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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
COMMITTEE SUBSTITUTE
FOR
SENATE BILL 1092 By: Guthrie
COMMITTEE SUBSTITUTE
An Act relating to medical marijuana; requiring
certain licensees to submit certain odor control
plan; directing rule promulgation; amending 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), which relates to medical marijuana business
license; requiring submission of certain odor c ontrol
plan; requiring certain affidavit; updating statutory
language; updating statutory reference s; providing
for codification; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 426.2 of Title 63, unless there
is created a duplication in numbering, reads as follows:
A. The Oklahoma Medical Marijuana Authority shall require all
medical marijuana co mmercial growers licensed as an indoor grow
facility operating within the corporate limits of a municipal ity to
submit an odor control plan on or before January 1, 2027. An odor
control plan shall include:
1. Facility information including, but not limit ed to:
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a. the name of the facility,
b. the contact information of the owner or operator,
c. the facility’s physical and mailing address,
d. the facility type,
e. the facility’s hours of operation, and
f. a description of the facility ’s operations;
2. Facility odor emissions information including, but not
limited to:
a. the facility floor plan,
b. odor-emitting activities, and
c. the timing and duration of odor -emitting activities;
and
3. Odor mitigation best management practices , which shall
include:
a. odor mitigation practices to be deployed to control
odor-emitting activities, sources, and locations,
b. how such practices will be utilized, and
c. during what times such practices will be utilized.
B. If a medical marijuana business receives three or mor e odor
nuisance complaints within a thirty -day period, the business shall
be required to submit an odor c ontrol plan to the Authority.
C. The Authority shall promulgate rules as necessary to
implement the provisions of this section.
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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:
Section 427.14. A. There is hereby created the 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 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 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 medical 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,
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nonrefundable license fee shall be based upon the total amount of
square feet of canopy or acres harvested, transferred, or sold by
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 Tho usand Dollars
($5,000.00),
(3) Tier 3: Twenty thousand one (20,001) square feet
of canopy to forty thous and (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 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
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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
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 gro w facility:
(1) Tier 1: Less than two and one -half (2 1/2)
acres, the fee shall be Two Thousand Five Hun dred
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 Five
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),
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(4) Tier 4: More than ten (10) acres up to twenty
(20) acres, the fee shall be Twenty Thousand
Dollars ($20,000.00),
(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 (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 shall be Fifty Thousand
Dollars ($50,000.00) plus an additional Two
Hundred Fifty Dollars ($250.00) p er acre.
c. For a medical marijuana commercial grower that has a
combination of both indoor and outdoor g rowing
facilities at one location, the medical marijuana
commercial grower shall be required to obtain a
separate license from the Authority for each t ype of
grow operation and shall be subject to the licensing
fees provided for in subparagraphs a and b of this
paragraph.
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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 a nd measured and must
include all of the area within the boundaries
where the cultivation of the flowering marijuana
plants occurs. If the surface of t he 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 th e cultivation area
that are used to cultivate immature marijuana
plants and seedlings, prior to flowering, and
that are not used at any time to cultiva te mature
marijuana plants. If the flowering plants are
vertically grown in cylinders, the square footage
of the canopy shall be measured by the
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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 tran smission,
and
(3) “light deprivation” means a structure that has
concrete floors and the ability to manipulate
natural light.
3. The initial, nonrefun dable 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 fol lows:
a. Tier 1: The transfer or sale of zero (0) to ten
thousand (10,000) pounds of biomass or the prod uction,
transfer, or sale of up to one hundred (100) liters of
cannabis concentrate, whichever is greater, the annual
fee shall be Two Thousand Five Hu ndred 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
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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
(150,000) pounds of biomass or the production,
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 ($15,00 0.00), 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 Thousa nd 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
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concentrated marijuana shall be calculated as one (1) liter of
cannabis concentrate.
4. The initial, nonref undable 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
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 renewal as a
medical marijuana bus iness shall comply with the following general
requirements:
1. All applications for licenses and registr ations 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;
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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 for a transporter license, initial
dispensary license, initial processor license, or testing 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 commercial grower applications, renewal
processor applications, and renewal dispensar y 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 p rior to approval 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 individua l, proof that the applicant
is a resident of this state pursuant to paragraph 11
12 of this subsection,
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c. if applying as an entity, proof that seventy -five
percent (75%) of all members, managers, executive
officers, partners, board members or any other fo rm of
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 owners hip 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 Drugs Control, the Oklahoma State Bureau of
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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;
8. There shall be no limit to the number of medical marijuana
business licenses or categories that an in dividual or entity can
apply for or receive, although each application and each category
shall require a separate application, application fee, or lice nse
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 th e licensing
requirements of this section, excluding the following:
a. a commercial grower with a combination of an indoor or
outdoor growing facility o n one parcel 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;
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10. 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 national fingerprint -
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 tw o (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,
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b. a state-issued identification card,
c. a utility bill preceding the date of application,
excluding cellular telephone and Internet bills,
d. a residential property deed to p roperty 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 Oklahoma residence requirement mentioned above;
13. 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 2-301 through
2-304 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 card approved for
identification purposes by the Department of Public
Safety;
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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
with their application a bond as prescribed in Section 427.26 of
this title; and
17. All applicants for a medical marijuana commercial grower
license shall submit an odor control plan pursuant to Section 1 of
this act. Renewal medical marijuana commercial growe r license
applications shall require:
a. a current odor control plan when a licensee ’s odor
control plan is inconsistent with the odor control
plan on file with the Authority, or
b. an affidavit confirming the odor control plan on file
is current.
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 investigations, inspections, and
interviews, and collect all license and application fees before
approving the application.
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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 of this title, improp er 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 of this title. If an
application is rejected for failure to prov ide 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 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
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 application was
submitted to the Authority.
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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 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 t he criminal history of any of its
officers, directors or stockholders indicates that the officer,
director or stockholder has been convicted of a nonvi olent 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 prose cuting
officer, or an officer or employee of the Authority or municipality;
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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 educ ation facility or medical marijuana waste
disposal facility that, after the initiation of a disciplinary
action, has had a medical marijuana license re voked, 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, m edical 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,
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
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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.
K. All applicants an d 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 pro visions
consistent with the zoning where such business is located as
described in the most recent versions of the Oklahoma Uniform
Building Code, the I nternational Building Code and the International
Fire Code, unless granted an exemption by a municipality or
appropriate code enforcement entity.
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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 ma rijuana
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 ($500.00) per week that the license is expired.
Late renewal fees are nonrefundable. A licens e 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 provisi ons of subsection F of
this section. A medical marijuana business license shall remain
unexpired during the pendency of the application for renewal
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
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possession, transfer, or sale of medical marijuana 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 Dangero us Substances
Act.
P. A medical marijuana 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.
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 pro cessor 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 busin ess 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 original
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 locati on. Nothing
shall authorize the Authority 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
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is otherwise authorized by law or a protest is made under the
municipal compliance provisions of Section 426.1 of this title.
R. A medical marijuana business license holder shall require
all individuals employed under their his or her 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 thi s section including, but not
limited to, required application materials to be submitted by the
applicant and utilized by the Authority to determine medical
marijuana business licensing fees pursuant to this section.
SECTION 3. This act shall become effective November 1, 2025.
60-1-1612 CAD 2/20/2025 11:11:37 AM