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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
ENGROSSED SENATE
BILL NO. 913 By: Jech of the Senate
and
Moore of the House
An Act relating to medical marijuana growing
operations; amending 63 O.S. 2021, Section 427.14, as
last amended by Secti on 4, Chapter 332, O.S.L. 2022
(63 O.S. Supp. 2022, Section 427.14), which relates
to the medical marijuana business license; requiring
bond to be submitted during application process if
participating in growing operations; requiring bond
to be filed with the Oklahoma Medical Marijuana
Authority for designated area of commercial growing
operations; providing minimum amount; allowing
Authority to require additional coverage; requiring
amount should be sufficient in event of loss of
license; allowing additional agencies to recall the
bond under certain circumstances; providing an
exception; providing for codification; and declaring
an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 427.14, as
last amended by Section 4, Chapter 332, O.S.L. 2022 (63 O.S. Supp.
2022, Section 427.14), is amended to read as follows:
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Section 427.14. A. There is hereby created the medical
marijuana business license, which shall inc lude the following
categories:
1. Medical marijuana commercial grower;
2. Medical marijuana processor;
3. Medical marijuana dispensary;
4. Medical marijuana transporter; and
5. Medical marijuana testing laboratory.
B. The Oklahoma Medical Marijuana Authority, with 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 m arijuana
business.
D. 1. The annual, nonrefundable fee for a medical marijuana
transporter license shall be Two Thousand Five Hundred Dollars
($2,500.00).
2. The initial fee for a medical marijuana commer cial grower
license shall be calculated based upon the total amount of square
feet of canopy or acres the grower estimates will be harvested for
the year. The annual, nonrefundable license fee shall be based upon
the total amount of square feet of canopy harvested by the grower
during the previous twelve (12 ) months. The amount of the fees
shall be determined as follows:
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a. For an indoor, greenhouse, or light deprivation
medical marijuana grow facility:
(1) Tier 1: Up to ten thousand (10,000) square feet
of canopy, the fee shall be Two Thousand Five
Hundred Dollars ($2,500.00),
(2) Tier 2: Ten thousand one (10,001) square feet of
canopy to twenty thousand (20,000) square feet of
canopy, the fee shall be Five Thousand Dollars
($5,000.00),
(3) Tier 3: Twenty thousand one (20,001) square fee t
of canopy to forty thousand (40,000) square feet
of canopy, the fee shall be Ten Thousand Dollars
($10,000.00),
(4) Tier 4: Forty thousand one (40,001) square feet
of canopy to sixty thousand (60,000) square feet
of canopy, the fee shall be Twent y Thousand
Dollars ($20,000.00),
(5) Tier 5: Sixty thousand one (60,001) square feet
of canopy to eighty thousand (80,000) square feet
of canopy, the fee shall be Thirty Thousand
Dollars ($30,000.00),
(6) Tier 6: Eighty thousand one (80,001) square feet
of canopy to ninety-nine thousand nine hundred
ninety-nine (99,999) square feet of canopy, the
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fee shall be Forty Thousand Dollars ($40,000.00),
and
(7) Tier 7: One hundred thousand (100,000) square
feet of canopy and beyond, the fee shall be Fifty
Thousand Dollars ($50,000.00) , plus an additional
twenty-five cents ($0.25) per square foot of
canopy over one hundred thousand (100,000) square
feet.
b. For an outdoor medical marijuana grow facility:
(1) Tier 1: Up to two and one-half (2 1/2) acres,
the fee shall be Two Thousand Five Hundred
Dollars ($2,500.00),
(2) Tier 2: Two and one-half (2 1/2) acres up to
five (5) acres, the fee shall be Five Thous and
Dollars ($5,000.00),
(3) Tier 3: Five (5) acres up to ten (10) acres, the
fee shall be Ten Thousand Dollars ($10,000.00),
(4) Tier 4: Ten (10) acres up to twenty (20) acres,
the fee shall be Twenty Thousand Dollars
($20,000.00),
(5) Tier 5: Twenty (20) acres up to thirty (30)
acres, the fee shall be Thirty Thousand Dollars
($30,000.00),
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(6) Tier 6: Thirty (30) acres up to forty (40)
acres, the fee shall be Forty Thou sand Dollars
($40,000.00),
(7) Tier 7: Forty (40) acres up to fifty (50) acres,
the fee shall be Fifty Thousand Dollars
($50,000.00), and
(8) Tier 8: If the amount of acreage exceeds fifty
(50) acres, the fee sha ll be Fifty Thousand
Dollars ($50,000.00) plus an additional Two
Hundred Fifty Dollars ($250.00) per acre.
c. For a medical marijuana commercial grower that has a
combination of both indoor and outdoor growing
facilities at one location, the medical marijuana
commercial grower shall be required to obtain a
separate license from the Authority for each type of
grow operation and shall be subject to the licensing
fees provided for in subparagraphs a and b of this
paragraph.
d. As used in this paragraph:
(1) “canopy” means the total surface area within a
cultivation area that is dedicated to the
cultivation of flowering marijuana plants. The
surface area of the plant canopy must be
calculated in square feet and measured and must
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include all of the area within the boundaries
where the cultivation of the flowering marijuana
plants occurs. If the surface of the plant
canopy consists of noncontiguous areas, each
component area must be sepa rated by identifiable
boundaries. If a tiered or shelving system is
used in the cultivation area, the surface area of
each tier or shelf must be included in
calculating the area of the plant canopy .
Calculation of the area of the plant canopy may
not include the areas within the cultivation area
that are used to cultivate immature marijuana
plants and seedlings, p rior to flowering, and
that are not used at any time to cultivate mature
marijuana plants. If the flowering plants are
vertically grown in cyli nders, the square footage
of the canopy shall be measu red by the
circumference of the cylinder multiplied by the
total length of the cylinder,
(2) “greenhouse” means a structure located outdoors
that is completely covered by a material that
allows a controlled level of light transm ission,
and
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(3) “light deprivation” means a structure that has
concrete floors and the abilit y to manipulate
natural light.
3. The annual, nonrefundable license fee for a medical
marijuana processor license shall be determined as follows:
a. Tier 1: Zero (0) to ten thousand (10,000) pounds of
biomass or production or use of up to one hundred
(100) liters of cannabis concentrate, the annual fee
shall be Two Thousand Five Hundred Dollars
($2,500.00),
b. Tier 2: Ten thousand one (10,001) pounds to fifty
thousand (50,000) pounds of biomass or production or
use from one hundred one (101) to three hundred fifty
(350) liters of cannabis concentrate, the annual fee
shall be Five Thousand Dollars ($5,000.00),
c. Tier 3: Fifty thousand one (50,001) pounds to one
hundred fifty thousand (150,000) pounds of biomass or
production or use from three hundred fifty-one (351)
to six hundred fifty (650) liters of cannabis
concentrate, the annual fee shall be Ten Thousand
Dollars ($10,000.00),
d. Tier 4: One hundred fifty th ousand one (150,001)
pounds to three hundred thousand (300,000) pounds of
biomass or production or use from six hundred fifty-
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one (651) to one thousand (1,000) liters of cannabis
concentrate, the annual fee shall be Fifteen Thousand
Dollars ($15,000.00), and
e. Tier 5: More than three hundred thousand one
(300,001) pounds of biomass or production or use in
excess of one thousand one (1,001) liters of cannabis
concentrate, the annual fee shall be Twenty Thousand
Dollars ($20,000.00).
For purposes of this paragraph only, if the cannabis concentrate
is in nonliquid form, every one thousand (1,000) grams of
concentrated marijuana shall be calculated as one (1) liter of
cannabis concentrate.
4. The initial fee for a medical marijuana dispensary license
shall be Two Thousand Five Hundred Dollars ($2,500.00). The annual,
nonrefundable license fee for a medical marijuana dispensary license
shall be calculated at ten percent (10%) of the sum of twelve (12)
calendar months of the combined a nnual state sales tax and state
excise tax of the dispensary . The minimum fee shall be not less
than Two Thousand Five Hundred Dollars ($2,500.00) and the maximum
fee shall not exceed Ten Thousand Dollars ($10,000.00).
5. The annual, nonrefundable license fee for a medical
marijuana testing laboratory shall be Twenty Thousand Dollars
($20,000.00).
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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 accepted or considered;
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, meets the following criteria:
a. twenty-five (25) years of age or older,
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b. if applying as an individual, proof that the applicant
is an Oklahoma resident 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 members or any other form of
business ownership are Oklahoma residents 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 the State of Oklahoma,
e. disclosure of all ownership interests pursuant 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 licensee 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 corrections facility;
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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 application 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 an Oklahoma criminal
history 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 applicant and shall not be higher than fees
charged to any other person or industry for such background checks;
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11. In order to be considered an Oklahoma resident for purposes
of a medical marijuana business application, all applicants shall
provide proof of Oklahoma residency for at least two (2) years
immediately preceding the date of application or five (5) years of
continuous Oklahoma residency during the preceding twenty-five (25)
years immediately preceding the date of application. Sufficient
documentation of proof of residency shall include a combination of
the following:
a. an unexpired Oklahoma-issued driver license,
b. an Oklahoma identification card,
c. a utility bill preceding the date of application,
excluding cellular telephone and Internet bills,
d. a residential property deed to property in the State
of Oklahoma, and
e. a rental agreement preceding the date of application
for residential property located in the State of
Oklahoma.
Applicants that were issued a medical marijuana business license
prior to August 30, 2019, are hereby exempt from the two-year or
five-year Oklahoma 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;
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13. All applicants shall establish their identity through
submission of a color copy or digital image of one of the following
unexpired documents:
a. front of an Oklahoma driver license,
b. front of an Oklahoma 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 Oklahoma Department of
Public Safety; and
14. All applicants shall submit an applicant photograph; and
15. All applicants for a medical marijuana business license
seeking to operate a commercial grow shall file along with their
application a bond as prescribed in Section 2 of this act.
F. The Authority shall review the medical marijuana business
application; approve, reject or deny the application; and mail the
approval, rejection, denial or status-update letter to the a pplicant
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 specific category applied under, which
shall act as proof of their approved status. Rejection and denial
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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 Protection 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 tha t 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
which an application was submitted properly but a delay in
processing the application oc curred.
4. Approval, rejection, denial or status-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 facility, medical marijuana education facility or
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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 application, 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
b. pay taxes, interest or penalties due related to a
medical marijuana business;
6. A sheriff, deputy sheriff, police officer or pros ecuting
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
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8. A person who was involved in the man agement 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 e mployee of the
Authority,
e. knowingly or intentionally refus ing to permit the
Authority access to premises or records,
f. using a prohibited, hazardous substance for processing
in a residential area,
g. criminal acts relating to t he operation of a medical
marijuana business, or
h. any violations that endanger public health and safety
or product safety.
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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 agency.
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
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 fa cility and medical marijuana
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waste disposal facility licensees shall pay the relevant licensure
fees prior to receiving licensure to operate.
N. A medical marijuana business, medical marijuana rese arch
facility, medical marijuana education facility or med ical 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 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.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statu tes as Section 427.26 of Title 63, unless there
is created a duplication in numbering, reads as follows:
A. It shall be unlawful for any holder of a medical marijuana
business license pursuant to Section 427.14 of Title 63 of the
Oklahoma Statutes to engage in any commercial growing operations in
this state without acquiring a bond. The bond shall cover that area
of land within the permit area upon which the business licensee will
initiate and conduct commercial growing operations.
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B. Every applicant for a commercial grower license or
commercial grower licensee shall file with the Oklahoma Medical
Marijuana Authority a bond satisfactory to the Authority and in the
amount no less than Fifty Thousand Dollars ($50,000.00) for each
license sought or held, with a surety company qualified to do
business in this state as a surety. The bond shall be fur nished to
the state for the use of the state pursuant to the provisions of
this act. The bond shall be conditional that the obligor will
comply with the provision s of this act including, but not lim ited
to, building codes, administrative rules, and other relevant laws,
and all rules and regulations made pursuant to this act and will pay
all amounts of money that may be due to the state during the time
such bond is in effect.
C. The Authority or the Department of Environmental Quality may
require a higher amount depending upon the reclamation requirements
of the approved application . The amount shall reflect the probable
difficulty of reclamation with consideration for such factors
including, but not limited to, topography, hydrology, and
revegetation potential. The amount of the bond for a commercial
growing operation shall be sufficient to assure the completion of
the reclamation plan if the work has to be performed by the
Authority or the Department of Environmental Quality in the event of
revocation of license.
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D. An appropriate agency may recall the bond if the property
has been abandoned, the Authority revokes the commercial growing
operation’s license, or in response to receiving notice of a
violation of any law, regulation, policy, or ordinance nec essitating
remedial action. The bond shall be used to d efray the cost of
restoration of the prop erty including, but not limited to, removing
equipment, destruction of waste, remediation of en vironmental
hazards, prohibiting public access, addressing improperly coded
buildings, or determination of the final disposition of any sei zed
property.
E. A holder of a medical marijuana business license pursuant to
Section 427.14 of Title 63 of the Oklahoma Statutes engaging in a
commercial growing operation may ope rate without obtaining a bond
upon verification by the Authority that the permitted land o n which
the licensee operates the commercial growing operation has be en
owned by the licensee for a t least a five-year period prior to
submission of application .
SECTION 3. It being immediately necessary f or the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
SUBSTANCES, dated 04/12/2023 - DO PASS.