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SENATE FLOOR VERSION
February 13, 2023
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 810 By: Garvin
An Act relating to medical marijuana; amending 63
O.S. 2021, Section 427.14, as last a mended by Section
2, Chapter 328, O.S.L. 2022 (63 O .S. Supp. 2022,
Section 427.14), which relates to medical marijuana
business license; requiring insurance verification
for licensees transp orting medical marijuana;
amending 63 O.S. 2021, Section 427.16, as last
amended by Section 16, Chapter 251, O.S .L. 2022 (63
O.S. Supp. 2022, Section 427.16), which relates to
medical marijuana transporter license; specifying
certain requirements; providing exception under
certain circumstances; allowing the Oklahoma Medical
Marijuana Authority to revoke exception; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE S TATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 427.14, as
last amended by Section 2, Chapt er 328, O.S.L. 2022 (63 O.S. Supp.
2022, Section 427.14), is amended to read as follows:
Section 427.14. A. There is hereby created the medical
marijuana business license, which shall include the foll owing
categories:
1. Medical marijuana commercial grower;
2. Medical marijuana processor;
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3. Medical marijuana dispensary;
4. Medical marijuana transporter; and
5. Medical marijuana testing laboratory.
B. The Oklahoma Medical Marijuana Authority, wit h the aid of
the Office of Management and Enterprise Services, shall develop a
website for medical marijuana business applications.
C. The Authority shall make available on its website in an
easy-to-find location, applications for a medical marijuana
business.
D. The annual, nonrefundable application fee for a medical
marijuana business license shall be Two Thousand Five Hundred
Dollars ($2,500.00).
E. All applicants seeking licensure or licensure renewal as a
medical marijuana business shall comply with the following general
requirements:
1. All applications for licenses and registrations authorized
pursuant to this section shall be made upon forms prescribed by the
Authority;
2. Each application shall identify the city or county in which
the applicant seeks to obtain licensure as a medical marijuana
business;
3. Applicants shall submit a complete application to the
Authority before the application may be accep ted or considered;
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4. All applications shall be complete and accurate in every
detail;
5. All applications shall include all attachments or
supplemental information required by the forms supplied by the
Authority;
6. All applications shall be accompanied by a full remittance
for the whole amount of the application fees. Application fees are
nonrefundable;
7. All applicants shall be approved for licensing review that,
at a minimum, meet the following criteria:
a. twenty-five (25) years of age or older,
b. if applying as an individual, proof that the applicant
is a resident of this state pursuant to paragraph 11
of this subsection,
c. if applying as an entity, proof that seventy-five
percent (75%) of all members, managers, executive
officers, partners, board m embers or any other form of
business ownership are residents of this state
pursuant to paragraph 11 of this subsection,
d. if applying as an individual or entity, proof that the
individual or entity is registered to conduct business
in this state,
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e. disclosure of all ownership interests pursu ant to the
Oklahoma Medical Marijuana and Patient Protection Act,
and
f. proof that the medical marijuana business, medical
marijuana research facility, medical marijuana
education facility and medical marijuana waste
disposal facility applicant or license e has not been
convicted of a nonviolent felony in the last two (2)
years, or any other felony conviction within the last
five (5) years, is not a current inmate in the custody
of the Department of Corrections, or currently
incarcerated in a jail or correc tions facility;
8. There shall be no limit to the number of medical marijuana
business licenses or categories that an individual or entity can
apply for or receive, although each application and each category
shall require a separate application and appl ication fee. A
commercial grower, processor and dispensary, or any combination
thereof, are authorized to share the same address or physical
location, subject to the restrictions set forth in the Oklahoma
Medical Marijuana and Patient Protection Act;
9. All applicants for a medical marijuana business license,
research facility license or education facility license authorized
by the Oklahoma Medical Marijuana and Patient Protection Act, or for
a renewal of such license, shall undergo a state criminal history
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background check conducted by the Oklahoma State Bureau of
Investigation (OSBI) within thirty (30) days prior to the
application for the license including:
a. individual applicants applying on their own behalf,
b. individuals applying on behalf of an entity,
c. all principal officers of an entity, and
d. all owners of an entity as defined by the Oklahoma
Medical Marijuana and Patient Protection Act;
10. All applicable fees charged by the OSBI are the
responsibility of the appli cant and shall not be higher than fees
charged to any other person or industry for such background checks;
11. In order to be considered a resident of this state for
purposes of a medical marijuana business application, all applicants
shall provide proof of state residency for at least two (2) years
immediately preceding the date of application or five (5) years of
continuous state residency during the preceding twenty-five (25)
years immediately preceding the date of application. Sufficient
documentation of proof of state residency shall include a
combination of the following:
a. an unexpired state-issued driver license,
b. a state-issued identification card,
c. a utility bill preceding the date of application,
excluding cellular telephone and Internet bills,
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d. a residential property deed to property in this state,
and
e. a rental agreement preceding the date of application
for residential property located in this state.
Applicants that were issued a medical marijuana business license
prior to August 30, 2019, are hereby exempt from the two-year or
five-year state residence requirement mentioned above;
12. All license applicants shall be required to submit a
registration with the Oklahoma State Bureau of Narcotics and
Dangerous Drugs Control as provided in Sections 2-302 through 2-304
of this title;
13. All applicants shall estab lish their identity through
submission of a color copy or digital image of one of the following
unexpired documents:
a. front of a state-issued driver license,
b. front of a state-issued identification card,
c. a United States passport or other photo identification
issued by the United States government, or
d. a tribal identification card approved for
identification purposes by the Department of Public
Safety; and
14. All applicants shall submit an applicant photograph.
F. The Authority shall review the medical marijuana business
application; approve, reject or deny the application; and mail the
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approval, rejection, denial or status-update letter to the applicant
within ninety (90) business days of receipt of the application.
G. 1. The Authority shall review the medical marijuana
business applications and conduct all investigations, inspections
and interviews before approving the application.
2. Approved applicants shall be issued a medical marijuana
business license for the spe cific category applied under, which
shall act as proof of their approved status. Rejection and denial
letters shall provide a reason for the rejection or denial.
Applications may only be rejected or denied based on the applicant
not meeting the standards set forth in the provisions of the
Oklahoma Medical Marijuana and Patient Protection Act and Sections
420 through 426.1 of this title, improper completion of the
application, or for a reason provided for in the Oklahoma Medical
Marijuana and Patient Prote ction Act and Sections 420 through 426.1
of this title. If an application is rejected for failure to provide
required information, the applicant shall have thirty (30) days to
submit the required information for reconsideration. No additional
application fee shall be charged for such reconsideration. Unless
the Authority determines otherwise, an application that has been
resubmitted but is still incomplete or contains errors that are not
clerical or typographical in nature shall be denied.
3. Status-update letters shall provide a reason for delay in
either approval, rejection or denial should a situation arise in
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which an application was submitted properly but a delay in
processing the application occurred.
4. Approval, rejection, denial or statu s-update letters shall
be sent to the applicant in the same method the application was
submitted to the Authority.
H. A license for a medical marijuana business, medical
marijuana research facilit y, medical marijuana education facility or
medical marijuana waste disposal facility shall not be issued to or
held by:
1. A person until all required fees have been paid;
2. A person who has been convicted of a nonviolent felony
within two (2) years of the date of application, or within five (5)
years for any other felony;
3. A corporation, if the criminal history of any of its
officers, directors or stockholders indicates that the officer,
director or stockholder has been convicted of a nonviolent felony
within two (2) years of the date of applicati on, or within five (5)
years for any other felony;
4. A person under twenty-five (25) years of age;
5. A person licensed pursuant to this section who, during a
period of licensure, or who, at the time of application, has failed
to:
a. file taxes, interest or penalties due related to a
medical marijuana business, or
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b. pay taxes, interest or penalties due related to a
medical marijuana business;
6. A sheriff, deputy sheriff, police officer or prosecuting
officer, or an officer or employee of the Authority or municipality;
7. A person whose authority to be a caregiver, as defined in
Section 427.2 of this title, has been revoked by the Authority; or
8. A person who was involved in the management or operations of
any medical marijuana business, medical marijuana research facility,
medical marijuana education facility or medical marijuana waste
disposal facility that, after the initiation of a disciplinary
action, has had a medical marijuana license revoked, not renewed, or
surrendered during the five (5) years preceding submission of the
application and for the following violations:
a. unlawful sales or purchases,
b. any fraudulent acts, falsification of records or
misrepresentation to the Authority, medical marijuana
patient licensees, caregiver licensees or medical
marijuana business licensees,
c. any grossly inaccurate or fraudulent reporting,
d. threatening or harming any medical marijuana patient,
caregiver, medical practitioner or employee of the
Authority,
e. knowingly or intentionally refusing to permit the
Authority access to premises or records,
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f. using a prohibited, hazardous substance for processing
in a residential area,
g. criminal acts relating to the operation of a medical
marijuana business, or
h. any violations that endanger public health and safety
or product safety.
I. In investigating the qualifications of an applicant or a
licensee, the Authority and municipalities may have access to
criminal history record information furnished by a criminal justice
agency subject to any restrictions imposed by such an ag ency.
J. The failure of an applicant or licensee to provide the
requested information by the Authority deadline may be grounds for
denial of the application.
K. All applicants and licensees shall submit information to the
Authority in a full, faithful, truthful and fair manner. The
Authority may recommend denial of an application where the applicant
or licensee made misstatements, omissions, misrepresentations or
untruths in the application or in connection with the background
investigation of the applicant. This type of conduct may be grounds
for administrative action against the applicant or licensee. Typos
and scrivener errors shall not be grounds for denial.
L. A licensed medical marijuana business premises shall be
subject to and responsible for compliance with applicable provisions
consistent with the zoning where such business is located as
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described in the most recent versions of the Oklahoma Uniform
Building Code, the International Building Code and the International
Fire Code, unless granted an exemption by a municipality or
appropriate code enforcement entity.
M. All medical marijuana business, medical marijuana research
facility, medical marijuana education facility and medical marijuana
waste disposal facility licensees shall pay the relevant licensure
fees prior to receiving licensure to operate.
N. A medical marijuana business, medical marijuana research
facility, medical marijuana education facility or medical marijuana
waste disposal facility that attempts to renew its license after the
expiration date of the license shall pay a late renewal fee in an
amount to be determined by the Executive Director of the Authority
to reinstate the license. Late renewal fees are nonrefundable. A
license that has been expired for more than ninety (90) days shall
not be renewed.
O. No medical marijuana business, medical marijuana research
facility, medical marijuana education facility or medical marijuana
waste disposal facility shall possess, sell, or transfer medical
marijuana or medical marijuana products without a valid, unexpired
license issued by the Authority.
P. A medical marijuana business license holder shall require
all individuals employed under their license to be issued a
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credential pursuant to the provisions of Section 3 of this act
427.14a of this title prior to employment.
Q. A medical marijuana business license holder shall provide
the Authority insurance verification s for all individuals licensed
to transport medical marijuana or medical marijuana product. The
Authority may determine the contents required fr om the insurance
verifications, which may include, but not be limited to, type of
coverage, amount of coverage, or vehicles insured under coverage.
SECTION 2. AMENDATORY 63 O.S. 2021, Section 427.16, as
last amended by Section 16, Chap ter 251, O.S.L. 2022 (63 O.S. Supp.
2022, Section 427.16), is amended to read as follows:
Section 427.16. A. There is hereby created a medical marijuana
transporter license as a category of the medical marijuana business
license.
B. Pursuant to Sect ion 424 of this title, the Oklahoma Medical
Marijuana Authority shall issue a medical marijuana transporter
license to licensed medical marijuana commercial growers, processors
and dispensaries upon issuance of such licenses and upon each
renewal. Medical marijuana transporter licenses shall also be
issued to licensed medical marijuana research facilities, medical
marijuana education facilities and medical marijuana testing
laboratories upon issuance of such licenses and upon each renewal.
C. A medical marijuana transporter license may also be issued
to qualifying applicants who are registered with the Secretary of
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State and otherwise meet the requirements for a medical marijuana
business license set forth in the Oklahoma Medical Marijuana and
Patient Protection Act and the requirements set forth in this
section to provide logistics, distribution and storage of medical
marijuana, medical marijuana concentrate and medical marijuana
products.
D. A medical marijuana transporter license shall be valid for
one (1) year and shall not be transferred with a change of
ownership. A licensed medical marijuana transporter shall be
responsible for all medical marijuana, medical marijuana concentrate
and medical marijuana products once the transporter takes control of
the product.
E. A transporter license shall be required for any person or
entity to transport or transfer medical marijuana, medical marijuana
concentrate or medical marijuana products from a licensed medical
marijuana business to another medical marijuana business, or from a
medical marijuana business to a medical marijuana research facility
or medical marijuana education facility.
F. A medical marijuana transporter licensee may contract with
multiple licensed medical marijuana businesses.
G. A medical marijuana transporter may maintain a licensed
premises to temporarily store medical marijuana, medical marijuana
concentrate and medical marijuana products and to use as a
centralized distribution point. A medical marijuana transporter may
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store and distribute medical marijuana, medical marijuana
concentrate and medical marijuana products from the licensed
premises. The licensed premises shall meet all security
requirements applicable to a medical marijuana business.
H. A medical marijuana transporter licensee shall use the seed-
to-sale tracking system developed pursuant to the Oklahoma Medical
Marijuana and Patient Protection Act to create shipping manifests
documenting the transport of medical marijuana, medical marijuana
concentrate and medical marijuana products throughout the state.
I. A licensed medical marijuana transporter may maintain and
operate one or more warehouses in the state to handle medical
marijuana, medical marijuana concentrate and medical marijuana
products. Each location shall be registered and inspected by the
Authority prior to its use.
J. With the exception of a lawful transfer between medical
marijuana businesses who are licensed to operate at the same
physical address, all medical marijuana, medical marijuana
concentrate and medical marijuana products shall be transported:
1. In vehicles equipped with Global Positioning System (GPS)
trackers;
2. In a locked container and clearly labeled “Medical Marijuana
or Derivative”; and
3. In a secured area of the vehicle that is not accessible by
the driver during transit.
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K. A transporter agent may possess marijuana at any location
while the transporter agent is transferring marijuana to or from a
licensed medical marijuana business, licensed medical marijuana
research facility or licensed medical marijuana education facility.
The Authority shall administer and enforce the provisions of this
section concerning transportation.
L. The Authority shall issue a transporter agent license to
individual agents, empl oyees, officers or owners of a transporter
license in order for the individual to qualify to transport medical
marijuana, medical marijuana concentrate or medical marijuana
products.
M. The annual fee for a transporter agent license shall be
Twenty-five Dollars ($25.00) and shall be paid by the transporter
license holder or the individual applicant. Transporter license
reprints shall be Twenty Dollars ($20.00).
N. The Authority shall issue each transporter agent a registry
identification card within thir ty (30) days of receipt of:
1. The name, address and date of birth of the person;
2. Proof of current state residency;
3. Proof of identity as required for a medical marijuana
business license;
4. Possession of a valid state-issued driver license;
5. Verification of employment with a licensed transporter;
6. The application and affiliated fee; and
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7. A copy of the criminal background check conducted by the
Oklahoma State Bureau of Investigation, paid for by the applicant.
O. If the transporter agent application is denied, the
Authority shall notify the transporter in writing of the reason for
denying the registry identification card.
P. A registry identification card for a transporter shall
expire one (1) year after the date of issuance or upon notification
from the holder of the transporter license that the transporter
agent ceases to work as a transporter.
Q. The Authority may revoke the registry identification card of
a transporter agent who knowi ngly violates any provision of this
section, and the transporter is subject to any other penalties
established by law for the violation.
R. The Authority may revoke or suspend the transp orter license
of a transporter that the Authority determines knowingly aided or
facilitated a violation of any provision of this section, and the
license holder is subject to any other penalties established in law
for the violation.
S. Vehicles used in the transport of Any vehicle used in the
duties of a licensed medical marijuana business transporting medical
marijuana or medical marijuana product shall be:
1. Insured at or above the legal requirements in this state in
accordance with subsection Q of Sec tion 427.14 of this title;
2. Capable of securing medical marijuana during transport; and
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3. In possession of a shipping container as defined in Section
427.2 of this title capable of securing all transported products.
T. Prior to the transport of any medical marijuana, medical
marijuana concentrate or medical marijuana products, an inventory
manifest shall be prepared at the origination point of the medical
marijuana. The inventory manifest shal l include the following
information:
1. For the origination point of the medical marijuana:
a. the licensee number for the commercial grower,
processor or dispensary,
b. address of origination of transport, and
c. name and contact information for the orig inating
licensee;
2. For the end recipient license holder of the medical
marijuana:
a. the license number for the dispensary, commercial
grower, processor, research facility or education
facility destination,
b. address of the destination, and
c. name and contact information for the destination
licensee;
3. Quantities by weight or unit of each type of medical
marijuana product contained in transport;
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4. The date of the transport and the approximate time of
departure;
5. The arrival date and estimated ti me of arrival;
6. Printed names and signatures of the personnel accompanying
the transport; and
7. Notation of the transporting licensee.
U. 1. A separate inventory manifest shall be prepared for each
licensee receiving the medical marijuana.
2. The transporter agent shall provide the other medical
marijuana business with a copy of the inventory manifest at the time
the product changes hands and after the other licensee prints his or
her name and signs the inventory manifest.
3. A receiving licensee s hall refuse to accept any medical
marijuana, medical marijuana concentrate or medical marijuana
products that are not accompanied by an inventory manifest.
4. Originating and receiving licensees shall maintain copies of
inventory manifests and logs of qua ntities of medical marijuana
received for seven (7) years from date of receipt.
V. Upon written approval by the Authority, a medical marijuana
business license holder may be e xempt from the provisions of thi s
section for the purpose of transporting medical marijuana waste
between licensed facilities; provided, the facilities are licensed
under the same license holder. The Authority may, at any time,
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revoke this provision if th e medical marijuana business license
holder violates any provisions of Section 420 et seq. of this title.
SECTION 3. This act shall become effective November 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE
February 13, 2023 - DO PASS AS AMENDED BY CS