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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
SENATE BILL NO. 801 By: Coleman of the Senate
and
Marti of the House
COMMITTEE SUBSTITUTE
An Act relating to medical marijuana; requiring
licensed medical marijuana commercial growers to
inform retail suppliers or elect ric cooperatives as
to their license status; requiring transmission of
monthly usage reports in certain format to the
Oklahoma Medical Marijuana Authority ; amending 63
O.S. 2021, Section 427.3, as amended by Section 8,
Chapter 251, O.S.L. 2022 (63 O.S. Sup p. 2022, Section
427.3), which relates to the Oklahoma Medica l
Marijuana and Patient Protection Act; requiring
establishment of procedures to monitor, col lect, and
transmit certain usage information of licensed
medical marijuana commercial growers; providi ng for
the transmission of monthly usage reports; requiring
the development of rules, exemptions, and procedures;
providing for license revocation; provid ing for
codification; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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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 their status as a licensed medical
marijuana commercial grower within thirty (30) days after the
effective 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 their status as a licensed medical marijuana commercial
grower at the time of the connection of services. As provided for
in paragraph 12 of subsection D of Section 427.3 of Title 63 of the
Oklahoma Statutes, a licensed medical marijuana commercial g rower
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 electro nic format
that can be integrated with the seed-to-sale software of the
Authority.
SECTION 2. AMENDATORY 63 O.S. 2021, Section 427.3, as
amended by Section 8, Chapter 251, 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 which shall address issues related to the
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medical marijuana program in this state including, but not limited
to, the issuance of patient licenses and medical marijuana business
licenses, and the dispensing, cultivating, processing, testing,
transporting, storage, research, and the use of and sale of medical
marijuana pursuant to the Oklahoma Medical Marijuana and Patient
Protection Act.
B. 1. Beginning on the effective date of this act, the
Authority shall cease to be part of or a division of the State
Department of Health and shall be deemed to be a separate and
distinct agency, to be known as the Oklahoma Medical Marijuana
Authority. The Authority and the Executive Director of the
Authority shall continue to exercise their statutory powers, duties,
and contractual responsibilities. All records, property, equipment,
assets, monies, financial interests, liabilities, matters pending,
and funds of the division shall be transferred to the Authority.
2. All licenses granted by the Department pertaining to medical
marijuana shall maintain rights and privileges under the authority
of the Authority; provided, however, that all licenses shall be
subject to revocation, suspension, or disciplinary action for
violation of any of the provisions of the Oklahoma Medical Marijuana
and Patient Protection Act and rules promulgated by the Executive
Director.
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3. The Authority shall succeed to any contract ual rights or
responsibilities incurred by the Department pertaining to medic al
marijuana.
4. Rules promulgated by the State Commissioner of Health
pertaining to medical marijuana that are in effect on the effective
date of this act shall be immediately adopted and enforced by the
Executive Director. The Executive Director maintains the authority
to further promulgate and enforce rules.
5. The Department and the Authority may enter into an agreement
for the transfer of personnel from the Department to the Authority.
No employee shall be transferred to the Authority except on the
freely given written consent of the employee. All employees who are
transferred to the Authority shall not be required to accept a
lesser grade or salary than presently received . All employees shall
retain leave, sick, and annual time earned, and any reti rement and
longevity benefits which have accrued during their te nure with the
Department. The transfer of personnel between the state agencies
shall be coordinated with the Off ice of Management and Enterprise
Services.
6. The expenses incurred by the Authority as a result of the
transfer required by this subsection shall be paid by the Authority.
7. The division within the Department known as the Oklahoma
Medical Marijuana Aut hority shall be abolished by the Department
after the transfer has been complet ed.
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8. The Office of Management and Enterprise Services shall
coordinate the transfer of records, property, equipment, assets,
funds, allotments, purchase orders, liabilities, outstanding
financial obligations, or encumbrances provided for in this
subsection.
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 Petition No. 412,
subject to the provisions of the Oklahoma Medical M arijuana and
Patient Protection Act.
D. The Authority shall exercise its 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:
1. Determine steps the state shall take, whether administrative
or legislative in nature, to ensure that research 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, and
c. medical and pharmacopoeia best practices;
2. Contract with third -party vendors and other governmental
entities in order to carry out the respective duties a nd functions
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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 or not renew licenses pursuant
to applicable laws, rules and regulations;
4. Issue subpoenas for the appearance or production of persons,
records and things in connecti on with disciplinary 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 government by which the
production, sale and use of marijuana in this state does not violate
federal law, work with the Banking Department and the State
Treasurer to develop good practices and s tandards for banking and
finance for medical marijuana businesses;
8. Establish internal control procedures for licenses including
accounting procedures, reporting procedures and personnel policies;
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9. Establish a fee schedule and collect fees for perf orming
background checks as the Executive Director deems appropriate. The
fees charged pursuant to this paragraph shall not exceed the actual
cost incurred for each background check;
10. Establish a fee schedule and collect fees for material
changes requested by the licensee; and
11. Establish regulations, which require a medical marijuana
business to submit information t o the Oklahoma Medical Marijuana
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 licensed medical
marijuana commercial grower business,
d. the number, type and production capacity of equipme nt
located at the medical marijuana processing facility,
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 reasonably
deems necessary; and
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12. Establish an electronic procedure for monitoring,
collecting, and transmitting license d medical marijuana commercial
growers' monthly usage of electricity and water provided by retail
suppliers or electric cooperatives. The Authority shall provide
licensed medical marijuana 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 paragraph, 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 medical marijuana com mercial
grower shall result in the perm anent revocation of the medical
marijuana commercial grower license.
SECTION 3. This act shall become ef fective November 1, 2023.
59-1-8212 JL 04/12/23