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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 59th Legislature (202 3)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
SENATE BILL NO. 437 By: Garvin of the Senate
and
Marti of the House
COMMITTEE SUBSTITUTE
An Act relating to medical marijuana; amending 63
O.S. 2021, Section 427.13, as amended by Section 14,
Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022, Section
427.13), which relates to the Oklahoma Medical
Marijuana and Patient Protection Act; directing the
Oklahoma Medical Marijuana Authority to issue
requests for proposals; directing Authority to select
a vendor for seed-to-sale inventory tracking system;
providing time limitation; stating responsibilities
of the Authority; providing requirements for the
seed-to-sale inventory tracking system; directing the
Authority to provide training and training materials;
repealing 63 O.S. 2021, Section 427.13, as amended by
Section 7, Chapter 584, O.S.L. 2021, which relates to
medical marijuana; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 427.13, as
amended by Section 14, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022,
Section 427.13), is amended to read as follows:
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Section 427.13 A. All medical marijuana and medical marijuana
products shall be purchased solely from a state-licensed medical
marijuana business, and shall not be purchased from any out-of-state
providers.
B. 1. The Oklahoma Medical Marijuana Authority shall have
oversight and auditing responsibilities to ensure that all marijuana
being grown in this state is accounted for and shall implement an
inventory tracking system. Pursuant to these duties, the Authority
shall require that each medical marijuana business, medical
marijuana research facility, medical marijuana education fa cility
and medical marijuana waste disposal facility keep records for every
transaction with another medical marijuana business, patient or
caregiver. Inventory shall be tracked and updated after each
individual sale and reported to the Authority.
2. The inventory tracking system licensees use shall allow for
integration of other seed-to-sale systems and, at a minimum, shall
include the following:
a. notification of when marijuana seeds and clones are
planted,
b. notification of when marijuana plants are harvested
and destroyed,
c. notification of when marijuana is transported, sold,
stolen, diverted or lost,
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d. a complete inventory of all marijuana, seeds, plant
tissue, clones, plants, usable marijuana or trim,
leaves and other plant matter, batches of ex tract, and
marijuana concentrates,
e. all samples sent to a testing laboratory, an unused
portion of a sample returned to a licensee, all
samples utilized by licensee for purposes of
negotiating a sale, and
f. all samples used for quality testing by a lice nsee.
3. Each medical marijuana business, medical marijuana research
facility, medical marijuana education facility and medical marijuana
waste disposal facility shall use a seed-to-sale tracking system or
integrate its own seed-to-sale tracking system wi th the seed-to-sale
tracking system established by the Authority.
4. These records shall include, but not be limited to, the
following:
a. the name and license number of the medical marijuana
business that cultivated, manufactured or sold the
medical marijuana or medical marijuana product,
b. the address and phone number of the medical marijuana
business that cultivated, manufactured or sold the
medical marijuana or medical marijuana product,
c. the type of product received during the transaction,
d. the batch number of the marijuana plant used,
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e. the date of the transaction,
f. the total spent in dollars,
g. all point-of-sale records,
h. marijuana excise tax records, and
i. any additional information as ma y be reasonably
required by the Executive Director of the Oklahoma
Medical Marijuana Authority.
5. All inventory tracking records retained by a medical
marijuana business, medical marijuana research facility, medical
marijuana education facility or medical marijuana waste disposal
facility containing medical marijuana patient or caregiver
information shall comply with all relevant state and federal laws
including, but not limited to, the Health Insurance Portability and
Accountability Act of 1996 (HIPAA).
C. 1. Upon the effective date of this act, the Authority shall
have thirty (30) business days to issue a request for proposals and
select through a competitive bidding process, pursuant to Section
85.7 of Title 74 of the Oklahoma Statutes, a vendor that shall
provide a seed-to-sale inventory tracking system for medical
marijuana business licensees. The contract may be a multi-year
contract or renewable annually, in accordance with any applicable
guidelines or procedures required by the Authority.
2. The Authority shall be responsible for all costs ass ociated
with the seed-to-sale tracking system chosen by the Authority. The
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seed-to-sale inventory tracking s ystem shall feature a software
infrastructure that provides maximum flexibility for the exchange of
data between the Authority and medical marijuana business licensees.
The seed-to-sale inventory tracking system shall allow the medical
marijuana business licensees to submit data to the Authority
directly through an application program interface (API), data
interchange service tool, or by means of a process and technology
acceptable to the Authority. If the Authority selects a vendor
whose proprietary software requir es the utilization of barcodes,
radio-frequency identification tags (RFID), or quick response (QR)
codes to manage data entry, the Authority shall be responsible for
purchasing the equipment neces sary for medical marijuana business
licensees to interface w ith the software of the seed-to-sale
inventory tracking system.
3. Upon selecting a vendor and prior to implementation of the
seed-to-sale inventory tracking system, the Authority shall be
responsible for providing sufficient training and training materials
to medical marijuana business licensees. Any administrative costs
related to training and training materials shall be the sole
responsibility of the Authority.
SECTION 2. REPEALER 63 O.S. 2021, Section 427.13, as
amended by Section 7, Chapter 584, O.S.L. 2021, is hereby repealed.
SECTION 3. 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 effe ct and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
SUBSTANCES, dated 04/13/2023 - DO PASS, As Amended.