ENGR. S. B. NO. 437 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED SENATE BILL NO. 437 By: Garvin of the Senate and Marti of the House An Act relating to medical marijuana; amending 63 O.S. 2021, Section 427.10, as amended by Section 12, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022, Section 427.10), which relates to physicians who may provide a recommendation; directing creation of certain registry; requiring registr ation by physicians; requiring compliance with medical education and continuing medical education requi rements; authorizing the Oklahoma Medical Marijuana Authority to provide for certain confere nces, meetings, or training sessions; directing promulgation of cert ain rules in consultation with specified boards; amending Section 3, Chapter 328, O.S.L. 2022 (63 O.S. Supp. 2022, Section 427.14b), which relates to credentials required for employees to work in licensed medical marijuana business; requiring dispensary employees to comply with education and continuing education requirements; directing promulgation of certain rules; amending 63 O.S. 2021, Section 427.21, as amended by Section 2 , Chapter 329, O.S.L. 2022 (63 O.S. Supp. 2022, Section 427.21), which relates to advertising; prohibiting cer tain types of events to be hosted or advertised; providing for the promulgation of rules for certain events; updating statutory language; updating statutory reference; and providing an effective date . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 63 O.S. 2021, Section 427.10, as amended by Section 12, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022, Section 427.10), is amended to read as follows: ENGR. S. B. NO. 437 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 427.10. A. Only licensed Oklahoma allopathic, osteopathic and podiatric physicians may provide a medical marijuana recommendation for a medical marijuana patient license u nder the Oklahoma Medical Marijuana and Patient Protection Act. B. A physician who has not completed his or her first residency shall not meet the definition of “physician” under this section and any recommendation for a medical marijuana patient license shall not be processed by the Oklahoma Medical Marijuana Authority. C. No physician shall be subject to arrest, prosecution or penalty in any manner or denied any right or privilege under state, municipal or county statute, ordinance or resolution, including without limitation a civil penalty or disciplinary action by the State Board of Medical Licensure and Supervision, the State Board of Osteopathic Examiners , the Board of Podiatric Medical Examiners or by any other business, occupation or professional licensing board or bureau, solely for providing a medical marijuana recommendation for a patient or for monitoring, treating or prescribing scheduled medication to patient s who are medical marijuana licensees. The provisions of this subsection shall not prevent the relevant professional licensing boards from sanctioning a physician for failing to properly evaluate the medical condition of a patient or for otherwise violati ng the applicable physician-patient standard of care. ENGR. S. B. NO. 437 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 D. A physician who recommends use of medical mari juana shall not be located at the same physical address as a licensed medical marijuana dispensary. E. If the physician determines the continued use of medical marijuana by the patient no longer meets the requirements set forth in the Oklahoma Medical Mar ijuana and Patient Protection Act, the physician shall notify the Oklahoma Medical Marijuana Authority and the license shall be immediately void ed without right to an individual proceeding. F. The Authority shall create and maintain a registry of recommending physicians. Beginning January 1, 2025, to be eligible to provide a medical marijuana recommendation to a licensed patient , a physician shall be registered with the Authority. G. To be registered with the Authority, a physician shall comply with the medical education and continuing medical education requirements described in subsection I of this section and shall meet all other requirements established by law or rule for recommending physicians. H. The Authority is hereby authorized to enter into contracts and agreements for the payment of food, lodgin g, and other authorized expenses as may be necessary to host, conduct, sponsor, or participate in conferences, meetings, or training s essions. The Authority may establish accounts as necessary for the co llection and distribution of funds, including funds of spon sors and registration ENGR. S. B. NO. 437 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 fees, related to such conferences, meetings, and training sessions. Any expenses incurred may be paid di rectly to the contacting agency or business establishment. I. The Executive Director of the Authority shall promulgate rules to establish medical education and continuing medical education requirements for recommending physicians. In promulgating such rules, the Executive Director shall consult with the State Board of Medical Licensure and Supervision, the State Board of Osteopathic Examiners, and the Board of Podiatric Medical Examiners, and the Executive Director may consult with associations representing licensees of such boards. SECTION 2. AMENDATORY Section 3, Chap ter 328, O.S.L. 2022 (63 O.S. Supp. 2022, Section 427.14b), is amended to read as follows: Section 427.14b. A. 1. Beginning January 1, 2024, the Oklahoma Medical Marijuana Authority shall require employees of a medical marijuana business licensee to apply for and receive a credential authorizing the employee to wor k in a licensed medical marijuana business. 2. Beginning January 1, 2025, to be eligible for such credential, employees of medical marijuana dispensaries shall comply with the education and continuing education requirements described in subsection G of this section and shall meet all other ENGR. S. B. NO. 437 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 requirements established by law or rule for employees of a medica l marijuana business licensee. B. The Authority may contract with one or more third-party vendors to provide the credentialing services necessary to carry out the provisions of this section. C. The Authority shall determine the services to be provided by such third-party vendor and shall establish costs and prices. If contracted for credentialing services, a third-party vendor shall on behalf of the Authority conduct the background checks and verify eligibility and suitability for any employees of a medical marijuana business license holder to obtain a credential. D. Upon successful completion by the third -party vendor of the statutorily required backgro und checks and verification of eligibility and suitability for a n employee, the third-party vendor shall issue a credential to the employee. The results of background checks and verificat ions shall be provided to the Authority by the third-party vendor. E. If the third-party vendor determines that an employee of a medical marijuana business holder does not meet the minimum statutory requirements for a credential, the applicant or employee shall have no recourse against the third-party vendor but may appe al such adverse determination to the Authority. F. The third-party vendor shall not be civilly liable to an applicant, licensee, or employee of a licensee for any acts taken in ENGR. S. B. NO. 437 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 good-faith compliance with the pr ovisions of Section 420 et seq. of Title 63 of the Oklahoma Statutes and the Oklahoma Medical Marijuana and Patient Protection Act and the rules promulgated by the Oklahoma Medical Marijuana Authority. G. 1. The Executive Director of the Authority may promulgate rules to implement the provisions of this section. 2. Such rules shall include, but not be limited to , education and continuing education requirements for employees of medical marijuana dispensaries. SECTION 3. AMENDATORY 63 O.S. 2021, Section 427.21, as amended by Section 2 , Chapter 329, O.S.L. 2022 (63 O.S. Supp. 2022, Section 427.21), is amended to read as follow s: Section 427.21. A. A medical marijuana busine ss shall not engage in advertising that is dec eptive, false or misleading. B. Medical marijuana advert ising shall not cont ain any statement or illustration that: 1. Promotes overconsumption; 2. Represents that the use of marijuana has curative or therapeutic effects; or 3. Depicts a child or other person under legal age to con sume marijuana, or includes : a. objects such as toys or cartoon or other characters, which suggest the presence of a child, or any other depiction designed in any manner to be espe cially ENGR. S. B. NO. 437 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 appealing to children or other persons under legal age to consume marijuana, or b. any manner or design that would be especially appealing to children or other persons unde r eighteen (18) years of age. C. Upon the effective date of this act Beginning on November 1, 2022, all medical marijuana commercial grower licensees sh all be required to post signag e at the site of the commercial grow operation. Signage shall be located at the perimeter of the property with dimensions measuring no less than eighteen (18) inches by twenty-four (24) inches with a font size of no less than two (2) inches. Information required to be displayed on the sign shall be in black standardized font on a white background. The Oklahoma Medical Marijuana Authority shall promulgate rules as necessary regarding the size, placement, issuance and specific ations of the required signage. The following information shall be included on the required signage: 1. Business name; 2. Physical address of the licensed business; 3. Phone number of the licensed business; and 4. Medical marijuana business license nu mber. The required signage sha ll also comply with county regulations and local ordinances related to th e real property where the commercial grow operation is located. Failure to erect the proper ENGR. S. B. NO. 437 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 signage within sixty (60) days after the renewal of each app lication for a medical marijua na commercial grower license in accordance with the provisions of this su bsection shall result in th e immediate revocation of the medical marijuana commercial grower license. Upon issuance of a temporary license, all medical marijuana commercial grower licensees shall be required to comply with the provisions of this subsection prior to the prelicensure inspection conducted by the Authority. D. It shall be unlawful to host or adverti se medical marijuana- related events requiring admission fees or open to the general public, other than for the purposes of providing education to a physician on the list of approved providers and as permitted by the appropriate licensing board. The Authority shall p romulgate rules to issue or deny permits for events not hosted by the A uthority and related to education of provi ders. SECTION 4. This act shall become effective January 1, 2024. ENGR. S. B. NO. 437 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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