ENGR. H. B. NO. 2095 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
ENGROSSED HOUSE
BILL NO. 2095 By: Echols and McDugle of the
House
and
Paxton of the Senate
An Act relating to medical marijuana; amending 63
O.S. 2021, Section 426, as amended by Section 27,
Chapter 228, O.S.L. 2022 (63 O.S. Supp. 2 022, Section
426), which relates to taxes on retail sa les of
medical marijuana; updating statutory cit ation;
providing for the permanent revocation of medical
marijuana business license for nonpayment of taxes;
amending 63 O.S. 2021, Sections 427.3, as amended by
Section 1, Chapter 342, 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, 427.14, as amended by Section 4, Chapter
332, O.S.L. 2022, Section 2, Chapter 342, O.S.L.
2022, 427.16, as amended by Section 16, Chapter 251,
O.S.L. 2022, 427.17, as last amended by Section 1,
Chapter 353, O.S.L. 2022 , 427.19, as amended by
Section 19, Chapter 251, O.S.L. 2022, and 427.20, as
amended by Section 20, Chapter 251, O.S.L. 2022 (63
O.S. Supp. 2022, Sections 427.3, 427.4, 427.6,
427.14, 427.14a, 427.16, 427.17, 427.19 a nd 427.20),
which relate to the Oklahoma Medical Marijuana and
Patient Protection Act; allowing the Authority to
enter into memorandums of understanding with state
agencies; providing certain state agencies
investigative and enforcement authority relating to
medical marijuana business licenses; granting certain
state agencies peace officer powers; providing for
the execution of warrants; expanding scope of powers
regarding illegal marijuana and marijuana pro ducts;
authorizing certain state agencies to perform on-site
assessments and record reviews; directing the
Oklahoma Medical Marijuana Authority to refer
complaints to certain state agenc ies; making certain
ENGR. H. B. NO. 2095 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
acts unlawful; providing penalties; auth orizing the
subpoena of documents under certain circumstances;
changing background check requirement ; providing
certain restriction on issuing medical marijuana
commercial grower license; extending moratorium date;
allowing certain state agencies enforcement powers
relating to the transportation of medical marijuana;
enabling certain state agencies monitoring,
inspection and auditing powers of medical marijuana
testing laboratories; providing for the permi ssion of
certain state agencies to enter and inspect medical
marijuana research and education facilities;
providing licensing penalties for refusing to permit
entry for inspections; authorizing unannounced, on-
site inspections; directing the Authority to refer
complaints of criminal activity to state or local law
enforcement authorities; amending 63 O.S. 2021,
Section 430, as amended by Section 3, Chapter 317,
O.S.L. 2022 (63 O.S. Supp. 2022, Section 43 0), which
relates to the Oklahoma Medical Marijuana Wast e
Management Act; authorizing unannounced on-site
inspections by certain state agencies; and providing
an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Sectio n 426, as
amended by Section 27, Chapter 228, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 426), is amended to read as follows:
Section 426. A. The tax on retail medical marijuana sales
shall be established at seven percent (7%) of the gross amount
received by the seller.
B. This tax shall be collected at the point of sale. Except as
provided for in subsection D, tax proceeds will be applied primarily
to finance the regulatory office.
ENGR. H. B. NO. 2095 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
C. Except as provided for in subsection D of this section, if
proceeds from the levy authorized by subsection A of this section
exceed the budgeted amount for running the regulatory office, any
surplus shall be apportioned with seventy-five percent (75%) going
to the General Revenue Fund and may only be expended for common
education including funding redbud school grants pursuant to Section
3-104 of Title 70 of the Oklahoma Statutes. Twenty-five percent
(25%) shall be apportioned to the State Department of Health and
earmarked for drug and alcohol rehabilitation and prevention.
D. Pursuant to Section 14 255.2 of this act Title 68 of the
Oklahoma Statutes, the Oklahoma Tax Commission shall have authori ty
to assess, collect and enforce the tax specified in subsection A of
this section including any interest and penalty thereon.
E. For fiscal year 2022, proceeds from the levy authorized by
subsection A of this section shall be apportioned a s follows:
1. The first Sixty-five Million Dollars ($65,000,000.00) shall
be apportioned as follows:
a. fifty-nine and twenty-three hundredths percent
(59.23%) to the State Public Common School Building
Equalization Fund,
b. thirty-four and sixty-two hundredths percent (34.62%)
to the Oklahoma Medical Marijuana Authority, a
division within the Oklahoma State Department of
Health, and
ENGR. H. B. NO. 2095 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
c. six and fifteen hundredths percent (6.15%) to the
Oklahoma State Department of Health and earmarked for
drug and alcohol rehabilitation; and
2. Any surplus collections shall be apportioned to the General
Revenue Fund of the State Treasury.
F. If any medical marijuana business licensee intentionally
does not remit the taxes as required by the provisions of this
section or the provisions of Section 1354 of Title 68 of the
Oklahoma Statutes, the Authority shal l permanently revoke the
medical marijuana business license of the business licensee and the
business licensee shall be permanently ineligible to receive any
other type of medical marijuana business license issued by the
Authority, including licenses for a dispensary, commercial grower
operation, processing facility, transporter, research, education
facility, and waste disposal facility.
SECTION 2. AMENDATORY 63 O.S. 2021, Section 427.3, as
amended by Section 1, Chapter 342, O.S .L. 2022 (63 O.S. Supp. 2022,
Section 427.3), is amended to read as foll ows:
Section 427.3 A. There is hereby created the Oklahoma Medical
Marijuana Authority within the State Department of Health which
shall address issues related to the medical marijuana program in
Oklahoma including, but not limited to, the issuance of pa tient
licenses and medical marijuana business licenses, and the
dispensing, cultivating, processing, testing, transporting, storage,
ENGR. H. B. NO. 2095 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
research, and the use of and sale of medical marijuana pursuant to
the Oklahoma Medical Marijuana and Patient Protection Ac t.
B. The Department shall provide support staff to perform
designated duties of the Authority. The Department shall also
provide office space for meetings of the Authority.
C. The Authority shall implement the provisions of the Oklahoma
Medical Marijuana and Patient Protection Act consistently with the
voter-approved State Question No. 788, Initiative Petition No. 412,
subject to the provisions o f the Oklahoma Medical Marijuana 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 follo wing:
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 p ublic safety policy,
b. agronomic and horticultural best practices, an d
c. medical and pharmacopoeia best practices;
2. Contract with third-party vendors and other governmental
entities in order to carry out the respective duties and functions
ENGR. H. B. NO. 2095 Page 6 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 a s 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 connection with disciplinary or contested
cases considered by the Authority;
5. Apply for injunctive or declaratory r elief to enforce the
provisions of applicable laws, rules, and regulations;
6. Inspect and examine all licensed premises of medical
marijuana businesses, research facilities, education facilities, and
waste disposal facilities in which medical marijuana i s cultivated,
manufactured, sold, stored, transported, tested, distributed, or
disposed of;
7. Upon action by the federal government by which the
production, sale, and use of marijuana in Oklahoma does not violate
federal law, work with the Oklahoma State Banking Department and the
State Treasurer to develop good practices and standards for banking
and finance for medical marijuana businesses;
8. Establish internal control procedures for licenses including
accounting procedures, reporting procedures , and personnel policies;
ENGR. H. B. NO. 2095 Page 7 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
9. Establish a fee schedule and collect fees for performing
background checks as the Authority deems appropriate. The fees
charged pursuant to this paragraph shall not exceed the actual cost
incurred for each background che ck;
10. Establish a fee schedule and collect fees for material
changes requested by the licensee;
11. Establish regulations, which require a medical marijuana
business to submit information to the Authority, deemed reasonably
necessary to assist the Authority in the prevention of diversion of
medical marijuana by a licensed medical marijuana business. Such
information required by the Authority may include, but shall not be
limited to:
a. the square footage of the licensed p remises,
b. a diagram of the licensed premises,
c. the number and type of lights at the li censed medical
marijuana commercial grower business,
d. the number, type, and production capacity of equipment
located at the medical marijuana processing facility,
e. the names, addresses, and telephone numbers of
employees or agents of a medical marijuan a business,
f. employment manuals and standard operating procedures
for the medical marijuana business, and
g. any other information as the Authority reasonably
deems necessary; and
ENGR. H. B. NO. 2095 Page 8 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
12. Declare and establish a moratorium on processing and
issuing new medical marijuana business licenses pursuant to Section
427.14 of this title for an amount of time the Authority deems
necessary; and
13. Enter into and negotiate the terms of Memorandums of
Understanding between the Authority and other state agencies
concerning the enforcement of laws regulating medical marijuana in
this state. The Oklahoma State Bureau of Narcotics and Dangerous
Drugs Control, the Oklahoma State Bureau of Investigation, and the
Oklahoma Attorney General shall have full authorit y to investigate
and enforce any violations of the laws regarding medical marijuana
including medical marijuana business licenses held by commercial
growers, processors, transporters, researchers, education
facilities, and waste disposal facilities.
SECTION 3. 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 appoi nted 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
ENGR. H. B. NO. 2095 Page 9 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 indirect interest in a
licensed medical marijuana business; or
2. The individual or hi s or her spouse, parent, child, spouse
of a child, sibling, or spouse of a sibling has an application for a
medical marijuana business license pending before the Authority or
is a member of the board of directors of a medical marijuana
business, or is an i ndividual financially interested in any licensee
or medical 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 Oklahoma Medical Mariju ana and
Patient Protection Act.
F. The Authority is hereby authorized to create employment
positions necessary for the implementation of its obligations
ENGR. H. B. NO. 2095 Page 10 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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, the Oklahoma State Bureau of Narcotics and Dangerous
Drugs Control, the Ok lahoma State Bureau of Investigation, and the
Attorney General shall have all the powers and authority of a peace
officer 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 marijuana, 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 and executing all warrants, summonses, subpoenas,
administrative citations, notices or other processes relating to the
enforcement of laws regulating marijuana, concentrate, and marijuana
product;
3. Seizing, destroying, confiscating, embargoing, or plac ing an
administrative hold on any marijuana or marijuana product not
properly logged in inventory records or untraceable product not
ENGR. H. B. NO. 2095 Page 11 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
required to be in the system, altered or improperly packaged , or
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 oth er local officials 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
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 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;
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
ENGR. H. B. NO. 2095 Page 12 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
accessories, or books and records; and t o permit the testing of or
examination of medical marijuana, concentrate, or product;
8. Requiring applicants and licensees to submit comp lete and
current applications, information and fees required by the Oklahoma
Medical Marijuana and Patient Protection Act, the Oklahoma Medical
Marijuana Waste Management Act and Sections 420 through 426.1 of
this title, and approve material changes made b y the applicant or
licensee;
9. Requiring medical marijuana business licensees to s ubmit a
sample or unit of medical marijuana or medical 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 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
ENGR. H. B. NO. 2095 Page 13 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
medical marijuana or medical marij uana 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
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 pea ce officer of this state, or any
political subdivision thereof, assist in the apprehension and arrest
of a violator or suspected violator 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
ENGR. H. B. NO. 2095 Page 14 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
discharge of their duties. At the request of the Executive
Director, such attorneys shall assist district attorneys in
prosecuting charges of vi olators 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.
SECTION 4. AMENDATORY 63 O.S. 2021, Section 427.6, as
last amended by Section 1, Chapter 328, O.S.L. 2022 (63 O.S. S upp.
2022, Section 427.6), is amend ed to read as follows:
Section 427.6 A. The Oklahoma Medical Marijuana Authority
shall address issues related t o 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, or the Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control, the Oklahoma State
Bureau of Investigation, and the Att orney General may perform on-
site inspections or investigations of a l icensee or applicant for
any medical marijuana business license, research fac ility, education
facility or waste disposal facility to de termine compliance with
applicable laws, rules and regulations or submissions made purs uant
ENGR. H. B. NO. 2095 Page 15 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
to this section. The Authori ty, its designee, or the Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control, the Ok lahoma State
Bureau of Investigation, and the Attorney General may enter the
licensed premises of a medical marijuana business, research
facility, education facility or waste disposal facility licensee or
applicant to assess or monitor compliance or ensure qualifications
for licensure.
2. Post-licensure inspections shall be limited to twice per
calendar year. However, investigations and additional 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 regulations. The State Commissioner of Health
Authority may adopt rules imposing penalties in cluding, 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, its designee, or the Oklahoma State Bureau of
Narcotics and Dangerous Drugs Control, the Oklahoma State Bureau of
Investigation, and the Attorney General may review relevant records
of a licensed medical marijuana business, license d medical marijuana
research facility, licensed medical marijuana educa tion facility or
licensed medical marijuana waste disposal facility, and may require
and conduct interviews wit h such persons or entities an d persons
affiliated with such entities, for the purpose of determining
ENGR. H. B. NO. 2095 Page 16 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
compliance with Authority requirements and a pplicable laws, rules
and regulations.
4. The Authority may refer complaints alleging criminal
activity that are made against a licensee to appropriate state or
local law enforcement a uthorities including, but not limited to, the
Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the
Oklahoma State Bureau of Investigation, and the Attorney General .
C. Disciplinary action may be taken agains t an applicant or
licensee for not adhering to applica ble laws pursuant to the terms,
conditions and guidelines set forth in the 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 appropriate 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 misre presentation of any material 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 Authority;
ENGR. H. B. NO. 2095 Page 17 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
5. Failure to submit or disclose 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 med ical marijuana
product, as determined by the Authority;
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 include the
imposition of monetary penalties, which may be assessed by the
Authority. The Authority may suspend o r revoke a license for
failure to pay any monetary pen alty 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 tha n those allowed
ENGR. H. B. NO. 2095 Page 18 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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
violation and a fine of Fifteen Thousand Do llars ($15,000.00) for
any subsequent violation.
2. Penalties for grossly inaccurate or fraudulent reporting
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 Th ousand Dollars
($10,000.00) for any s ubsequent violation. The medical 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 inaccu rate or fraudulent
reporting in a ten-year period by the medical marijuana 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 inv estigation, is able to establish,
by a preponderance of evidence, a pattern of diversion or negligence
leading to diversion, the Authority may revoke an y business licenses
associated with the diversion and any entity wi th 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 concen trate, or medical marijuana
ENGR. H. B. NO. 2095 Page 19 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
products for value by a patient or care giver 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 subse ction.
2. In addition to any other penalties prescri bed 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 t o an
unauthorized person for v alue shall be subject t o 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 unauthorized 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 m edical marijuana, medical
marijuana concentrate or medical marijuana products by a licensed
medical marijuana patient or caregiver, medical marijuana business
or employee of a medical marijuana business to an unautho rized minor
person who the licensed medi cal marijuana patient or caregiver,
medical marijuana business or emp loyee of a medical marijuana
business knew or reasonably should have known to be a minor person
shall be subject to an administrative fine of Two T housand Five
ENGR. H. B. NO. 2095 Page 20 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Hundred Dollars ($2,500.00) . For an additional incident resulting
in a second or subsequent off ense, the licensed medical marijuana
patient or caregiver, medical marijuana business or employee of a
medical marijuana business shall be subject to a cite and release
citation and, upon a finding of guilt or a plea of no contest, a
fine of Five Thousand Dollars ($5,000.00) and automatic revocation
of the medical marijuana license.
J. In addition to any other penal ties prescribed by law, it
shall be unlawful for a licensed medical mariju ana commercial grower
to knowingly hire or employ undocumented immigr ants to perform work
inside a medical marijuana commercial grow facility or anywhere on
the property of the medical marijuana commercial grow operation. A
licensed medical marijuana comm ercial grower that violates the
provisions of this subsection shall, u pon 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 impriso nment. In
addition, the license of the medical marijuana commercial grower
shall be subject to revocation and the Authority may deny future
license applications .
K. In addition to any other remedies provided for by law, the
Authority, pursuant to its rul es 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
ENGR. H. B. NO. 2095 Page 21 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Medical Marijuana and Patient Protection Act, the Oklahoma Medica l
Marijuana Waste Managem ent Act, or any rules p romulgated by the
State Commissioner of Health and to w hom 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 specifici ty the nature of
the violation. The Authority may impose any disciplinary act ion
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 s ection
shall become a final order 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 Autho rity 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, statin g the existence 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 opera tions by
the licensee. The order shall be effective immediately upon
issuance. Any person to whom the order is directed shall comply
ENGR. H. B. NO. 2095 Page 22 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 ,
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. M. All hearings held pursuant to this section shall be in
accordance with the Oklahoma Administrative Procedures Act.
SECTION 5. AMENDATORY 63 O.S. 2021, Sec tion 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 foll ows:
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 processo r;
3. Medical marijuana dispensary;
4. Medical marijuana transporter; and
5. Medical marijuana testing laboratory.
B. The Oklahoma Medical Marijuana Authority, with the aid of
the Office of Management and Enterprise Services, shall develop a
website for medical marijuana business applications.
ENGR. H. B. NO. 2095 Page 23 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
C. The Authority shall make available on its website in an
easy-to-find location, applications for a medical m arijuana
business.
D. 1. The annual, nonrefundable fee for a medical marijuana
transporter license shall be Two Thousand Five Hundred Dollars
($2,500.00).
2. The initial fee for a medical marijuana commercial grower
license shall be calculated based upo n the total amount of squ are
feet of canopy or acres the grower estimates will be harve sted for
the year. The annual, nonrefundable license fee shall b e based upon
the total amount of square feet of canopy harvested by the grower
during the previous twelv e (12) months. The amount of the fees
shall be determined as follows:
a. For an indoor, greenhouse, or light deprivation
medical marijuana grow facility:
(1) Tier 1: Up to ten thousand (10,000) square feet
of canopy, the fee shall be Two Thousand Five
Hundred Dollars ($2,500.00),
(2) Tier 2: Ten thousand one (10,001) square feet of
canopy to twenty thousand (20,000) square feet of
canopy, the fee shall be Five Thousand Dollars
($5,000.00),
(3) Tier 3: Twenty thousand one (20,001) square fee t
of canopy to forty thousand (40,000) square feet
ENGR. H. B. NO. 2095 Page 24 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
of canopy, the fee shal l be Ten Thousand Dollars
($10,000.00),
(4) Tier 4: Forty thousand one (40,001) square feet
of canopy to sixty thousand (60,000) square feet
of canopy, the fee shall be Twent y 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 T housand
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 grow facility:
ENGR. H. B. NO. 2095 Page 25 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
(1) Tier 1: Up to two and one-half (2 1/2) acres,
the fee shall be Two Thousand Five Hundred
Dollars ($2,500.00),
(2) Tier 2: Two and one-half (2 1/2) acres up to
five (5) acres, the fee shall be Five Thousand
Dollars ($5,000.00),
(3) Tier 3: Five (5) acres up to ten (10) acres, the
fee shall be Ten Thousand Dollars ($10,000.00),
(4) Tier 4: Ten (10) acres up to twenty (20) acres,
the fee shall be Twenty Thousand Dollars
($20,000.00),
(5) Tier 5: Twenty (20) acres up to thirty (30)
acres, the fee shall be Thirty Thousand Dollars
($30,000.00),
(6) Tier 6: Thirty (30) acres up to forty (40)
acres, the fee shall be Forty Thousand Dollars
($40,000.00),
(7) Tier 7: Forty (40) acres up to fifty (50) acres,
the fee shall be Fifty Thousand Dollars
($50,000.00), and
(8) Tier 8: If the amount of acreage exceeds fifty
(50) acres, the fee shall be Fifty Thousand
Dollars ($50,000.00) plus an additi onal Two
Hundred Fifty Dollars ($250.00) per acre.
ENGR. H. B. NO. 2095 Page 26 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
c. For a medical marijuana commercial grower that has a
combination of both indoor and outdoor growing
facilities at one location, the medical marijuana
commercial grower shall be required to obtain a
separate license from the Authority for each type of
grow operation and shall be subject to the licensing
fees provided for in subparagraphs a and b of this
paragraph.
d. As used in this paragraph:
(1) "canopy" means the total surface area within a
cultivation area that is dedicated to the
cultivation of flowering marijuana plants. The
surface area of the plant canopy must be
calculated in square feet and measured and must
include all of the area within the boundaries
where the cultivation of the flowering marijuana
plants occurs. If the surface of the plant
canopy consists of noncontiguous areas, each
component area must be separated by identifiable
boundaries. If a tiered or shelving system is
used in the cultivation area, the surface area of
each tier or shelf must be included in
calculating the area of the plant canopy.
Calculation of the area of the plant canopy may
ENGR. H. B. NO. 2095 Page 27 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
not include the areas within the cultivation area
that are used to cultivate immature marijuana
plants and seedlings, prior to flowering, a nd
that are not used at any time to cultivate mature
marijuana plants. If the flowering plants are
vertically grown in cylinders, the square footage
of the canopy shall be 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 ability to manipula te
natural light.
3. The annual, nonrefundable license fee for a medical
marijuana processor license shall be determined as follows:
a. Tier 1: Zero (0) to ten thousand (10,000) pounds of
biomass or production or use of up to one hundred
(100) liters of cannabis concentrate, the annual fee
shall be Two Thousand Five Hundred Dollars
($2,500.00),
ENGR. H. B. NO. 2095 Page 28 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
b. Tier 2: Ten thousand one (10,001) pounds to fifty
thousand (50,000) pounds of biomass or production or
use from one hundred one (101) to three hundred fifty
(350) liters of cannabis concentrate, the annual fee
shall be Five Thousand Dollars ($5,000.0 0),
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 thousand 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 cannabis concentrate
is in nonliquid form, every one thousand (1,000) grams of
ENGR. H. B. NO. 2095 Page 29 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
concentrated marijuana shall be calculated as o ne (1) liter of
cannabis concentrate.
4. The initial fee for a medical marijuana dispensary license
shall be Two Thousand Five Hundred Dollars ($2,500.00). The annual,
nonrefundable license fee for a medical marij uana 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 Doll ars ($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 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 county in which
the applicant seeks to obtain licensure as a medical marijuana
business;
3. Applicants shall submit a complete application to the
Authority before the application may be accepted or considered;
ENGR. H. B. NO. 2095 Page 30 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
4. 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,
ENGR. H. B. NO. 2095 Page 31 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
e. disclosure of all ownership interests pursuant t o the
Oklahoma Medical Marijuana and Patient Protection Act,
and
f. proof that the medical marijuana business, medical
marijuana research facility, medical marijuana
education facility and medical marijuana waste
disposal facility applicant or 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 fac ility.
Upon reasonable suspicion that a medical marijuana busi ness licensee
is illegally growing, processing, transferring, selling, disposing,
or diverting marijuana, the Authority, the Oklahoma State Bureau of
Narcotics and Dangerous Drugs Control, the Ok lahoma State Bureau of
Investigation, or the Attorney General may subpoena documents
necessary to establish the personal identifying information of all
owners and individuals with any ownership interest in the business;
8. There shall be no limit to the number of medical marijuana
business licenses or categories that an individual or entity can
apply for or receive, although each application and each category
shall require a separate application and application fe e. A
commercial grower, processor and dispensary, or any combination
ENGR. H. B. NO. 2095 Page 32 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
thereof, are authorized to share the same address or physical
location, subject to the restrictions set forth in the Oklahoma
Medical Marijuana and Patient Protection Act;
9. All applicants for a medical marijuana business license,
research facility license or education facility license authorized
by the Oklahoma Medical Marijuana and Patient Protection Act, or for
a renewal of such license, shall undergo an Oklahoma criminal
history a national fingerprint-based background check conducted by
the Oklahoma State Bureau of Investigation (OSBI) within thirty (30)
days prior to the application for the license, including:
a. individual applicants applying on their own behalf,
b. individuals applying on behalf of 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 business application, all applicants shall
provide proof of Oklahoma residency for at least two (2) years
immediately preceding the date of application or five (5) years of
continuous Oklahoma residency during the preceding twenty-five (25)
years immediately preceding the date of application. Sufficient
ENGR. H. B. NO. 2095 Page 33 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
documentation of proof of residency shall include a combination of
the following:
a. an unexpired Oklahoma-issued driver license,
b. an Oklahoma identification card,
c. a utility bill preceding the date of application,
excluding cellular telephone and Internet bills,
d. a residential property deed to property in the State
of Oklahoma, and
e. a rental agreement preceding the date of application
for residential property located in the State of
Oklahoma.
Applicants that were issued a medical marijuana business license
prior to August 30, 2019, are hereby exempt from the two-year or
five-year Oklahoma residence requirement mentioned above;
12. All license applicants shall be required to submit a
registration with the Oklahoma State Bureau of Narcotics and
Dangerous Drugs Control as provided in Sections 2-302 through 2-304
of this title;
13. All applicants shall establish their identity through
submission of a color copy or digital image of one of the following
unexpired documents:
a. front of an Oklahoma driver license,
b. front of an Oklahoma identification card,
ENGR. H. B. NO. 2095 Page 34 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
c. a United States passport or other photo identification
issued by the United States government, or
d. a tribal identification card approved for
identification purposes by the Oklahoma Department of
Public Safety; and
14. All applicants shall submit an applicant photograph.
F. The Authority shall review the medical marijuana business
application; approve, reject or deny the application; and mail the
approval, rejection, denial or status-update letter to the applicant
within ninety (90) business days of receipt of the application.
G. 1. The Authority shall review the medical marijuana
business applications and conduct all investigations, inspections
and interviews before approving the application.
2. Approved applicants shall be issued a medical marijuana
business license for the specific category applied under, which
shall act as proof of their approved status. Rejection and denial
letters shall provide a reason for the rejection or denial.
Applications 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
ENGR. H. B. NO. 2095 Page 35 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 application that has been
resubmitted but is still incomplete or contains errors that are not
clerical or typographical in nature shall be denied.
3. Status-update letters shall provide a reason for delay in
either approval, rejection or denial should a situation arise in
which an application was submitted properly but a delay in
processing the application occurred.
4. Approval, rejection, denial or status-update letters shall
be sent to the applicant in the same method the application was
submitted to the Authority.
H. A license for a medical 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 f elony
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
ENGR. H. B. NO. 2095 Page 36 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
within two (2) years of the date of application, or within five (5)
years for any other felony;
4. A person under twenty-five (25) years of age;
5. A person licensed pursuant to this section who, during a
period of licensure, or who, at the time of application, has failed
to:
a. file taxes, interest or penalties due related to a
medical marijuana business, or
b. pay taxes, interest or penalties due related to a
medical marijuana business;
6. A sheriff, deputy sheriff, po lice officer or prosecuting
officer, or an officer or employee of the Authority or municipality;
7. A person whose authority to be a caregiver, as defined in
Section 427.2 of this title, has been revoked by the Authority; or
8. A person who was involved in the management or operations of
any medical marijuana business, medical mar ijuana research facility,
medical marijuana education facility or medical marijuana waste
disposal facility that, after the initiation of a disciplinary
action, has had a medical marijuana license revoked, not renewed, or
surrendered during the five (5) ye ars 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
ENGR. H. B. NO. 2095 Page 37 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
patient licensees, caregiver licensees o r medical
marijuana business licensees,
c. any grossly inaccurate or fraudulent reporting,
d. threatening or harming any medical marijuana patient,
caregiver, medical practitioner or employee of the
Authority,
e. knowingly or intentionally 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 t he operation of a medical
marijuana business, or
h. any violations that endanger public health and safety
or product safety.
I. In investigating the qualifications of an applicant or a
licensee, the Authority and municipalities may have acce ss 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 groun ds 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
ENGR. H. B. NO. 2095 Page 38 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
or licensee made misstatements, omissions, misrepresentations or
untruths in the application or in connection with the background
investigation of the applicant. This type of conduct may be grounds
for administrative action against the applicant or licensee. Typos
and scrivener errors shall not be grounds for denial.
L. A licensed medical marijuana business premises shall be
subject to and responsible for compliance with applicable provisions
consistent with the zoning where such business is located as
described in the most recent versions of the Oklahoma Uniform
Building Code, the International Building Code and the International
Fire Code, unless granted an exemption by a municipality or
appropriate code enforcement entity.
M. All medical 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 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 non refundable. A license that has been
expired for more than ninety (90) days shall not be renewed.
ENGR. H. B. NO. 2095 Page 39 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
O. No medical marijuana business, medical marijuana research
facility, medical marijuana education facility or medical marijuana
waste disposal facility shal l possess, sell or transfer medical
marijuana or medical marijuana products without a valid, unexpired
license issued by the Authority.
P. No more than one medical marijuana commercial grower license
shall be issued for any one property.
SECTION 6. AMENDATORY Sectio n 2, Chapter 342, O.S.L.
2022 (63 O.S. Supp. 2022, Section 427.14a), is amended to read as
follows:
Section 427.14a A. Beginning August 1, 2022, and ending August
1, 2024 2026, the Oklahoma Medical Marijuana Authori ty shall, based
on the number of current medical marijuana business licenses for
dispensaries, processors, and commercial growers, declare and
establish a moratorium on processing and issuing new medical
marijuana business licenses for dispensaries, processors, and
commercial growers. The Executive Director of the Authority shall
be authorized to terminate the moratorium at a ny time prior to
August 1, 2024 2026, if the Executive Director determines that all
pending licensing reviews, inspections, or investig ations have been
completed by the Authority.
B. The provisions of this section shall not apply to the
renewal of a medical marijuana business license for a dispensary,
processor, or commercial grower under the provisions of Section
ENGR. H. B. NO. 2095 Page 40 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
427.14 of Title 63 of the Oklahoma Statutes this title or to the
issuance of a medical marijuana business license necessitated by a
change in the ownership or location of a medical marijuana
dispensary, medical marijuana processor, or medical marijuana
commercial grower; provided, however, the Authority shall be
authorized to deny the request for issuance of a medical marijuana
business license due to a change in ownership if the licensee is
subject to any disciplinary action that may necessitate the
revocation, suspension, or nonrenewal of the medical marijuana
business license.
C. The Authority shall review and process applications for
medical marijuana busine ss licenses for dispensaries, processors,
and commercial growers if applications were received on or before
August 1, 2022.
D. The Authority shall promulgate rules as necessary to
implement the provisions of this section.
SECTION 7. AMENDATORY 63 O.S. 2021, Section 427.16, as
amended by Section 16, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 427.16), is amended to r ead as follows:
Section 427.16 A. There is hereby created a medical marijuana
transporter license as a category of the medical marijuana business
license.
B. Pursuant to Sect ion 424 of this title, the Oklahoma Medical
Marijuana Authority shall issue a medical marijuana transporter
ENGR. H. B. NO. 2095 Page 41 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
license to licensed medical marijuana commercial growers, processors
and dispensaries upon issuance of such licenses and upon each
renewal. Medical marijuana transporter licenses shall also be
issued to licensed medical marijuana research facilities, medical
marijuana education facilities and medical marijuana testing
laboratories upon issuance of such licenses and upon each renewal.
C. A medical marijuana transporter license may also be issued
to qualifying applicants who are registered with the Secretary of
State and otherwise meet the requirements for a medical marijuana
business license set forth in the Oklahoma Medical Marijuana and
Patient Protection Act and the requirements set forth in this
section to provide logistics, distribution and storage of medical
marijuana, medical marijuana concentrate and medical marijuana
products.
D. A medical marijuana transporter license shall be valid for
one (1) year and shall not be transferred with a change of
ownership. A licensed medical marijuana transporter shall be
responsible for all medical marijuana, medical marijuana concentrate
and medical marijuana products once the transporter takes con trol of
the product.
E. A transporter license shall be required for any person or
entity to transport or transfer medical marijuana, medical marijuana
concentrate or medical marijuana products from a licensed medical
marijuana business to another medical marijuana business, or from a
ENGR. H. B. NO. 2095 Page 42 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
medical marijuana business to a medical marijuana research facility
or medical marijuana education facility.
F. A medical marijuana transporter licensee may contract with
multiple licensed medical marijuana businesses.
G. A medical marijuana transporter may maintain a licensed
premises to temporarily store medical marijuana, medical marijuana
concentrate and medical marijuana products and to use as a
centralized distribution point. A medical marijuana transporter may
store and distribute medical marijuana, medical marijuana
concentrate and medical marijuana products from the licensed
premises. The licensed premises shall meet all security
requirements applicable to a medical marijuana business.
H. A medical marijuana transp orter licensee shall use the seed-
to-sale tracking system developed pursuant to the Oklahoma Medical
Marijuana and Patient Protection Act to create shipping manifests
documenting the transport of medical marijuana, medical marijuana
concentrate and medical marijuana products throughout the state.
I. A licensed medical marijuana transporter may maintain and
operate one or more warehouses in the state to handle medical
marijuana, medical marijuana concentrate and medical marijuana
products. Each location sh all be registered and inspected by the
Authority prior to its use.
J. With the exception of a lawful transfer between medical
marijuana businesses who are licensed to operate at the same
ENGR. H. B. NO. 2095 Page 43 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
physical address, all medical marijuana, medical marijuana
concentrate and medical marijuana products shall be transported:
1. In vehicles equipped with Global Positioning System (GPS)
trackers;
2. In a locked container and clearly labeled "Medical Marijuana
or Derivative"; and
3. In a secured area of the vehicle that i s not accessible by
the driver during transit.
K. A transporter agent may possess marijuana at any location
while the transporter agent is transferring marijuana to or from a
licensed medical marijuana business, licensed medical marijuana
research facility or licensed medical marijuana education facility.
The Authority shall administer the provisions of this section and
the Authority, the Oklahoma State Bureau of Narcotics and Dangerous
Drugs Control, the Oklahoma State Bureau of Investigation , and the
Attorney General shall have the auth ority to enforce the provisions
of this section concerning transportation.
L. The Authority shall issue a transporter agent license to
individual agents, employees, officers or owners of a transporter
license in order for the individual to qualify to transport medical
marijuana, medical marijuana concentrate or medical marijuana
products.
M. The annual fee for a transporter agent license shall be
Twenty-five Dollars ($25.00) and shall be paid by the transporter
ENGR. H. B. NO. 2095 Page 44 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
license 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 thirty (30) days of receipt of:
1. The name, address and date of birth of the person;
2. Proof of current state residency;
3. Proof of identity as required for a medical marijuana
business license;
4. Possession of a valid state-issued driver license;
5. Verification of employment with a licensed transporter;
6. The application and affiliated fee; and
7. A copy of the criminal background check conducted by the
Oklahoma State Bureau of Investigation, paid for by the applicant.
O. If the transporter agent application is denied, the
Authority shall notify the transporter in writing of the reason for
denying the registry identification card.
P. A registry identification card for a transporter shall
expire one (1) year after the date of issuance or upon notification
from the holder of the transporter l icense that the transporter
agent ceases to work as a transporter.
Q. The Authority may revoke the registry identification card of
a transporter agent who knowingly violates any provision of this
section, and the transporter is subject to any other penalties
established by law for the violation.
ENGR. H. B. NO. 2095 Page 45 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 se ction, and the
license holder is subject to any other penalties established in law
for the violation.
S. Vehicles used in the transport of medical marijuana or
medical marijuana product shall be:
1. Insured at or above the legal requirements in this state;
2. Capable of securing medical marijuana during transport; and
3. In possession of a shipping container a s defined in Section
427.2 of this title capable of securing all transported products.
T. Prior to the transport of any medical marijuan a, medical
marijuana concentrate or medical marijuana products, an inventory
manifest shall be prepared at the originat ion point of the medical
marijuana. The inventory manifest shall include the following
information:
1. For the origination point of the medical marijuana:
a. the licensee number for the commercial grower,
processor or dispensary,
b. address of originatio n of transport, and
c. name and contact information for the o riginating
licensee;
2. For the end recipient license holder of the medical
marijuana:
ENGR. H. B. NO. 2095 Page 46 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
a. the license number for the dispensary, commercial
grower, processor, research facility or education
facility destination,
b. address of the destination, and
c. name and contact information for the destination
licensee;
3. Quantities by weig ht or unit of each type of medical
marijuana product contained in transport;
4. The date of the transport and the appr oximate time of
departure;
5. The arrival date and estimated time of arrival;
6. Printed names and signatures of the personnel accompan ying
the transport; and
7. Notation of the transporting licensee.
U. 1. A separate inventory manifest shall be prepa red for each
licensee receiving the medical marijuana.
2. The transporter agent shall provide the other medical
marijuana business with a copy of the inventory manifest at the time
the product changes hands and after the other licensee prints his or
her name and signs the inventory manifest.
3. A receiving license e shall refuse to accept any medical
marijuana, medical marijuana concentrat e or medical marijuana
products that are not accompanied by an inventory manifest.
ENGR. H. B. NO. 2095 Page 47 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
4. Originating and receiving licens ees shall maintain copies of
inventory manifests and logs of quantities of medical marijuana
received for seven (7) years from date of re ceipt.
SECTION 8. AMENDATORY 63 O.S. 2021, Section 427.17, as
last amended by Section 1, Chapter 353, O.S.L. 2022 (63 O.S. Supp.
2022, Section 427.17) , is amended to read as follows:
Section 427.17 A. There is hereby created a medical mar ijuana
testing laboratory licens e as a category of the medical marijuana
business license. The Oklahoma Medical Marijuana Authority is, the
Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the
Oklahoma State Bureau of Investigation, and the Attorney General are
hereby enabled to monitor, inspect and audit a licensed testing
laboratory 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 testing laboratories licensed in this state.
Any such laboratory under contract for comp liance testing shall be
prohibited from conducting any other commercial medical 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 in terest
in a licensed medical marijuana business, or
ENGR. H. B. NO. 2095 Page 48 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
b. any individual or his or her spouse, parent, child,
spouse of a child, sibling or spouse of a sibling that
has an application for a medical marijuana business
license pending before the Authority or is a member of
the board of directors of a medical marijuana
business, or is an individual financially interested
in any licensee or medical 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
Oklahoma medical 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 utilized by licensed medical marijuana testing laboratories
when testing samples of medical marijuana, medical marijuana
concentrate, and medical marijuana products as well as standard
operating procedures when extracting and testing medical marijuana,
medical marijuana concentrate, and medical marijuana products. The
recommendations shall be submitted to the Authority no later than
June 1, 2023. The Authority shall have ninety (90) days from the
date it receives the recommendations to promulgate new rules or
modify its current rules for laboratory standards and testing.
Beginning June 1, 2024, medical marijuana testing laboratories
renewing their medical marijuana business license shall be subject
ENGR. H. B. NO. 2095 Page 49 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
to and comply with any new or modified rules relating to the testing
of medical marijuana, medical marijuana concentrate, and medical
marijuana products. The refusal or failure of a medical marijuana
testing laboratory licensee to comply with new or modified rules
relating to laboratory standards and testing procedures promulgated
under the provisions of this paragraph shall result in the permanent
revocation of the medical marijuana testing laboratory license.
C. The Authority shall develop acceptable testin g practices
including, but not limited to, testing, standards, quality control
analysis, equipment certification and calibration, and chemical
identification and substances used.
D. A person who is a direct beneficial owner of a medical
marijuana dispensary, medical mar ijuana commercial grower or medical
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 bui lding codes.
F. A separate license shall be required for each specific
laboratory.
G. A medical marijuana testing laboratory license may be issued
to a person who perform s testing on medical marijuana and medical
marijuana products for medical marijuana businesses, medical
marijuana research facilities, medical marijuana education
facilities, and testing on marijuana and marijuana products grown or
ENGR. H. B. NO. 2095 Page 50 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
produced by a patient or caregiver on behalf of a patient, upon
verification of registration . A medical marijuana testing
laboratory may also conduct research related to the development and
improvement of its testing practices and procedures. No state-
approved medical marijuana testing facility shall operate unless a
medical laboratory director is on site duri ng 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 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 testing laboratory may accept samples of
medical marijuana, medical marijuana concentrate or medical
marijuana product from a medical ma rijuana 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 marijuana
business for product developm ent. The Authority may require a
medical marijuana business to submit a sample of medical marijuana,
medical marijuana concentrate or medical marijuana product to a
medical marijuana testing or quality assurance laboratory upon
demand.
J. A medical marijuana testing laboratory may accept samples of
medical marijuana, medical marijuana concentrate or medical
ENGR. H. B. NO. 2095 Page 51 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
marijuana product from an individual person for testing only under
the following conditions:
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 testing laboratory shal l require the
patient or caregiver to produce a valid patient license and current
and valid photo identification.
K. A medical marijuana testing laboratory may transfer samples
to another medical m arijuana testing laboratory for testing. All
laboratory reports provided to or by a m edical marijuana business or
to a patient or caregiver shall identify the medical marijuana
testing laboratory that actually conducted the test.
L. A medical marijuana t esting laboratory may utilize a
licensed medical marijuana transporter to transport sa mples of
medical marijuana, medical marijuana concentrate and medical
marijuana product for testing, in accordance with the Oklahoma
Medical Marijuana and Patient Protect ion Act and the rules adopted
pursuant thereto, between th e originating medical mariju ana business
requesting testing services and the destination laboratory
performing testing services.
M. The medical marijuana testing laboratory shall establish
policies to prevent the existence of or appearance of undue
ENGR. H. B. NO. 2095 Page 52 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
commercial, financial or other inf luences that may diminish the
competency, impartiality 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 proc esses
or results of the labo ratory. At a minimum, employees, owners or
agents of a medical marijuana testing laboratory who participate in
any aspect of the analysis and results of a sample are pro hibited
from improperly influencing the testing process, i mproperly
manipulating data or improperly benefiting from any ongoing
financial, employment, personal or business relationship with the
medical marijuana business that provided the sample. A medical
marijuana testing laboratory shall not test samples for any medical
marijuana business in which an owner, employee or agent of the
medical marijuana testing laboratory has any form of ownership or
financial interest in the medical marijuana business.
N. The Authority, pursuant to rules promulgated by the
Executive Director of the Authority , shall develop standards,
policies and procedures as necessary for:
1. The cleanliness and orderliness of a laboratory premises and
the location of the laboratory in a sec ure location, and inspection,
cleaning and maintenance of any equipment or utensils used for the
analysis of test samples;
ENGR. H. B. NO. 2095 Page 53 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 business, a patient or
a caregiver through the point of transfer, destruction or disposal.
The inventory tracking system reporting shall include the results of
any tests that are conducted on medical marijuana, medical marijuana
concentrate or medical marijuana product;
9. Standards of performance;
ENGR. H. B. NO. 2095 Page 54 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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
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.
ENGR. H. B. NO. 2095 Page 55 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
O. A medical marijuana testing laboratory shall promptly
provide the Authority or designee of the Authority access to a
report of a test and any underlying data that is conducted on a
sample at the request of a medical marijuana business or qualified
patient. A medical marijuana testing laboratory shall also provide
access to the Authority or designee of the Authority to laboratory
premises and to any material or information requested by the
Authority to determine compliance w ith the requirements of t his
section.
P. A medical marijuana testing laboratory shall retain all
results of laboratory tests conducted on marijuana or products for a
period of at least seven (7) years and shall make them available to
the Authority upon request.
Q. A medical marijuana testing laboratory shall test samples
from each harvest batch or product batch, as appropriate, of medical
marijuana, medical marijuana concentrate and medical mari juana
product for each of the following categories of testing , consistent
with standards developed by the Executive Director:
1. Microbials;
2. Mycotoxins;
3. Residual solvents;
4. Pesticides;
5. Tetrahydrocannabinol (THC) and other cannabinoid potency;
6. Terpenoid type and concentration; and
ENGR. H. B. NO. 2095 Page 56 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
7. Heavy metals.
R. A licensed medical marijuana testing laboratory shall test
each individual harvest batch. A grower shall separate each harvest
lot of usable marijuana into harvest batches containing no more than
fifteen (15) pounds, with the exception of any plant material to be
sold to a licensed processor for the purposes of turning the plant
material into concentrate which may be separated into harvest
batches of no more than fifty (50) pounds. 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 be limited to,
cookies, brownies, candies, gummies, beverages and chocolates.
S. Medical marijuana testing laboratory licensure shall be
contingent upon successful on-site inspection, successful
participation in proficiency testing and ongoing compliance with the
applicable requirements in this section.
T. A medical 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
ENGR. H. B. NO. 2095 Page 57 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
may enter the licensed premises 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 regulations.
U. Medical 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 tes ting laboratory license
shall be contingent upon accreditation in accordance with this
subsection. All medical marijuana testing laboratories shall obtain
accreditation prior to applying for and receiving a medical
marijuana testing laboratory license.
V. Unless authorized by the provisions of this section, a
commercial grower shall not 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 testing laboratory and passed all
contaminant tests required by the Oklahoma Medical Marijuana and
Patient Protection Act and applicable laws, rules and regulations.
A licensed commercial grower may transfer medical marijuana that has
failed testing to a licensed processor only for the purposes of
ENGR. H. B. NO. 2095 Page 58 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
decontamination or remediation and only in accordance with the
provisions of the Oklahoma Medical Marijuana and Patient Protection
Act and the rules and regulations promulgated by the Executive
Director. Remediated and decontaminated medical marijuana may be
returned only to the originating 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 9. AMENDATORY 63 O.S. 2021, Sectio n 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 mari juana 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;
ENGR. H. B. NO. 2095 Page 59 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 agricultural research;
and
5. To conduct research on marijuana-affiliated products or
systems.
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 f ollowing:
a. the quality, study design, value or impact of the
project,
b. whether the applicant has the appropriate personnel,
expertise, facilities, infrastructure, funding and
ENGR. H. B. NO. 2095 Page 60 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
human, animal or other approvals in place to
successfully conduct the projec t, 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 criteri a
to be inadequate, the application shall be denied.
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 conjunction 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 promulgated 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 applicant and shall specify the location in this
state at which the medical marijuana research licensee intends to
ENGR. H. B. NO. 2095 Page 61 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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.
I. Submission of an application for a medical marijuana
research license shall constitute permission for entry to and
inspection of the facility o f the medical marijuana research
licensee during hours of ope ration and other reasonable times.
Refusal to permit such entry for inspection shall constitute grounds
for the nonrenewal, suspension, or revocation of the medical
marijuana research license. The Authority, the Oklahoma State
Bureau of Narcotics and Dan gerous Drugs Control, the Oklahoma State
Bureau of Investigation, and the Attorney Gen eral may perform an
unannounced, on-site inspection of the operations and any facility
of the medical marijuana research licensee. If the Authority
receives a complaint c oncerning noncompliance by a medical marijuana
research licensee, the Authority , the Oklahoma State Bureau of
Narcotics and Dangerous Drug s Control, the Oklahoma State Bureau of
Investigation, and the Attorney General may conduct additional
unannounced, on-site inspections beyond the required biannual
ENGR. H. B. NO. 2095 Page 62 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
inspections provided for in Section 427.6 of this title. The
Authority shall refer all complaints alleging criminal activity that
are made against a licensed medical marijuana research facility to
appropriate state or local law enforcement authorities.
SECTION 10. AMENDATORY 63 O.S. 2021, Section 427.20, as
amended by Section 20, Chap ter 251, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 427.20), is amended to read a s 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 m ay only be
granted to a not-for-profit organization structured und er 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 educa tion 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, str ategies, infrastructure,
mediums, lighting and other related technology;
ENGR. H. B. NO. 2095 Page 63 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
2. To demonstrate cultivation techniques, strategies,
infrastructure, mediums, lighting and other related technology;
3. To demonstrate the application and use of product
manufacturing technologies;
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 applica nt 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 d etermine 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 has the appropriate personnel,
expertise, facilities, infrastructure, funding and hu man, animal or
other approvals in place to successfully conduct the project; and
ENGR. H. B. NO. 2095 Page 64 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
3. Whether the amount of marijuana to be grown by the applicant
is consistent with the scope 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.
G. A medical marijuana education facility licensee 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 fac ility 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 applica nt 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.
ENGR. H. B. NO. 2095 Page 65 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
J. Submission of an application for a medical ma rijuana
education facility license shall constitute permission for entry to
and inspection of the facili ty of the medical marijuana education
facility licensee during hours of operation and other reasonable
times. Refusal to permit such entry for inspection shall constitute
grounds for the nonre newal, suspension, or revocation of the medical
marijuana education facility license. The Authority, the Oklahoma
State Bureau of Narcotics and Dang erous Drugs Control, the Oklahoma
State Bureau of Investigation, and the Attorney General may perform
an unannounced, on-site inspection of the op erations and any
facility of the medical marijuana education facility licensee. If
the Authority receives a co mplaint concerning noncompliance by a
medical marijuana education facility licensee, the Authority , the
Oklahoma State Bureau of Narcotics and Da ngerous Drugs Control, the
Oklahoma State Bureau of Investigation, and the Attorney General may
conduct additional unannounced, on-site inspections beyond the
inspections provided for in Section 427.6 of this title. The
Authority shall refer all complaint s alleging criminal activity that
are made against a licensed medical marijuana education facility to
appropriate state or local law enforcement authorities.
SECTION 11. AMENDATORY 63 O.S. 202 1, 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:
ENGR. H. B. NO. 2095 Page 66 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Section 430. A. There is hereby created and authorized a
medical marijuana waste disposal license . 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 pr oposed medical marijuana waste
disposal facility is not physically or technically suitable, the
Authority shall deny the license. The Authority may, upon
determining that public health or safety requires emergency action,
issue a temporary license for tre atment 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 firs t 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 dispo sal
license shall undergo the following screening process:
ENGR. H. B. NO. 2095 Page 67 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 commercia l entity will not be
located on tribal land,
g. telephone number and email address of the entity, and
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 m arijuana waste disposal
license made by an individual on his or her own behalf shall be on
the form prescribed by the Authority and shall include, 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,
ENGR. H. B. NO. 2095 Page 68 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
d. the preferred telephone number and email address 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 entity t hat is
not lawfully entitled to possess marijuana; 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,
b. a certificate of good standing from t he 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 subparagraph
shall not be a deterrent to the renewal of such
ENGR. H. B. NO. 2095 Page 69 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
license 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 members,
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 except upon proof of sufficient
liability insurance and financial responsibility. Liability
insurance shall be provided by the applicant and shall app ly 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 for the period of operation of the
facility and shall p rovide coverage for damages re sulting from
operation of the facility during ope ration and after closing.
D. Submission of an application for a medical marijuana waste
disposal license shall constitute permission 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, the Oklahoma State
Bureau of Narcotics and Dangerous Drugs Cont rol, the Oklahoma State
ENGR. H. B. NO. 2095 Page 70 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Bureau of Investigation, and the Attorney General may perform an
annual unannounced, on-site inspection of the operati ons 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 Ma nagement Act, the Authority, the
Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the
Oklahoma State Bureau of Investigation, and the Attorney General may
conduct additional unanno unced, on-site inspections beyond an annual
inspection the inspections provided for in Section 427. 6 of this
title. 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 application by a licensee and
determination by the Authority that the proposed site and fac ility
are physically and techni cally 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 per mit upon a finding
that the site and facility are not ph ysically and technically
suitable for processing. The Authority may, upon determining that
public health or safety requires emergency action, issue a tempor ary
ENGR. H. B. NO. 2095 Page 71 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
permit for treatment or storage of medi cal marijuana waste for a
period not to exceed ninety (9 0) days.
F. The cost of a medical marijuana waste disposal license shall
be Five Thousand Dollars ($5,000.00) for 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 reinstatement 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 transp orter
license provided for in the Oklahoma Medical Mar ijuana and Patient
Protection Act for purposes of tra nsporting medical marijuana waste.
H. All commercial licensees, as defined in Section 428.1 of
this title, shall utilize a licensed medical marijuan a waste
disposal service to process all medical marij uana waste generated by
the licensee.
I. The State Commissioner of Health shall promulgate rules for
the implementation of the Oklahoma Medical Marijuana Waste
Management Act. Promulgated rules shall a ddress disposal process
standards, site security and any other subject matter deemed
necessary by the Autho rity.
ENGR. H. B. NO. 2095 Page 72 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
SECTION 12. This act shall become effective November 1, 2023.
Passed the House of Representatives the 20th day of March, 2023.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2023.
Presiding Officer of the Senate