ENGR. S. B. NO. 1039 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. 1039 By: Alvord of the Senate and Cantrell of the House An Act relating to medical marijuana license; amending 63 O.S. 2021, Section s 420, as amended by Section 1, Chapter 182, O.S.L. 2024, and 427.14, as last amended by Section 1, Chapter 342, O.S.L. 2024 (63 O.S. Supp. 2024, Section s 420 and 427.14), which relate to medical marijuana patient license and medical marijuana business license; modifying grounds for certain denials; updating statutory references; and providing an effective date . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 63 O.S. 2021, Section 420, as amended by Section 1, Chapter 182, O.S.L. 2024 (63 O.S. Supp. 2024, Section 420), is amended to rea d as follows: Section 420. A. A person in possession of a state -issued medical marijuana patient license shall be able to: 1. Consume marijuana legally; 2. Legally possess up to three (3) ounces or eighty -four and nine-tenths (84.9) grams of marijuana on their person; 3. Legally possess six mature marijuana plants and the harvested marijuana therefrom; 4. Legally possess six seedling plants; ENGR. S. B. NO. 1039 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 5. Legally possess one (1) ounce or twenty -eight and three tenths (28.3) grams of concentrated marijuana; 6. Legally possess seventy -two (72) ounces or two thousand thirty-seven and six-tenths (2037.6) grams of edible marijuana; 7. Legally possess up to eight (8) ounces or two hundred twenty-six and four-tenths (226.4) grams of marijuana in their residence; and 8. Legally possess s eventy-two (72) ounces of topical marijuana. B. Possession of up to one and one -half (1.5) ounces or forty - two and forty-five one-hundredths (42.45) grams of marijuana by persons who can state a medical condition, but are not in posse ssion of a state-issued medical marijuana patient license, shall constitute a misdemeanor offense punishable by a fine not to exceed Four Hundred Dollars ($400.00) and shall not be subject to imprisonment for the offense. Any law enforcement officer who c omes in contact with a person in violation of this subsection and who is satisfied as to the identity of the person, as well as any other pertinent information the law enforcement officer deems necessary, shall issue to the person a written citation contai ning a notice to answer the charge against the person in the appropriate court. Upon receiving the written promise of the alleged violator to answer as specified in the citation, the law enforcement officer shall release ENGR. S. B. NO. 1039 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 the person upon personal recogniza nce unless there has been a violation of another provision of law. C. The Oklahoma Medical Marijuana Authority shall be established which shall receive applications for medical marijuana patient and caregiver license recipients, dispensaries, growers, and processors within sixty (60) days of the passage of this initiative. D. The Authority shall, within thirty (30) days of passage of this initiative, make available on its website, in an easy -to-find location, an application for a medical marijuana patient license. The license shall be valid for two (2) years. The biannual application fee shall be One Hundred Dollars ($100.00), or Twenty Dollars ($20.00) for individuals on Medicaid, Medicare or SoonerCare. The methods of payment shall be provided on the website of the Authority. Reprints of the medical marijuana patient license shall be Twenty Dollars ($20.00). E. A short-term medical marijuana patient license application shall also be made available on the website of the Authority. A short-term medical marijuana patient l icense shall be granted to any applicant who can meet the requirements for a two -year medical marijuana patient license, but whose physician recommendation for medical marijuana is only valid for sixty (60) days. Short -term medical marijuana patient licenses shall be issued for sixty (60) days. The fee for a short -term medical marijuana patient license, reprints of the short -term medical marijuana patient license, and ENGR. S. B. NO. 1039 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 the procedure for extending or renewing the license shall be determined by the Executive Director of the Authority. F. A temporary medical marijuana patient license application shall also be made available on the website of the Authority for residents of other states. Temporary medical marijuana patient licenses shall be granted to any medical marijuana license holders from other states, provided that such states have state -regulated medical marijuana programs, and applicants can prove they are members of such programs. Temporary medical marijuana patient licenses shall be issued for thirty (30) days. The cost for a temporary license shall be One Hundred Dollars ($100.00). Renewal shall be granted with resubmission of a new application. No additional criteria shall be required. Reprints of the temporary medical marijuana patient license shall be Twenty Dollars ($20.00). G. Medical marijuana patient license applicants shall submit their applications to the Authority for approval. The applicant shall be a resident of this state and shall prove residency by a valid driver license, utility bills, or other accepted methods. H. The Authority shall review the medical marijuana patient license application; approve, reject, or deny the application; and mail the approval, rejection, or denial letter stating any reasons for rejection, to the applicant within fourteen (14) business days of receipt of the application. Approved applicants shall be issued a medical marijuana patient license which shall act as proof of his ENGR. S. B. NO. 1039 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 or her approved status. Applications may only be rejected or denied based on the applicant not meeting stated criteria or improper completion of the application the standards set forth in the provisions of the Oklahoma Medical Marijuana and Patient Protection Act and Sections 420 through 427.28 of this title, improper completion of the application, unpaid license or application fees , or for a reason provided for in the provisions of the Oklahoma Medical Marijuana and Patient Protection Act and Sections 420 through 427.28 of this title . If an application is reject ed for failure to provide required information, the applicant shall have thirty (30) days to submit the required information for reconsideration. Unless the Authority determines otherwise, an application that has been resubmitted but contains errors or omissions that are not clerical or typographical in nature shall be denied. The Authority shall deny any application that has been submitted more than once with any errors or omissions that are not clerical or typographical in nature . I. The Authority shal l make available, bot h on its website and through a telephone verification system, an easy method to validate the authenticity of the medical marijuana patient license by the unique twenty-four-character identification number. J. The Authority shall ensur e that all medical marijuana patient and caregiver records and information are sealed to protect the privacy of medical marijuana patient license applicants. ENGR. S. B. NO. 1039 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 K. A caregiver license shall be made available for qualified caregivers of a medical marijuana pa tient license holder who is homebound. As provided in Section 427.11 of this title, the caregiver license shall provide the caregiver the same rights as the medical marijuana patient licensee including the ability to possess marijuana, marijuana products and mature and immature plants or cultivated medical marijuana pursuant to the Oklahoma Medical Marijuana and Patient Protection Act, but excluding the ability to use marijuana or marijuana products unless the caregiver has a medical marijuana patient lice nse. Applicants for a caregiver license shall submit proof of the license status and homebound status of the medical marijuana patient and proof that the applicant is the designee of the medical marijuana patient. The applicant shall also submit proof th at he or she is eighteen (18) years of age or older and proof of his or her state residency. This shall be the only criteria for a caregiver license. A licensed caregiver shall not cultivate medical marijuana for more than five medical marijuana patient licensees and shall n ot charge a medical marijuana patient licensee for cultivating medical marijuana in excess of the actual costs incurred in cultivating the medical marijuana. L. All applicants for a medical marijuana patient license shall be eighteen (18) years of age or older. A special exception shall be granted to an applicant under the age of eighteen (18); however, ENGR. S. B. NO. 1039 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 these applications shall be signed by two physicians and the parent or legal guardian of the applicant. M. All applications for a me dical marijuana patie nt license shall be signed by an Oklahoma physician licensed by and in good standing with the State Board of Medical Licensure and Supervision, the State Board of Osteopathic Examiners, or the Board of Podiatric Medical Examiners. The re are no qualifying conditions. A medical marijuana patient license shall be recommended according to the accepted standards a reasonable and prudent physician would follow when recommending or approving any medication. No physician may be unduly stigmatized, penalized, sub jected to discipline, sanctioned, reprimanded or harassed for signing a medical marijuana patient license application;, provided, the physician acted in accordance with the provisions of this subsection and all other rules governing the medical license of the physician in this state. N. Counties and cities may enact medical marijuana guidelines allowing medical marijuana patient license holders or caregiver license holders to exceed the state limits set forth in subsection A of this section. SECTION 2. AMENDATORY 63 O.S. 2021, Section 427.14, as last amended by Section 1, Chapter 342, O.S.L. 2024 (63 O.S. Supp. 2024, Section 427.14), is amended to read as follows: ENGR. S. B. NO. 1039 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 Section 427.14. A. There is hereby created th e medical marijuana business license, which shall include the following categories: 1. Medical marijuana commercial grower; 2. Medical marijuana processor; 3. Medical marijuana dispensary; 4. Medical marijuana transporter; and 5. Medical marijuana tes ting 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 a n easy-to-find location, applications for a medical marijuana 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, nonrefundable fee for a medic al marijuana commercial grower license shall be calculated based upon the total amount of square feet of canopy or acres the grower estimates will be harvested, transferred, or sold for the year. The annual, nonrefundable license fee shall be based upon t he total amount of square feet of canopy or acres harvested, transferred, or sold by ENGR. S. B. NO. 1039 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 the grower during the previous twelve (12) months. The amount of the fees shall be determined as follows: 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 feet 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 (4 0,001) square feet of canopy to sixty thousand (60,000) square feet of canopy, the fee shall be Twenty 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), ENGR. S. B. NO. 1039 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (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 fee shall be Forty Thousand Dollars ($40,000.00), and (7) Tier 7: One hundred th ousand (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: Less than two and one -half (2 1/2) acres, the fee shall be Two Thousand Five Hundred Dollars ($2,500.00), (2) Tier 2: More than two and one -half (2 1/2) acres up to five (5) acres, the fee shall be Fiv e Thousand Dollars ($5,000.00), (3) Tier 3: More than five (5) acres up to ten (10) acres, the fee shall be Ten Thousand Dollars ($10,000.00), (4) Tier 4: More than ten (10) acres up to twenty (20) acres, the fee shall be Twenty Thousand Dollars ($20,000.00), ENGR. S. B. NO. 1039 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (5) Tier 5: More than twenty (20) acres up to thirty (30) acres, the fee shall be Thirty Thousand Dollars ($30,000.00), (6) Tier 6: More than thirty (30) acres up to forty (40) acres, the fee shall be Forty Thousand Dollars ($40,000.00), (7) Tier 7: More than forty (4 0) 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 shall 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 fo r 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 ENGR. S. B. NO. 1039 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 cultivation of flowering marijuana plants. The surface area of the plant canopy must be calculated in square feet and measured and must include all of the area within the boundaries where the cultivation of the flowering marijuana plants occurs. If the surf ace of the plant canopy consists of noncontiguous areas, each component area must be separated 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, prior to flowering, and that are not used at any time to cultivate mature marijuana plants. If the flowering plants are vertically grown in cylinders, the square footage of the canopy shall be measured 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 ENGR. S. B. NO. 1039 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 allows a controlled level of light transmission, and (3) “light deprivation” means a structure that has concrete floors and the ability to manipulate natural light. 3. The initial, nonrefundable fee for a medical marijuana processor license shall be Two Thousand Five Hundred Dollars ($2,500.00). The annual, nonrefundable license fee for a medical marijuana processor license shall be determined based on the previous twelve (12) months as follows: a. Tier 1: The transfer or sale of zero (0) to ten thousand (10,000) pounds of biomass or the production, transfer, or sale of up to one hundred (100) liters of cannabis concentrate, whichever is greater, the annual fee shall be Two Thousand Five Hundred Dollars ($2,500.00), b. Tier 2: The transfer or sale of ten thousand one (10,001) pounds to fifty thousand (50,000) pounds of biomass or the production, transfer, or sale of one hundred one (101) to three hundred fifty ( 350) liters of cannabis concentrate, whichever is greater, the annual fee shall be Five Thousand Dollars ($5,000.00), c. Tier 3: The transfer or sale of fifty thousand one (50,001) pounds to one hundred fifty thousand ENGR. S. B. NO. 1039 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (150,000) pounds of biomass or the pr oduction, transfer, or sale of three hundred fifty -one (351) to six hundred fifty (650) liters of cannabis concentrate, whichever is greater, the annual fee shall be Ten Thousand Dollars ($10,000.00), d. Tier 4: The transfer or sale of one hundred fifty thousand one (150,001) pounds to three hundred thousand (300,000) pounds of biomass or the production, transfer, or sale of six hundred fifty -one (651) to one thousand (1,000) liters of cannabis concentrate, whichever is greater, the annual fee shall be Fifteen Thousand Dollars ($15,000.00), and e. Tier 5: The transfer or sale of more than three hundred thousand one (300,001) pounds of biomass or the production, transfer, or sale 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, nonrefundable fee for a medical marijuana dispensary license shall be Two Thousand Five Hundred Dollars ENGR. S. B. NO. 1039 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ($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 annual state sales tax and state excise tax of the dispensary during the previous twelve (12) months. 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). E. All applicants seeking licensure or licensure renew al 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 shal l identify the city o r 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 s hall be complete and accurate in every detail; ENGR. S. B. NO. 1039 Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 5. All applications shall include all attachments or supplemental information required by the forms supplied by the Authority; 6. All applications for a transporter license, initial dispensary license, initi al processor license, or laboratory license shall be accompanied by a full remittance for the whole amount of the license fee as set forth in subsection D of this section. All submissions of grower applications, renewal processor applications, and renewal dispensary applications shall be accompanied by a remittance of a fee of Two Thousand Five Hundred Dollars ($2,500.00). The Authority shall invoice license applicants, if applicable, for any additional licensing fees owed pursuant to subsection D of this section prior to app roval of a license application. License 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 12 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 an y other form of ENGR. S. B. NO. 1039 Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 business ownership are residents of this state pursuant to paragraph 11 12 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, 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. Upon reasonable suspicion that a medical marijuana business licensee is illegally growing, processing, transferring, selling, disposing, or diverting marijuana, the Authority, the Oklahoma State Bureau of Narcotics and Dangerous Dru gs Control, the Oklahoma State Bureau of Investigation (OSBI), or the Attorney General may subpoena documents necessary to establish the personal identifying information of all owners and individuals with any ownership interest in the business; ENGR. S. B. NO. 1039 Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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, application fe e, or license 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. No medical marijuana business premises is permitted to have multiple licenses of the same type pursuant to the licensing requirements of this section, excluding the following: a. a commercial grower with a combination of an indoor or outdoor growing facility on one parce l of land, b. a licensed medical marijuana processor used by multiple licensees, and c. a licensed medical marijuana business that has an approved application by the Authority while the new business seeks registration from the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control pursuant to Section 2 427.14c of this act title; 10. All applicants for a medical marijuana business license, research facility license or education facility license authorized by the Oklahoma Medical Marijuana and Patien t Protection Act, or for a renewal of such license, shall undergo a national fingerprint - ENGR. S. B. NO. 1039 Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 based background check conducted by the Oklahoma State Bureau of Investigation 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; 11. 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; 12. 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 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, ENGR. S. B. NO. 1039 Page 20 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 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 m edical marijuana business license prior to August 30, 2019, are hereby exempt from the two -year or five-year Oklahoma residence requirement mentioned above; 13. All license applicants shall be required to submit a registration with th e Oklahoma State Bureau of Narcotics and Dangerous Drugs Control as provided in Sections 2-302 through 2-304 2-301 through 2-309 of this title; 14. 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 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 c ard approved for identification purposes by the Department of Public Safety; 15. All applicants shall submit an applicant photograph; and 16. All applicants for a medical marijuana business license seeking to operate a commercial growing operation shall file along ENGR. S. B. NO. 1039 Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 with their application a bond as prescribed in Section 427.26 of this title. F. The Authority shall review the medical marijuana business application; approve, reject, or deny the application; and send the approval, rejection, denial, or status -update letter to the applicant in the same method the application was submitted to the Authority within ninety (90) business days of receipt of the application. G. 1. The Authority shall review the medical marijuana business applications, conduct all in vestigations, inspect ions, and interviews, and collect all license and application fees 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 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 426.1 427.28 of this title, improper completion of the application, unpaid license or application fees, or for a reason provided for in the Oklahoma Medical Marijuana and Patient Protection Act and Sections 420 through 426.1 427.28 of this title. If an application is rejected for failure to provide required ENGR. S. B. NO. 1039 Page 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 information, the applicant shall have thirty (30) days to submit the required information for 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. The Authority shall deny any application that has been submitted more than once wit h any errors or omissions that are not clerical or t ypographical in nature. The lack of a certificate of occupancy shall not be the sole cause for denial of an application. 3. Status-update letters shall provide a reason for delay in either approval, rej ection or denial shou ld a situation arise in which an application was submitted properly but a delay in processing the application occurred. 4. Approval, rejection, denial or status -update letters shall be sent to the applicant in the same method the appl ication was submitted to the Authority. H. A license for a medical marijuana business, medical marijuana research facility, medical marijuana education facility or medical marijuana waste disposal facility shall not be issued to or held by: 1. A person until all required fee s 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; ENGR. S. B. NO. 1039 Page 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 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 was te 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: ENGR. S. B. NO. 1039 Page 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 reporti ng, 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, f. using a prohibited, hazardous substa nce 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 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. ENGR. S. B. NO. 1039 Page 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 a pplication 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 wher e 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 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 of Five Hundred Dollars ($50 0.00) per week that the license is expired. ENGR. S. B. NO. 1039 Page 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Late renewal fees are nonrefundable. A license that has been expired for more than sixty (60) calendar days shall not be renewed. Only license renewal applications submitted at least sixty (60) calendar days prior to the expiration date shall be considered timely submitted and subject to the provisions of subsection F of this section. A medical marijuana business license shall remain unexpired during the pendency of the application for ren ewal provided that such application was timely submitted. The Authority shall allow renewal applications to be submitted at least one hundred twenty (120) calendar days prior to the expiration date of a medical marijuana business license. O. Except as provided by this section, immediately upon expiration of a license, any medical marijuana business, medical marijuana research facility, medical marijuana education facility, or medical marijuana waste disposal facility shall cease all possession, transfer, or sale of medical ma rijuana or medical marijuana products. Any continued possession, sale, or transfer shall subject the business owners and operators to felony prosecution pursuant to the Uniform Controlled Dangerous Substances Act. P. A medical mariju ana business license holder shall require all individuals employed under his or her license to be issued a credential pursuant to the provisions of Section 427.14b of this title prior to employment. ENGR. S. B. NO. 1039 Page 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Q. An original medical marijuana business license issued on or after June 26, 2018, by the Authority, for a medical marijuana commercial grower, a medical marijuana processor or a medical marijuana dispensary shall be deemed to have been grandfathered into the location on the date the original license was first issued for purposes of determining the authority of the business to conduct and continue the same type of business at that location under a license issued by the Authority, except as may be provided in Sections 425 and 426.1 of this title. Any change in ownership after the o riginal medical marijuana business license has been issued by the Authority shall be construed by the Authority to be a continuation of the same type of business originally licensed at that location. Nothing shall authorize the Author ity to deny issuance or renewal of a license or transfer of license due to a change in ownership for the same business location previously licensed, except when a revocation is otherwise authorized by law or a protest is made under the municipal compliance provisions of Sectio n 426.1 of this title. R. A medical marijuana business license holder shall require all individuals employed under their license to be issued a credential pursuant to the provisions of Section 427.14b of this title prior to employment . S. The Executive Director of the Authority may promulgate rules to implement the provisions of this section including, but not limited to, required application materials to be submitted by the ENGR. S. B. NO. 1039 Page 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 applicant and utilized by the Authority to determine medical marijuana business l icensing fees pursuant to this section. SECTION 3. This act shall become effective November 1, 2025. Passed the Senate the 26th day of March, 2025. Presiding Officer of the Senate Passed the House of Representat ives the ____ day of __________, 2025. Presiding Officer of the House of Representatives