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ENGROSSED SENATE
BILL NO. 264 By: Garvin of the Senate
and
Marti of the House
An Act relating to medical marijuana; amending 63
O.S. 2021, Sections 421, as last amended by Section
1, Chapter 332, O.S.L. 2022, 422, as last amended by
Section 2, Chapter 332, O.S.L. 2022, and 423, as last
amended by Section 3, Chapter 332, O.S.L. 2022 (63
O.S. Supp. 2022, Sectio ns 421, 422, and 423), which
relate to licensing requirements for medical
marijuana dispensaries, commercial growers, and
processors; modifying method of application
submission; amending 63 O.S. 2021, Section 427. 3, as
last amended by Section 1, Chapter 342, O.S. L. 2022
(63 O.S. Supp. 2022, Se ction 427.3), which relates to
Oklahoma Medical Marijuana Authority duties and
functions; allowing for the purchase of motor
vehicles; authorizing the Oklahoma Medical Marijuana
Authority to create a petty cash fund for certain
purpose; amending 63 O.S. 2021, Section 427.14, as
last amended by Section 4, Chapter 332, O.S.L. 2022
(63 O.S. Supp. 2022, Section 427.14), which relates
to the medical marijuana business license ; modifying
calculation for type of indoor and outdoor grow ing
operation; requiring remittance of certain fees prior
to licensing approval; modifying method of
application submissio n; removing provision for fees
for reconsideration; providing for promulgation of
rules for required application materials to the
Authority prior to determination for business
licensing fees; amending 63 O. S. 2021, Sections
427.16, as last amended by Section 16, Chapter 251,
O.S.L. 2022, and 427.17, as last amended by Section
1, Chapter 353, O.S.L. 2022 (63 O.S. Supp. 2022,
Sections 427.16 and 427.17), which relate to medical
marijuana transport and testing laboratory l icenses;
clarifying language; amending Section 1, Chapter 352,
O.S.L. 2022 (63 O.S. Supp. 2022, Section 427.25),
which relates to secret shoppers; allowing for use of
certain fund; allowing for secret shoppers to perform
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certain duties; modifying laboratory testing;
exempting licensing requirements for secret shoppers;
updating statutory language and reference ; providing
for codification; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 421, as last
amended by Section 1, Chapter 332, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 421), is amended to read as follows:
Section 421. A. The Oklahoma Medical Marijuana Authority shall
make available on its website in an easy-to-find location an
application for a medical marijuana dispensary license. The
application fee to be paid by the applicant shall be in the amounts
provided for in Section 427 .14 of this title. A method of payment
for the application fee shall be provided on the website of the
Authority. Dispensary applicants must all b e residents of Oklahoma.
Any entity applying for a dispensary license must be owned by an
Oklahoma resident and must be registere d to do business in Oklahoma.
The Authority shall have ninety (90) business days to review the
application; approve, reject, or deny the application; and mail send
the approval, rejection, or denial letter stating reasons for the
rejection or denial to the applicant in the same method the
application was submitted to the Authority.
B. The Authority shall approve all applications which m eet the
following criteria:
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1. The applicant must be twenty-five (25) years of age or
older;
2. The applicant, if applying as an individual, must show
residency in the State of Oklahoma this state;
3. All applying entities must show that a ll members, managers,
and board members are Oklahoma residents;
4. An applying entity may show ownership of non -Oklahoma
residents, but that percentage ow nership may not exceed twe nty-five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma this state; and
6. All applicants must disclose all owners hip interests in the
dispensary.
Applicants with a nonviolent felony conviction in the last two
(2) years, any other felony conviction i n the last five (5) years,
inmates in the custody of the Department of Corrections or any
person currently incarcerate d shall not qualify for a medical
marijuana dispensary license.
C. Licensed medical marijuana dispensaries shall be required to
complete a monthly sal es report to the Authority. This report shall
be due on the fifteenth of each month and provide reportin g on the
previous month. This report shall detail the weight of marijuana
purchased at wholesale and the weight of marijuana sold to licensed
medical marijuana patients and license d caregivers and account for
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any waste. The report shall show total sales in dollars, tax
collected in dollars, and tax due in d ollars. The Authority shall
have oversight and auditing responsibilities to ensure that all
marijuana being grown is accounted for.
D. Only a licensed medical marijuan a dispensary may conduct
retail sales of marijuana or marijuana derivatives. Beginning on
the effective date of this act November 1, 2021, licensed medical
marijuana dispensaries shall be authorized to package and sell pre -
rolled marijuana to licensed medical marijuana pati ents and licensed
caregivers. The products described in t his subsection shall contain
only the ground parts of the marijuana plant and shall not include
marijuana concentrates or derivatives . The total net weight of each
pre-roll packaged and sold by a m edical marijuana dispensary shall
not exceed one (1) gram. These products shall be tested, packaged
and labeled in accordance with Oklahoma law and rules promulgated by
the Authority.
E. No medical marijuana dispensary shall offer or allow a
medical marijuana patient licensee, caregiver licensee or other
member of the public to handle or otherwise h ave physical contact
with any medical marijuana not contained in a sealed or separate
package. Provided, such prohibition shall not preclude an employe e
of the medical marijuana dispensary from handling loose or
nonpackaged medical marijuana to be placed in packaging consistent
with the Oklahoma Medical Marijuana and Patient Protection Act and
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the rules promulgated by the Authority for the packaging of m edical
marijuana for retail sale. Provided, further, such prohibition
shall not prevent a medical marijuana dispensary from displaying
samples of its medical marijuana in separate display cases, jars or
other containers and allowing medical marijuana pati ent licensees
and caregiver licensees the ability to handle or smell the various
samples as long as the sample medical marijuana is used for display
purposes only and is not offered for retail sale.
SECTION 2. AMENDATORY 63 O.S. 2021, Section 422, as last
amended by Section 2, Chapter 332, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 422), is amend ed to read as follows:
Section 422. A. The Oklahoma Medical Marijuana Authori ty shall
make available on its website in an easy-to-find location an
application for a medical marijuana 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 we bsite of the
Authority. The Authority shall have ninety (90) business days to
review the application; approve, reject, or deny the application;
and mail send the approval, rejection, or denial letter stating the
reasons for the rejection or denial to the applicant in the same
method the application was submitted to the Authority.
B. The Authority shall approve all applications which meet the
following criteria:
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1. The applicant must be twenty-five (25) years of age or
older;
2. The applicant, if applying as an individua l, must show
residency in the State of Oklahoma this state;
3. All applying entities must show that all members, managers,
and board members are Oklahoma residents;
4. An applying entity may show owner ship of non-Oklahoma
residents, but that percentage owners hip may not exceed twenty-five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma this state; and
6. All applicants must disclose all owner ship interests in the
commercial grower operation.
Applicants with a nonviolent felony conviction in the last two
(2) years, any other felony conviction in the last five (5) years,
inmates in the custody of the Department of Corrections or any
person currently incarcerated shall not qualify for a commercial
grower license.
C. A licensed medical marijuana commercial grower 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 and
shall not be subject to taxation. Under no circumstances may a
licensed medical marijuana commercial grower sell marijuana directly
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to a licensed medical marijuana patient or licensed medical
marijuana caregiver. A licensed medical marijuana commercial grower
may only sell at the wholesale level 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 marijuana 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 monthly 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, t he amount of marijuana sold
to licensed processors in pounds, the amount of waste in pounds, and
the amount of marijuana sold to licensed medical marijuana
dispensaries in pounds. Additionally, this repor t shall show total
wholesale sales in dollars . 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 marijuan a a licensed
medical marijuana commercial grower can grow.
E. Beginning on the effective date of this act June 1, 2023,
licensed medical marijuana commercial growers shall be authorized to
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package and sell pre-rolled marijuana to licensed medical marijuana
dispensaries. The products described in this subsection shall
contain only the ground parts of the marijuana plant and shall not
include marijuana concentrates or derivatives. The total net weight
of each pre-roll packaged and sold by licensed medical marijuana
commercial growers shall not exc eed one (1) gram. These products
must be tested, packaged and labeled in accordance with Oklahoma law
and rules promulgated by the Authority.
SECTION 3. AMENDATORY 63 O.S. 2021, Section 4 23, as last
amended by Section 3, Chapter 332, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 423), is amended to read as follows:
Section 423. A. The Oklahoma Medical Mar ijuana Authority shall
make available on its website in an easy-to-find location an
application for a medical marijuana processing lice nse. The
Authority shall be authorized to issu e two types of medical
marijuana processor licens es based on the level of risk posed by the
type of processing conducted:
1. Nonhazardous medical marijuana processor license; and
2. Hazardous medical marijua na processor license.
The application fee for a nonhazardous or hazardous medical
marijuana processor license shall be paid by the applicant in the
amounts provided for in Section 427.14 of this title . A method of
payment shall be provided on the website of the Authority. The
Authority shall have ninety (90) business days to review the
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application; approve, reject, or deny the application; and mail send
the approval, rejection, or denial letter stating the reasons for
the rejection or denial to the applicant in the same method the
application was submitted to the Authority.
B. The Authority shall approve all applications which mee t the
following criteria:
1. The applicant must be twenty-five (25) years of age or
older;
2. The applicant, if applying as an individual, must show
residency in the State of Oklahoma this state;
3. All applying entities must show that all members, managers,
and board members are Oklahoma residents;
4. An applying entity may show o wnership of non-Oklahoma
residents, but that pe rcentage ownership may n ot exceed twenty-five
percent (25%);
5. All applying individuals or entities must be registered to
conduct business in the State of Oklahoma this state; and
6. All applicants must dis close all ownership interests in the
processing operation.
Applicants with a nonviolent felony conviction in the last two
(2) years, any other felony conviction in the last five (5) years,
inmates in the custody of the Department of Corrections or any
person currently incarcerate d shall not qualify for a medic al
marijuana processing lic ense.
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C. 1. A licensed processor may take marijuana plants and
distill or process these plants into concentrates, edibles, and
other forms for consumption.
2. As required by subsection D of this section, th e Authority
shall make available a set of standards which shall be used by
licensed processors in the preparation of edible marijuana products.
The standards should be in line with curr ent food preparation
guidelines. No excessive or punitive rules may b e established by
the Authority.
3. Up to two times a year, the Authority may inspect a
processing operation and de termine its compliance with the
preparation standards . If deficiencies are found, a written report
of the deficiency shall be issued to the licensed processor. The
licensed processor shall have one (1) month to correct the
deficiency or be subject to a f ine of Five Hundred Dollars ($500.00)
for each deficiency.
4. A licensed processor may sell marijuana pr oducts it creates
to a licensed dispensary or any other licensed processor. All sales
by a licensed processor shall be considered wholesale sales and
shall not be subject to taxation.
5. Under no circumstances may a licensed processor sell
marijuana or any marijuana product directly to a licensed medical
marijuana patient or licensed caregiver. However, a licensed
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processor may process cannabis into a concentrated form for a
licensed medical marijuana patient for a fee.
6. Licensed processors shall be required to complete a monthly
yield and sales report to the Authority. This report shall be due
on the fifteenth of each month and shall provide reporting on the
previous month. This report shall detail the amount of marijuana
and medical marijuana products purchased in pounds, the a mount of
marijuana cooked or processed in pounds, a nd the amount of waste in
pounds. Additionally, this repor t shall show total wholesale sales
in dollars. The Authority shall have oversight and auditing
responsibilities to e nsure that all marijuana being processed is
accounted for.
D. The Authority shall oversee the inspection and compliance of
licensed processors producing products with marijuana as an
additive. The Authority shall be compelled to, within thirty (30)
days of passage of this initiative, appoin t twelve (12) Oklahoma
residents to the Medical Marijuana Advisory Council, who are
marijuana industry experts, to create a list of food safety
standards for processing and handling me dical marijuana in Oklahoma.
These standards shall be adopted by the Authority and the Authority
may enforce these standards for licensed processors. The Authority
shall develop a standards review procedure and these stan dards can
be altered by calling anothe r council of twelve (12) Oklahoma
marijuana industry experts . A signed letter of twenty operating,
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licensed processors shall constitute a need for a new council and
standards review.
E. If it becomes permissible unde r federal law, marijuana may
be moved across state lines.
F. Any device used for the processing or consumption of medical
marijuana shall be consid ered legal to be sold, manufactured,
distributed and possessed . No merchant, wholesaler, manufacturer or
individual may be unduly harassed or prosecuted for sellin g,
manufacturing or possessing marijuana paraphernalia .
SECTION 4. AMENDATORY 63 O.S. 2021, Section 427.3, as
last amended by Section 1, Chapter 342, O. S.L. 2022 (63 O.S. Supp.
2022, Section 427.3), is amended to read as follows:
Section 427.3. A. There is hereby created the Oklahoma Medical
Marijuana Authority within the State Dep artment of Health which
shall address issues related t o the medical marijuana program in
Oklahoma including, but not limited to, the issuance of patient
licenses and medical marijuana business licens es, and the
dispensing, cultivating, processing, testing, transporting, storage,
research, and the use of and s ale of medical marijuana pursuant to
the Oklahoma Medical Marijuana and Patient Protection Act .
B. The Department shall provide support staff to perform
designated duties of the Authority . The Department shall also
provide office space for meetings of t he Authority.
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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 Peti tion No. 412,
subject to the provisions o f the Oklahoma Medical Marijuana and
Patient Protection Act.
D. The Authority shall exercise its respective p owers and
perform its respective duties a nd functions as specified in the
Oklahoma Medical Marijuana and Patient Protection Act and this title
including, but not limited to, the fol lowing:
1. Determine steps the state shall take, whether administrative
or legislative in nature, to ensure that re search on marijuana and
marijuana products is being conducted for public purposes, including
the advancement of:
a. public health policy and public safety policy,
b. agronomic and horticultural best practices, an d
c. medical and pharmacopoeia best practice s;
2. Contract with third-party vendors and ot her governmental
entities in order to carry out the respective duties and functions
as specified in the Oklahoma Medical Marijuana and Patient
Protection Act;
3. Upon complaint or upon its own motion and upon a completed
investigation, levy fines as pres cribed in applicable laws, rules,
and regulations and suspend, revoke, or not renew licenses pursuant
to applicable laws, rules, and regulations;
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4. Issue subpoenas for the appearance or production of persons,
records, and things in connection with disci plinary or contested
cases considered by the Authority;
5. Apply for injunctive or declaratory relief to enforce the
provisions of applicable laws, rules, and regulations;
6. Inspect and examine all licensed premises of medical
marijuana businesses, research facilities , education facilities, and
waste disposal facilities in which medical marijuana is cultivated,
manufactured, sold, stored, transported, tested, distributed, or
disposed of;
7. Upon action by the federal g overnment by which th e
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 mari juana businesses;
8. Establish internal control pr ocedures for licenses including
accounting procedures, reporting procedures , and personnel policies;
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;
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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 premises,
b. a diagram of the licensed premises,
c. the number and type of lights at the li censed medical
marijuana commercial grow er 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 st andard operating procedures
for the medical marijuana business, and
g. any other information as the Authority reasonably
deems necessary; and
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. Purchase and maintain motor vehicles for use by the
employees of the Authority.
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SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 427.3b of Title 63, unless there
is created a duplication i n numbering, reads as follows:
The Oklahoma Medical Marijuana Authority is hereby given
authority to create a petty cash fund , which may be expended for the
purpose of providing for cash purchases for the implementation of
the Authority’s secret shoppers pursuant to Section 427.25 of Title
63 of the Oklahoma Sta tutes.
SECTION 6. AMENDATORY 63 O.S. 2021, Section 427. 14, as
last amended by Section 4, Chapter 332, O.S.L. 2022 (63 O.S. Supp.
2022, Section 427.14), is amended to read as follows:
Section 427.14. A. There is hereby created the medical
marijuana business license, which shall inc lude the following
categories:
1. Medical marijuana commercial grower;
2. Medical marijuana processor;
3. Medical marijuana dispensary;
4. Medical marijuana transporter; and
5. Medical marijuana testing laboratory.
B. The Oklahoma Medical Marijuana Authority, with the aid of
the Office of Management and Enterprise Services, shall develop a
website for medical marijuana business applications.
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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, nonrefundable fee for a medical marijuana
commercial grower license shall be calculated based upon the total
amount of square feet o f canopy or acres the grower estimates will
be harvested, transferred, or sold for the year. The annual,
nonrefundable license fee shall be based upon the total a mount of
square feet of canopy or acres harvested, transferred, or sold by
the grower during the previous twelve (12) months. The amount of
the fees shall be determined as follows:
a. For an indoor, greenhouse, or light deprivation
medical marijuana 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 shal l be Five Thousand Dollars
($5,000.00),
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(3) Tier 3: Twenty thousand one (20,001) square f eet
of canopy to forty thousand (40,000) s quare feet
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 Thousand
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:
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(1) Tier 1: Up to Less than 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 Thous and
Dollars ($5,000.00),
(3) Tier 3: Five (5) acres up to ten (10) acres, the
fee shall be Ten Thousan d 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 sha ll be Fifty Thousand
Dollars ($50,000.00) plus an additi onal Two
Hundred Fifty Dollars ($250.00) per acre.
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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 mea sured 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 separat ed 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
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not include the areas within the cult ivation area
that are used to cultivate immature marijuana
plants and seedlings, p rior to flowering, a nd
that are not used at any time to cultivate mature
marijuana plants. If the flowering plants are
vertically grown in cylinde rs, the square footage
of the canopy shall be measured 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 initial, nonrefundable fee for a medical marijuana
processor license shall be Two Thousand Five Hundred D ollars
($2,500.00). The annual, nonrefundable license fee for a medical
marijuana processor license shall be determined based on the
previous twelve (12) months as follows:
a. Tier 1: Zero The transfer or sale of zero (0) to ten
thousand (10,000) pounds of biomass or production or
use the production, transfer, or sale of up to one
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hundred (100) liters of cannabis concentrate,
whichever is greater, the annual fee shall be Two
Thousand Five Hundred Dollars ($2,500.00),
b. Tier 2: Ten The transfer or sale of ten thousand one
(10,001) pounds to fifty thousand (50,000) pounds of
biomass or production or use from the production,
transfer, or sale of one hundred one (101) to three
hundred fifty (350) liters of cannabis concentrate,
whichever is greater, the annual fee shall be Five
Thousand Dollars ($5,000.00),
c. Tier 3: Fifty The transfer or sale of fifty thousand
one (50,001) pounds to one hundred fifty thousand
(150,000) pounds of biomass or production or use from
the production, transfer, or sale of three hundred
fifty-one (351) to six hundred fifty (650) liters of
cannabis concentrate, whichever is greater, the annual
fee shall be Ten Thousand Dollars ($10,000.00),
d. Tier 4: One The transfer or sale of one hundred fifty
thousand one (150,001) pounds to three hundred
thousand (300,000) pounds of biomass or production or
use from the production, transfer, or sale of six
hundred fifty-one (651) to one thousand (1,000) liters
of cannabis concentrate, whichever is greater, the
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annual fee shall be Fifteen Thousand Dollars
($15,000.00), and
e. Tier 5: More The transfer or sale of more than three
hundred thousand one (300,001) pounds of biomass or
production or use the production, transfer, or sale 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
concentrated marijuana shall be calculated as one (1) liter of
cannabis concentrate.
4. The initial, nonrefundable 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
marijuana dispensary license shall be calculated at ten percent
(10%) of the sum of twelve (12) calendar months of the combined
annual state sales tax and state excise tax of the dispensa ry during
the previous twelve (12) months. 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).
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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 co unty 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;
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 for a transporter license, initial
dispensary license, initial processor license, or laboratory license
shall be accompanied by a full remittance for the whole amount of
the application fees. Application license fee as set forth in
subsection D of this sec tion. All submissions of grower
applications, renewal processor applications, and renewal dispensary
applications shall be accompani ed by a remittance of a fee of Two
Thousand Five Hundred Dollars ($2,500.00). The Authority shall
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invoice license appl icants, if applicable, for any additional
licensing fees owed pursuant to subsection D of this section prior
to approval of a license application . License 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 this state,
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
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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;
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
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 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
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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 le ast 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
documentation of proof of residency sh all include a combination of
the following:
a. an unexpired Oklahoma-issued driver license,
b. an Oklahoma identification card,
c. a utility bill preceding the date of application,
excluding cellular telephone and Internet bills,
d. a residential property deed to property in the State
of Oklahoma this state, and
e. a rental agreement preceding the date of application
for residential property located in the State of
Oklahoma this state.
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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,
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 send
the approval, rejection, denial, or status-update letter to the
applicant in the same method the application was su bmitted to the
Authority within ninety (90) business days of receipt of the
application.
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G. 1. The Authority shall review the medical marijuana
business applications and, conduct all investigations, inspections,
and interviews, and collect all license and application fees 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, unpaid license or application fees, or for a reason
provided for in the Oklahoma Medical Marijuana and Patient
Protection Act and Sections 420 through 426.1 of this title. If an
application is rejected for failure to provide required information,
the applicant shall have thirty (30) days to submit the required
information for reconsideration. No additional application fee
shall be charged for such reconsideration. Unless the Authority
determines otherwise, an 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
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which an application was submitted properly but a delay in
processing the application oc curred.
4. Approval, rejection, denial or status-update letters shall
be sent to the applicant in the same method the application was
submitted to the Authority.
H. A license for a medical marijuana business, medical
marijuana research facility, medical marijuana education facility or
medical marijuana waste disposal facility shall not be issued to or
held by:
1. A person until all required fees have been paid;
2. A person who has been convicted of a nonviolent felony
within two (2) years of the date of application, or within five (5)
years for any other felony;
3. A corporation, if the criminal history of any of its
officers, directors or stockholders indicates that the officer,
director or stockholder has been conv icted of a nonviolent felony
within two (2) years of the date of application, or within five (5)
years for any other felony;
4. A person under twenty-five (25) years of age;
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
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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 man agement 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
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 e mployee of the
Authority,
e. knowingly or intentionally refus ing to permit the
Authority access to premises or records,
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f. using a prohibited, hazardous substance for processing
in a residential area,
g. criminal acts relating to the operation of a medical
marijuana business, or
h. any violations that end anger public health and safety
or product safety.
I. In investigating the qualifications of an applicant or a
licensee, the Authority and municipalities may have ac cess 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 grou nds for
denial of the application.
K. All applicants and licensees shall submit information to the
Authority in a full, faithful, truthful and fair manner. The
Authority may recommend denial of an application where the applicant
or licensee made misstatements, omissions, misrepresentations or
untruths in the application or in connection with the background
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
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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 nonre fundable. A license that has been
expired for more than ninety (90) days shall not be renewed.
O. No medical marijuana business, medical marijuana research
facility, medical marijuana education facility or medical marijuana
waste disposal facility shall possess, sell or transfer medical
marijuana or medical marijuana products without a valid, unexpired
license issued by the Authority.
P. The Executive Director of the Author ity may promulgate rules
to implement the provisions of this section including, but not
limited to, required application mat erials to be submitted by the
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applicant and utilized by the Authority to determine medical
marijuana business licensing fees pursuan t to this section.
SECTION 7. AMENDATORY 63 O.S. 2021, Section 427.16, as
last amended by Section 16, Chapter 251, O.S.L. 2022 (63 O.S. S upp.
2022, Section 427.16), is amended to read 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
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.
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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
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
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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
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 and enforce the provisions of this
section concerning transportation.
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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
license holder or the individual applicant. Transporter agent
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.
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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 knowi ngly violates any provision of this
section, and the transporter is subject to any o ther penalties
established by law for the violation.
R. The Authority may revoke or suspend the transporter license
of a transporter that the Authority determines knowingly aided or
facilitated a violation of any provision of this 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 shal l include the following
information:
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1. For the origination point of the medical marijuana:
a. the licensee number for the commercial grower,
processor or dispensary,
b. address of originatio n of transport, and
c. name and contact information for the orig inating
licensee;
2. For the end recipient license holder of the medical
marijuana:
a. the license number for the dispensary, commercial
grower, processor, research facility or education
facility destination,
b. address of the destination, and
c. name and contact information for the destination
licensee;
3. Quantities by 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 ti me 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.
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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 licensee s hall refuse to accept any medical
marijuana, medical marijuana concentrat e or medical marijuana
products that are not accompanied by an inventory manifest.
4. Originating and receiving licens ees shall maintain copies of
inventory manifests and logs of qua ntities of medical marijuana
received for seven (7) years from date of re ceipt.
SECTION 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 marijuana
testing laboratory licens e as a category of the medical marijuana
business license. The Oklahoma Medical Marijuana Authority is
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 compliance testing shall be
prohibited from conducting any other commercial medical ma rijuana
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testing in this state. The laboratory the Authority contracts with
for compliance testing shall not employ, or be owned by, the
following:
a. any individual that has a direct or indirect interest
in a licensed medical marijuana business , or
b. any individual or his or her spouse, parent, child,
spouse of a child, sibling or spouse of a sibling that
has an application for a medical marijuana business
license pending before th e Authority or is a member of
the board of directors of a medi cal 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 current ly 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
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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
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 pr ocedures 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 marij uana 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 build ing codes.
F. A separate license shall be required for each specific
laboratory.
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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 bu sinesses, medical
marijuana research facilities, medical marijuana education
facilities, and testing on marijuana and marijuana products grown or
produced by a patient or caregiver on behalf of a patient, upon
verification of registration . A medical marijuana 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 during operational hours.
H. Laboratory applicants and licensees shall comply with the
application requirements of this section and shall submit such other
information as required for a medical marijuana business applicant,
in addition to any information the Au thority 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 mari juana 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 developmen t. The Authority may require a
medical marijuana business to submit a sample of medical marijuana,
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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 sam ples of
medical marijuana, medical marijuana concentrate or medical
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 shall require the
patient or caregiver to produce a valid patient license and c urrent
and valid photo identification.
K. A medical marijuana testing laboratory may transfer samples
to another medical marijuana 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 testing laboratory may utilize a
licensed medical marijuana transporter to transport sa mples of
medical marijuana, medical marijuana c oncentrate and medical
marijuana product for testing, in accordance with the Oklahoma
Medical Marijuana and Patient Protection Act and the rules adopted
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pursuant thereto, between the originating medical mariju ana business
requesting testing services and th e destination laboratory
performing testing services.
M. The medical marijuana testing laboratory shall establish
policies to prevent the existence of or appearance of undue
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 proce sses
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 prohibited
from improperly influencing the testing process, im properly
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 a ny 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:
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1. The cleanliness and orderliness of a laboratory premise s and
the location of the laboratory in a secure location, and inspection,
cleaning and maintenance of any equipment or utensils used f or the
analysis of test samples;
2. Testing procedures, testing standards for cannabinoid and
terpenoid potency and safe levels of contaminants, and remediation
procedures;
3. Controlled access areas for storage of medical marijuana and
medical marijuana product test samples, waste and reference
standards;
4. Records to be retained and computer systems to be utilized
by the laboratory;
5. The possession, 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 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 tracke d from the point
they are transferred from a medical marijuana business, a patient or
a caregiver through the point of transfer, destruction or disposal.
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The inventory tracking system reporting shall include the results of
any tests that are conducted on medical marijuana, medical marijuana
concentrate or medical marijuana product;
9. Standards of performance;
10. The employment of laboratory personnel;
11. A written standard operating procedure manual to be
maintained and updated by the laboratory;
12. The successful participation in a proficiency testing
program approved by the Executive Director for each testing category
listed in this section, in order to obtain and maintain
certification;
13. The establishment of and adherence to a quality assurance
and quality control program to ensure sufficient monitoring of
laboratory processes and quality of results reported;
14. The immediate recall of medical marijuana or medical
marijuana products that test above allowable thresholds or are
otherwise determined to b e 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
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17. Any other aspect of laboratory testing of medical marijuana
or medical marijuana product deemed necessary by the Executive
Director.
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 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 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 marijuana
product for each of the following categories of testing , consistent
with standards developed by the Executive Director:
1. Microbials;
2. Mycotoxins;
3. Residual solvents;
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4. Pesticides;
5. Tetrahydrocannabinol (THC) and other cannabinoid potency;
6. Terpenoid type and concentration ; and
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 lim ited 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 t he
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 license d 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 th is 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 b y the Oklahoma Medical Marijuana and
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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
decontamination or reme diation 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 comme rcial 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 Section 1, Chapter 352, O. S.L.
2022 (63 O.S. Supp. 2022, Section 427.25), is amended to read as
follows:
Section 427.25. A. The Oklahoma Medical Marijuana Authority
shall implement rules to employ secret shoppers. Secret shoppers
shall purchase medical marijuana or marijuana products from licensed
medical marijuana dispensaries utilizing cash from the petty cash
fund authorized in Section 5 of this act.
B. For each purchase, the The secret shopper shall buy be
authorized to:
1. Purchase an amount of medical marijuana or marijuana
products sufficient for five complete compliance tests; or
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2. Attempt to purchase medical marijuana or marijuana products
in order to prove compliance with the Oklahoma Medical Marijuana and
Patient Protection Act or any rule determined by the Authority.
Four samples C. Samples collected pursuant to paragraph 1 of
subsection B of this section shall be tested by licensed medical
marijuana testing laboratories, one of which shall be the laboratory
of origin, if applicable, and one of which shall be the Authority ’s
assurance laboratory. One sample shall be kept in reserve by the
Authority in the event of a discrepancy between the testing
laboratories, which may require retesting of the medical marijuana
or marijuana products. When making purchases from a licensed
medical marijuana dispensary, the secret shopper shall ask for the
certificate of analysis for each product purchased.
C. D. The secret shopper shall deliver the medical marijuana or
marijuana products to a quality assurance laboratory, which may be
the Authority’s assurance laboratory, for homogenization. Once the
samples have been homogenized, the samples shall be delivered to
four one randomly selected licensed medical marijuana testing
laboratories laboratory for compliance testing and the Authority’s
assurance laboratory, which shall include the testing for
pesticides, heavy metals, microbials, residual solvents for
extracted products, and potency. One sample shall be kept by the
Authority in reserve. If the medical marijuana or marijuana
products were previously tested with available results from a
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licensed medical marijuana testing laboratory, that testing
laboratory shall be one of the four two licensed medical marijuana
testing laboratories chosen by the Authority. For the avoidance of
doubt, neither the licensed medical marijuana dispensary nor the
licensed medical marijuana testing laboratory shall be told that the
business entity is selling medical marijuana or marijuana prod ucts
to a secret shopper or testing samples submitted by a secret shopper
employed by the Authority and posing as a licensed medical marijuana
patient.
D. E. The Authority shall inspect, by secret shopper, a minimum
of fifty licensed medical marijuana dispensaries annually beginning
January 1, 2024. In the year 2025, the Authority shall inspect, by
secret shopper, a minimum of ten percent (10%) of randomly selected
licensed medical marijuana dispensaries in Oklahoma per year.
E. F. 1. When the licensed medical marijuana testing
laboratories unanimously confirm test results with safety failures
for contaminants, the Authority shall recall the medical marijuana
or marijuana product within seven (7) days of obtaining the test
results. The name of the licensed medical marijuana dispensary and
any other relevant product information shall be made public via a
press release issued by the Authority. If there is greater than one
but less than four contaminant fails among the licensed medical
marijuana testing laboratories, the Authority shall work with a
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quality assurance laboratory to verify the results of the licensed
medical marijuana testing laboratories and take appropriate action.
2. When the average of total potency or total terpene results
collected from a licensed medical marij uana testing laboratory for a
particular product is outside the allowable limits, the Authority
shall work with a quality assurance laboratory to verify the results
of the testing laboratory. If results are verified to be outside
the allowable limits, the Authority shall require relabeling of the
medical marijuana or marijuana products.
3. All investigative results shall be retained by the Authority
for a minimum of three (3) years.
4. The Authority shall implement rules to notif y any licensed
medical marijuana dispensary and licensed medical marijuana grower
or licensed medical marijuana processor of any investigative results
determined to be noncompliant.
5. After the licensed medical marijuana dispensary and licensed
medical marijuana grower or lic ensed medical marijuana processor is
notified of the investigative results, such results may be used by
the Authority to take action against the licensee, assess fines, or
assess other civil penalties available to the Authority.
6. The Authority shall implement rules on shar ing such
investigative results with any other law enforcement agencies or
regulatory authorities.
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7. The Authority may elect to conduct further evaluations of
the investigative results at any time for verification or for other
purposes reasonably related to san itation, public health, or public
safety.
F. G. The failure of any licensed medical marijuana business to
cooperate with the provisions of this section may result in the
revocation of the license at the discretion of the Authority.
G. H. Any secret shopper performing any provision of this
section shall not be required to fulfill licensing requirements of
Section 420 of this title for a patient license and shall be able to
enter a dispensary with appropriate authorization as determined by
the Authority.
I. The Authority shall implement rules necessary to enforce the
provisions of this act section.
SECTION 10. This act shall become effective November 1, 2023.
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Passed the Senate the 23rd day of March, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2023.
Presiding Officer of the House
of Representatives