SENATE FLOOR VERSION - SB398 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION February 11, 2025 AS AMENDED SENATE BILL NO. 398 By: Jech An Act relating to the Uniform Controlled Dangerous Substances Act; amending 63 O.S. 2021, Section 2 -305, as last amended by Section 5, Chapter 308, O.S.L. 2024 (63 O.S. Supp. 2024, Section 2-305), which relates to violations and administrative proceedings; clarifying certain order; modifying administrative procedures for certain order to show cause; limiting jurisdiction and venue for certain actions; providing for quashing or modification of certain subpoenas; updating statutory language; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 63 O.S. 2021, Section 2 -305, as last amended by Section 5, Chapter 308, O.S.L. 2024 (63 O.S. Supp. 2024, Section 2-305), is amended to read as follows: Section 2-305. A. In addition to any other remedies provided for by law, the Director shall issue a written order to show cause to be served on the parties be fore annulling, conditioning, suspending or revoking any registration that the Director has re ason to believe is operating inconsistent with any provision of Section 2-303 of this title, pursuant to Section 2 -304 of this title or otherwise where there has been a violation of any federal law, any rule or regulation of the Drug Enforcement Administration, any provision of the Uniform Controlled Dangerous Substances Act, or any SENATE FLOOR VERSION - SB398 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 rules or regulations of the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control. B. The written order to show cause shall state with specificity the nature of the vi olation or basis for the action. The Director may impose any disciplinary action authorized by the Uniform Controlled Dangerous Substances Act or rules of the Ok lahoma State Bureau of Narcotics and Dangerous Drugs Control including, but not limited to, the assessment of monetary penalties. C. Any written order issued pursuant to the provisions of this section shall become a final order All alleged violations shal l be deemed admitted unless the registrant requests an administrative hearing in accordance wi th the rules and regulations promulgated by the Director within thirty (30) days of issuance of the order to show cause. Upon such request, the Director shall pr omptly initiate administrative proceedings and serve formal notice of the proceedings show cause hearing pursuant to Section 309 of Title 75 of the Oklahoma Statutes. If a registrant fails to request a hearing or fails to appear after requesting a hearing , the Director shall issue a final order of the matter by default. Nothing in this section shall be construed so as to require an individual proceeding for the denial of a new application for registration. D. The Director may authorize the Deputy Directo r or the General Counsel of the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control to initiate any individual proceedings under SENATE FLOOR VERSION - SB398 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 this title. Nothing in this section shall be construed so as to delegate the authority of the Director to issue a f inal agency order of an individual proceeding adverse to a party. If a party fails to request an administrative hearing in a timely manner, the written order as issued shall be deemed adopted by the Director as the final agency order concerning the matter without further action by the Director. E. All proceedings shall be conducted in accordance with the Administrative Procedures Act and the rules and regulations of the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control , except where more spec ific provisions of the Uniform Controlled Dangerous Substances Act apply, without regard to an y criminal prosecution or other proceeding. Jurisdiction and venue for any action related to a registration or an individual proceeding, including any appeal the reof, shall solely exist in the district court of Oklahoma County. 1. Proceedings to refuse renewal, revoke, or suspend a registration shall not abate the existing registration which shall remain in effect pending the outcome of those administrative proceedings; provided, the registrant submits timely and sufficient renewal applications annually. This abatement shall not apply when the Director finds there is an imminent danger to the public health or safety requiring an immediate suspension. SENATE FLOOR VERSION - SB398 SFLR Page 4 (Bold face denotes Committee Amendments) 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. The Director may delegate to an administrative hearing officer the authority to conduct hearings and recommend action for final agency orders in accordance with the rules and regulations of the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control. 3. Any requested subpoena or subpoena duces tecum may be quashed or modified for grounds listed in Section 2004.1 of Title 12 of the Oklahoma Statutes or upon a finding from the Director or hearing officer that the information or testimony being sought is not both necessary and proper to adjudication of the issues identified in the order to show cause. Any subpoena or subpoena duces tecum may be quashed or modified over the objection of any party pursuant to the requirements of this paragraph. F. The Director may issue an order immediately suspending a registration, without notice or a hearing, when he or she finds there is imminent danger to the public health or safety which warrants this such action. The suspension shall continue in effect until the conclusion of any administrative proceedings, including judicial review thereof, unless sooner withdrawn earlier by the Director or dissolved by a court of competent jurisdiction. The order shall state the existence of an emergency requiring action be taken that the Director deems necessary to meet the emergency. Such action may include, but is not limit ed to, ordering the registrant to immediately cease and desist operations. The order shall be effective immediately upon issuance. Any person to whom the order SENATE FLOOR VERSION - SB398 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 is directed shall comply immediately with the provisions of the order. The Director may assess a penalty not to exceed Ten Thousand Dollars ($10,000.00) per day of noncompliance with the order. In assessing such a penalty, the Director shall consider the seriousness of the violation and any efforts to comply with applicable requirements. G. In lieu of or in addition to any other remedies available to the Director, if a finding is made that a registrant has committed any act in violation of federal law re lating to any controlled substance, any provision of the Uniform Controlled Dangerous Substances Act, or any rules of the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the Director is hereby authorized to assess an administrative penalty not to exceed Five Thousand Dollars ($5,000.00) per day for each such act. The provisions of this subsection shall not apply to violations of subsection G of Section 2 -309D of this title. Nothing in this section shall be construed so as to permit the Director of the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control to assess administrative fines for violations of the provisions of subsection G of Section 2 -309D of this title. H. If a judge court of competent jurisdiction finds probable cause that a registrant has possessed, transferred, sold, or offered for sale any controlled danger ous substance in violation of this act the Uniform Controlled Dangerous Substances Act , all controlled SENATE FLOOR VERSION - SB398 SFLR Page 6 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 dangerous substances in Schedule I of Section 2 -204 of this title and all controlled dangerous substances in Schedules II, III, IV, and V that are not in properly labeled containers in accordance with this act then the Uniform Controlled Dangerous Substances Act in the possession of the registrant shall be deemed contraband and shall be seized and summarily forfeited pursuant to Section 2 -505 of this title. Samples shall be retained of all controlled dangerous substances seized in accordance with Section 2 -508 of this title as required. The Director is authorized to may assess an eradication or destruction fine not to exceed Fifty Thousand Dollars ($50,000.00) against the registrant. I. Upon an annulment, revocation, or denial of a registration , the Director may prohibit the registrant or applicant from reapplying for registration for a period up to five (5) years following the date of the final order. T he length of any prohibition shall not be used as grounds to contest the validity of the annulment, revocation, or denial of a registration. SECTION 2. It being immediately necessary for 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 JUDICIARY February 11, 2025 - DO PASS AS AMENDED