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ENGROSSED HOUSE AMENDME NT
TO
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 c ertain
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 .
AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
and insert:
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"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.
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:
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
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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,
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
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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,
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
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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
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
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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."
Passed the House of Representatives the 27th day of April, 2023.
Presiding Officer of the House of
Representatives
Passed the Senate the ____ day of _______ ___, 2023.
Presiding Officer of the Senate
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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 registration 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 42 7.21), 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 3. 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:
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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.
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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
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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 4. AMENDATORY Section 3, Chap ter 328, O.S.L.
2022 (63 O.S. Supp. 2 022, 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
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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
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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 5. AMENDATORY 63 O.S. 2021, Secti on 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
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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
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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 6. This act shall become effective January 1, 2024.
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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