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STATE OF OKLAHOMA
1st Session of the 59th Legislature (202 3)
HOUSE BILL 2095 By: Echols
AS INTRODUCED
An Act relating to medical marijuana; amending 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), which relates to the Oklahoma Medical
Marijuana and Patient Prote ction Act; making certain
acts unlawful; providing penal ties; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA :
SECTION 1. 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 Auth ority
shall address issues related to the medical marijuana program in
this state including, but not limited to, monitoring and
disciplinary actions as they relate to the me dical marijuana
program.
B. 1. The Authority or its designee may perform on -site
inspections or investigations of a licensee or applicant for any
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medical marijuana business license, research fac ility, education
facility or waste disposal facility to dete rmine compliance with
applicable laws, rules and regulations or submissions made pu rsuant
to this section. The Authority may enter the licensed premises of a
medical marijuana business, research facility, education facility or
waste disposal facility lice nsee or applicant to assess or monitor
compliance or ensure qualifications for lice nsure.
2. Post-licensure inspections 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 applicable
laws, rules or regulations. The State Commissioner of Health
Authority may adopt rules imposing penalties in cluding, but not
limited to, monetary fines and suspension o r revocation of licensure
for failure to allow the Authority reasonable a ccess to the licensed
premises for purposes of conducting an inspection.
3. The Authority may review relevant records of a licensed
medical marijuana business, licensed medical marij uana 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 an d persons
affiliated with such entities, for the purpose of determining
compliance with Authority requirements and applicable laws, r ules
and regulations.
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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 applicable 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 other
action deemed appropr iate by the Authority.
E. Disciplinary actions may be imposed upon a medical marijuana
business licensee for:
1. Failure to comply with or satisfy any provision of
applicable laws, rules or regulations;
2. Falsification or misrepresentation 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, verificatio n or
other representation made to the Authorit y;
5. Failure to submit or disclose information required by
applicable laws, rules or regulations or otherwise requested by the
Authority;
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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 requ ested access by the Author ity to
the licensed premises or materials;
8. Failure to pay a required monetary penalty;
9. Diversion of medical marijuana or any med ical 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 app licable
laws and regulations as identified by the Authority.
F. Disciplinary actions against a licensee may includ e 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 penalty lawfully assessed by the
Authority against a licensee.
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 business or emp loyees or agents of
the medical marijuana business to persons other than those allow ed
by law occurring within any one-year time period may include an
initial fine of Five Thousand Do llars ($5,000.00) for a first
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violation and a fine of Fifteen Thousand Do llars ($15,000.00) for
any subsequent violation.
2. Penalties for grossly inaccur ate 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 administrative fine of Ten Thousand Dollars
($10,000.00) for any subsequent v iolation. The medica l marijuana
business shall be subject to a revocation of any license granted
pursuant to the Oklahoma Medical Marijuana and Patient Protection
Act upon a second incident of grossly inaccurate or fraudulent
reporting in a ten-year period by the medical mari juana business or
any employee or agent thereof.
3. After investigation by the Authority, the Authority may
revoke the license of any person directly in volved 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 licenses
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 med ical
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
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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 v alue 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
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 l icensed
medical marijuana patient or caregiver, medical marijuana business
or employee of a medical marijuana business to an unautho rized minor
person who the licensed medical marijuana pa tient or caregiver,
medical marijuana business or employee of a medi cal marijuana
business knew or reasonably should have kn own to be a minor person
shall be subject to an administrative fine of Two T housand Five
Hundred Dollars ($2,500.00). For an additi onal incident resulting
in a second or subsequent offense, the licen sed medical marijuana
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patient or caregiver, medical mari juana business or employee of a
medical marijuana business shall be subject to a cite and release
citation and, upon a finding of gu ilt or a plea of no contest, a
fine of Five Thousand Dollars ($5,000 .00) and automatic revocation
of the medical marijuana l icense.
J. In addition to any other penalties prescribed by law, it
shall be unlawful for a licensed medical marijuana commercial g rower
to knowingly hire or employ undocumented immigrants to perform work
inside a medical marijuana commercial grow facility or anywhere on
the property of the medical marijuana commercial grow operation.
Any licensed medical marijuana commercial grower who violates the
provisions of this subsection shall, upon conviction, be guilty of a
misdemeanor punishable by imprisonment in the county jail for a term
not exceeding one (1) year, or by a fine not exceeding Five Hundred
Dollars ($500.00), or by both such fine and impris onment. In
addition, the license of the medical marijuana commercial grower
shall be subject to revocation.
K. 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, t he Oklahoma
Medical Marijuana and Patient Protection Act, the Oklahoma Medica l
Marijuana Waste Management Act, or any rules promulgat ed by the
State Commissioner of Health and to whom the Authority has served,
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not less than thirty (30) days previously, a w ritten 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. L. 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 as 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 to whom t he order is directed shall comply
immediately with the provisions of the order. The Authority may
assess a penalty not to exceed Ten Thousand Dollars ($10,000.00) per
day of noncompliance with the order. In assessing such a penalty,
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the Authority shall c onsider 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. M. All hearings held pursuant t o this section shall be in
accordance with the Oklah oma Administrative Procedures Act.
SECTION 2. This act shall become effective November 1, 2023.
59-1-6091 GRS 01/08/23