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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
CONFERENCE COMMITTEE SUBSTITUTE
FOR ENGROSSED
SENATE BILL 264 By: Garvin of the Senate
and
Marti and Davis of the
House
CONFERENCE COMMITTEE SUBSTITUTE
An Act relating to medical marijuana; requiring
licensed medical marijuana commercial growers to
inform retail suppliers or electric coope ratives as
to their license status; requiring transmission of
monthly usage reports in certain format to the
Oklahoma Medical Marijuan a Authority; amending 63
O.S. 2021, Section 427.3, as last amended by Section
2 of Enrolled House Bill N o. 2095 of the 1st Session
of the 59th Oklahoma Legislature (63 O.S. Supp. 2022,
Section 427.3), which relates to Oklahoma Medical
Marijuana Authority d uties and functions; requiring
establishment of procedures to monitor, collect, and
transmit certain usage information of licensed
medical marijuana commercial growers; providing for
the transmission of monthly usage reports; requiring
the development of rules, exemptions, and procedures;
providing for license revocation; creating the
Oklahoma Medical Marijuana Authority Board; providing
for appointments to the Board; prescribing terms of
office; providing an ex officio member of the Board;
providing for the election of a chair and vice chair;
imposing quorum requirements for taking official
actions; providing exemp tion from certain
prohibition; stating powers and duties of the Board;
providing for reimbursement of expenses pursuant to
the State Travel Reimbursement Act; authorizing
meetings; prescribing minimum number of meetings;
stating manner by which vacancies o n the Board shall
be filled; directing the Oklahoma Medical Marijuana
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Authority to provide clerical staff and space for
meetings; providing for applicability of Oklahoma
Open Meeting Act, Oklahoma Open Records Act , and
Administrative Procedures Act; providing for
codification; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 180.12 of Title 17, unless there
is created a duplication in numbering, reads as follows:
Every existing licensed medical marijuana commercial grower
shall be required to inform retail suppliers or electric
cooperatives utilized of its status as a licensed medical marijuana
commercial grower within thirty (30) days after the effectiv e date
of this act. Every licensed medical marijuana commercial grower
that receives a license after the effective date of this act shall
inform retail suppliers or electric cooperatives utilized of its
status as a licensed medical marijuana commercial grower at the time
of the connection of services. As provided for in paragraph 16 of
subsection D of Section 427.3 of Title 63 of the Oklahoma Statutes,
a licensed medical marijuana commercial grower shall transmit
monthly reports to the Oklahoma Medical Marijuana Authority
providing the amount of electricity and water consumed. The monthly
reports shall be transmitted in an electronic format that can be
integrated with the seed-to-sale software of the Authority.
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SECTION 2. AMENDATORY 63 O.S. 2021, Section 427.3, as
last amended by Section 2 of Enrolled House Bill No . 2095 of the 1st
Session of the 59th Oklahoma Legislature (63 O.S. Supp. 2022,
Section 427.3), is amended to read as follows:
Section 427.3. A. There is hereby crea ted the Oklahoma Medical
Marijuana Authority within the State Department of Health which
shall address issues relate d to the medical marijuana program in
Oklahoma including, but not limited to, the i ssuance of patient
licenses and medical marijuana busines s licenses, and the
dispensing, cultivat ing, processing, testing, transporting, storage,
research, and the use of an d sale of medical marijuana pursuant to
the Oklahoma Medical Marijuana and Patient Protection Act.
B. The Department s hall provide support staff to perform
designated duties of th e Authority. The Department shall also
provide office space for meetings of the Authority.
C. The Authority shall implement the provisions of the Oklahoma
Medical Marijuana and Patient Protecti on Act consistently w ith the
voter-approved State Question No . 788, Initiative Petition No. 412,
subject to the provisions of the Oklahom a Medical Marijuana and
Patient Protection Act.
D. The Authority shall exercise it s respective powers and
perform its respective duties and functions as specified in the
Oklahoma Medical Marijuana and Patient Protection Act and this title
including, but not limited to, the following:
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1. Determine steps the state shall take, whether adm inistrative
or legislative in nature , to ensure that rese arch on marijuana and
marijuana products is being conducted for public purposes, includin g
the advancement of:
a. public health policy and public safety policy,
b. agronomic and horticultural best pr actices, and
c. medical and pharmaco poeia best practices;
2. Contract with third-party vendors and other governmental
entities in order to carry out the respective duties a nd functions
as specified in the Oklahoma Medical Marijuana and Patient
Protection Act;
3. Upon complaint or upon its own motion and upon a completed
investigation, levy fines as prescribed in applicable laws, rules,
and regulations and suspend, revoke, o r not renew licenses pursuant
to applicable laws, rules, and regulations;
4. Issue subpoenas for the appearance or pro duction of persons,
records, and things in connection with di sciplinary or contested
cases considered by the A uthority;
5. Apply for injunctive or declaratory relief to enforce the
provisions of applicable laws, rules, and regulations;
6. Inspect and examine all licensed pre mises of medical
marijuana businesses, r esearch facilities, education facilities, and
waste disposal facilities in w hich medical marijuana is cultivated,
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manufactured, sold, stored, transported, test ed, distributed, or
disposed of;
7. Upon action by the f ederal government by which the
production, sale, and use of marijuana in Oklahoma does no t 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 medi cal marijuana businesses;
8. Establish internal control procedures for licenses includin g
accounting procedures, re porting procedures, and personnel policies;
9. Establish a fee schedule and collec t fees for performing
background checks as the Authority deems appropriate. The fees
charged pursuant to this paragraph shall not exceed the actu al cost
incurred for each background check;
10. Establish a fee schedule and collect fees for material
changes requested by the licensee;
11. Establish regulations, which require a medical marijuana
business to submit information to the Authority, deemed reasonably
necessary to assist the Authority in the prevention of diversion of
medical marijuana by a license d medical marijuana business. Such
information required by the Authority may include, but shall not be
limited to:
a. the square footage of the l icensed premises,
b. a diagram of the licensed premises,
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c. the number and type of lights at the licensed medi cal
marijuana commercial grower busi ness,
d. the number, type, and production capacity of equipme nt
located at the medical marijuana processing fa cility,
e. the names, addresses, and telephone numbers of
employees or agents of a medical marijuana business,
f. employment manuals and standard operating procedures
for the medical marijuana business, and
g. any other information as the Authority reasona bly
deems necessary;
12. Declare and establish a moratorium on processing and
issuing new medical marijuana b usiness licenses pursuant to Section
427.14 of this title for an amount of time the Authority dee ms
necessary; and
13. Enter into and negotiate the terms of Memorandums of
Understanding between the Authority and other state agencies
concerning the enforcement of laws regulating medical marijuana in
this state. The Oklahoma State Bureau of Narcotics and Dangerous
Drugs Control, the Oklahoma State Bureau of Investigation, and the
Oklahoma Attorney General shall have full authority to investigate
and enforce any violations of the laws regarding medical marijuana
including medical marijuana business licenses held by commercial
growers, processors, transporters, researchers, education
facilities, and waste disposal facilities; and
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14. Establish an electronic procedure for monitoring,
collecting, and transmitting license d medical marijuana commercial
growers’ monthly usage of electricity and water provid ed by retail
suppliers or electric cooperatives. The Authority shall provide
licensed medical mariju ana commercial growers a means to transmit
monthly reports regarding th e amounts of electricity and water
consumed by licensed medical marijuana commercial growers. In
addition, the Authority shall develop rules, exemptions from the
requirements of this p aragraph, and any necessary procedures for the
metering of the usage of electricity and water by licensed medical
marijuana commercial growers that are not supplied by retail
suppliers or electric cooperatives incl uding, but not limited to,
the usage of well water and gas-powered generators. Refusal or
failure to submit the re quired monthly usage reports or use of an
unpermitted water source by a licensed m edical marijuana commercial
grower shall result in the perm anent revocation of th e medical
marijuana commercial grower license.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 427.26 of Title 63, unless there
is created a duplication in numbering, reads as follows:
A. There is hereby created the Oklahoma Medical Marijuana
Authority Board.
B. The Oklahoma Medical Marijuana Authority Board shall consist
of the following members and all appoi ntees shall serve their terms
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at the pleasure of the appointing authority and may be removed or
replaced without cause:
1. One member appointed by the Governor who shall be a chief of
police, or a designee, of a municipality with a population over one
hundred thousand (100,000), as determined by the late st Federal
Decennial Census;
2. One member appointed by the Governor who shall be a sheriff,
or a designee, of a county with a populatio n under twenty-five
thousand (25,000), as determined by the latest Fe deral Decennial
Census;
3. One member appointed b y the Governor who shall be an elected
official either of a municipality with a population under one
hundred thousand (100,000), as deter mined by the latest Federal
Decennial Census or of a county with a po pulation under twenty-five
thousand (25,000), as d etermined by the latest Federal Decennial
Census;
4. One member who is a district attorney appointed by the
Governor selected from a lis t submitted by the District Attorneys
Council;
5. One member who is a licensed physician appointed by the
Governor selected from a list submitted by the State Board of
Medical Licensure and Supervision;
6. One member who is a licensed medical marijuana c ommercial
grower appointed by the Governor;
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7. One member who is a l icensed medical marijuana processor
appointed by the Speaker of the House of Representatives;
8. One member who is a licensed medical marijuana dispensary
owner appointed by the Speaker of the House of Representatives;
9. One member who is a licensed med ical marijuana transporter
appointed by the Presid ent Pro Tempore of the Senate; and
10. One member who is a licensed medical marijuana testing
laboratory owner appointed by the Presiden t Pro Tempore of the
Senate.
C. Each member of the Oklahoma Medical Marijuana Authority
Board shall serve a term of four (4) years from the date of
appointment. Members of the Board shall not serve more than two
consecutive terms. The Executive Director of the Oklahoma Medical
Marijuana Authority shall be an ex officio m ember of the Board, but
shall be entitled to vote only in case of a tie vote.
D. A chair and vice chair shall be elected annually from the
membership of the Oklahoma Medical Marijuana Au thority Board. A
majority of the members of the Board shall constitu te a quorum for
the transaction of business and for taking any official action.
Official action of the Board must have a favorable vote by a
majority of the members present.
E. Appointed members who serve on the Board shall be exempt
from dual-office-holding prohibitions pursuant to Section 6 of Title
51 of the Oklahoma Statutes.
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F. The Oklahoma Medical Marijuana Authority Board shall be the
rulemaking body for the Oklahoma Medical Mari juana Authority and
shall have the power and duty to:
1. Establish the policies of the Oklahoma Medical Marijuana
Authority;
2. Review and enter into contracts bet ween the Authority and
vendors; and
3. Adopt and promulgate rules as necessary and appropr iate to
carry out the duties and responsibilities of the Oklahoma Med ical
Marijuana Authority.
G. Members appointed pursuant to subsection B of thi s section
shall serve without compensation but shall be reimbursed for
expenses incurred in the performance of their duties in accordance
with the State Travel Reimbursement Act .
H. The Oklahoma Medical Marijuana Authority Board shall meet as
often as necessary to conduct business but shall meet not less than
four times a year, with an organizational meeting to be held prior
to January 1, 2024. In addition, special meetings may be called by
the Executive Director of the Oklahoma Medical Marijuana Authori ty.
I. Any vacancy occurring on the Oklahoma Medical Marijuana
Authority Board shall be filled for the unexp ired term of office in
the same manner as provided for in subsection B of this section.
J. The Oklahoma Medical Marijuana Authority shall provid e
clerical staff to perform designated duties of the Oklahoma Medical
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Marijuana Authority Board. The Oklahoma Medical Marijuana Authority
shall also provide space for meetings of the Board.
K. The Oklahoma Medical Marijuana Authority Board shall act in
accordance with the provisions of the Oklahoma Open Meeting Act, the
Oklahoma Open Records Act , and the Administrative Procedures Act.
SECTION 4. This act shall become effective November 1, 2023.
59-1-2195 MR 5/24/2023 6:25:01 PM