Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB643 Compare Versions

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5353 STATE OF OKLAHOMA
5454
5555 1st Session of the 60th Legislature (2025)
5656
5757 SENATE BILL 643 By: Paxton
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6363 AS INTRODUCED
6464
6565 An Act relating to medical marijuana; amending 63
6666 O.S. 2021, Sections 421, as last amended by Section
6767 4, Chapter 182, O.S.L. 2024, 422, a s last amended by
6868 Section 1, Chapter 447, O.S.L. 2024, and 423, as last
6969 amended by Section 8, Chapter 182, O.S.L. 2024 (63
7070 O.S. Supp. 2024, Sections 421, 422, and 423), which
7171 relate to licenses; modifying certain ownership
7272 residency requirements; imposing residency and
7373 citizenship requirements on employees and owners of
7474 certain facilities; updating statutory language;
7575 authorizing certain application requirement; defining
7676 terms; providing for codification; and providing an
7777 effective date.
7878
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8181 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
8282 SECTION 1. AMENDATORY 63 O.S. 2021, Section 421, as last
8383 amended by Section 4, Chapter 182, O.S.L. 2024 (63 O.S. Supp. 2024,
8484 Section 421), is amended to read as follows:
8585 Section 421. A. The Oklahoma Medical Marijuana Authority shall
8686 make available on its websi te in an easy-to-find location an
8787 application for a medical marijuana dispensary license. The
8888 application fee to be paid by the applicant shall be in the amounts
8989 provided for in Section 427.14 of this title. A method of payment
9090 for the application fee shall be provided on the website of the
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142142 Authority. Dispensary applicants must all be residents of Oklahoma.
143143 Any entity applying for a dispensary license must be owned by a
144144 resident of this state and must be registered to do business in this
145145 state. The Authority shall have ninety (90) business days to review
146146 the application; approve, reject, or deny the application; and send
147147 the approval, rejection, or denial letter stating reason s for the
148148 rejection or denial to the applicant in the same method the
149149 application was submitted to the Authority.
150150 B. The Authority shall approve all applications which meet the
151151 following criteria:
152152 1. The applicant must be twenty -five (25) years of age or
153153 older;
154154 2. The applicant, if applying as an individual, must show
155155 residency in this state;
156156 3. All applying entities must show that all members, managers,
157157 and board members are residents of this state;
158158 4. An applying entity may show ownership of nonstate residents,
159159 but that percentage ownership may not exceed twenty -five percent
160160 (25%) shall not have ownership by nonresidents of this state;
161161 5. All applying individuals or entities must be registered to
162162 conduct business in this state; and
163163 6. All applicants must disclose all ownership interests in the
164164 dispensary.
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216216 Applicants with a no nviolent felony conviction in the last two
217217 (2) years, any other felony conviction in the last five (5) years,
218218 inmates in the custody of the Department of Corrections or any
219219 person currently incarcerated shall not qualify for a medical
220220 marijuana dispensary license.
221221 C. Licensed medical marijuana dispensaries shall be required to
222222 complete a monthly sales report to the Authority. This report shall
223223 be due on the fifteenth of each mon th and provide reporting on the
224224 previous month. This report shall detail the weight of marijuana
225225 purchased at wholesale and the weight of marijuana sold to licensed
226226 medical marijuana patients and licensed caregivers and account for
227227 any waste. The report shall show total sales in dollars, tax
228228 collected in dollars, and tax due in dollars. The Authority shall
229229 have oversight and auditing responsibilities to ensure that all
230230 marijuana being grown is accounted for.
231231 D. Only a licensed medical marijuana dispensa ry may conduct
232232 retail sales of marijuana or marijuana derivatives. Beginning on
233233 November 1, 2021, licensed medical marijuana dispensaries shall be
234234 authorized to package and sell pre -rolled marijuana to licensed
235235 medical marijuana patients and licensed care givers. The products
236236 described in this subsection shall contain only the ground parts of
237237 the marijuana plant and shall not include marijuana concentrates or
238238 derivatives. The total net weight of each pre -roll packaged and
239239 sold by a medical marijuana dispe nsary shall not exceed one (1)
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290290
291291 gram. These products shall be tested, packaged and labeled in
292292 accordance with state law and rules promulgated by the Executive
293293 Director of the Oklahoma Medical Marijuana Authority.
294294 E. No medical marijuana dispensary shall o ffer or allow a
295295 medical marijuana patient licensee, caregiver licensee or other
296296 member of the public to handle or otherwise have physical contact
297297 with any medical marijuana not contained in a sealed or separate
298298 package. Provided, such prohibition shall no t preclude an employee
299299 of the medical marijuana dispensary from handling loose or
300300 nonpackaged medical marijuana to be placed in packaging consistent
301301 with the Oklahoma Medical Marijuana and Patient Protection Act and
302302 the rules promulgated by the Executive D irector for the packaging of
303303 medical marijuana for retail sale. Provided , further, such
304304 prohibition shall not prevent a medical marijuana dispensary from
305305 displaying samples of its medical marijuana in separate display
306306 cases, jars or other containers and a llowing medical marijuana
307307 patient licensees and caregiver licensees the abilit y to handle or
308308 smell the various samples as long as the sample medical marijuana is
309309 used for display purposes only and is not offered for retail sale.
310310 SECTION 2. AMENDATORY 63 O.S. 2021, Section 422, as last
311311 amended by Section 1, Chapter 447, O.S.L. 2024 (63 O.S. Supp. 2024,
312312 Section 422), is amended to read as follows:
313313 Section 422. A. The Oklahoma Medical Marijuana Authority shall
314314 make available on its website in an easy-to-find location an
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366366 application for a medical marijuana com mercial grower license. The
367367 application fee shall be paid by the applicant in the amounts
368368 provided for in Section 427.14 of this title. A method of payment
369369 for the application fee shall be provided on the website of the
370370 Authority. The Authority shall have ninety (90) business days to
371371 review the application; approve, reject, or deny the application;
372372 and send the approval, rejection, or denial letter stating the
373373 reasons for the rejection or denial to the applicant in the same
374374 method the application was sub mitted to the Authority.
375375 B. The Authority shall approve all applications which meet the
376376 following criteria:
377377 1. The applicant must be twenty -five (25) years of age or
378378 older;
379379 2. The applicant, if applying as an individual, must show
380380 residency in this state;
381381 3. All applying entities must show that all members, managers,
382382 and board members are Oklahoma residents;
383383 4. An applying entity may show ownership of non -Oklahoma
384384 residents, but that percentage ownership may not exceed twenty -five
385385 percent (25%) shall not have ownership by nonresidents of this
386386 state;
387387 5. All applying individuals or entities must be registered to
388388 conduct business in this state; and
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440440 6. All applicants must disclo se all ownership interests in the
441441 commercial grower operation.
442442 Applicants with a nonviolent felony conviction in the last two
443443 (2) years, any other felony conviction in the last five (5) years,
444444 inmates in the custody of the Department of Corrections or any
445445 person currently incarcerated shall not qualify for a commercial
446446 grower license.
447447 C. A licensed medical marijuana commercial grower may sell
448448 marijuana to a licensed medical marijuana dispensary or a licensed
449449 medical marijuana processor. Further, sales by a licensed medical
450450 marijuana commercial grower shall be considered wholesale sales and
451451 shall not be subject to taxation. Under no circumstances may a
452452 licensed medical marijuana commercial grower sell marijuana directly
453453 to a licensed medical marijuana pati ent or licensed medical
454454 marijuana caregiver. A licensed medical marijuana com mercial grower
455455 may only sell at the wholesale level to a licensed medical marijuana
456456 dispensary, a licensed medical marijuana commercial grower or a
457457 licensed medical marijuana pro cessor. If the federal government
458458 lifts restrictions on buying and selling marijuana between states,
459459 then a licensed medical marijuana commercial grower would be allowed
460460 to sell and buy marijuana wholesale from, or to, an out -of-state
461461 wholesale provider. A licensed medical marijuana commercial grower
462462 shall be required to complete a monthly yield and sales report to
463463 the Authority. This report shall be due on the fifteenth of each
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515515 month and provide reporting on the previous month. This report
516516 shall detail the amount of marijuana harvested in pounds, the amount
517517 of drying or dried marijuana on hand, the amount of marijuana sold
518518 to licensed processors in pounds, the amount of waste in pounds, and
519519 the amount of marijuana sold to licensed medical marijuana
520520 dispensaries in pounds. Additionally, this report shall show total
521521 wholesale sales in dollars. The Authority shall have oversight and
522522 auditing responsibilities to ensure that all marijuana being grown
523523 by licensed medical marijuana commercial growers is accou nted for.
524524 D. There shall be no limits on how much marijuana a licensed
525525 medical marijuana commercial grower can grow.
526526 E. Beginning on November 1, 2021, licensed medical marijuana
527527 commercial growers shall be authorized to package and sell pre -
528528 rolled marijuana to licensed medical marijuana dispensaries. The
529529 products described in thi s subsection shall contain only the ground
530530 parts of the marijuana plant and shall not include marijuana
531531 concentrates or derivatives. The total net weight of each pre -roll
532532 packaged and sold by licensed medical marijuana commercial growers
533533 shall not exceed one (1) gram. These final products must be tested,
534534 packaged and labeled in accordance with Oklahoma law and rules
535535 promulgated by the Authority.
536536 F. Beginning November 1, 2022, a ll medical marijuana commercial
537537 grower licensees who operate an outdoor medica l marijuana production
538538 facility shall be required to register with the Oklahoma Department
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590590 of Agriculture, Food, and Forestry as an environmentally sensitive
591591 crop owner. Registr ation shall provide notice to commercial and
592592 private pesticide applicators of the locations of medical marijuana
593593 crops and help minimize the potential for damaging pesticide drift.
594594 Medical marijuana commercial grower licensees shall provide their
595595 business name, address, Global Positioning System (GPS) coordinates
596596 for all outdoor medical marijuana production facilities, and any
597597 other information required by the Department when registering with
598598 the Environmentally Sensitive Area Registry.
599599 SECTION 3. AMENDATORY 63 O.S. 2021, Section 423, as last
600600 amended by Section 8, Chapter 182, O.S.L. 2024 (63 O.S. Supp. 2024,
601601 Section 423), is amended to read as follows:
602602 Section 423. A. The Oklahoma Medical Marijuana Authority shall
603603 make available on its website in an easy -to-find location an
604604 application for a medical marij uana processing license. The
605605 Authority shall be authorized to issue two types of medical
606606 marijuana processor licenses based on the level of risk posed by the
607607 type of processing conducted:
608608 1. Nonhazardous medical marijuana processor license; and
609609 2. Hazardous medical marijuana processor license.
610610 The application fee for a nonhazardous or hazardous medical
611611 marijuana processor license shall be paid by the applicant in the
612612 amounts provided for in Section 427.14 of this title. A method of
613613 payment shall be prov ided on the website of the Authority. The
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665665 Authority shall have ninety (90) business days to review the
666666 application; approve, reject, or deny the application; and send the
667667 approval, rejection, or denial letter stating the reasons for the
668668 rejection or denial to the applicant in the same method the
669669 application was submitted to the Authority.
670670 B. The Authority shall approve all applications which meet the
671671 following criteria:
672672 1. The applicant must be twenty -five (25) years of age or
673673 older;
674674 2. The applicant, i f applying as an individual, must show
675675 residency in this state;
676676 3. All applying entities must show that all members, managers,
677677 and board members are Oklahoma residents of this state;
678678 4. An applying entity may show ownership of nonstate residents,
679679 but that percentage ownership may not exceed twenty -five percent
680680 (25%) shall not have ownership by nonresidents of this state;
681681 5. All applying individuals or entities must be registere d to
682682 conduct business in this state; and
683683 6. All applicants must disclose all ownership interests in the
684684 processing operation.
685685 Applicants with a nonviolent felony conviction in the last two
686686 (2) years, any other felony conviction in the last five (5) years,
687687 inmates in the custody of the Department of Corrections or any
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739739 person currently incarcerated shall not qualify for a medical
740740 marijuana processing license.
741741 C. 1. A licensed processor may take marijuana plants and
742742 distill or process these plants into conc entrates, edibles, and
743743 other forms for consumption.
744744 2. The Executive Director of the Authority shall make available
745745 a set of standards which shall be used by licensed processors in the
746746 preparation of edible marijuana products. The standards should be
747747 in line with current food preparation guidelines. No excessive or
748748 punitive rules may be established by the Executive Director.
749749 3. Up to two times a year, the Authority may inspect a
750750 processing operation and determine its compliance with the
751751 preparation standards. If deficiencies are found, a written report
752752 of the deficiency shall be issued to the licensed processor. The
753753 licensed processor shall have one (1) month to correct the
754754 deficiency or be subject to a fine of Five Hundred Dollars ($500.00)
755755 for each deficiency.
756756 4. A licensed processor may sell marijuana products it creates
757757 to a licensed dispensary or any other licensed processor. All sales
758758 by a licensed processor shall be considered wholesale sales and
759759 shall not be subject to taxation.
760760 5. Under no circumstances may a licensed processor sell
761761 marijuana or any marijuana product directly to a licensed medical
762762 marijuana patient or licensed caregiver. However, a licensed
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814814 processor may process cannabis into a concentrated form for a
815815 licensed medical mariju ana patient for a fee.
816816 6. Licensed processors shall be required to complete a monthly
817817 yield and sales report to the Authority. This report shall be due
818818 on the fifteenth of each month and shall provide reporting on the
819819 previous month. This report shall d etail the amount of marijuana
820820 and medical marijuana products purchased in poun ds, the amount of
821821 marijuana cooked or processed in pounds, and the amount of waste in
822822 pounds. Additionally, this report shall show total wholesale sales
823823 in dollars. The Authori ty shall have oversight and auditing
824824 responsibilities to ensure that all marijuana being processed is
825825 accounted for.
826826 D. The Authority shall oversee the inspection and compliance of
827827 licensed processors producing products with marijuana as an
828828 additive. If it becomes permissible under federal law, marijuana
829829 may be moved across state lines.
830830 E. Any device used for the processing or consumption of medical
831831 marijuana shall be considered legal to be sold, manufactured,
832832 distributed and possessed. No merchant, who lesaler, manufacturer or
833833 individual may be unduly harassed or prosecuted for selling,
834834 manufacturing or possessing marijuana paraphernalia.
835835 SECTION 4. NEW LAW A new section of law to be codified
836836 in the Oklahoma Statutes as Section 427.30 of Title 63, unless there
837837 is created a duplication in numbering, reads as follows:
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889889 A. The Oklahoma Medical Marijuana Authority shall require all
890890 employees and owners of medical marijuana facilities to be citizens,
891891 lawful permanent residents, or tempo rary residents of the United
892892 States. The Authority may require that such residency be made as
893893 part of an individual’s application for a license, permit,
894894 identification card, or credential authorizing the individual to be
895895 an employee of a medical marijuana facility.
896896 B. As used in this section:
897897 1. “Employee” means any natural perso n who:
898898 a. grows, harvests, dries, cures, purchases, sells,
899899 transfers, transports, processes, produces,
900900 manufactures, creates, or packages medical marijuana,
901901 medical marijuana pro ducts, or medical marijuana waste
902902 on behalf of or for a licensed medical marijuana
903903 commercial grower, processor, or dispensary,
904904 b. samples, trains, or educates on behalf of or for a
905905 licensed medical marijuana education or research
906906 facility,
907907 c. disposes of or transports medical marijuana, medical
908908 marijuana products, and medical marij uana waste on
909909 behalf of or for a licensed medical marijuana waste
910910 disposal facility,
911911
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962962 d. tests and conducts research on medical marijuana and
963963 medical marijuana products on behalf of or for a
964964 medical marijuana licensed testing laboratory,
965965 e. transports, stores, and distributes, but does not take
966966 ownership of, medical marijuana and medical marijuana
967967 products on behalf of or for a licensed medical
968968 marijuana commercial transporter,
969969 f. tracks, traces, reports, and inputs any information
970970 into the state inventory t racking system on behalf of
971971 or for a licensed medical marijuana commercial license
972972 holder, or
973973 g. conducts any other additional business for the benefit
974974 of a medical marijuana com mercial license holder as
975975 authorized by rules promulgated by the Executive
976976 Director of the Authority, with the exception of
977977 professional services not involved in the handling of
978978 medical marijuana, medical marijuana products, or
979979 medical marijuana concentrat es;
980980 2. “Medical marijuana facility ” means an entity licensed or
981981 certified by the Authority to acquire, cultivate, process,
982982 manufacture, test, store, sell, transport, or deliver medical
983983 marijuana; and
984984 3. “Owner” means a direct beneficial owner including, but not
985985 limited to, all persons or entities as follows:
986986
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10371037 a. all shareholders owning an interest of a corporate
10381038 entity and all officers of a corporate entity,
10391039 b. all partners of a general partnership,
10401040 c. all general partners and all limited partners that own
10411041 an interest in a limited partnership,
10421042 d. all members that own an interest in a limited
10431043 liability company,
10441044 e. all beneficiaries that hold a beneficial interest in a
10451045 trust and all trustees of a trust,
10461046 f. all persons or entities that own interest in a joint
10471047 venture,
10481048 g. all persons or entities that own an interest in an
10491049 association,
10501050 h. the owners of any other type of legal entity, and
10511051 i. any other person holding an interest or convertible
10521052 note in any entity which owns, operates, or manages a
10531053 licensed medical marijuana facility.
10541054 SECTION 5. This act shall become effective November 1, 2025.
10551055
10561056 60-1-1446 CAD 1/14/2025 1:44:02 PM