provide list of adult use marijuana businesses to
state agencies and political subdivisions; requiring
adult use marijuana businesses to obtain a
certificate of compliance; amending 63 O.S. 2021,
Sections 427.2, as amended by Section 1, Chapter 317,
O.S.L. 2022, 427.3, as amended by Section 8, Chapter
251, O.S.L. 2022, Section 1, Chapter 236, O.S.L.
2022, 427.4, as amended by Section 9, Chapter 251,
O.S.L. 2022, 427.6, as last amended by Section 1,
Chapter 328, O.S.L. 2022 , 427.13, as amended by
Section 14, Chapter 251, O.S.L. 2022, 427.14, as
amended by Section 4, Chapter 332, O.S.L. 2022,
Section 3, Chapter 328, O.S.L. 2022 , 427.15, 427.16,
as amended by Section 16 , Chapter 251, O.S.L. 2 022,
427.17, as last amended by Section 1, Chapter 353,
O.S.L. 2022, 427.18, as amended by Section 18,
Chapter 251, O.S.L. 2022, 427.19, as amended by
Section 19, Chapter 251, O.S.L. 2022 , 427.20, as
amended by Section 20, Chapter 25 1, O.S.L. 2022,
427.21, as amended by Section 2, Chapter 329, O.S.L.
2022, 427.22, as amended by Secti on 21, Chapter 251,
O.S.L. 2022, 427.24, as amended by Section 23,
Chapter 251, O.S.L. 2022 , and Section 1, Chapter 352,
O.S.L. 2022 (63 O.S. Supp. 2022, Section 427.2,
427.3, 427.3a, 427.4, 427.6, 427.13, 427.14, 427.14b,
427.16, 427.17, 427.18, 427.19, 427.20, 427.21,
427.22, 427.24, and 427.25), which relate to the
Oklahoma Medical Marijuana and Patient Protection
Act; updating name of agency; adding definitions and
modifying certain definitions; modifying scope of
duties and functions of the Authority t o include
adult use marijuana business licensees; updating
language; updating references to medical marijuana,
medical marijuana product s, and medical marijuana
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concentrate; modifying duties of the Executive
Director of the Authority to include adult use
marijuana businesses; expanding monitoring,
inspection, and disciplinary actions and penalties to
include adult use marijuana businesses; updating
inventory tracking system procedures and guidelines
to include adult use marijuana businesses; modifying
tiered licensing provisions to i nclude adult use
marijuana business licensees; requiring adult use
marijuana business licensees to comply with general
background requirements when seeking licensure or
licensure renewal; making adult use marijuana
business licensees subject to licensing procedures
and guidelines of the Authority; requiring employees
of adult use marijuana l icensees to apply for and
receive certain credentials; directing adult use
marijuana businesses to submit attestation regarding
foreign financial interests; providing for adult use
marijuana transporter licenses; expanding transporter
licensing procedures and guidelines to i nclude adult
use marijuana transporter licenses; providing for
adult use marijuana testing laboratory lic enses;
expanding testing laboratory licensing procedures and
guidelines to include adult use marijuana testing
laboratory licenses; modifying packaging and labeling
requirements and restrictions to include adult use
marijuana businesses; deleting all references to
medical marijuana as it pertains to research
licenses; deleting all references to medical
marijuana as it pertains to education facility
licenses; applying advertising and signage
requirements to adult use marijuana busi nesses;
making consumer information at dispensaries
confidential and exempt from the Oklahoma Open
Records Act; deleting all references to medical
marijuana as it pertains to the embargoing of
marijuana; authorizing use of secret shoppers at
adult use marijuana dispensaries; modifying
procedures and guidelines for secret shoppers to
include adult use marijuana business es; amending 63
O.S. 2021, Section 428.1, 429, and 430, as amended by
Section 3, Chapter 317, O.S.L. 2022 (63 O.S. Supp.
2022, Section 430), which relate to the Oklahoma
Medical Marijuana Waste Management Act; updating name
of agency; modifying scope of certain definitions;
deleting all references to medical marijuana as it
pertains to the disposal of marijuana and the
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licensing of marijuana waste disposal facilities; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
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 for a medical marijuana or adult use marijuana
dispensary license. The application fee to 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 shall be
provided on the website of the Authority. Dispensary applicants
must all be residents of Oklahoma. Any entity applying for a
dispensary license must be owned by an Oklahoma resident and must be
registered to do business in Oklahoma. The Authority shall have
ninety (90) business days to review the applicatio n; approve, reject
or deny the application; and mail the approval, rejection or denial
letter stating reasons for the rejection or denial to the applicant.
B. The Authority shall approve all applications which m eet the
following criteria:
1. The applicant must be twenty-five (25) years of age or
older;
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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 incarcerate d shall not qualify for a medical
marijuana or adult use marijuana dispensary license.
C. Licensed medical marijuana and licensed adult use 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 marijuana sold to licensed medical marijuana patients and,
licensed caregivers, and adult use consumers and account for any
waste. The report shall show total sales in dollars, tax collected
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in dollars, and tax due in d ollars. The Authority shall have
oversight and auditing responsibilities to ensure that all marijuana
being grown is account ed for.
D. Only a licensed medical marijuana or licensed adult use
marijuana dispensary may conduct retail sales of marijuana or
marijuana derivatives. Beginning on the effective date of this act,
licensed medical marijuana and licensed adult use marijuana
dispensaries shall be autho rized to package and sell pre-rolled
marijuana to licensed medical marijuana p atients and, licensed
caregivers, and adult use consumers. The products described in t his
subsection shall contain only the ground parts of the mar ijuana
plant and shall not inc lude marijuana concentrates or derivatives.
The total net weight of each pre-roll packaged and sold by a m edical
marijuana or adult use 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 or adult use marijuana dispensary shall
offer or allow a medic al marijuana patient licensee, careg iver
licensee, adult use customer, or other member of the public to
handle or otherwise have physical contact with any medical marijuana
not contained in a sealed or separate package . Provided, such
prohibition shall not preclude an employe e of the medical marijuana
or adult use marijuana dispensary from handling loose or nonpackaged
medical marijuana to be placed in packaging consistent with the
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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 or adult use marijuana dispensary from
displaying samples of its medical marijuana in separate display
cases, jars or other con tainers and allowing medical marijuana
patient licensees and, caregiver licensees, or adult use customer
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 retail 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 Authority shall
make available on its website in an easy-to-find location an
application for a medical marijuana or adult use marijuana
commercial grower license. The application fee shall be paid by the
applicant in the amounts provided f or in Section 427.14 of this
title. A method of payment for the application fee shall be
provided on the website of the Authority. The Authority shall have
ninety (90) days to review the application; approve, reject or deny
the application; and mail the approval, rejection or denial letter
stating the reasons for the rejection or denial to the applicant.
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B. The 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 resi dents;
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,
inmates in the custody of the D epartment of Corrections or any
person currently incarcerated shall not qualify for a commercial
grower license.
C. A licensed medical marijuana or licensed adult use marijuana
commercial grower may sell marijuana to a licensed medical marijuana
or licensed adult use marijuana dispensary or a licensed medical
marijuana or licensed adult use marijuana processor. Further, sales
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by a licensed medical marijuana or licensed adult use marijuana
commercial grower shall be considered wholesale sales and shall not
be subject to taxation. Under no circumstances may a licensed
medical marijuana or licensed adult use marijuana commercial grower
sell marijuana directly to a licensed medical marijuana patient or,
licensed medical marijuana caregiver, or adult use customer. A
licensed medical marijuana or licensed adult use marijuana
commercial grower may only sell at the wholesale level to a licensed
medical marijuana or licensed adult use marijuana dispensary, a
licensed medical marijuana or licensed adult use marijuana
commercial grower or a licensed medical marijuana or licensed adult
use marijuana processor. If the federal government lifts
restrictions on buying and selling marijuana between states, then a
licensed medical marijuana and licensed adult use 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 and licensed adult use 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, t he amount
of marijuana sold to licensed processors in pounds, the amount of
waste in pounds, and the amount of marijuana sold to licensed
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medical marijuana and license adult use marijuana dispensaries in
pounds. Additionally, this report shall show total wholesale sales
in dollars. The Authority shall have oversight and auditing
responsibilities to ensure th at all marijuana being grown by
licensed medical marijuana or licensed adult use marijuana
commercial growers is accounted for.
D. There shall be no limits on how much marijuana a licensed
medical marijuana or licensed adult use commercial grower can grow.
E. Beginning on the effective date of this act, licensed
medical marijuana and licensed adult use marijuana commercial
growers shall be authorized to package and sell pre-rolled marijuana
to licensed medical marijuana and licensed adult use 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 exc eed 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 amended to read as follows:
Section 423. A. The Oklahoma Medical Marijuana Authority shall
make available on its website in an easy-to-find location an
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application for a medical marijuana or adult use marijuana
processing license. The Authority shall be authorized to issue two
types of medical marijuana or adult use marijuana processor licenses
based on the level of risk posed by the type of processing
conducted:
1. Nonhazardous medical marijuana adult use marijuana processor
license; and
2. Hazardous medical marijuana adult use marijuana processor
license.
The application fee for a nonhazardous or hazardous medical
marijuana processor or adult use marijuana 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; approve, reject or deny the application; and mail the
approval, rejection or deni al letter stating the reasons for the
rejection or denial to the applicant.
B. The Authority shall approve all applications which mee t the
following criteria:
1. The applicant must be twenty-five (25) years of age or
older;
2. The applicant, if applying as an individual, must show
residency in the State of Oklahoma;
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3. All applying entities must show that all members, managers,
and board members are Oklahoma residents;
4. An applying entity may show ownership of non -Oklahoma
residents, but that pe rcentage ownership may not 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
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 incarcerate d shall not qualify for a medic al
marijuana or adult use marijuana processing license.
C. 1. A licensed processor may take marijuana plants and
distill or process these plants into concentrates, edibles, and
other forms for consumption.
2. As required by subsection D of this section, th e Authority
shall make available a set of standards which shall be used by
licensed 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.
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3. Up to two times a year, the Authority may inspect a
processing operation and de termine its compliance with the
preparation standards . If deficiencies are found, a written report
of the deficiency shall be issued to the licensed processor. The
licensed processor shall have one (1) month to correct the
deficiency or be subject to a f ine of Five Hundred Dollars ($500.00)
for each deficiency.
4. A licensed processor may sell marijuana pr oducts it creates
to a licensed dispensary or any other licensed processor. All sales
by a licensed processor shall be considered wholesale sales and
shall not be subject to taxation.
5. Under no circumstances may a licensed processor sell
marijuana or any marijuana product directly to a licensed medical
marijuana patient or, licensed medical marijuana caregiver, or adult
use customer. However, a licensed processor may process c annabis
into a concentrated form for a licensed medical marijuana patient
for a fee.
6. Licensed 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 report shall show total wholesale sales
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in dollars. The Authority shall have oversight and auditing
responsibilities to ensu re that all marijuana being processed is
accounted for.
D. The Authority shall oversee the inspection and compliance of
licensed processors producing products with marijuana as an
additive. The Authority shall be compelled to, within thirty (30)
days of passage of this initiative, appoint twelve (12) Oklahoma
residents to the Medical Marijuana Advisory Council, who are
marijuana industry experts, to create a list of food safe ty
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 processors. The Authority
shall develop a standards review procedure and these stan dards can
be altered by calling anothe r council of twelve (12) Oklahoma
marijuana industry experts. A signed letter of twenty operating,
licensed processors shall constitute a need for a new council and
standards review.
E. If it becomes permissible unde r federal law, marijuana may
be moved across state lines.
F. Any device used for the processing or consumption of medical
marijuana shall be considered legal to be sold, manufactured,
distributed and possessed. No merchant, wholesaler, manufacturer or
individual may be unduly harassed or prosecuted for sellin g,
manufacturing or possessing marijuana paraphernalia.
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SECTION 4. AMENDATORY 63 O.S. 2021, Section 424, is
amended to read as follows :
Section 424. A. A marijuana transportation license will shall
be issued to qualifying applicants for a marijuana retail
dispensary, growing commercial grower, or processing processor
license. The transportation license will shall be issued at the
time of approval of a retail, growing, or processing dispensary,
commercial grower, or processor license.
B. A transportation license will shall allow the holder to
transport marijuana from an Oklahoma licensed medical marijuana
retailer or adult use dispensary, licensed growing commercial grower
facility, or licensed processor facility to an Oklahoma licensed
medical marijuana retailer or adult use dispensary, licensed growing
commercial grower facility, or licensed processing processor
facility.
C. All marijuana or marijuana products shall be transported in
a locked container and clearly labeled "Medical Marijuana or
Derivative" "Marijuana or Derivative".
SECTION 5. AMENDATORY 63 O.S. 2021, Section 425, as
amended by Section 2, Chapter 317, O.S.L. 2 022 (63 O.S. Supp. 2022,
Section 425), is amended to read as follows:
Section 425. A. No school or landlord may refuse to enroll or
lease to and may not otherwise penalize a person solely for his or
her status as a medical marijuana patient licensee, unless failing
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to do so would cause the school or landlord the potential to lose a
monetary or licensing-related benefit under federal law or
regulations.
B. Unless a failure to do so would cause an employer the
potential to lose a monetary or licensing -related benefit under
federal law or regulations, an employer may not discrimina te against
a person in hiring, termination or imposing any term or condition of
employment or otherwi se penalize a person based upon the status of
the person as a medical mari juana patient licensee. Employers may
take action against a medical marijuana patient licensee if the
licensee uses or possesses marijuana while in his or her place of
employment or during the hours of employment . Employers may not
take action against a medical marijuana patient licensee solely
based upon the status of an employee as a medical marijuana patient
licensee or the results of a drug test showing positive for
marijuana or its components.
C. For the purposes of medical care, including organ
transplants, the authorized use of marijuana by a medical marijuana
patient licensee shall be considered the equivalent of the use of
any other medication under the direction of a physician and does not
constitute the use of an illicit substance or otherwise disqualify a
registered qualifying patient from medical care.
D. No medical marijuana patient licensee may be denied custody
of or visitation or parenting time with a minor child, and there is
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no presumption of neglect or child endangerment for conduct al lowed
under this law unless the behavior of the medical marijuana patient
licensee creates an unreasonable danger to the safety of the minor
child.
E. No person who possesses a medical marijuana patient license
may be unduly withheld from holdin g another state-issued license by
virtue of his or her status as a medical marijuana patient licensee
including, but not limited to, a concealed carry permit.
F. 1. No city or local municipality may unduly change or
restrict zoning laws to prevent the opening of a medical marijuana
or adult use marijuana dispensary.
2. For purposes of this subsection, an undue change or
restriction of municipal zoning laws means an act which entirely
prevents medical marijuana or adult use marijuana dispensaries from
operating within munic ipal boundaries as a matter of law .
Municipalities may follow their standard planning and zoning
procedures to determine if certain zones or districts would be
appropriate for locating marijuana -licensed premises, medical
marijuana or adult use marijua na businesses or any other premises
where marijuana or its by-products are cultivated, grown, processed,
stored or manufactured.
3. A medical marijuana or adult use marijuana dispensary does
not include those other ent ities licensed by th e Oklahoma Medical
Marijuana Authority as marijuana-licensed premises, medical
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marijuana businesses or other facilities or locations where
marijuana or any product containing marijuana or its by-products are
cultivated, grown, processed , stored or manufactured.
G. 1. The location of any medical marijuana or adult use
marijuana dispensary is specifically prohibited within one thousand
(1,000) feet of any public school or private school. The distance
indicated in this paragraph shall be measured from the nearest
property line of such public school or private school to the nearest
perimeter wall of the licensed premises of such medical marijuana or
adult use marijuana dispensary. If a medical marijuana or adult use
marijuana dispensary met the requirements of this paragraph at the
time of its initial licensure, the medica l marijuana or adult use
marijuana dispensary licensee shall be permitted to continue
operating at the licensed premises in the sa me manner and not be
subject to nonrenewal or revocation due to subseque nt events or
changes in regulations occurring after licensure that would render
the medical marijuana or adult use marijuana dispensary in violation
by being within one thousand (1,000) feet of a public school or
private school. If any public school or private school is
established within one thousand (1,000) feet of any medical
marijuana or adult use marijuana dispensary after such medical
marijuana or adult use marijuana dispensary has been licensed, the
provisions of this paragraph shall not be a deterrent to the renewal
of such license or warrant revocation of the license. For purposes
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of this paragraph, a property owned, used or operated by a public
school or by a private school that is not used for classroom
instruction on core curriculum, such as an administrative building,
athletic facility, ballpark, field or stadium, shall not constitute
a public school or private school unless such property is located on
the same campus as a building used for classroom ins truction on core
curriculum.
2. The location of any medical marijuana or adult use marijuana
commercial grower shall not be within one thousand (1,0 00) feet of
any public school or private school as measured from the nearest
property line of such public school or private school to the nearest
property line of the licensed premise s of such medical marijuana or
adult use marijuana commercial grower. Additionally, the location
of the medical marijuana or adult use marijuana commercial grower
shall not adjoin to any public school or private school or be
located at the same physical address as the publi c school or private
school. If a medical marijuana or adult use marijuana commercial
grower met the requirements of this p aragraph at the time of its
initial licensure, the medical mariju ana or adult use marijuana
commercial grower licensee shall be permi tted to continue operating
at the licensed premises in the same manner and not be subject to
nonrenewal or revocation due to subsequent events or changes in
regulations occurring after licensure that would rende r the medical
marijuana or adult use marijuana commercial grower in violation of
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this paragraph. If any public school or private school is
established within one thousand (1,000) feet of any medical
marijuana or adult use marijuana commercial grower after such
medical marijuana or adult use marijuana commercial grower has been
licensed, or if any public school or private school is established
adjoining to or at the same physical address a s any medical
marijuana or adult use marijuana commercial grower after such
medical marijuana or adult use marijuana commercial grower has been
licensed, the provisions of this paragraph shall not be a deterrent
to the renewal of such license or warrant revocation of the license.
For purposes of this paragraph, a property owned, used, or operated
by a public school o r by a private school that is not used for
classroom instruction on core curriculum, such as an administrative
building, athletic facility, ballpark, field, or stadium, shall not
constitute a public school or private school unless such property is
located on the same campus as a build ing used for classroom
instruction on core curriculum.
H. Research shall be provided for under this law. A researcher
may apply to the State Department of Health Oklahoma Marijuana
Authority for a special research license. The research license
shall be granted, provided the applicant meets the criteria li sted
in the Oklahoma Medical Marijuana and Pati ent Protection Act.
Research licensees shall be required to file monthly consumpti on
reports to the State Department of Health Authority with amounts of
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marijuana used for research. Biomedical and clinical research which
is subject to federal regulations and insti tutional oversight shall
not be subject to oversight by the State Department of Health
Authority.
SECTION 6. AMENDATORY 63 O.S. 2021, Secti on 426.1, as
amended by Section 6, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 426.1), is amended to read as follows:
Section 426.1 A. All licensure revocation hearings conducted
pursuant to marijuana licenses established in the Oklahoma Statutes
shall be recorded. A party may request a copy of the recording of
the proceedings. Copies shall be provided to local law enforcement
if the revocation was based on alleged criminal activity.
B. The Oklahoma Medical Marijuana Authority shall assist any
law enforcement officer in the performance of his or her duties upon
such request by the l aw enforcement officer or the request of other
local officials having jurisdiction. Except for license information
concerning licensed patients, as de fined in Section 427.2 of this
title, the Authority shall share information with law enforceme nt
agencies upon request without a subpoena or search warrant.
C. The Authority shall make available all information on
whether or not a medical marijuana patient or medical marijuana
caregiver license is valid to law enforcement electronically through
an online verification system.
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D. The Authority shall make available to state agencies and
political subdivisions a list of marijuana-licensed premises,
medical marijuana or adult use marijuana businesses or any other
premises where marijuana or its by-products are licensed to be
cultivated, grown, processed, stored or manufactured to aid state
agencies and county and municipal governments in identifying
locations within their jurisdiction and ensuring compliance with
applicable laws, rules and regulations.
E. Any marijuana-licensed premises, medical marijuana or adult
use marijuana business or any other premises where marijuana or its
by-products are licensed to be cultivated, grown, processed, stored
or manufactured shall submit with its application or request to
change location, after notifying the political subdivision of its
intent, a certificate of compliance from the political subdivision
where the facility of the applicant or licensee is to be located
certifying compliance with zoning classifications, applicable
municipal ordinances and all applicable safety, electri cal, fire,
plumbing, waste, construction and building specification codes.
Once a certificate of compliance has been submitted to the
Oklahoma Medical Marijuana Authority showing full compliance as
outlined in this subsection, no additional certificate of compliance
shall be required for license renewal unless a change of use or
occupancy occurs, or there is any change concerning the facility or
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location that would, by law, require additional inspection,
licensure or permitting by the state or municipality.
SECTION 7. AMENDATORY 63 O.S. 2021, Section 427.2, as
amended by Section 1, Chapter 317, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 427.2), is amended to read as fol lows:
Section 427.2 As used in the Oklahoma Medical Ma rijuana and
Patient Protection Act:
1. "Adult use" means a consumer of m arijuana or marijuana
products by a person twenty -one (21) years of age or older;
2. "Advertising" means the act of providing consideration for
the publication, dis semination, solicitation or circulation, of
visual, oral or written communication to induce directly or
indirectly any person to patroniz e a particular medical marijuana or
adult use marijuana business, or to purchase particular medical
marijuana or a medical marijuana product. Advertising includes
marketing, but does not include packa ging and labeling;
2. 3. "Authority" means the Oklahoma Medical Marijuana
Authority;
3. 4. "Batch number" means a unique numeric or alphanumeric
identifier assigned prior to testing to allow for inventory tracking
and traceability;
4. 5. "Cannabinoid" means any of the chemical compounds that
are active principles of marijuana;
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5. 6. "Caregiver" means a family member or assistant who
regularly looks after a medical marijuana license holde r whom a
physician attests needs assistance;
6. 7. "Child-resistant" means special packaging that is:
a. designed or construc ted to be significantly difficult
for children under five (5) years of age to open and
not difficult for normal adults to use properl y as
defined by 16 C.F.R. 1700.15 (1995) and 16 C.F .R.
1700.20 (1995),
b. opaque so that the outermost packaging does not a llow
the product to be seen without opening the packaging
material, and
c. resealable to maintain its child-resistant
effectiveness for multiple openings for any product
intended for more than a single use or containing
multiple servings;
7. 8. "Clone" means a nonflowering plant cut from a mother
plant that is capable of developing into a new plant and has shown
no signs of flowering;
8. 9. "Commissioner" means the State Commissioner of Hea lth;
9. 10. "Complete application" means a document prepared in
accordance with the provisions set forth in the Oklahoma Medical
Marijuana and Patient Protection Act, rules promulgated pursuant
thereto, and the forms and instructions provided by the Departmen t
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including any supporting documentation required and the applica ble
license application fee;
10. 11. "Department" means the State Department of Health;
11. 12. "Director" means the Executive Director o f the Oklahoma
Medical Marijuana Authority;
12. 13. "Dispense" means the selling of medical marijuana or a
medical marijuana product to a qualified patient or the designated
caregiver of the patient that is packaged in a suitable container
appropriately labeled for subsequent administration to or use by a
qualifying patient;
13. 14. "Dispensary" means a medical marijuana dispensary, an
entity that has been licensed by the Department pursuant to the
Oklahoma Medical Marijuana and Patient Protection Act to purchase
medical marijuana or medical marijuana products from a lice nsed
medical marijuana or adult use marijuana commercial grower or
medical marijuana or adult use marijuana processor, sell medical
marijuana or medical marijuana products to patients and, caregivers,
and adult consumers, as defined under the Oklahoma Medical Marijuana
and Patient Protection Act, or sell or transfer products to another
dispensary;
14. 15. "Edible medical marijuana product" means any medical-
marijuana-infused marijuana-infused product for which the intended
use is oral consumption including, but not limited to, any type of
food, drink or pill;
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15. 16. "Entity" means an individual, general partnership,
limited partnership, limited liability company, trus t, estate,
association, corporation, cooperative or any other legal or
commercial entity;
16. 17. "Flower" means the reproductive organs of the marijuana
or cannabis plant referred to as the bud or parts of the plant that
are harvested and used to consume in a variety of medical marijuana
products;
17. 18. "Flowering" means the reproductive state of the
marijuana or cannabis plant in which there are physical signs of
flower or budding out of the nodes of the stem;
18. 19. "Food-based medical marijuana concentrate " means a
medical marijuana concentrate that was produced by extracting
cannabinoids from medical marijuana through the use of pr opylene
glycol, glycerin, butter, olive oil, coconut oil or other typical
food-safe cooking fats;
19. 20. "Good cause" for purposes of an initial, renewal or
reinstatement license application, or for purposes of discipline of
a licensee, means:
a. the licensee or applicant has violated, does not meet,
or has failed to comply with any of the terms,
conditions or provisions of the act, an y rules
promulgated pursuant the reto, or any supplemental
relevant state or local law, rule or regulation,
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b. the licensee or applicant has failed to comply with
any special terms or conditions that were placed upon
the license pursuant to an order of the State
Department of Health, Okl ahoma Medical Marijuana
Authority or the municipality, or
c. the licensed premises of a med ical marijuana or adult
use marijuana business or applicant have been operated
in a manner that adversely affects the public health
or welfare or the safety of the immediate vicinity in
which the establishment is located;
20. 21. "Harvest batch" means a specifically identified
quantity of medical marijuana that is uniform in strain, cultivated
utilizing the same cultiva tion practices, harvested at the same time
from the same location and cur ed under uniform conditions;
21. 22. "Harvested marijuana" means post-flowering medical
marijuana not including trim, concentrate or waste;
22. 23. "Heat- or pressure-based medical marijuana concentrate"
means a medical marijuana concentrate that was produced by
extracting cannabinoids from medical marijuana through the use of
heat or pressure;
23. 24. "Immature plant" means a nonflowering marijuana plant
that has not demonstrated signs of flow ering;
24. 25. "Inventory tracking system " means the required tracking
system that accounts for medical marijuana from either the seed or
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immature plant stage until the medical marijuana or medical
marijuana product is sold to a pa tient at a medical marijuana or
adult use marijuana dispensary, transferred to a medical marijuana
research facility, de stroyed by a medical marijuana business or used
in a research project by a medical marijuana research fac ility;
25. 26. "Licensed patient" or "patient" means a person who has
been issued a medical marijuana patient license by the State
Department of Health o r Oklahoma Medical Marijuana Authority;
26. 27. "Licensed premises" means the premises specified in a n
application for a medical marijuana business license, medical
marijuana research facilit y license or medical marijuana education
facility license pursuant to the Oklahoma Medical Marijuana and
Patient Protection Act that are owned or in possession of the
licensee and within which the licensee is authorized to culti vate,
manufacture, distribut e, sell, store, transport, test or research
medical marijuana or medical marijuana products in accordance with
the provisions of the Oklahoma Medical Marijuana and Pa tient
Protection Act and rules promulgated pursuant thereto;
27. 28. "Manufacture" means the production, propagation,
compounding or processing of a medical marijuana product, excluding
marijuana plants, either directly or indirectly by extraction from
substances of natural or synthetic origin, or independently by mean s
of chemical synthesis, or b y a combination of extraction and
chemical synthesis;
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28. 29. "Marijuana" shall have the same meaning as such term is
defined in Section 2-101 of this title and shall not include any
plant or material containing delta -8 or delta-10
tetrahydrocannabinol which is grown, processed or sold pursuant to
the provisions of the Oklah oma Industrial Hemp Program;
29. 30. "Material change" means any change that would require a
substantive revision to the standard operating procedures of a
licensee for the cultivation or prod uction of medical marijuana,
medical marijuana concentrate or medical marijuana products;
30. 31. "Mature plant" means a harvestable female marijuana
plant that is flowering;
31. 32. "Medical marijuana or adult use marijuana business
(MMB)" means a licensed medical marijuana or adult use marijua na
dispensary, medical marijuana or adult use marijuana processor,
medical marijuana or adult use marijuana commercial grower, medical
marijuana laboratory, medical marijuana or adult use marijuana
business operator or a medical marijuana transporter;
32. 33. "Medical marijuana Marijuana concentrate" or
"concentrate" means a specific subset of medical marijuana that was
produced by extractin g cannabinoids from medical marijuana.
Categories of medical marijuana concentrate include water-based
medical marijuana concentrate, food-based medical marijuana
concentrate, solvent-based medical marijuana concentrate, and heat-
or pressure-based medical marijuana concentrat e;
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33. 34. "Medical marijuana or adult use marijuana commercial
grower" or "commercial grower" means an entity licensed to
cultivate, prepare and package medical marijuana and transfer or
contract for transfer medical marijuana to a medical marijuana or
adult use marijuana dispensary, medical marijuana or adult use
marijuana processor, any other medical marijuana or adult use
marijuana commercial grower, medical marijuana research facility,
medical marijuana education facility and pesticide manufacture rs. A
commercial grower may sell seeds, flower or clones to commercial
growers pursuant to the Oklahoma Medical Marijuana and Patient
Protection Act;
34. 35. "Medical marijuana Marijuana education facility" or
"education facility" means a person or entity approved pu rsuant to
the Oklahoma Medical Marijuana and Patient Protection Act to operate
a facility providing training and education to individuals involving
the cultivation, growing, harvesting, curing, prep aring, packaging
or testing of medical marijuana, or the production, manufacture,
extraction, processing, packaging or creation of medical-marijuana-
infused marijuana-infused products or medical marijuana products as
described in the Oklahoma Medical Marijuana and Patient Protec tion
Act;
35. 36. "Medical-marijuana-infused Marijuana-infused product"
means a product infused with medical marijuana including, but not
limited to, edible products, ointments and tinctures;
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36. 37. "Medical marijuana Marijuana product" or "product"
means a product that contains cannabi noids that have been extracted
from plant material or the resin therefrom by physical or c hemical
means and is intended for administration to a qualified patient
including, but not limited to, oils, tinctures, edibles, pills,
topical forms, gels, creams, v apors, patches, liquids and forms
administered by a nebulizer, excluding live plant forms which are
considered medical marijuana;
37. 38. "Medical marijuana or adult use marijuana processor"
means a person or entity licensed pursuant to the Oklahoma Medical
Marijuana and Patient Protection Act to operate a business including
the production, manufacture, extraction, proc essing, packaging or
creation of concentrate, medical-marijuana-infused marijuana-infused
products or medical marijuana products as described in the Oklahoma
Medical Marijuana and Pat ient Protection Act;
38. 39. "Medical marijuana Marijuana research facility" or
"research facility" means a person or entity approved pursuant to
the Oklahoma Medical Marijuana and Patient Protection Act to conduct
medical marijuana research. A medical marijuana research facility
is not a medical marijuana business;
39. 40. "Medical marijuana or adult use marijuana testing
laboratory" or "laboratory" means a public or pr ivate laboratory
licensed pursuant to the Oklahoma Medical Marijuana and Patient
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Protection Act, to conduct testing and rese arch on medical marijuana
and medical marijuana products;
40. 41. "Medical marijuana or adult use marijuana transporter"
or "transporter" means a person or entity that is licensed pursuant
to the Oklahoma Medical Marijuana and Patient Protection Act. A
medical marijuana or adult use marijuana transporter does not
include a medical marijuana business that transports its own medical
marijuana, medical marijuana concentrate or medical marijuana
products to a property or fac ility adjacent to or connected to the
licensed premises if the property is another licensed premises of
the same medical marijuana business;
41. 42. "Medical marijuana Marijuana waste" or "waste" means
unused, surplus, returned or out -of-date marijuana, plant debris of
the plant of the genus Cannabis including dead plants and all unused
plant parts and roots, except the term shall not include roots,
stems, stalks and fan leaves;
42. 43. "Medical use" means the acquisition, possession, use,
delivery, transfer or transportat ion of medical marijuana, medical
marijuana products, medical marijuana devices or paraphernalia
relating to the administration of medical marijuana to treat a
licensed patient;
43. 44. "Mother plant" means a marijuana plant that is grown or
maintained for the purpose of generating clones, and that will not
be used to produce plant material for sale to a medical marijuana or
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adult use marijuana processor or medical marijuana or adult use
marijuana dispensary;
44. 45. "Oklahoma physician" or "physician" means a physician
licensed by and in good standing with the State Board of Medical
Licensure and Supervision, the State Board of Osteopathic Examiners
or the Board of Podiatric Medical Examiners;
45. 46. "Oklahoma resident" means an individual who can provide
proof of residency as required by the Oklahoma Medical Marijuana and
Patient Protection Act;
46. 47. "Owner" means, except where the context otherwise
requires, a direct beneficial owner including, but not limited to,
all persons or entities as follows:
a. all shareholders owning an interest of a corporate
entity and all officers of a corporate entity,
b. all partners of a general partnership,
c. all general partners and all limited partners that own
an interest in a limited partnership,
d. all members that own an interest in a li mited
liability company,
e. all beneficiaries that hold a beneficial interest in a
trust and all trustees of a trust,
f. all persons or entities that own interest in a joint
venture,
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g. all persons or entities that own an interest in an
association,
h. the owners of any other type of le gal entity, and
i. any other person holding an interest or convertible
note in any entity which owns, operates or manages a
licensed facility;
47. 48. "Package" or "packaging" means any container or wrapper
that may be used by a medical marijuana business to enclose or
contain medical marijuana;
48. 49. "Person" means a natural person, partnership,
association, business trust, company, corporation, estate, limited
liability company, trust or any other legal entity or organization,
or a manager, agent, own er, director, servant, officer or employee
thereof, except that person does not include any governmental
organization;
49. 50. "Pesticide" means any substance or mixture of
substances intended for preventing, destroying, repelling or
mitigating any pest o r any substance or mixture of substances
intended for use as a plant regulator, defoliant or desiccant,
except that the term pesticide shall not include any article that is
a "new animal drug" as designated by the United States Food and Drug
Administration;
50. 51. "Production batch" means:
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a. any amount of medical marijuana concentrate of the
same category and produ ced using the same extraction
methods, standard operating procedures and an
identical group of harvest batch of medical marijuana,
or
b. any amount of medical marijuana product of the same
exact type, produced using the same ingredients,
standard operating procedures and the same production
batch of medical marijuana concentrate;
51. 52. "Public institution" means any entity esta blished or
controlled by the federal government, state government, or a local
government or municipality including, but not limited t o,
institutions of higher education or related research institutions;
52. 53. "Public money" means any funds or money obtained by the
holder from any governmental entity including, but not limited to,
research grants;
53. 54. "Recommendation" means a document that is signed or
electronically submitted by a physician on behalf of a patient for
the use of medical marijuana pursuant to the Oklahoma Medical
Marijuana and Patient Protection Act;
54. 55. "Registered to conduct business" means a person that
has provided proof that the business applicant is in good standing
with the Secretary of State and Oklahoma Tax Commission;
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55. 56. "Remediation" means the process by which the medical
marijuana flower or trim, which has failed microbial testing, is
processed into solvent-based medical marijuana concentrate and
retested as required by the Oklahoma Medical Marijuana and Patient
Protection Act;
56. 57. "Research project" means a discrete scientific endeavor
to answer a research question or a set of research questions related
to medical marijuana and is required for a medical marijuana
research license. A research project shall include a description of
a defined protocol, clearly articulated goals, defined methods and
outputs, and a defined start and end date. The description shall
demonstrate that the research project will comply with all
requirements in the Oklahoma Medical Marijuana and Patient
Protection Act and rules promulgated pursuant thereto. All research
and development conducted by a medical marijuana research facility
shall be conducted in furtherance of an approved research project;
57. 58. "Revocation" means the final decision by the Department
that any license issued pursuant to the Oklahoma Medical Marijuana
and Patient Protection Act is rescinded because the individual or
entity does not comply with the applicable requirements set forth in
the Oklahoma Medical Marijuana and Patient Protection Act or rules
promulgated pursuant thereto;
58. 59. "School" means a public or private preschool, a public
or private elementary or secondary school, or a technology center
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school which is primarily used for classroom instruction. A
homeschool, daycare or child-care facility shall not be considered a
"school" as used in the Oklahoma Medical Marijuana and Patient
Protection Act;
59. 60. "Shipping container" means a hard-sided container with
a lid or other enclosure that can be secured in place. A shipping
container is used solely for the transport of medical marijuana,
medical marijuana concentrate, or medical marijuana products between
medical marijuana businesses, a medical marijuana research facility,
or a medical marijuana education facility;
60. 61. "Solvent-based medical marijuana concentrate" means a
medical marijuana concentrate that was produced by extracting
cannabinoids from medical marijuana through the use of a solvent
approved by the Department;
61. 62. "State Question" means Oklahoma State Question No. 788,
Initiative Petition No. 412, approved by a majority vote of the
citizens of Oklahoma on June 26, 2018;
62. 63. "Strain" means the classification of marijuana or
cannabis plants in either pure sativ a, indica, afghanica, ruderalis
or hybrid varieties;
63. 64. "THC" means tetrahydrocannabinol, which is the primary
psychotropic cannabinoid in marijuana formed by dec arboxylation of
naturally tetrahydrocannabinolic acid, which generally occurs by
exposure to heat;
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64. 65. "Test batch" means with regard to usable marijuana, a
homogenous, identified quantity of usable marijuana by strain, no
greater than ten (10) pounds, t hat is harvested during a seven-day
period from a specified cultivation area, and with regard to oils,
vapors and waxes derived from usable marijuana, means an identified
quantity that is uniform, that is intended to meet specifications
for identity, strength and composition, and that is manufactured,
packaged and labeled during a specified time p eriod according to a
single manufacturing, packaging and labeling protocol;
65. 66. "Transporter agent" means a person who transports
medical marijuana or medical marijuana products for a licensed
transporter and holds a transporter agent license pursuant to the
Oklahoma Medical Marijuana and Patient Protection Act;
66. 67. "Universal symbol" means the image established by the
State Department of Health or Oklahoma Medical Marijuana Authority
and made available to licensees through its website indicating that
the medical marijuana or the medical marijuana product contains THC;
67. 68. "Usable marijuana" means the dried leaves, flowers,
oils, vapors, waxes and other portions of the marijuana plant and
any mixture or preparation thereof, excluding seeds, roots, stems,
stalks and fan leaves; and
68. 69. "Water-based medical marijuana concentrate " means a
concentrate that was produced by extracting cannabinoids from
medical marijuana through the use of only water, ice or dry ice.
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SECTION 8. AMENDATORY 63 O.S. 2021, Section 427.3, as
amended by Section 8, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 427.3), is amended to read as follows:
Section 427.3 A. There is hereby created the Oklahoma Medical
Marijuana Authority which shall address issues related to the
medical marijuana program in this state including, but not limited
to, the issuance of patient licenses and medical marijuana or adult
use marijuana business licenses, and t he dispensing, cultivating,
processing, testing, transportin g, storage, research, and the use of
and sale of medical marijuana pursuant to the Oklahoma Medical
Marijuana and Patient Protection Act.
B. 1. Beginning on the effective date of this act November 1,
2022, the Authority shall cease to be part of or a division of the
State Department of Health and shall be deemed to be a separate and
distinct agency, to be known as the Oklahoma Medical Marijuana
Authority. The Authority and the Executive Director of the
Authority shall continue to exercise their statutory powers, duties,
and contractual responsibilities. All records, property, equipment,
assets, monies, financial interests, liabilities, matters pending,
and funds of the division shall be transferred to the Authority.
2. All licenses granted by the Department pertaining to medical
marijuana shall maintain rights and privileges under the authority
of the Authority; provided, however, that all licenses shall be
subject to revocation, suspension, or disciplinary action for
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violation of any of the provisions of the Oklahoma Medical Marijuana
and Patient Protection Act and rules promulgated by the Executive
Director.
3. The Authority shall succeed to any contract ual rights or
responsibilities incurred by the Department pertaining to medical
marijuana.
4. Rules promulgated by the State Commissioner of Health
pertaining to medical marijuana that are in effect on t he effective
date of this act shall be immediately adopted and enforced by the
Executive Director. The Executive Director maintains the autho rity
to further promulgate and enforce rules.
5. The Department and the Authority may enter into an agreement
for the transfer of personnel from the Department to the Authority.
No employee shall be transferred to the Authority except on the
freely given written consent of the employee. All employees who are
transferred to the Authority shall not be required to a ccept a
lesser grade or salary than presently received . All employees shall
retain leave, sick, and annual time earned, and any retirement and
longevity benefits which have accrued during their tenure with the
Department. The transfer of personnel between the state agencies
shall be coordinated with the Off ice of Management and Enterprise
Services.
6. The expenses incurred by the Authority as a result of the
transfer required by this subsection shall be paid by the Authority.
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7. The division within the Department known as the Oklahoma
Medical Marijuana Authority shall be abolished by the Department
after the transfer has been completed .
8. The Office of Management and Enterprise Services shall
coordinate the transfer of records, property, equipment, assets,
funds, allotments, purchase orders, liabilities, outstanding
financial obligations, or encumbrances provided for in this
subsection.
C. The Authority shall implement the provisions of the Oklahoma
Medical Marijuana and Patient Protection Act c onsistently with the
voter-approved State Question No. 788, Initiative Petition No. 412,
subject to the provisions of the Oklahoma Medical M arijuana and
Patient Protection Act.
D. The Authority shall exercise its respective powers and
perform its respective duties and functions as specified in the
Oklahoma Medical Marijuana and Patient Protection Act and this title
including, but not limited to, the following:
1. Determine steps the state shall take, whether administrative
or legislative in nature, to ensure that research on marijuana and
marijuana products is being conducted for public purposes including
the advancement of:
a. public health policy and public safety policy,
b. agronomic and horticultural best practices, and
c. medical and pharmacopoeia best practices;
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2. Contract with third -party vendors and other governmental
entities in order to carry out the respective duties a nd functions
as specified in the Oklahoma Medical Marijuana and Patient
Protection Act;
3. Upon complaint or upon its own motion and upon a completed
investigation, levy fines as prescribed in applicable laws, rules
and regulations and suspend, revoke or not renew licenses pursuant
to applicable laws, rules and regulations;
4. Issue subpoenas for the appearance or production of persons,
records and things in connecti on with disciplinary or contested
cases considered by the Authority;
5. Apply for injunctive or declaratory relief to enforce the
provisions of applicable laws, rules and regulations;
6. Inspect and examine all licensed premises of medical
marijuana or adult use marijuana businesses, research facilities,
education facilities and waste disposal facilities in which medical
marijuana is cultivated, manufactured, sold, stored, transported,
tested, distributed or disposed of;
7. Upon action by the federal government by w hich the
production, sale and use of marijuana in this state does not violate
federal law, work with the Banking Department and the State
Treasurer to develop good practices and standards for banking and
finance for licensed medical marijuana or adult use marijuana
businesses;
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8. Establish internal control procedures for licenses including
accounting procedures, reporting procedures and personnel policies;
9. Establish a fee schedule and collect fees for perf orming
background checks as the Executive Director deems appropriate. The
fees charged pursuant to this paragraph shall not exceed the actual
cost incurred for each background check;
10. Establish a fee schedule and collect fees for material
changes requested by the licensee; and
11. Establish regulations, which require a licensed medical
marijuana or adult use marijuana business to submit information t o
the Oklahoma Medical Marijuana Authority, deemed reasonably
necessary to assist the Authority in the prevention of diversion of
medical marijuana by a licensed medical marijua na or adult use
marijuana business. Such information required by the Authority may
include, but shall not be limited to:
a. the square footage of the licensed premises,
b. a diagram of the licensed premises,
c. the number and type of lights at the licensed medical
marijuana or adult use marijuana commercial grower
business,
d. the number, type and production capacity of equipment
located at the medical marijuana or adult use
marijuana processing facility,
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e. the names, addresses and telephone numbers of
employees or agents of a medical marijuana or adult
use marijuana business,
f. employment manuals and standard operating procedures
for the medical marijuana or adult use marijuana
business, and
g. any other information as the Authority reasonably
deems necessary.
SECTION 9. AMENDATORY Section 1, Chapter 236, O.S.L.
2022 (63 O.S. Supp. 2022, Section 427.3a), is amended to read as
follows:
Section 427.3a There is hereby created in the State Treasury a
revolving fund for the Oklahoma Medical Marijuana Authority to be
designated the "County Sheriff Public Safety Grant Revolving Fund".
The fund shall be a continuing fund, not subject to f iscal year
limitations, and shall consist of all monies received by the
Oklahoma Medical Marijuana Authority that are appropriated or
apportioned to this fund, and any federal funds, grants, and
donations from any public or private source for the purpose of
supporting county sheriffs. All monies accruing to the credit of
the fund are hereby appropriated and may be budgeted and expended by
the Oklahoma Medical Marijuana Authority for the purpose of
establishing programs and providing funding to support county
sheriffs to enforce the requirements of state law with respect to
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the commercial growth of medical marijuana or other related business
activity for which a license is required pursuant to the provisions
of law governing the production, cultivation, tran sportation,
distribution, sale, or other actions related to medical marijuana.
Expenditures from the fund shall be made upon warrants issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
SECTION 10. AMENDATORY 63 O.S. 2021, Section 427.4, as
amended by Section 9, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 427.4), is amended to read as follows:
Section 427.4 A. The Oklahoma Medical Marijuana Authority
shall employ an Executive Director and other personnel as necessary
to assist the Authority in carrying out its duties. The Executive
Director shall be appointed by the Governor, with the advice and
consent of the Senate. The Executive Director shall serve at the
pleasure of the Governor and may be removed or replaced without
cause. Compensation for the Executive Director shall be determined
pursuant to Section 3601.2 of Title 74 of the Oklahoma Statutes.
B. The Authority shall not employ an individual if any of the
following circumstances exist:
1. The individual has a direct or indirec t interest in a
licensed medical marijuana or adult use marijuana business; or
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2. The individual or his or her spouse, par ent, child, spouse
of a child, sibling, or spouse of a sibling has an application for a
medical marijuana or adult use marijuana business license pending
before the Authority or is a member of the board of directors of a
medical marijuana or adult use marijuana business, or is an
individual financially interested in any licensee or medical
marijuana or adult use marijuana business.
C. All officers and employees of the Authority shall be in the
exempt unclassified service as provided for in Section 840-5.5 of
Title 74 of the Oklahoma Statutes.
D. The Executive Director may delegate to any officer or
employee of the Authority any of the powers of the Executive
Director and may designate any officer or employee of the Authority
to perform any of the duties of the Executive Director.
E. The Executive Director may promulgate rules governing the
oversight and implementation of the O klahoma Medical Marijuana an d
Patient Protection Act.
F. The Authority is hereby authorized to create employment
positions necessary for the implementation of its obligations
pursuant to the Oklahoma Medical Marijuana and Patient Protection
Act including, but not limited to, investigators of the Authority
and a director of enforcement. The Authority, the director of
enforcement, the Executive Director, and investigators of the
Authority shall have all the po wers and authority of a peace officer
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of this state for the purpose of enforcing the provisions of the
Oklahoma Medical Marijuana and Patient Protection Act and other laws
pertaining to medical marij uana, rules promulgated by the Executive
Director, or criminal laws of this state. These powers shall
include but not be limited to:
1. Investigating violations or suspected violations of the
Oklahoma Medical Marijuana and Patient Protection Act or other laws
pertaining to medical marijuana, any rules promulgated pursuant
thereto, and any violations of criminal laws of this state
discovered through the course of such investigations;
2. Serving all warrants, summonses, subpoenas, administrative
citations, notices or other proces ses relating to the enforcement of
laws regulating marijuana, concentrate, and marijuana product;
3. Seizing any marijuana or marijuana product illegally held in
violation of the Oklahoma Medical Marijuana and Patient Protection
Act, any other laws of this state, or any rules promulgated by the
Executive Director;
4. Assisting or aiding any law enforcement officer in the
performance of his or her duties upon such law enforcement officer's
request or the request of other local offic ials having jurisdiction;
5. Referring any evidence, reports, or charges regarding
violations of any provision of the Oklahoma Medical Marijuana and
Patient Protection Act that carries criminal penalty, or of any
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other criminal laws of this state, to the appropriate law
enforcement authority and prosecut orial authority for action;
6. Aiding the enforcement authorities of this state or any
county or municipality of the state, or the federal government, in
prosecutions of violations of the Oklahoma Medical Marijuana and
Patient Protection Act or any other laws of this state that carry
criminal penalty involving crim es discovered during the
investigation of violations or suspected violations of the Oklahoma
Medical Marijuana and Patient Protection Act or other laws
pertaining to medical marijuana or any rules promulgated pursuant
thereto;
7. Requiring any business applicant or licensee to permit an
inspection of licensed premises during business hours or at any time
of apparent operation, marijuana equipment, and marijuana
accessories, or books and records; and to permit the testing of or
examination of medical marijuana, concentrate, or product;
8. Requiring applicants and licensees to submit complete and
current applications, information and fees required by the Oklahoma
Medical Marijuana and Patient Protection Act, the Okl ahoma Medical
Marijuana Waste Management Act and Sections 420 through 426.1 of
this title, and approve material changes made by the applicant or
licensee;
9. Requiring medical marijuana or adult use marijuana business
licensees to submit a sample or unit of medical marijuana or medical
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marijuana product to the quality assurance laboratory when the
Authority has reason to believe the medical marijuana or medical
marijuana product may be unsafe for patient consumption or
inhalation or has not been tested in accordance with the provisions
of the Oklahoma Medical Marijuana and Patient Protection Act and the
rules and regulations promulgated by the Executive Director. The
licensee shall provide the samp les or units of medical marijuana or
medical marijuana products at its own expense but shall not be
responsible for the costs of testing; and
10. Requiring medical marijuana business or adult use marijuana
licensees to periodically submit samples or units of medical
marijuana or medical marijuana products to the quality assurance
laboratory for quality assurance purposes. Licensed growers,
processors, dispensaries and transporters shall not be required to
submit samples or units of medical marijuana or medical marijuana
products more than twice a year. The licensee shall provide the
samples or units of medical marijuana or medical marijuana products
at its own expense but shall not be responsible for the costs of
testing.
G. All investigators of the Authority shall meet all training
requirements and qualifications for peace officers as required by
Section 3311 et seq. of Title 70 of the Oklahoma Statutes.
H. During the course of an investigation, the director of
enforcement or any investigator of the Authority as provided by
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subsection F of this section may arrest a violator or suspected
violator of any laws of this state committed in the presence of the
director of enforcement or any investigator of the Authority or upon
the development of probable cause that such crime has been
committed. The director of enforcement or any investigator of the
Authority as provided by subsection F of this section may, upon
request of a sheriff or another peace officer of this state, or any
political subdivision thereof, assist in the apprehension and ar rest
of a violator or suspected v iolator of any of the laws of this
state.
I. The Executive Director may employ or contract with
attorneys, as needed, to advise the Executive Director and the
Authority on all legal matters and to appear for and represent the
Executive Director and the Authority in all administrative hearings
and all litigation or other proceedings which may arise in the
discharge of their duties. At the request of the Executive
Director, such attorneys shall assist district attorney s in
prosecuting charges of violators of the Oklahoma Medical Marijuana
and Patient Protection Act or any other laws of this state that
carry criminal penalty involving crimes discovered during the
investigation of violations or suspected violations of the Oklahoma
Medical Marijuana and Patient Protection Act or other laws
pertaining to medical marijuana or any rules promulgated pursuant
thereto.
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SECTION 11. AMENDATORY 63 O.S. 2021, Section 427.6, as
last amended by Section 1, Chapter 328, O.S.L. 2022 (63 O.S. Supp.
2022, Section 427.6), is amended to read as follows:
Section 427.6 A. The Oklahoma Medical Marijuana Authority
shall address issues related to the medical marijuana and adult use
marijuana program in this state in cluding, but not limited to,
monitoring and disciplinary actions as they relate to the me dical
marijuana and adult use marijuana program.
B. 1. The Authority or its designee may perform on-site
inspections or investigations of a l icensee or applicant for any
medical marijuana or adult use marijuana business license, research
facility, education facility or waste disposal facility to d etermine
compliance with applicable laws, rules and regulations or
submissions made pursuant to t his section. The Authori ty may enter
the licensed premises of a medical marijuana or adult use marijuana
business, research facility, education facility or wa ste disposal
facility licensee or applicant to assess or monitor compliance or
ensure qualifications for licensure.
2. Post-licensure inspection s shall be limited to twice per
calendar year. However, investigations and a dditional inspections
may occur when the Authority believes an investigation or additional
inspection is necessary due to a possible violation of applicab le
laws, rules or regulat ions. The State Commissioner of Health
Executive Director of the Authority may adopt rules imposing
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penalties including, but not limited to, monetary fines and
suspension or revocation of licensure for failure to allow the
Authority reasonable access to the licensed premises for purposes of
conducting an inspection.
3. The Authority may review relevant records of a licensed
medical marijuana or adult use marijuana business, licensed medical
marijuana research facility, licensed medical marijuana education
facility or licensed medical marijuana waste disposal faci lity, and
may require and conduct interviews wit h such persons or entities and
persons affiliated with such entities, for the purpose of
determining compliance with Authority requirements and applicable
laws, rules and regulations.
4. The Authority may re fer complaints alleging criminal
activity that are made against a licensee to appropriate state or
local law enforcement authorities.
C. Disciplinary action may be taken against an applicant or
licensee for not adhering to applica ble laws pursuant to the terms,
conditions and guidelines set forth in th e Oklahoma Medical
Marijuana and Patient Protection Act.
D. Disciplinary actions may inc lude revocation, suspension or
denial of an application, license or final authorization and ot her
action deemed appropr iate by the Authority.
E. Disciplinary actions may be imposed upon a medical marijuana
or adult use marijuana business licensee for:
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1. Failure to comply with or satisfy any provision of
applicable laws, rules or regulations;
2. Falsification or misre presentation of any mater ial or
information submitted to the Authority or other licensees;
3. Failing to allow or impeding entry by authorized
representatives of the Authority;
4. Failure to adhere to any acknowledgement, verification or
other representation made to the Authorit y;
5. Failure to submit or d isclose information required by
applicable laws, rules or regulations or otherwise requested by the
Authority;
6. Failure to correct any violation of this section cited as a
result of a review or audit of financial records or other materials;
7. Failure to comply with requested access by the Authority to
the licensed premises or materials;
8. Failure to pay a required monetary penalty;
9. Diversion of medical marijuana or any medical marijuana
product, as determined by the A uthority;
10. Threatening or harming a medical marijuana patient
licensee, caregiver licensee, a medical practitioner or an employee
of the Authority; and
11. Any other basis indicating a violation of the applicable
laws and regulations as identified by the Authority.
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F. Disciplinary actions against a licensee may include the
imposition of monetary penalties, which may be assessed by the
Authority. The Authority may suspend or revoke a license for
failure to pay any monetary pen alty lawfully assessed by the
Authority against a lice nsee.
G. 1. In addition to any other penalties prescribed by law,
penalties for sales, purchases or transf ers for value of medical
marijuana by a medical marijuana or adult use marijuana business or
employees or agents of the medical marijuana or adult use marijuana
business to persons other than those allowed by law occurring within
any one-year time period may include an initial fine of Five
Thousand Dollars ($5,000.00) for a first violation and a fine of
Fifteen Thousand Dollars ($15, 000.00) for any subsequent violation.
2. Penalties for grossly inaccurate or fraudulent rep orting
occurring within any two -year time period may include an initial
administrative fine of Five Thousand Dollars ($5,000.00) for a first
violation and an admini strative fine of Ten Thousand Dollars
($10,000.00) for any subsequent violation. The medica l marijuana
business or adult use marijuana shall be subject to a revocation of
any license granted pur suant to the Oklahoma Medical Marijuana and
Patient Protection Act upon a secon d incident of grossly inaccurate
or fraudulent reporting in a ten-year period by the medical
marijuana or adult use marijuana business or any employee or agent
thereof.
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3. After investigation by the Authority, the Authority may
revoke the license of any p erson directly involved with the
diversion of marijuana.
4. If the Authority, after investigation, is able to establish,
by a preponderance of evidence, a pattern of diversion or negligence
leading to diversion, the Authority may revoke any business licen ses
associated with the diversion and any entity with common ownership.
H. 1. In addition to any other penalties prescribed by law, a
first offense for intentional and impermissible diversion of medical
marijuana, medical marijuana concentrate, or medical marijuana
products for value by a patient or caregiver to an unauthorized
person shall be subject to an administrative fine of Four Hundred
Dollars ($400.00). The Authority shall have the authority to
enforce the provisions of this subsection.
2. In addition to any other penalties prescribed by law, an
additional incident resulting in a second offense for impermissible
diversion of medical marijuana, medical marijuana concentrate, or
medical marijuana products by a patient or caregiver to an
unauthorized person for value shall be subject to an administrative
fine of One Thousand Dollars ($1,000.00), and shall result in
revocation of the license or licenses of the person.
3. Any person who shares le ss than three (3) grams of medical
marijuana with an una uthorized person, without the transfer being
for value or other consideration, shall not be subject to criminal
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prosecution but shall be subject to an administrative fine of Four
Hundred Dollars ($400 .00).
I. The intentional diversion of medical marijuana, medical
marijuana concentrate or medical marijuana products by a licensed
medical marijuana patient or caregiver, medical marijuana or adult
use marijuana business or employee of a medical marijuana or adult
use marijuana business to an unautho rized minor person who the
licensed medical marijuana patient or caregiver, medical marijuana
or adult use marijuana business or employee of a medi cal marijuana
or adult use marijuana business knew or reasonably should have kn own
to be a minor person shall be subjec t to an administrative fine of
Two Thousand Five Hundred Dollars ($2,500.00). For an additi onal
incident resulting in a second or subsequent offense, the licen sed
medical marijuana patient or caregiver, medical mari juana or adult
use marijuana business or employee of a medical marijuana or adult
use marijuana business shall be subject to a cite and release
citation and, upon a finding of gu ilt or a plea of no co ntest, a
fine of Five Thousand Dollars ($5,000 .00) and automatic revocation
of the medical marij uana or adult use marijuana license.
J. In addition to any other remedies provided for by law, the
Authority, pursuant to its rules and regulations, may issue a
written order to any licensee the Authority has reason to believe
has violated Sections 420 through 426.1 of this title, the Oklahoma
Medical Marijuana and Patient Protection Act, the Oklahoma Medica l
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Marijuana Waste Management Act, or any rules promulgat ed by the
State Commissioner of Health Executive Director of the Authority and
to whom the Authority has served, not less than thirty (30) days
previously, a written notice of violation of such statutes or rules.
1. The written order s hall state with specificity the nature of
the violation. The Authority may impose any disciplinary action
authorized under the provisions of this section including, but not
limited to, the assessment of monetary penalties.
2. Any order issued pursuant to the provisions of this section
shall become a final ord er unless, not more than thirty (30) days
after the order is served to the licensee, the licensee requests an
administrative hearing in accordance with the rules and regulations
of the Authority. Upo n such request, the Authority shall promptly
initiate administrative proceedings.
K. Whenever the Authority finds that an emergency exists
requiring immediate action in order to protect the health or welfare
of the public, the Authority may issue an order , without providing
notice or hearing, stating the exist ence of said emergency and
requiring that action be taken a s the Authority deems necessary to
meet the emergency. Such action may include, but is not limited to,
ordering the licensee to immediately cease and desist operations by
the licensee. The order shall be effective immediately upon
issuance. Any person t o whom the order is directed shall comply
immediately with the provisions of the order. The Authority may
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assess a penalty not to exceed Ten Thousand Dollars ($10,000.00) per
day of noncompliance with the order. In assessing such a penalty,
the Authority shall consider the seriousness of the violation and
any efforts to comply with applicable requirements. Upon
application to the Authority, the licensee shall be offered a
hearing within ten (10) days of the issuance of the order.
L. All hearings held pu rsuant to this section shall be in
accordance with the Oklahoma Administrative Procedures Act.
SECTION 12. AMENDATORY 63 O.S. 2021, Section 427.13, as
amended by Section 14, Chapter 251, O.S. L. 2022 (63 O.S. Supp. 2022,
Section 427.13), is amended to read as follows:
Section 427.13 A. All medical marijuana and medical marijuana
products shall be purchased solely from a state-licensed medical
marijuana business, and shall not be purchased from any out-of-state
providers.
B. 1. The Authority shall have oversight and auditing
responsibilities to ensure that all marijuana being grown in this
state is accounted for and shall implement an inventory tracking
system. Pursuant to these duties, the Authority shall require that
each medical marijuana or adult use marijuana business, medical
marijuana research facility, medical marijuana education fa cility
and medical marijuana waste disposal facility keep records for every
transaction with another medical marijuana or adult use marijuana
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business, patient or caregiver. Inventory shall be tracked and
updated after each indi vidual sale and reported to the Authority.
2. The inventory tracking system licensees use shall allow for
integration of other seed-to-sale systems and, at a minimum, shall
include the following:
a. notification of when marijuana seeds and clones are
planted,
b. notification of when marijuana plants are harvested
and destroyed,
c. notification of when marijuana is transported, sold,
stolen, diverted or lost,
d. a complete inventory of all marijuana, seeds, plant
tissue, clones, plants, usable marijuana or trim,
leaves and other plant matter, batches of ex tract, and
marijuana concentrates,
e. all samples sent to a testing laboratory, an unused
portion of a sample returned to a licensee, all
samples utilized by licensee for purposes of
negotiating a sale, and
f. all samples used for quality testing by a lice nsee.
3. Each medical marijuana or adult use marijuana business,
medical marijuana research facility, medical marijuana education
facility and medical marijuana waste disposal facility shall use a
seed-to-sale tracking system or integrate its own seed-to-sale
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tracking system with the seed-to-sale tracking system established by
the Authority.
4. These records shall include, but not be limited to, the
following:
a. the name and license number of the medical marijuana
or adult use marijuana business that cultivated,
manufactured or sold the medical marijuana or medical
marijuana product,
b. the address and phone number of the medical marijuana
or adult use marijuana business that cultivated,
manufactured or sold the medical marijuana or medical
marijuana product,
c. the type of product received during the transaction,
d. the batch number of the marijuana plant used,
e. the date of the transaction,
f. the total spent in dollars,
g. all point-of-sale records,
h. marijuana excise tax records, and
i. any additional information as ma y be reasonably
required by the Executive Director of the Oklahoma
Medical Marijuana Authority.
5. All inventory tracking records retained by a medical
marijuana or adult use marijuana business, medical marijuana
research facility, medical marijuana education facility or medical
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marijuana waste disposal facility co ntaining medical marijuana
patient or caregiver information shall comply with all relevant
state and federal laws including, but not limite d to, the Health
Insurance Portability and Accountability Act of 1996 (HIPAA).
SECTION 13. AMENDATORY 63 O.S. 2021, Section 427.14, as
amended by Section 4, Chapter 332, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 427.14), is amended to read as fo llows:
Section 427.14 A. There is hereby created the medical
marijuana business license, which shall inc lude 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 and adult use marijuana business
applications.
C. The Authority shall make available on it s website in an
easy-to-find location, applications for a medical m arijuana and
adult use marijuana business.
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D. 1. The annual, nonrefundable fee for a medical marijuana or
adult use marijuana transporter license shall be Two Thousand Five
Hundred Dollars ($2,500.00).
2. The initial fee for a medical marijuana or adult use
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 a mount of 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 or adult use 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 Tho usand Dollars
($5,000.00),
(3) Tier 3: Twenty thousand one (20,001) square feet
of canopy to forty thousand (40,000) s quare feet
of canopy, the fee shall be Ten Thousand Dollars
($10,000.00),
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(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 Thou sand
Dollars ($30,000.00),
(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 or adult use
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),
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(2) Tier 2: Two and one-half (2 1/2) acres up to
five (5) acres, the fee shall be Five Thous and
Dollars ($5,000.00),
(3) Tier 3: Five (5) acres up to ten (10) acres, the
fee shall be Ten Thousand Do llars ($10,000.00),
(4) Tier 4: Ten (10) acres up to twenty (20) acres,
the fee shall be Twenty Thousand Dollars
($20,000.00),
(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 Thous and Dollars
($40,000.00),
(7) Tier 7: Forty (40) acres up to fifty (50) acres,
the fee shall be Fifty Thousand Do llars
($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 additional Two
Hundred Fifty Dollars ($250.00) per acre.
c. For a medical marijuana or adult use marijuana
commercial grower that has a combination of both
indoor and outdoor growing facilities at one location,
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the medical marijuana or adult use 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 with in a
cultivation area that is dedicated to the
cultivation of flowering marijuana plants. The
surface area of the plant canopy must be
calculated in square feet and mea sured and must
include all of the area within the boundaries
where the cultivation of t he flowering marijuana
plants occurs. If the surface of the plant
canopy consists of noncontiguous areas, each
component area must be separat ed by identifiable
boundaries. If a tiered or shelving system is
used in the cultivation area, the surface area o f
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 cult ivation area
that are used to cultivate immature marijuana
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plants and seedlings, p rior to flowering, and
that are not used at any time to cultivate mature
marijuana plants. If the flowering plants are
vertically grown in cylinde rs, the square footage
of the canopy shall be measu red 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
allows a controlled level of light transmission,
and
(3) "light deprivation" means a structure that has
concrete floors and the abil ity to manipulate
natural light.
3. The annual, nonrefundable license fee for a medical
marijuana or adult use 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
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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
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 one
(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 cannabi s concentrate
is in nonliquid form, every one thousand (1,000) grams of
concentrated marijuana shall be calculated as one (1) liter of
cannabis concentrate.
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4. The initial fee for a medical marijuana or adult use
marijuana dispensary license shall be Two Thousand Five Hundred
Dollars ($2,500.00). The annual, nonrefundable license fee for a
medical marijuana or adult use 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 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 annual, nonrefundable license fee for a medical
marijuana testing laboratory shall be Twenty Thousand Dollars
($20,000.00).
E. All applicants seeking licensure or licensure renewal as a
medical marijuana or adult use 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 identify the city or co unty in which
the applicant seeks to obtain licensure as a medical marijuana or
adult use marijuana business;
3. Applicants shall submit a complete application to the
Authority before the application may be accepted or considered;
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4. All applications shall be comple te and accurate in every
detail;
5. All applications shal l include all attachments or
supplemental information required by the forms supplied by the
Authority;
6. All applications shall be accompanied by a full remittance
for the whole amount of the appl ication 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 applic ant
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 Ok lahoma residents pursuant to
paragraph 11 of this subsecti on,
d. if applying as an individual or entity, proof that the
individual or entity is registered to conduct business
in the State of Oklahoma,
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e. disclosure of all ownership interests pursuant t o the
Oklahoma Medical Marijuana and Patient Protection Act,
and
f. proof that the medical marijuana or adult use
marijuana business, medical marijuana research
facility, medical marijuana education facility and
medical marijuana waste disposal facility applicant or
licensee has not been convicted of a nonviolent felony
in the last two (2) years, or any other felony
conviction within the last five (5) years, is not a
current inmate in the custody of the Department of
Corrections, or currently incarcerated in a jail or
corrections facility;
8. There shall be no limit to the number of medica l 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 application fe e. 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 or adult use
marijuana business license, research facility license or education
facility license authorized by the Oklahoma Medical Marijuana and
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Patient Protection Act, or for a renewal of such license, shall
undergo an Oklahoma criminal history bac kground 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 an entity,
c. all principal officers of an entity, and
d. all owners of an entity as defined by the Oklahoma
Medical Marijuana and Patient Protection Act;
10. All applicable fees charged by the OSBI are the
responsibility of the applicant and shall not be higher than fees
charged to any other person or industry for such background checks;
11. In order to be considered an Oklahoma resident for purposes
of a medical marijuana or adult use marijuana business application,
all applicants shall provide proof of Oklahoma residency for at
least two (2) years immediately preceding the date of applicatio n 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 sh all
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 bill s,
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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.
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 residen ce 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 id entification
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.
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F. The Authority shall review the medical marijuana or adult
use marijuana business application; approve, reject or deny the
application; and mail the approval, rejection, denial or status-
update letter to the a pplicant within ninety (90) business days of
receipt of the application.
G. 1. The Authority shall review the medical marijuana or
adult use marijuana business applications and conduct all
investigations, inspections and interviews before approving the
application.
2. Approved applicants shall be issued a medical marijuana or
adult use 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 may only be rejected or denied
based on the applicant not meeting the standards set forth in 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 is rejected for
failure to provide required information, the applicant shall have
thirty (30) days to submit the required information for
reconsideration. No additional application fee shall be charged for
such reconsideration. Unless the Authority determines otherwise, an
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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 oc curred.
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.
H. A license for a medical marijuana or adult use marijuana
business, medical marijuana research facility, medical marijuana
education facility or medical marijuana waste disposal facility
shall not be issued to or held by:
1. A person until all required fees have been paid;
2. A person who has been convicted of a nonviolent felony
within two (2) years of the date of application, or within five (5)
years for any other felony;
3. A corporation, if the criminal history of any of its
officers, directors or stockholders indicates that the officer,
director or stockholder has been convicted of a nonviolent 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;
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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 or adult use marijuana business, or
b. pay taxes, interest or penalties due related to a
medical marijuana or adult use marijuana business;
6. A sheriff, deputy sheriff, po lice officer or prosecuting
officer, or an officer or employee of the Authority or munic ipality;
7. A person whose authority to be a caregiver, as defined in
Section 427.2 of this title, has been revoked by the Authority; or
8. A person who was involved in the m anagement or operations of
any medical marijuana or adult use 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 or adult use
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 o r medical
marijuana or adult use marijuana business licensees,
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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 refus ing 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 the operation of a medical
marijuana or adult use marijuana business, or
h. any violations that end anger public health and safety
or product safety.
I. In investigating the qualifications of an applicant or a
licensee, the Authority and municipalities may have access to
criminal history record information furnished by a criminal justice
agency subject to any restrictions imposed by such an agency.
J. The failure of an applicant or licensee to provide the
requested information by the Authority deadline may be grounds for
denial of the application.
K. All applicants and licensees shall submit information to the
Authority in a full, faithful, truthful and fair manner. The
Authority may recommend denial of an application where the applicant
or licensee made misstatements, omissions, misrepresentations or
untruths in the application or in connection with the background
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investigation of the applicant. This type of conduct may be grounds
for administrative action against the applicant or licensee. Typos
and scrivener errors shall not be grounds for denial.
L. A licensed medical marijuana or adult use 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. All medical marijuana or adult use marijuana business,
medical marijuana research facility, medical marijuana education
facility and medical marijuana waste disposal facility licensees
shall pay the relevant licensure fees prior to receiving licensure
to operate.
N. A medical marijuana or adult use marijuana business, medical
marijuana research 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 nonre fundable. A
license that has been expired for more than ninety (90) days shall
not be renewed.
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O. No medical marijuana or adult use marijuana business,
medical marijuana research facility, medical marijuana education
facility 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 14. AMENDATORY Section 3, Chapter 328, O.S.L.
2022 (63 O.S. Supp. 2022, Section 427.14b), is amended to read as
follows:
Section 427.14b A. Beginning January 1, 2024, the Oklahoma
Medical Marijuana Authority shall require employees of a medical
marijuana or adult use marijuana business licensee to apply for and
receive a credential authorizing the employe e to work in a licensed
medical marijuana or adult use marijuana business.
B. The Authority may contract with one or more third-party
vendors to provide the credentialing services necessary to carry out
the provisions of this section.
C. The Authority shall determine the services to be provided by
such third-party vendor and shall establish costs and prices. If
contracted for credentialing services, a third-party vendor shall on
behalf of the Authority conduct the background checks and v erify
eligibility and suitability for any employees of a medical marijuana
or adult use marijuana business license holder to obtain a
credential.
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D. Upon successful completion by the third -party vendor of the
statutorily required backgro und checks and verificatio n of
eligibility and suitability for an employee, the third-party vendor
shall issue a credential to the employee. The results of background
checks and verificat ions shall be provided to the Authority by the
third-party vendor.
E. If the third-party vendor determines that an employee of a
medical marijuana or adult use marijuana business holder does not
meet the minimum statutory requirements for a credential, the
applicant or employee shall ha ve no recourse against the third-party
vendor but may appeal such adverse determination to the Authority.
F. The third-party vendor shall not be civilly liable to a n
applicant, licensee, or employee of a licensee for any acts taken in
good-faith compliance with the pr ovisions of Section 420 et seq. of
Title 63 of the Oklahoma Statutes and the Oklahoma Medical Marijuana
and Patient Protectio n Act and the rules promulg ated by the Oklahoma
Medical Marijuana Authority.
G. The Executive Director of the Authority may promulgate rules
to implement the provisions of this section.
SECTION 15. AMENDATORY 63 O.S. 2 021, Section 427.15, is
amended to read as follows:
Section 427.15 A. The Oklahoma Medical Marijuana Authority is
hereby authorized to develop policies and procedures for disclosure
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by a medical marijuana or adult use marijuana business of financial
interest and ownership.
B. Upon the effective date of this act, current medical
marijuana or adult use marijuana business licensees and applicants
seeking licensure as a me dical marijuana or adult use marijuana
business shall be required to submit under p enalty of perjury an
attestation confirming or denying the existence of any foreign
financial interests in the medical marijuana or adult use marijuana
business operation and shall disclose the identity of such
ownership, if applicable. Medical marijuana or adult use marijuana
business licensees s hall, within sixty (60) days after the effective
date of this act, submit such attestation to the Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control . Applicants for a
medical marijuana or adult use marijuana business license shall,
within sixty (60) days after the approval of a medical marijua na or
adult use marijuana business license applica tion by the Oklahoma
Medical Marijuana Authority, submit such attestation to the Bureau.
Failure to submit the attestation or a ccompanying information to the
Bureau within the specified sixty-day time period shall result in
the immediate revocation of the medical marijuana or adult use
marijuana business license. The Bureau shall prescribe the form of
the attestation required und er the provisions of this s ubsection and
shall make the form available on its publicly accessible I nternet
website.
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SECTION 16. AMENDATORY 63 O.S. 2021, Section 427 .16, as
amended by Section 16, Chapter 251, O.S.L. 2 022 (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
and adult use 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 medical marijuana or adult use
marijuana transporter license to licensed medical marijuana or adult
use marijuana commercial growers, processors and dispensaries upon
issuance of such licenses and upon each renewal. M edical marijuana
or adult use marijuana transporter licenses shall also be issued to
licensed medical marijuana research facilities, medical marijuana
education facilities and medical marijuana or adult use marijua na
testing laboratories upon issuance of such licenses and upon each
renewal.
C. A medical marijuana or adult use 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 or adult use marijuana business
license set forth in 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.
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D. A medical marijuana or adult use marijuana transporter
license shall be valid for one (1) year and shall not be transferred
with a change of ownership. A licensed medical marijuana or adult
use 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 or adult use marijuana business to another medical
marijuana or adult use marijuana business, or from a medical
marijuana or adult use marijuana business to a medical marijuana
research facility or medical marijuana education facility.
F. A medical marijuana or adult use marijuana transporter
licensee may contract with multiple licensed medical marijuana or
adult use marijuana businesses.
G. A medical marijuana or adult use 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 or
adult use marijuana transporter may store a nd distribute medical
marijuana, medical marijuana concentrate and medical marijuana
products from the licensed premises. The licensed premises shall
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meet all security requirements applicable to a medical marijuana or
adult use marijuana business.
H. A medical marijuana or adult use marijuana transporter
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 or adult use 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 or adult use marijuana businesses who are licensed to
operate at the same physical address, all medical marijuana, medical
marijuana concentrate and medical marijuana products shall be
transported:
1. In vehicles equipped with Global Positioning System (GPS)
trackers;
2. In a locked container and clearly labeled "Medical Marijuana
or Derivative" "Marijuana or Derivative"; and
3. In a secured area of the vehicle that i s not accessible by
the driver during transit.
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K. A transporter agent may possess marijuana at any location
while the transporter agent is transferring marijuana to or from a
licensed medical marijuana or adult use 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, emp loyees, officers or owners of a transporter
license in order for the individual to qualify to transport medical
marijuana, medical marijuana concentrate or medical marijuana
products.
M. The annual fee for a transporter agent license shall be
Twenty-five Dollars ($25.00) and shall be paid by the transporter
license holder or the individual applicant. Transporter license
reprints shall be Twenty Dollars ($20.00).
N. The Authority shall issue each transporter agent a registry
identification card within thi rty (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 or
adult use 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
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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 license that the transporter
agent ceases to work as a transporter.
Q. The Authority may revoke the registry identification card of
a transporter agent who knowi ngly violates any provision of this
section, and the transporter is subject to any other penalties
established by law for the violation.
R. The Authority may revoke or suspend the transporter license
of a transporter that the Authority determines knowingly aided or
facilitated a violation of any provision of this section, 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 a s defined in Section
427.2 of this title capable of securing all transported products.
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T. Prior to the transport of any medical marijuana, medical
marijuana concentrate or medical marijuana products, an inventory
manifest shall be prepared at the originat ion point of the medical
marijuana. The inventory manifest shal l 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 originatio n of transport, and
c. name and contact information for the orig inating
licensee;
2. For the end recipient license holder of the medical
marijuana:
a. the license number for the dispensary, commercial
grower, processor, research facility or education
facility destination,
b. address of the destination, and
c. name and contact information for the destination
licensee;
3. Quantities by weight or unit of each type of medical
marijuana product contained in transport;
4. The date of the transport and the appr oximate time of
departure;
5. The arrival date and estimated ti me of arrival;
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6. Printed names and signatures of the personnel accompanying
the transport; and
7. Notation of the transporting licensee.
U. 1. A separate inventory manifest shall be prepa red for each
licensee receiving the medical marijuana.
2. The transporter agent shall provide the other medical
marijuana or adult use 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 n ame and signs the inventory
manifest.
3. A receiving licensee s hall refuse to accept any medical
marijuana, medical marijuana concentrat e or medical marijuana
products that are not accompanied by an inventory manifest.
4. Originating and receiving licens ees shall maintain copies of
inventory manifests and logs of qua ntities of medical marijuana
received for seven (7) years from date of re ceipt.
SECTION 17. 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 follow s:
Section 427.17 A. There is hereby created a medical marijuana
or adult use 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
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a licensed testing la boratory under the Oklahoma Medical Marijuana
and Patient Protection Act.
B. 1. The Authority is hereby authorized to contract with a
private laboratory for the purpose of conducting compliance testing
of medical marijuana or adult use marijuana testing laboratories
licensed in this state. Any such laboratory under contract for
compliance testing shall be prohibit ed from conducting any other
commercial medical ma rijuana or adult use marijuana testing in this
state. The laboratory the Authority contracts with for compliance
testing shall not employ, or be owned by, the following:
a. any individual that has a direct or indirect interest
in a licensed medical marijuana or adult use 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 or adult
use marijuana business license pending before the
Authority or is a member of the board of directors of
a medical marijuana or adult use marijuana business,
or is an individual financially interested in any
licensee or medical marijuana or adult use marijuana
business located within this state.
2. The private laboratory under contract with the Authority for
compliance testing and a board or committee comprised of licensed
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Oklahoma medical marijuana or adult use marijuana laboratories
currently accredited by the International Organization for
Standardization (ISO) shall provide to the Authority its
recommendations for all equipment and standards to be uti lized by
licensed medical marijuana or adult use 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, 202 3. 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 or adult use
marijuana testing laboratories renewing their medical marijuana or
adult use 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 or adult
use marijuana testing laboratory licensee to comply with new or
modified rules relating to laboratory standards and testing
procedures promulgated under the provisions of this paragraph shall
result in the permanent revocation of the medical marijuana or adult
use 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 or adult use marijuana dispensary, medical marijuana or
adult use marijuana commercial grower or medical marijuana or adult
use marijuana processor 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 build ing codes.
F. A separate license shall be require d for each specific
laboratory.
G. A medical marijuana or adult use marijuana testing
laboratory license may be issued to a person who performs testing on
medical marijuana and medical marijuana products for medical
marijuana and adult use marijuana businesses, medical marijuana
research facilities, medical 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
registration. A medical marijuana or adult use marijuana testing
laboratory may also conduct research related to the development and
improvement of its testing practices and procedures. No state-
approved medical marijuana or adult use marijuana testing facility
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shall operate unless a medical laboratory director is on site during
operational hours.
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 or adult use
marijuana business applicant, in addition to any information the
Authority may request for initial approval and periodic evaluations
during the approval period.
I. A medical marijuana or adult use marijuana testing
laboratory may accept samples of medical marijuana, medical
marijuana concentrate or medical marijuana product from a me dical
marijuana or adult use marijuana business, medical marijuana
research facility or medical marijuana education facility for
testing purposes only, which purposes may include the provision of
testing services for samples submitted by a medical marijuan a or
adult use marijuana business for product development. The Authority
may require a medical marijuana or adult use marijuana business to
submit a sample of medical marijuana, medical marijuana concentrate
or medical marijuana product to a medical marijuana or adult use
marijuana testing or quality assurance laboratory upon demand.
J. A medical marijuana or adult use 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:
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1. The individual person is a patient or caregi ver 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
2. The medical marijuana or adult use marijuana testing
laboratory shall require the patient or car egiver to produce a valid
patient license and curr ent and valid photo identification.
K. A medical marijuana or adult use marijuana testing
laboratory may transfer samples to another medical marijuana or
adult use marijuana testing laboratory for testing. All laboratory
reports provided to or by a m edical marijuana or adult use marijuana
business or to a patient or careg iver shall identify the medical
marijuana or adult use marijuana testing laboratory that actually
conducted the test.
L. A medical marijuana or adult use marijuana testing
laboratory may utilize a licensed medical marijuana or adult use
marijuana transporter to transport samples of medical marijuana,
medical marijuana concentrate 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 marijuana or adult use marijuana
business requesting testing services and the d estination laboratory
performing testing services.
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M. The medical marijuana or adult use 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 or adult use
marijuana testing laboratory who participate in any aspect of the
analysis and results of a sample are p rohibited from improperly
influencing the testing process, improperly manipulating data or
improperly benefiting from any ongoing financia l, employment,
personal or business relationship with the medical marijuana or
adult use marijuana business that provided the sample. A medical
marijuana or adult use marijuana testing laboratory shall not test
samples for any medical marijuana or adult use marijuana business in
which an owner, employee or agent of the m edical marijuana or adult
use marijuana testing laboratory has any form of ownership or
financial interest in the medical marijuana or adult use marijuana
business.
N. The Authority, pursuant to rules promulgated by the
Executive Director of the Authorit y, shall develop standards,
policies and procedures as necessary for:
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1. The cleanliness and orderliness of a laboratory premises and
the location of the laboratory in a sec ure location, and inspection,
cleaning and maintenance of any equipment or utensil s 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;
5. The possession, storag e 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 or adult use marijuana
business, a patient or a caregiver through the point of transfer,
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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;
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
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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 or adult use 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 or
adult use marijuana business or qualified patient . A medical
marijuana or adult use 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
the Authority to determine compliance w ith the requirements of this
section.
P. A medical marijuana or adult use 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 or adult use 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
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categories of testing , consistent with standard s developed by the
Executive Director:
1. Microbials;
2. Mycotoxins;
3. Residual solvents;
4. Pesticides;
5. Tetrahydrocannabinol (THC) and other cannab inoid potency;
6. Terpenoid type and concentration ; and
7. Heavy metals.
R. A licensed medical marijuana or adult use 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 batches of no more than fifty (50) poun ds. A
processor shall separate each medical marijuana production lot int o
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 necessary .
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
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be limited to, cookies, brownies, candies, gummies, beverages and
chocolates.
S. Medical marijuana or adult use marijuana testing laboratory
licensure shall be contingent upon successful on-site inspection,
successful participation in proficiency testing an d ongoing
compliance with the applicable requirements in this section.
T. A medical marijuana or adult use marijuana testing
laboratory shall be inspected prior to initial licensure and up to
two (2) times per year thereafter by an inspector approved by the
Authority. The Authority may enter the licensed p remises of a
testing laboratory 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 r egulations.
U. Medical marijuana or adult use marijuana testing
laboratories shall obtain accreditation by an accrediting body
approved by the Executive Director within one (1) year of the date
the initial license is issued. Renewal of any medical marijuana or
adult use marijuana testing laboratory license shall be contingent
upon accreditation in accordance with this subsection. All medical
marijuana or adult use marijuana testing laboratories shall obtain
accreditation prior to applying for and receiving a medical
marijuana or adult use marijuana testing laboratory license.
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V. Unless authorized by the provisions of this section, a
commercial grower shall not tran sfer or sell medical marijuana and a
processor shall not transfer, sell or process into a concentrate or
product any medical marijuana, medical marijuana concentrate o r
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 or adult use marijuana testing
laboratory and passed all contaminant tests required by the Oklahoma
Medical Marijuana and Patient Protec tion 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 in
accordance with the provis ions 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 licensed
commercial grower.
W. Kief shall not be transferred or sold except as authorized
in the rules and regulations promulgated by the Executive Director.
SECTION 18. AMENDATORY 63 O.S. 2021, Se ction 427.18, as
amended by Section 18, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 427.18), is amended to read as follows:
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Section 427.18 A. A medical marijuana or adult use marijuana
business shall not sell, transfer or otherwise distribute medical
marijuana or medical marijuana product that has not been packaged
and labeled in accordance with this sec tion and rules promulgated by
the Executive Director of the Oklahoma Medical Marijuana Authority.
B. A medical marijuana or adult use marijuan a dispensary shall
return medical marijuana and medical marijuana product that does not
meet packaging or labeling requirements in this section or rules
promulgated pursuant thereto to the entity who transferred it to the
dispensary. The medical marijuana or adult use marijuana dispensary
shall document to whom the item was returned, what was returned and
the date of the return or d ispose of any usable marijuana that does
not meet these require ments in accordance with the Oklahoma Medical
Marijuana and Patient Protection Act.
C. 1. Medical marijuana and adult use marijuana packaging
shall be packaged to minimize its appeal to children and shall not
depict images other than the business name logo of the medical
marijuana producer and image of the product.
2. A medical marijuana or adult use marijuana business shall
not place any content on a container in a mann er that reasonably
appears to target individuals under t he age of twenty-one (21)
including, but not limited to, cartoon characters or similar images.
3. Labels on a container shall not include any false or
misleading statements.
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4. No container shall be intentionally or knowingly labeled so
as to cause a reasonable patient person confusion as to whether the
medical marijuana, medical marijuana concentrate or medical
marijuana product is a trademarked product or labeled in a manner
that violates any federal trad emark law or regulation.
5. The label on the con tainer shall not make any claims
regarding health or physical benefits to the patient.
6. All medical marijuana, medical marijuana concentrate and
medical marijuana products shall be in a child-resistant container
at the point of transfer to the patient or, caregiver, or consumer.
D. The Executive Director shall develop minimum standards for
packaging and labeling of medical marijuana and medical marijuana
products. Such standards shall include, but not be limited to, the
required contents of labels to b e affixed to all medical marijuana
and medical marijuana products p rior to transfer to a licensed
patient or caregiver, which shall include, at a minimum:
1. THC and other cannabinoid potency, and terpenoid potency;
2. A statement indicating that the pro duct has been tested for
contaminants;
3. One or more product warn ings to be determined by the
Executive Director; and
4. Any other information the Executive Director deems
necessary.
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SECTION 19. AMENDATORY 63 O.S. 2021, Section 427.19, as
amended by Section 19, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 427.19), is amended to read as follows:
Section 427.19 A. A medical marijuana research license may be
issued to a person to grow, cultivate, possess and transfer, by sale
or donation, marijuana pursuant to the Oklahoma Medical Marijuana
and Patient Protection Act for the limited research purposes
identified in this section.
B. The annual fee for a medical marijuana research license
shall be Five Hundred Dollars ($500.00) and shall be payable by an
applicant for a medical marijuana research license upon submission
of his or her application to the Oklahoma Medical Marijuana
Authority.
C. A medical marijuana research license may be issued for the
following research purposes:
1. To test chemical potency and composition levels;
2. To conduct clinical investigations of marijuana-derived
medicinal products;
3. To conduct research on the efficacy and safety of
administering marijuana as part of medical treatment;
4. To conduct genomic, horticultural or agricu ltural research;
and
5. To conduct research on marijuana-affiliated products or
systems.
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D. 1. As part of the application process for a medical
marijuana research license, an applicant shall submit to the
Authority a description of the research that the applicant intends
to conduct and whether the research will be conducted with a public
institution or using public money. If the research will not be
conducted with a public institution or with public money, the
Authority shall grant the application if it determines that the
applicant meets the criteria in this section.
2. If the research will be co nducted with a public institution
or public money, the Authority shall review the research project of
the applicant to determine if it meets the requirements of this
section and to assess the following:
a. the quality, study design, value or impact of the
project,
b. whether the applicant has the appropriate personnel,
expertise, facilities, infrastructure, funding and
human, animal or other approvals in place to
successfully conduct the project, and
c. whether the amount of marijuana to be grown by the
applicant is consistent with the scope and goals of
the project.
3. If the Authority determines that the research project does
not meet the requirements of this section or assesses the criteria
to be inadequate, the application shall be denied.
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E. A medical marijuana research licensee may only transfer, by
sale or donation, marijuana grown within its operation to other
medical marijuana research licensees. The Authority may revoke a
medical marijuana research license for violations of this section
and any other violation of the Oklahoma Medical Marijuana and
Patient Protection Act.
F. A medical marijuana research licensee may contract to
perform research in conj unction with a public higher education
research institution or another medical marijuana research licensee.
G. The growing, cultivating, possessing or transferring, by
sale or donation, of marijuana in accordance with this section and
the rules promulgate d pursuant thereto, by a medical marijuana
research licensee shall not be a criminal or civil offense under
state law. A medical marijuana research license shall be issued in
the name of the applican t and shall specify the location in this
state at which the medical marijuana research licensee intends to
operate. A medical marijuana research licensee shall not allow any
other person to exercise the privilege of the license.
H. If the research conducted includes a public institution or
public money, the Authority shall review any reports made by medical
marijuana research licensees under state licensing authority rule
and provide the Authority with its determination on whether the
research project continues to meet research qualifications pursuant
to this section.
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SECTION 20. AMENDATORY 63 O.S. 2021, Section 427.20, as
amended by Section 20, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 427.20), is amended to read as follows:
Section 427.20 A. There is hereby created a medical marijuana
education facility license.
B. A medical marijuana education facility license may be issued
to a person to possess or cultivate mar ijuana for the limited
education and research purposes identified in this section.
C. A medical marijuana education facility license may only be
granted to a not-for-profit organization structured under Section
501(c)(3) of the Internal Revenue Code, oper ating as a not-for-
profit organization in this state registered with the Office of the
Secretary of State.
D. A medical marijuana education facility license may only be
granted upon the submission of an annual fee of Five Hundred Dollars
($500.00) to the Oklahoma Medical Marijuana Authority.
E. A medical marijuana education facility license may be issued
for the following education and research purposes:
1. To test cultivation techniques, strategies, infrastructure,
mediums, lighting and other related technology;
2. To demonstrate cultivation techniques, strategies,
infrastructure, mediums, lighting and other r elated technology;
3. To demonstrate the application and use of product
manufacturing technologies;
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4. To conduct genomic, horticultural or agricultural research;
and
5. To conduct research on marijuana-affiliated products or
systems.
F. As part of the application process for a medical marijuana
education facility license, an applicant shall submit to the
Authority a description of the project and curriculum that the
applicant intends to conduct and whether the project and curriculum
will be conducted with a public institution or using public money.
If the project and curriculum will not be conducted with a public
institution or with public money, the Authority shall grant the
application. If the research will be conducted with a public
institution or public money, the Authority shall review the research
project of the applicant to determine if it meets the requirements
of this section and to assess the following:
1. The quality, study design, value or impact of the project;
2. Whether the applicant h as the appropriate personnel,
expertise, facilities, inf rastructure, funding and human, animal or
other approvals in plac e to successfully conduct the project; and
3. Whether the amount of marijuana to be grown by the applicant
is consistent with the scop e and goals of the project.
If the Authority determines that the education project does not meet
the requirements of this section or assesses the criteria to be
inadequate, the application shall be denied.
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G. A medical marijuana education facility license e may only
transfer, by sale or donation, marijuana grown within its operation
to medical marijuana research licensees. The Authority may revoke a
medical marijuana education facility license for violations of this
section and any other violation of applicable laws, rules and
regulations.
H. A medical marijuana education facility licensee may contract
to perform research in conjunction with a public higher education
research institution or another research licensee.
I. The growing, cultivating, possessing or transferring, by
sale or donation, of marijuana in accordance with this section and
the rules promulgated pursuant thereto, by a medical marijuana
education facility licensee shall not be a criminal or civil offense
under state law. A medical marijuana education facility license
shall be issued in the name of the applicant and shall specify the
location in this state at which the medical marijuana education
facility licensee intends to operate. A medical marijuana education
facility licensee shall not allow any other person to exercise the
privilege of the license.
SECTION 21. AMENDATORY 63 O.S. 2021, Sectio n 427.21, as
amended by Section 2, Chapter 329, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 427.21), is amended to read as follows:
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Section 427.21 A. A medical marijuana or adult use marijuana
business shall not engage in advertising that is dec eptive, false or
misleading.
B. Medical marijuana or adult use marijuana advertising shall
not contain any statement or illustration that:
1. Promotes overconsu mption;
2. Represents that the use of marijuana has curative or
therapeutic effects; or
3. Depicts a child or other person under legal age to consume
marijuana, or includes :
a. objects such as toys or cartoon or other characters,
which suggest the presen ce of a child, or any other
depiction designed in any manner to be espe cially
appealing to children or other persons under legal age
to consume marijuana, or
b. any manner or design that would be especially
appealing to children or other persons under eigh teen
(18) years of age.
C. Upon the effective date of this act, all me dical marijuana
or adult use marijuana commercial grower licensees shall be required
to post signage at the site of th e commercial grow operation.
Signage shall be located at the perim eter of the property with
dimensions measuring no less than eighteen (18) inches by twenty -
four (24) inches with a font size of no less than two (2) inches.
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Information required to be disp layed on the sign shall be in black
standardized font on a white ba ckground. The Oklahoma Medical
Marijuana Authority shall promulgate rules as necessary regard ing
the size, placement, issuance and specifications of the required
signage. The following information shall be included on the
required signage:
1. Business name;
2. Physical address of the licensed business;
3. Phone number of the licensed business; and
4. Medical marijuana or adult use marijuana commercial grower
business license number.
The required signage shall also comply with county regulations
and local ordinances related to t he real property where the
commercial grow operation is located. Failure to erect the proper
signage within sixty (60) days after the renewal of each app lication
for a medical marijuana or adult use marijuana commercial grower
license in accordance with the provisions of this subsection shall
result in the immedia te revocation of the medical marijuana or adult
use marijuana commercial grower license. Upon issuance of a
temporary license, all medical marijuana or adult use marijuana
commercial grower licen sees shall be required to comply with the
provisions of this subsection prior to t he prelicensure inspection
conducted by the Authority.
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SECTION 22. AMENDATORY 63 O.S. 2021, Section 427.22, as
amended by Section 21, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 427.22), is amended to read as follows:
Section 427.22 A. All medical marijuana patient and caregiver
records and information including, but not limited to, any
application or renewal and supporting information submitted by a
qualifying patient or designated caregiver under the provisions of
the Oklahoma Medical Marijuana and Patient Protection Act and
information regarding the physician of the qualifying patient shall
be considered confidential medical records that are exempt from the
Oklahoma Open Records Act.
B. The dispensary records with patient or consumer information
shall be treated as confidential records that are exempt from the
Oklahoma Open Records Act.
C. All financial information provided by an applicant or a
licensee in an application to the Authority shall be treated as
confidential records that are exempt from the Oklahoma Open Records
Act.
D. All information provided by an applicant or a licensee that
constitutes private business information shall be treated as
confidential records that are exempt from the Oklahoma Open Records
Act.
E. As used in this section, "private business information"
means information that, if disclosed, would give advantage to
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competitors or bidders including, but not limited to, information
related to the planning, site location, operations, strategy or
product development and marketing of an applicant, unless approval
for release of those records is granted by the business.
F. All monthly report, inventory tracking and seed-to-sale
information, data and records submitted to the Authority shall be
treated as confidential records and are exempt from the Oklahoma
Open Records Act.
G. Except for license information concerning licensed patient s,
the Authority may share confidential information with other state
agencies to assist those agencies in ensuring compliance with
applicable laws, rules and regulations.
SECTION 23. AMENDATORY 63 O.S. 2021, Section 427.24, as
amended by Section 23, Chapter 251, O. S.L. 2022 (63 O.S. Supp. 2022,
Section 427.24), is amended to read as follows:
Section 427.24 A. Whenever an authorized agent of the Oklahoma
Medical Marijuana Authority finds, in whole or in part, that the
medical marijuana or medical marijuana product fails to meet the
requirements of Sections 420 through 426.1 of this title or the
Oklahoma Medical Marijuana and Patient Protection Act as it relat es
to health and safety, the medical marijuana or medical marijuana
product is handled in violation of applicable laws or rules and
regulations promulgated by the Executive Director of the Authority,
or the medical marijuana or medical marijuana product may be
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poisonous, deleterious to health or is oth erwise unsafe, an
electronic or physical tag or other appropriate marking or hold
shall be affixed to the medical marijuana or medical marijuana
product which shall give notice that the medical marijuana or
medical marijuana product is or is suspected of b eing manufactured,
produced, transferred, sold or offered for sale in violation of
applicable laws or rules and regulations promulgated by the
Executive Director and is embargoed. The notice shall further
provide a warning to all persons not to remove or dis pose of the
medical marijuana or medical marijuana product until permission for
removal or disposal is given by the Executive Director. It shall be
unlawful for any person to remove or dispose of the medical
marijuana or medical marijuana product embargoed without permission
by the Executive Director.
B. If the Executive Director finds that medical marijuana or
medical marijuana product embargoed pursuant to subsection A of this
section does not meet the requirements of applicable laws or rules
and regulations promulgated by the Executive Director, or is
poisonous, deleterious to health or otherwise unsafe, the Executive
Director may institute an action in the district court in whose
jurisdiction the medical marijuana or medical marijuana product is
embargoed for the condemnation and destruction of the medical
marijuana or medical marijuana product. If the Executive Director
finds that the medical marijuana or medical marijuana product
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embargoed does meet the requirem ents of applicable laws and the
rules and regulations promulgated by the Executive Director and is
not poisonous, deleterious to health or otherwise unsafe, th e
Executive Director shall remove the embargo. In any court
proceeding regarding an embargo, neither the Authority or the
Executive Director shall be held liable if the court finds
reasonable belief for the embargo.
C. Except as otherwise provided in subsection D of this
section, if the court finds that the embargoed medical marijuana or
medical marijuana product, in whole or in part, i s in violation of
any applicable laws or rules and regulations promulgated by the
Executive Director or is poisonous, deleterious to health or
otherwise unsafe, the medical marijuana or medical marijuana product
shall be destroyed at the expense of the defendant under the
supervision of the Executive Director. All court costs, fees, costs
of storage and disposal and other proper expenses shall be paid by
the defendant of the medical marijuana or medical marijuana product.
D. The court may order that the medical marijuana or medical
marijuana product be delivered to the defendant for appropriate
labeling or processing under the supervision of the Executive
Director only if:
1. The violation can be corrected by pr oper processing of
medical marijuana or medical marijuana product;
2. All costs, fees and expenses have been paid; and
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3. A sufficient bond is executed and conditioned for
appropriate labeling or processing as the court may r equire.
The expense of superv ision shall be paid to the Executive
Director by the person obtaining release of the medical marijuana or
medical marijuana product under bond.
SECTION 24. AMENDATORY Section 1, Chapter 352, O.S.L.
2022 (63 O.S. Supp. 2022, Section 427.25), is amended to read as
follows:
Section 427.25 A. The Oklahoma Medical Marijuana Authority
shall implement rules to employ secret shoppers. Secret shoppers
shall purchase medical marijuana or marijuana products from licensed
medical marijuana or adult use marijuana dispensaries.
B. For each purchase, the secret shopper shall buy an amount of
medical marijuana or marijuana products sufficient for five complete
compliance tests. Four samples shall be tested by licensed medical
marijuana or adult use marijuana testing laboratories, one of which
shall be the laboratory of origin, if applicable. One sample shall
be kept in reserve by the Authority in the event of a discrepancy
between the testing laboratories, which may require retesting of the
medical marijuana or marijuana products. When making purchases from
a licensed medical marijuana or adult use marijuana dispensary, the
secret shopper shall ask for the certificate of analysis for each
product purchased.
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C. The secret shopper shall deliver the medical marijuana or
marijuana products to a quality assurance laboratory for
homogenization. Once the samples have been homogenized, the samples
shall be delivered to four randomly selected licensed medical
marijuana or adult use marijuana testing laboratories for compliance
testing which shall include the testing for pesticides, heavy
metals, microbials, residual solvents for extracted products, and
potency. One sample shall be kept by the Authority in reserve. If
the medical marijuana or marijuana products were previously tested
with available results from a licensed medical marijuana or adult
use marijuana testing laboratory, that testing laboratory shall be
one of the four licensed medical marijuana or adult use marijuana
testing laboratories chosen by the Authority. For the avoidance of
doubt, neither the licensed medical marijuana or adult use marijuana
dispensary nor the licensed medical marijuana or adult use marijuana
testing laboratory shall be told that the business entity is selling
medical marijuana or marijuana products to a secret shopper or
testing samples submitted by a secret shopper employed by the
Authority and posing as a licensed medical marijuana patient or
consumer.
D. The Authority shall inspect, by secret shopper, a minimum of
fifty licensed medical marijuana or adult use marijuana dispensaries
annually beginning January 1, 2024. In the year 2025, the Authority
shall inspect, by secret shopper, a minimum of ten percent (10%) of
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randomly selected licensed medical marijuana or adult use marijuana
dispensaries in Oklahoma per year.
E. 1. When the licensed medical marijuana or adult use
marijuana testing laboratories unanimously confirm test results with
safety failures for contaminants, the Authority shall recall the
medical marijuana or marijuana product within seven (7) days of
obtaining the test results. The name of the licensed medical
marijuana or adult use marijuana dispensary and any other relevant
product information shall be made public via a press release issued
by the Authority. If there is greater than one but less than four
contaminant fails among the licensed medical marijuana or adult use
marijuana testing laboratories, the Authority shall work with a
quality assurance laboratory to verify the results of the licensed
medical marijuana or adult use marijuana testing laboratories and
take appropriate action.
2. When the average of total potency or total terpene results
collected from a licensed medical marij uana or adult use marijuana
testing laboratory for a particular product is outside the allowable
limits, the Authority shall work with a quality assurance laboratory
to verify the results of the testing laboratory. If results are
verified to be outside the allowable limits, the Authority shall
require relabeling of the medical marijuana or marijuana products.
3. All investigative results shall be retained by the Authority
for a minimum of three (3) years.
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4. The Authority shall implement rules to notify any licensed
medical marijuana or adult use marijuana dispensary and licensed
medical marijuana or adult use marijuana commercial grower or
licensed medical marijuana or adult use marijuana processor of any
investigative results determined to be noncompliant.
5. After the licensed medical marijuana or adult use marijuana
dispensary and licensed medical marijuana or adult use marijuana
commercial grower or licensed medical marijuana or adult use
marijuana processor is notified of the investigative results, such
results may be used by th e Authority to take action against the
licensee, assess fines, or assess other civil penalties available to
the Authority.
6. The Authority shall implement rules on shar ing such
investigative results with any other l aw enforcement agencies or
regulatory authorities.
7. The Authority may elect to conduct further evaluations of
the investigative results at any time for verification or for other
purposes reasonably related to sanitation, p ublic health, or public
safety.
F. The failure of any licensed medical marijuana or adult use
marijuana business to cooperate with the provisions of this section
may result in the revocation of the license at the discretion of the
Authority.
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G. The Authority shall implement rules necessary to enforce the
provisions of this act.
SECTION 25. AMENDATORY 63 O.S. 2021, Section 428.1, is
amended to read as follows:
Section 428.1 As used in the Oklahoma Medical Marijuana Waste
Management Act:
1. "Authority" shall mean the Oklahoma Medical Marijuana
Authority, or successor agency;
2. "Commercial licensee" shall mean any person or entity issued
a license by the Oklahoma Medical Marijuana Authority, or successor
agency, to conduct commercial busine ss in this state;
3. "Disposal" shall mean the disposition of medical marijuana
waste by a process which renders the waste unusable and
unrecognizable through physical destruction or a recycling process;
4. "Facility" shall mean the licensed or permitted premises
where the disposal of medical marijuana waste takes place by a
licensee;
5. "License" shall mean a medical marijuana waste disposal
license;
6. "Licensee" shall mean the holder of a medical marijuana
waste disposal license;
7. "Medical marijuana Marijuana waste" shall mean:
a. unused, surplus, returned or out -of-date marijuana and
plant debris of the plant of the genus Cannabis
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including dead plants and all unused plant parts,
except the term shall not include seeds, roots, stems,
stalks and fan leaves, and
b. all product which is deemed to fail laboratory testing
and cannot be remediated or decontaminated; and
8. "Medical marijuana Marijuana waste disposal license" shall
mean a license issued by the Oklahoma Medical Marijuana Authority,
or successor agency.
SECTION 26. AMENDATORY 63 O.S. 2021, Section 429, is
amended to read as follows:
Section 429. A. Medical marijuana Marijuana waste shall be
subject to the provisions of the Oklahoma Medical Marijuana Waste
Management Act and shall not be subje ct to the provisions of the
Uniform Controlled Dangerous Substances Act. Nothing in the
Oklahoma Medical Marijuana Waste Management Act shall alter or
affect the jurisdictional areas of environmental responsibility of
the Department of Environmental Quali ty as provided for i n Title 27A
of the Oklahoma Statutes.
B. Commercial licensees, medical marijuana research facilities
and medical marijuana education faciliti es shall be authorized to
destroy the following marijuana p lant parts without being required
to utilize the servic es of a medical marijuana waste disposal
facility:
1. Roots;
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2. Stems;
3. Fan leaves;
4. Seeds; or
5. Stalks.
Unless restricted by local ordinance, commercial licensees,
medical marijuana research facilities and medical marijuana
education facilities shall be authorized to destroy the above -listed
marijuana plant parts on-site by open burning, incineration,
burying, mulching, composting or any other technique approved by the
Department of Environm ental Quality.
SECTION 27. AMENDATORY 63 O.S. 2021, Section 430, as
amended by Section 3, Chapter 317, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 430), is amended to read as follows:
Section 430. A. There is hereby created and authorized a
medical marijuana waste disposal l icense. A person or entity in
possession of a medical marijuana waste disposal license shall be
entitled to possess, transport and dispose of medical marijuana
waste. No person or entity shall dispose of medical marijuana waste
without a valid medical marijuana waste disposal license. The
Oklahoma Medical Marijuana Authority shall issue licenses upon
proper application by a licensee and determination by the Authority
that the proposed site and facility are physically and technically
suitable. Upon a finding that a proposed medical marijuana waste
disposal facility is not physically or technically suitable, the
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Authority shall deny the license. The Authority may, upon
determining that public health or safety requires emergency action,
issue a temporary license for treatment or storage of medical
marijuana waste for a period not to exceed ninety (90) days. The
Authority shall not, for the first year of the licensure program,
issue more than ten medical marijuana waste disposal licenses. Upon
the conclusion of the first year, the Authority shall assess the
need for additional medical marijuana waste disposal licenses and
shall, if demonstrated, increase the number of licenses as deemed
necessary by the Authority.
B. Entities applying for a medical marijuana waste disposal
license shall undergo the follo wing screening process:
1. Complete an application form, as prescribed by the
Authority, which shall include:
a. an attestation that the applicant is authorized to
make application on behalf of the entity,
b. full name of the organization,
c. trade name, if applicable,
d. type of business organization,
e. complete mailing address,
f. an attestation that the commercial entity will not be
located on tribal land,
g. telephone number and email address of the ent ity, and
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h. name, residential address and date of birth of each
owner and each member, manager and board member, if
applicable;
2. The application for a medical marijuana waste disposal
license made by an individual on his or her own behalf shall be on
the form prescribed by the Authority and shall incl ude, but not be
limited to:
a. the first, middle and last name of the applicant and
suffix, if applicable,
b. the residence address and mailing address of the
applicant,
c. the date of birth of the applicant ,
d. the preferred telephone number and email add ress of
the applicant,
e. an attestation that the information provided by the
applicant is true and correct, and
f. a statement signed by the applicant pledging not to
divert marijuana to any individual or e ntity that is
not lawfully entitled to possess ma rijuana; and
3. Each application shall be accompanied by the following
documentation:
a. a list of all persons or entities that have an
ownership interest in the entity,
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b. a certificate of good standing fr om the Secretary of
State, if applicable ,
c. an Affidavit of Lawful Presence for each owner,
d. proof that the proposed location of the disposal
facility is at least one thousand (1,000) feet from a
school. The distance indicated in this subparagraph
shall be measured from the nearest property line of
such school to the nearest perimeter wall of the
premises of such disposal facility. If any school is
established within one thousand (1,000) feet of any
disposal facility after such disposal f acility has
been licensed, the provisions of this subparagrap h
shall not be a deterrent to the renewal of such
license or warrant revocation of the license. For the
purposes of this section, "school" shall mean the same
as provided in Section 427.2 of this title, and
e. documents establishing the applicant, the mem bers,
managers and board members, if applicable, and
seventy-five percent (75%) of the ownership interests
are Oklahoma residents as established in Section 420
et seq. of this title, as it relates to proof of
residency.
C. No license shall be issued excep t upon proof of sufficient
liability insurance and financial re sponsibility. Liability
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insurance shall be provided by the applicant and shall apply to
sudden and nonsudden bodily injury or prope rty damage on, below or
above the surface, as required by the rules of the Authority. Such
insurance shall be maintained fo r the period of operation of the
facility and shall provide coverage for damages resulting from
operation of the facility during ope ration and after closing.
D. Submission of an application fo r a medical marijuana waste
disposal license shall constitute p ermission for entry to and
inspection of the facility of the licensee during hours of operation
and other reasonable times. Refusal to permit such entry of
inspection shall constitute grounds for the nonrenewal, suspension
or revocation of a license . The Authority may perform an annual
unannounced on-site inspection of the operations and any facility of
the licensee. If the Authority receives a complaint concerning
noncompliance by a licensee with the provisions of the Oklahoma
Medical Marijuana Waste Management Act, the Authority may conduct
additional unannounced, on-site inspections beyond an annual
inspection. The Authority may refer all complaints alleging
criminal activity that are made against a licensed facility to
appropriate state or local law enforcement authorities.
E. The Authority shall issue an annual permit for each medical
marijuana waste disposal facility operated by a licensee. A permit
shall be issued only upon proper app lication by a licensee and
determination by the Authority that the proposed site and facility
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are physically and technically suitable. Upon a finding that a
proposed medical marijuana waste disp osal facility is not physically
or technically suitable, the Authority shall deny the permit. The
Authority shall have the authority to revoke a permit upon a finding
that the site and facility are not physically and technically
suitable for processing. The Authority may, upon determining that
public health or saf ety requires emergency action, issue a temporary
permit for treatment or storage of medical marijuana waste for a
period not to exceed ninety (90) days.
F. The cost of a medical marijuana waste disposal license shall
be Five Thousand Dollars ($5,000.00) f or the initial license. The
cost of a medical marijuana waste disposal facility permit shall be
Five Hundred Dollars ($500.00). A medical marijuana waste disposal
facility permit that has been revoked shall be reinstated upon
remittance of a reinstatemen t fee of Five Hundred Dollars ($500.00)
to restore the facility permit. All license and permit fees shall
be deposited into the Oklahoma Medical Marijuana Authority Revolving
Fund as provided in Section 427.5 of this title.
G. The holder of a medical marijuana waste disposal license
shall not be required to obtain a medical marijuana or adult use
marijuana transporter license provided for in the Oklahoma Medical
Marijuana and Patient Protection Act for purposes of transporting
medical marijuana waste.
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H. All commercial licensees, as defined in Section 428.1 of
this title, shall utilize a licensed medical marijuana waste
disposal service to process all medical marijuana waste generated by
the licensee.
I. The State Commissioner of Health Executive Director of the
Authority shall promulgate rules for the implement ation of the
Oklahoma Medical Marijuana Waste Management Act. Promulgated rules
shall address disposal process sta ndards, site security and any
other subject matter deemed necessary by the Autho rity.
SECTION 28. This act shall be come effective September 3, 2023.
COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
SUBSTANCES, dated 03/02/2023 - DO PASS, As Amended.