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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
SENATE BILL NO. 1635 By: Coleman of the Senate
and
Marti of the House
COMMITTEE SUBSTITUTE
An Act relating to medical marijuana; amendin g 63
O.S. 2021, Section 422, as last amended by Section 2,
Chapter 322, O.S.L. 2023 (63 O.S. Supp. 2023, Section
422), which relates to commercial grower licensing;
clarifying product testing requirements; amending 63
O.S. 2021, Section 426.1, as amended b y Section 6,
Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2023, Section
426.1), which relates to licensure revocation;
providing for the submission of certificates of
occupancy from political subdivisions or State Fire
Marshal; directing the State Fire Marshal to certify
compliance; requiring an affidavit for license
renewal or for change of premises; permitting
municipalities to implement inspection program;
providing for the promulgation of rules for
submitting affidavits; authorizing the Oklahoma
Medical Marijuana Authority to suspend operations for
noncompliance; prohibiting state agencies from
denying licensure or registration under certain
circumstances; amending 63 O.S. 2021, Sections 427.2,
as amended by Section 1 , Chapter 317, O.S.L. 2022 and
427.17, as last amended by Section 9, Chapter 322,
O.S.L. 2023 (63 O.S. Supp. 2023, Sections 427.2 and
427.17), which relate to the Oklahoma Medical
Marijuana and Patient Protection Act; adding and
modifying certain definitio ns; clarifying testing
laboratory requirements for testing samples from
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certain batches; directing testing laboratories to
test final products; clarifying requirements for
separating final harvest batches and edible products;
updating certain defined term; deleting certain
limitation when transfer ring medical marijuana that
has failed testing; deleting restriction for
returning remediated and decontaminated medical
marijuana; prohibiting licensed commercial growers
and processors from transferring product u ntil
certain conditions met; requiring com pletion of
certain testing prior to transferring final product;
and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2 021, Section 422, as last
amended by Section 2, Chapter 322, O.S.L. 2023 (63 O.S. Supp. 2023,
Section 422), is amended to read as follows:
Section 422. A. The Oklahoma Medical Marijuana Authority shall
make available on its website in an easy -to-find location an
application for a medical marijua na commercial grower license. The
application fee shall be paid by the applicant in the amounts
provided for in Section 427.14 of this title. A method of payment
for the application fee shall be provided on the w ebsite of the
Authority. The Authority sh all have ninety (90) business days to
review the application; approve, reject, or deny the application;
and send the approval, rejection, or denial letter stating the
reasons for the rejection or denial to the appl icant in the same
method the application w as submitted to the Authority.
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B. The Authority shall approve all applications which meet the
following criteria:
1. The applicant must be twenty -five (25) years of age or
older;
2. The applicant, if applying as an individual, must show
residency in this state;
3. All applying entities must show that all members, managers,
and board members are Oklahoma residents;
4. An applying entity may show ownership of non -Oklahoma
residents, but that percentage ownership may not exceed twenty -five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in this state; and
6. All applicants must disclose all ownership interests in the
commercial grower operation.
Applicants with a nonv iolent felony conviction in the last two
(2) years, any other felony conviction in the last five (5) years,
inmates in the custody of the Department of Corrections or any
person currently incarcerated shall not qualify for a commercial
grower license.
C. A licensed medical marijuana commercial gr ower may sell
marijuana to a licensed medical marijuana dispensary or a licensed
medical marijuana processor. Further, sales by a licensed medical
marijuana commercial grower shall be considered wholesale sales an d
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shall not be subject to taxation. Under no circumstances may a
licensed medical marijuana commercial grower sell marijuana directly
to a licensed medical marijuana patient or licensed medical
marijuana caregiver. A licensed medical marijuana commercial grower
may only sell at the wholesale lev el to a licensed medical marijuana
dispensary, a licensed medical marijuana commercial grower or a
licensed medical marijuana processor. If the federal government
lifts restrictions on buying and selling marijuana between states,
then a licensed medical m arijuana commercial grower would be allowed
to sell and buy marijuana wholesale from, or to, an out -of-state
wholesale provider. A licensed medical marijuana commercial grower
shall be required to complete a month ly yield and sales report to
the Authority. This report shall be due on the fifteenth of each
month and provide reporting on the previous month. This report
shall detail the amount of marijuana harvested in pounds, the amount
of drying or dried marijuana on hand, the amount of marijuana sold
to licensed processors in pounds, the amount of waste in pounds, and
the amount of marijuana sold to licensed medical marijuana
dispensaries in pounds. Additionally, this report shall show total
wholesale sales in do llars. The Authority shall have oversight and
auditing responsibilities to ensure that all marijuana being grown
by licensed medical marijuana commercial growers is accounted for.
D. There shall be no limits on how much marijuana a licensed
medical marijuana commercial grower can grow.
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E. Beginning on November 1, 2021, licensed medical marijuana
commercial growers shall be authorized to package and sell pre -
rolled marijuana to licensed medical marijuana dispensaries. The
products described in this subse ction shall contain only the ground
parts of the marijuana plant and shall not include marijuana
concentrates or derivatives. The total net weight of each pre -roll
packaged and sold by licensed medical marijuana commercial growers
shall not exceed one (1) gram. These final products must be teste d,
packaged and labeled in accordance with Oklahoma law and rules
promulgated by the Authority.
SECTION 2. AMENDATORY 63 O.S. 2021, Section 426.1, as
amended by Section 6, Chapter 251, O.S .L. 2022 (63 O.S. Supp. 2023,
Section 426.1), is amended to read as follows:
Section 426.1. A. All licensure revocation hearings conducted
pursuant to marijuana licenses established in the Oklahoma Statutes
shall be recorded. A party may request a copy of the recording of
the proceedings. Copi es shall be provided to local law enforcement
if the revocation was based on alleged criminal activity.
B. The Oklahoma Medical Marijuana Authority shall assist any
law enforcement officer in the performance of hi s or her duties upon
such request by the l aw enforcement officer or the request of other
local officials having jurisdiction. Except for license information
concerning licensed patients, as defined in Section 427.2 of this
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title, the Authority shall share information with law enforcement
agencies upon request without a subpoena or search warrant.
C. The Authority shall make available all information on
whether or not a medical marijuana patient or caregiver license is
valid to law enforcement electronical ly through an online
verification system.
D. The Authority shall make available to state agencies and
political subdivisions a list of marijuana -licensed premises,
medical marijuana businesses or any other premises where marijuana
or its by-products are licensed to be cultivated, grown, processed ,
stored or manufactured to aid state agencies and county and
municipal governments in identifying locations within their
jurisdiction and ensuring compliance with applicable laws, rules and
regulations.
E. Any marijuana-licensed premises, medical marijua na business
or any other premises where marijuana or its by -products are
licensed to be cultivated, grown, processed, stored or manufactured
shall submit with its application or request to change location,
after notifying the political subdivision of its i ntent, a
certificate of compliance occupancy from the political subdivision
or State Fire Marshal where the facility of the applicant or
licensee is to be located certifying compliance with zoning
classifications, applicable municipal ordinances and all ap plicable
safety, electrical, fire, plumbing, waste, construction and building
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specification codes. If the political subdivision does not have an
authority having a jurisdiction agreement on file with the State
Fire Marshal’s office, the State Fire Marshal shall certify
compliance with all applicable safety, electrical, fire, plumbing,
waste, construction, and building specification codes.
Once a certificate of compliance occupancy has been submitted to
the Oklahoma Medical Marijuana Authority showing full compliance as
outlined in this subsection, no additional certificate of compliance
shall be required the licensee shall only need to submit an
affidavit for license renewal unless stating the premises continues
to comply with zoning classifications, applic able municipal
ordinances, and all applicable safety, electrical, fire, plumbing,
waste, construction, and building specification codes. An
additional certificate of occupancy along with an affidavit shall be
submitted if a change of use or occupancy occu rs, or there is any
change concerning the facility or location that would, by law,
require additional inspection, licensure or permitting by the state
or municipality. Municipalities or the State Fire Marshal may
implement an inspection program to verify compliance with this
subsection. The Authority shall promulgate the rules necessary for
the affidavit provided in this subsection. If an application for
renewal is submitted in violation of the provisions of this
subsection or information provided on the affidavit is inaccurate or
untrue, the Authority shall suspend operations of the licensee’s
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premises until compliance is reestablished . Any marijuana licensed
premises, medical marijuana business, or any other premises where
medical marijuana or its bypr oducts are licensed to be cultivated,
grown, processed, stored, or manufactured that have been issued a
certificate of occupancy by any political subdivision prior to the
effective date of this act shall not be den ied licensure or
registration by a state a gency for failing to provide a certificate
of occupancy issued by either the State Fire Marshal or a political
subdivision who has an authority having jurisdiction on file with
the State Fire Marshal until after Ju ly 1, 2025.
SECTION 3. AMENDATORY 63 O.S. 2021, Section 427.2, as
amended by Section 1, Chapter 317, O.S.L. 2022 (63 O.S. Supp. 2023,
Section 427.2), is amended to read as follows:
Section 427.2. As used in the Oklahoma Medical M arijuana and
Patient Protection Act:
1. "Advertising" means the act of providing consideration for
the publication, dissemination, solicitation or circulation, of
visual, oral or written communication to induce directly or
indirectly any person to patroni ze a particular medical marijuana
business, or to purchase particular medical marijuana or a medical
marijuana product. Advertising includes marketing, but does not
include packaging and labeling;
2. "Authority" means the Oklahoma Medical Marijuana Autho rity;
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3. "Batch number" means a unique nu meric or alphanumeric
identifier assigned prior to testing to allow for inventory tracking
and traceability;
4. "Cannabinoid" means any of the chemical compounds that are
active principles of marijuana;
5. "Caregiver" means a family member or assistant w ho regularly
looks after a medical marijuana license holder whom a physician
attests needs assistance;
6. "Child-resistant" means special packaging that is:
a. designed or constructed to be significantly difficult
for children under five (5) years of age to open and
not difficult for normal adults to use properly as
defined by 16 C.F.R. 1700.15 (1995) and 16 C.F.R.
1700.20 (1995),
b. opaque so that the outermost packaging does not allow
the product to be seen witho ut opening the packaging
material, and
c. resealable to maintain its child -resistant
effectiveness for multiple openings for any product
intended for more than a single use or containing
multiple servings;
7. "Clone" means a nonflowering plant cut from a mother plant
that is capable of developing into a new plant and has shown no
signs of flowering;
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8. "Commissioner" means the State Commissioner of Health;
9. "Complete application" means a document prepared in
accordance with the provisions set forth in the Oklahoma Medical
Marijuana and Patient Protection Act, rules promulgated pursuant
thereto, and the forms and instructions provided by the Department
including any supporting documentation required and the applicable
license application fee;
10. "Department" means the State Department of Healt h;
11. "Director" means the Executive Director of the Oklahoma
Medical Marijuana Authority;
12. "Dispense" means the selling of medical marijuana or a
medical marijuana product to a qualified patient or the desig nated
caregiver of the patient that is pac kaged in a suitable container
appropriately labeled for subsequent administration to or use by a
qualifying patient;
13. "Dispensary" means a medical marijuana dispensary, an
entity that has been licensed by the D epartment pursuant to the
Oklahoma Medical Marijuana and Patient Protection Act to purchase
medical marijuana or medical marijuana products from a licensed
medical marijuana commercial grower or medical marijuana processor,
sell medical marijuana or medica l marijuana products to patients and
caregivers as defined under the Oklahoma Medical Marijuana and
Patient Protection Act, or sell or transfer products to another
dispensary;
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14. "Edible medical marijuana product" means any medical -
marijuana-infused product for which the intended use is oral
consumption including, but not limited to, any type of food, drink
or pill;
15. "Entity" means an individual, general partnership, limited
partnership, limited liability company, trust, estate, association,
corporation, cooperative or any other legal or comm ercial entity;
16. "Final harvest batch" means a specifically identified
quantity of medical marijuana that is uniform in strain, cultivated
utilizing the same cultivation practices, harvested at the same time
from the same location, and cured under unifo rm conditions completed
and ready for consumption prior to transfer to a licensed medical
marijuana dispensary;
17. "Final product" means the finished product that is
available for transport to licensed medical ma rijuana dispensaries
and ready for consump tion by licensed medical marijuana patients;
18. "Final production batch" means:
a. any amount of medical marijuana finished product of
the same category and produced using the same
extraction methods, standard op erating procedures,
meeting all applicable law, rules, and regulations
required by the Oklahoma Medical Marijuana and Patient
Protection Act prior to transfer to a licensed medical
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marijuana dispensary, licensed medical marijuana
patient, or licensed medic al marijuana caregiver, or
b. any amount of medical marijuana finished product of
the same exact type, produced using the same
ingredients, standard operating procedures, and the
same production batch of medical marijuana
concentrate;
19. "Flower" means the reproductive organs of the marijuana or
cannabis plant referred to as the bud or parts of the plant that are
harvested and used to consume in a variety of medical marijuana
products;
17. 20. "Flowering" means the reproductive state of the
marijuana or cannabis plant in which there are physical signs of
flower or budding out of the nodes of the stem;
18. 21. "Food-based medical marijuana concentrate" means a
medical marijuana concentrate that was produced by extracting
cannabinoids from medical marijuan a through the use of propylene
glycol, glycerin, butter, olive oil, coconut oil or other typical
food-safe cooking fats;
19. 22. "Good cause" for purposes of an initial, renewal or
reinstatement license application, or for purposes of discipline of
a licensee, means:
a. the licensee or applicant has violated, does not meet,
or has failed to comply with any of the terms,
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conditions or provisions of the act, any rules
promulgated pursuant thereto, or any supplemental
relevant state or local law, rule or regu lation,
b. the licensee or applicant has f ailed to comply with
any special terms or conditions that were placed upon
the license pursuant to an order of the State
Department of Health, Oklahoma Medical Marijuana
Authority or the municipality, or
c. the licensed premises of a medical marijuana busi ness
or applicant have been operated in a manner that
adversely affects the public health or welfare or the
safety of the immediate vicinity in which the
establishment is located;
20. 23. "Harvest batch" means a s pecifically identified
quantity of medical marijuana that is uniform in strain, cultivated
utilizing the same cultivation practices, harvested at the same time
from the same location and cured under uniform conditions;
21. 24. "Harvested marijuana" means post-flowering medical
marijuana not including trim, concentrate or waste;
22. 25. "Heat- or pressure-based medical marijuana concentrate"
means a medical marijuana concentrate that was produced by
extracting cannabinoids from medical marijuana through th e use of
heat or pressure;
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23. 26. "Immature plant" means a nonflowering marijuana plant
that has not demonstrated signs of flowering;
24. 27. "Inventory tracking system" means the required tracking
system that accounts for medical marijuana from either the seed or
immature plant stage until the medical marijuana or medical
marijuana product is sold to a patient at a medical marijuana
dispensary, transferred to a medical marijuana research facility,
destroyed by a medical marijuana business or used in a r esearch
project by a medical marijuana res earch facility;
25. 28. "Licensed patient" or "patient" means a person who has
been issued a medical marijuana patient license by the State
Department of Health or Oklahoma Medical Marijuana Authority;
26. 29. "Licensed premises" means the premises speci fied in an
application for a medical marijuana business license, medical
marijuana research facility license or medical marijuana education
facility license pursuant to the Oklahoma Medical Marijuana and
Patient Protection Act that are owned or in possessi on of the
licensee and within which the licensee is authorized to cultivate,
manufacture, distribute, sell, store, transport, test or research
medical marijuana or medical marijuana products in accordance with
the provisions of the Oklahoma Medical Marijua na and Patient
Protection Act and rules promulgated pursuant thereto;
27. 30. "Manufacture" means the production, propagation,
compounding or processing of a medical marijuana product, excluding
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marijuana plants, either directly or indirectly by extractio n from
substances of natural or synthetic origin, or independently by means
of chemical synthesis, or by a combination of extraction and
chemical synthesis;
28. 31. "Marijuana" shall have the same meaning as such term is
defined in Section 2 -101 of this title and shall not include any
plant or material containing delta -8 or delta-10
tetrahydrocannabinol which is grown, processed or sold pursuant to
the provisions of the Oklahoma Industrial Hemp Program;
29. 32. "Material change" means any change that woul d require a
substantive revision to the standard operating procedures of a
licensee for the cultivation or production of medical marijuana,
medical marijuana concentrate or medical marijuana products;
30. 33. "Mature plant" means a harvestable female mari juana
plant that is flowering;
31. 34. "Medical marijuana business (MMB)" means a licensed
medical marijuana dispensary, medical marijuana processor, medical
marijuana commercial grower, medical marijuana laborato ry, medical
marijuana business operator or a medical marijuana transporter;
32. 35. "Medical marijuana concentrate" or "concentrate" means
a specific subset of medical marijuana that was produced by
extracting cannabinoids from medical marijuana. Categor ies of
medical marijuana concentrate inclu de water-based medical marijuana
concentrate, food-based medical marijuana concentrate, solvent -based
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medical marijuana concentrate, and heat - or pressure-based medical
marijuana concentrate;
33. 36. "Medical marijuana commercial grower" or "commercial
grower" means an entity licensed to cultivate, prepare and package
medical marijuana and transfer or contract for transfer medical
marijuana to a medical marijuana dispensary, medical marijuana
processor, any other m edical marijuana commercial grower, medica l
marijuana research facility, medical marijuana education facility
and pesticide manufacturers. A commercial grower may sell seeds,
flower or clones to commercial growers pursuant to the Oklahoma
Medical Marijuana and Patient Protection Act;
34. 37. "Medical marijuana education facility" or "education
facility" means a person or entity approved pursuant to the Oklahoma
Medical Marijuana and Patient Protection Act to operate a facility
providing training and educa tion to individuals involving the
cultivation, growing, harvesting, curing, preparing, packaging or
testing of medical marijuana, or the production, manufacture,
extraction, processing, packaging or creation of medical -marijuana-
infused products or medical marijuana products as described in the
Oklahoma Medical Marijuana and Patient Protection Act;
35. 38. "Medical-marijuana-infused product" means a product
infused with medical marijuana including, but not limited to, edible
products, ointments and tinctur es;
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36. 39. "Medical marijuana product" o r "product" means a
product that contains cannabinoids that have been extracted from
plant material or the resin therefrom by physical or chemical means
and is intended for administration to a qualified patient inc luding,
but not limited to, oils, tincture s, edibles, pills, topical forms,
gels, creams, vapors, patches, liquids and forms administered by a
nebulizer, excluding live plant forms which are considered medical
marijuana;
37. 40. "Medical marijuana process or" means a person or entity
licensed pursuant to the Oklahoma Medical Marijuana and Patient
Protection Act to operate a business including the production,
manufacture, extraction, processing, packaging or creation of
concentrate, medical -marijuana-infused products or medical marijuana
products as described in the Oklahoma Medical Marijuana and Patient
Protection Act;
38. 41. "Medical marijuana research facility" or "research
facility" means a person or entity approved pursuant to the Oklahoma
Medical Marijuana and Patient Protection Act to conduc t medical
marijuana research. A medical marijuana research facility is not a
medical marijuana business;
39. 42. "Medical marijuana testing laboratory" or "laboratory"
means a public or private laboratory license d pursuant to the
Oklahoma Medical Marijua na and Patient Protection Act, to conduct
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testing and research on medical marijuana and medical marijuana
products;
40. 43. "Medical marijuana transporter" or "transporter" means
a person or entity that is license d pursuant to the Oklahoma Medical
Marijuana and Patient Protection Act. A medical marijuana
transporter does not include a medical marijuana business that
transports its own medical marijuana, medical marijuana concentrate
or medical marijuana products t o a property or facility adjacent to
or connected to the licensed premises if the property is another
licensed premises of the same medical marijuana business;
41. 44. "Medical marijuana waste" or "waste" means unused,
surplus, returned or out -of-date marijuana, plant debris of the
plant of the genus Cannabis including dead plants and all unused
plant parts and roots, except the term shall not include roots,
stems, stalks and fan leaves;
42. 45. "Medical use" means the acquisition, possession, use,
delivery, transfer or transportation of medical marijuana, medical
marijuana products, medical marijuana devices or paraphernalia
relating to the administration of medical marijuana to treat a
licensed patient;
43. 46. "Mother plant" means a marijuana plant tha t is grown or
maintained for the purpose o f generating clones, and that will not
be used to produce plant material for sale to a medical marijuana
processor or medical marijuana dispensary;
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44. 47. "Oklahoma physician" or "physician" means a physician
licensed by and in good standing with the Sta te Board of Medical
Licensure and Supervision, the State Board of Osteopathic Examiners
or the Board of Podiatric Medical Examiners;
45. 48. "Oklahoma resident" means an individual who can provide
proof of residency as required by the Oklahoma Medical Mar ijuana and
Patient Protection Act;
46. 49. "Owner" means, except where the context otherwise
requires, a direct beneficial owner including, but not limited to,
all persons or entities as follows:
a. all shareholders owning an interest of a corporate
entity and all officers of a corporate entity,
b. all partners of a general partnership,
c. all general partners and all limited partners that own
an interest in a limited partnership,
d. all members that own an interes t in a limited
liability company,
e. all beneficiaries that hold a beneficial interest in a
trust and all trustees of a trust,
f. all persons or entities that own interest in a joint
venture,
g. all persons or entities that own an interest in an
association,
h. the owners of any other type of lega l entity, and
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i. any other person holding an interest or convertible
note in any entity which owns, operates or manages a
licensed facility;
47. 50. "Package" or "packaging" means any container or wrapper
that may be used by a medical marijuana business t o enclose or
contain medical marijuana;
48. 51. "Person" means a natural person, partnership,
association, business trust, company, corporation, estate, limited
liability company, trust or any other legal entity o r organization,
or a manager, agent, owner , director, servant, officer or employee
thereof, except that person does not include any governmental
organization;
49. 52. "Pesticide" means any substance or mixture of
substances intended for preventing, destro ying, repelling or
mitigating any pest or any substance or mixture of substances
intended for use as a plant regulator, defoliant or desiccant,
except that the term pesticide shall not include any article that is
a "new animal drug" as designated by the Un ited States Food and Drug
Administration;
50. 53. "Production batch" means:
a. any amount of medical marijuana concentrate of the
same category and produced using the same extraction
methods, standard operating procedures and an
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identical group of harvest batch of medical marijuana,
or
b. any amount of medical marijuana product of the same
exact type, produced using the same ingredients,
standard operating procedures and the same production
batch of medical marijuana concentrate;
51. 54. "Public institution" means any entity established or
controlled by the federal government, state government, or a local
government or municipality including, but not limited to,
institutions of higher education or related research institutions;
52. 55. "Public money" means any funds or money obtained by the
holder from any governmental entity including, but not limited to,
research grants;
53. 56. "Recommendation" means a document that is signed or
electronically submitted by a physician on behalf of a patient for
the use of medical marijuana pursuant to the Okla homa Medical
Marijuana and Patient Protection Act;
54. 57. "Registered to conduct business" means a person that
has provided proof that the business applicant is in good standing
with the Secretary of State and Ok lahoma Tax Commission;
55. 58. "Remediation" means the process by which the medical
marijuana flower or trim, which has failed microbial testing, is
processed into solvent -based medical marijuana concentrate and
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retested the final product is tested as required by the Oklahoma
Medical Marijuana an d Patient Protection Act;
56. 59. "Research project" means a discrete scientific endeavor
to answer a research question or a set of research questions related
to medical marijuana and is required for a medical mar ijuana
research license. A research proje ct shall include a description of
a defined protocol, clearly articulated goals, defined methods and
outputs, and a defined start and end date. The description shall
demonstrate that the research project will comp ly with all
requirements in the Oklahoma M edical Marijuana and Patient
Protection Act and rules promulgated pursuant thereto. All research
and development conducted by a medical marijuana research facility
shall be conducted in furtherance of an approved research project;
57. 60. "Revocation" means the final decision by the Department
that any license issued pursuant to the Oklahoma Medical Marijuana
and Patient Protection Act is rescinded because the individual or
entity does not comply with the applicab le requirements set forth in
the Oklahoma Medical Marijuana and Patient Protection Act or rules
promulgated pursuant thereto;
58. 61. "School" means a public or private preschool, a public
or private elementary or secondary school, or a technology center
school which is primarily used for classro om instruction. A
homeschool, daycare or child -care facility shall not be considered a
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"school" as used in the Oklahoma Medical Marijuana and Patient
Protection Act;
59. 62. "Shipping container" means a hard -sided container with
a lid or other enclosure that can be secured in place. A shipping
container is used solely for the transport of medical marijuana,
medical marijuana concentrate, or medical marijuana products between
medical marijuana businesses, a medica l marijuana research facility,
or a medical marijuana education facility;
60. 63. "Solvent-based medical marijuana concentrate" means a
medical marijuana concentrate that was produced by extracting
cannabinoids from medical marijuana through the use of a solvent
approved by the Department;
61. 64. "State Question" means Oklahoma State Question No. 788,
Initiative Petition No. 412, approved by a majority vote of the
citizens of Oklahoma on June 26, 2018;
62. 65. "Strain" means the classification of mariju ana or
cannabis plants in either pure sati va, indica, afghanica, ruderalis
or hybrid varieties;
63. 66. "THC" means tetrahydrocannabinol, which is the primary
psychotropic cannabinoid in marijuana formed by decarboxylation of
naturally tetrahydrocannabino lic acid, which generally occurs by
exposure to heat;
64. 67. "Test batch" means with regard to usable marijuana, a
homogenous, identified quantity of usable marijuana by strain, no
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greater than ten (10) pounds, that is harvested during a seven -day
period from a specified cultivation area, and wi th regard to oils,
vapors and waxes derived from usable marijuana, means an identified
quantity that is uniform, that is intended to meet specifications
for identity, strength and composition, and that is manufactu red,
packaged and labeled during a specifi ed time period according to a
single manufacturing, packaging and labeling protocol;
65. 68. "Transporter agent" means a person who transports
medical marijuana or medical marijuana products for a licensed
transporter and holds a transporter agent license pursuant to the
Oklahoma Medical Marijuana and Patient Protection Act;
66. 69. "Universal symbol" means the image established by the
State Department of Health or Oklahoma Medical Marijuana Authority
and made available to licensees through its website in dicating that
the medical marijuana or the medical marijuana product contains THC;
67. 70. "Usable marijuana" means the dried leaves, flowers,
oils, vapors, waxes and other portions of the marijuana plant and
any mixture or preparation thereof, excluding seeds, roots, stems,
stalks and fan leaves; and
68. 71. "Water-based medical marijuana concentrate" means a
concentrate that was produced by extracting cannabinoids from
medical marijuana through the use of only w ater, ice or dry ice.
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SECTION 4. AMENDATORY 63 O.S. 2021, Section 427.17, as
last amended by Section 9, Chapter 322, O.S.L. 2023 (63 O.S. Supp.
2023, Section 427.17), is amended to read as follows:
Section 427.17. A. There is he reby created a medical marijuana
testing laboratory license as a category of the medical marijuana
business license. The Oklahoma Medical Marijuana Authority, the
Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the
Oklahoma State Bureau of Investigation, and the Attorney General a re
hereby enabled to monitor, inspect and audit a licensed testing
laboratory under the Oklahoma Medical Marijuana and Patient
Protection Act.
B. The Authority is hereby authorized to operate a quality
assurance laboratory or to contract with a private la boratory for
the purpose of conducting compliance testing of medical marijuana
testing laboratories licensed in this state. Any such laboratory
under contract for compliance testing shall be prohibited from
conducting any other commercial medical marijuan a testing in this
state. If the Authority contracts with a private laboratory to
implement the requirements of this section:
1. The laboratory shall not employ, or be owned by, the
following:
a. any individual that has a direct or indirect interest
in a licensed medical marijuana business, or
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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; and
2. The laboratory and a board or com mittee comprised of
licensed Oklahoma medi cal 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 licen sed 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 co ncentrate, 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 c urrent rules for laboratory
standards and testing. Beginning June 1, 2024, medical marijuana
testing laboratories renewing their medical marijuana business
license shall be subject to and comply with any new or modified
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rules relating to the testing of me dical 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 promulga ted 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 testing 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 marijuana 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 building codes.
F. A separate license shall be required f or each specific
laboratory.
G. A medical marijuana testing laboratory license may be issued
to a person who performs testing on medical marijuana and medical
marijuana products for medical marijuana businesses, medical
marijuana research facilities, medi cal marijuana education
facilities, and testing on marijuana and marijuana products grown or
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produced by a patient or caregiver on behalf of a patient, upon
verification of registration. A medical marijuana testing
laboratory may also conduct research rel ated 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 during operational hours.
H. Laboratory applicants and lic ensees 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 marijuana business, medical
marijuana research facility o r 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 development. The Authority may require a
medical marijuana bus iness to submit a sample of medical mariju ana,
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
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marijuana product from an individual person for testing only under
the following conditions:
1. The individual person is a patient or caregiver pursuant to
the Oklahoma Medical Marijuana and Patient Prote ction Act or is a
participant in an approv ed clinical or observational study conducted
by a research facility; and
2. The medical marijuana testing laboratory shall require the
patient or caregiver to produce a valid patient license and current
and valid photo identification.
K. A medical mariju ana testing laboratory may transfer samples
to another medical marijuana testing laboratory for testing. All
laboratory reports provided to or by a medical marijuana business or
to a patient or caregiver shall ide ntify the medical marijuana
testing laboratory that actually conducted the test.
L. A medical marijuana testing laboratory may utilize a
licensed medical marijuana transporter to transport samples of
medical marijuana, medical marijuana concentrate and me dical
marijuana product for testing, in ac cordance with the Oklahoma
Medical Marijuana and Patient Protection Act and the rules adopted
pursuant thereto, between the originating medical marijuana business
requesting testing services and the destination lab oratory
performing testing services.
M. The medical marijuana testing laboratory shall establish
policies to prevent the existence of or appearance of undue
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commercial, financial or other influences that may diminish the
competency, impartiality and integ rity of the testing processes or
results of the laboratory, or that may diminish public confidence in
the competency, impartiality and integrity of the testing processes
or results of the laboratory. At a minimum, employees, owners or
agents of a medical marijuana testing laboratory who participa te in
any aspect of the analysis and results of a sample are prohibited
from improperly influencing the testing process, improperly
manipulating data or improperly benefiting from any ongoing
financial, employment, personal or business relationship with th e
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 owners hip 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 necessar y for:
1. The cleanliness and orderliness of a laboratory premises and
the location of the laboratory in a secure location, and inspection,
cleaning and maintenance of any equipment or utensils used for the
analysis of test samples;
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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 sys tems to be utilized
by the laboratory;
5. The possession, storage 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 ma rijuana, 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 c oncentrate or
medical marijuana products a re 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 repor ting shall include the results of
any tests that are conducted on medical marijuana, medical marijuana
concentrate or medical marijuana product;
9. Standards of performance;
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10. The employment of laboratory personnel;
11. A written standard operating pr ocedure manual to be
maintained and update d 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 adhere nce 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 threshold s 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 la boratory 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 Exec utive
Director.
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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 o r 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 with the requi rements of this
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 avail able to
the Authority upon request.
Q. A medical marijuana testing laboratory shall test samples
from each final product harvest batch or final product batch, as
appropriate, of medical marijuana, medical marijuana concentrate and
medical marijuana produc t 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;
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6. Terpenoid type and concentration; and
7. Heavy metals.
R. A licensed medical marijuana testing laboratory shall test
each individual harvest batch final product batch. A grower shall
separate each harvest of usable marijuana into final harvest batches
containing no more than fifteen (15) pounds, wit h 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 final harvest batches of no more than fifty (50)
pounds. A processor shall separate each m edical marijuana
production lot into final production batches containing no more than
four (4) liters of concentrate or nine (9) pounds for nonliquid
products, and for final edible products, the Oklahoma Medical
Marijuana Authority shall be authorized to p romulgate 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, "f inal edible
products" shall include, but n ot 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 complian ce with the
applicable requirements in this section.
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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
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 app licable laws, rules or regulations.
U. Medical marijuana testing laboratories shall obtain
accreditation by an accrediting body approved by the Executive
Director or the Authority's quality assurance laboratory within one
(1) year of the date the initial license is issued. Renewal of any
medical marijuana testing 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 rece iving a medical marijuana testing laborato ry
license.
V. Unless authorized by the provisions of this section, a
commercial grower shall not transfer or sell medical marijuana and a
processor shall not transfer, sell or process into a concentrate or
product any medical marijuana, medical marijuana concentrate or
medical marijuana product unless samples from each final harvest
batch or final production batch from which that medical marijuana,
medical marijuana concentrate or medical marijuana product was
derived has been tested by a medical marijuan a testing laboratory
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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 med ical
marijuana that has failed testing to a licensed processor only for
the purposes of decontamination or remediation and only in
accordance with the provisions of the Oklahoma Medical Marijuana and
Patient Protection Act and the rules and regulations pro mulgated 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.
X. A licensed commercial grower or licensed processor shall not
transfer any product to a licensed medical marijuana dispensary
until the product has undergone final product testing. Laboratory
testing that meets all contamina nt tests and applicable laws, rules,
and regulations required by the Oklahoma Medical Marijuana and
Patient Protection Act shall only be required when the final product
is completed and prior to transfer to a licensed medical marijuana
dispensary, licensed medical marijuana patient, or licensed me dical
marijuana caregiver.
SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
SUBSTANCES, dated 04/11/2024 - DO PASS, As Amended.