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52 | 52 | | |
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53 | 53 | | STATE OF OKLAHOMA |
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54 | 54 | | |
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55 | 55 | | 1st Session of the 60th Legislature (2025) |
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56 | 56 | | |
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57 | 57 | | SENATE BILL 643 By: Paxton |
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58 | 58 | | |
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59 | 59 | | |
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60 | 60 | | |
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61 | 61 | | |
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62 | 62 | | |
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63 | 63 | | AS INTRODUCED |
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64 | 64 | | |
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65 | 65 | | An Act relating to medical marijuana; amending 63 |
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66 | 66 | | O.S. 2021, Sections 421, as last amended by Section |
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67 | 67 | | 4, Chapter 182, O.S.L. 2024, 422, a s last amended by |
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68 | 68 | | Section 1, Chapter 447, O.S.L. 2024, and 423, as last |
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69 | 69 | | amended by Section 8, Chapter 182, O.S.L. 2024 (63 |
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70 | 70 | | O.S. Supp. 2024, Sections 421, 422, and 423), which |
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71 | 71 | | relate to licenses; modifying certain ownership |
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72 | 72 | | residency requirements; imposing residency and |
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73 | 73 | | citizenship requirements on employees and owners of |
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74 | 74 | | certain facilities; updating statutory language; |
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75 | 75 | | authorizing certain application requirement; defining |
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76 | 76 | | terms; providing for codification; and providing an |
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77 | 77 | | effective date. |
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78 | 78 | | |
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79 | 79 | | |
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80 | 80 | | |
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81 | 81 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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82 | 82 | | SECTION 1. AMENDATORY 63 O.S. 2021, Section 421, as last |
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83 | 83 | | amended by Section 4, Chapter 182, O.S.L. 2024 (63 O.S. Supp. 2024, |
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84 | 84 | | Section 421), is amended to read as follows: |
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85 | 85 | | Section 421. A. The Oklahoma Medical Marijuana Authority shall |
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86 | 86 | | make available on its websi te in an easy-to-find location an |
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87 | 87 | | application for a medical marijuana dispensary license. The |
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88 | 88 | | application fee to be paid by the applicant shall be in the amounts |
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89 | 89 | | provided for in Section 427.14 of this title. A method of payment |
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90 | 90 | | for the application fee shall be provided on the website of the |
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91 | 91 | | |
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92 | 92 | | |
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141 | 141 | | |
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142 | 142 | | Authority. Dispensary applicants must all be residents of Oklahoma. |
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143 | 143 | | Any entity applying for a dispensary license must be owned by a |
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144 | 144 | | resident of this state and must be registered to do business in this |
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145 | 145 | | state. The Authority shall have ninety (90) business days to review |
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146 | 146 | | the application; approve, reject, or deny the application; and send |
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147 | 147 | | the approval, rejection, or denial letter stating reason s for the |
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148 | 148 | | rejection or denial to the applicant in the same method the |
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149 | 149 | | application was submitted to the Authority. |
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150 | 150 | | B. The Authority shall approve all applications which meet the |
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151 | 151 | | following criteria: |
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152 | 152 | | 1. The applicant must be twenty -five (25) years of age or |
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153 | 153 | | older; |
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154 | 154 | | 2. The applicant, if applying as an individual, must show |
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155 | 155 | | residency in this state; |
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156 | 156 | | 3. All applying entities must show that all members, managers, |
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157 | 157 | | and board members are residents of this state; |
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158 | 158 | | 4. An applying entity may show ownership of nonstate residents, |
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159 | 159 | | but that percentage ownership may not exceed twenty -five percent |
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160 | 160 | | (25%) shall not have ownership by nonresidents of this state; |
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161 | 161 | | 5. All applying individuals or entities must be registered to |
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162 | 162 | | conduct business in this state; and |
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163 | 163 | | 6. All applicants must disclose all ownership interests in the |
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164 | 164 | | dispensary. |
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165 | 165 | | |
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215 | 215 | | |
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216 | 216 | | Applicants with a no nviolent felony conviction in the last two |
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217 | 217 | | (2) years, any other felony conviction in the last five (5) years, |
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218 | 218 | | inmates in the custody of the Department of Corrections or any |
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219 | 219 | | person currently incarcerated shall not qualify for a medical |
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220 | 220 | | marijuana dispensary license. |
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221 | 221 | | C. Licensed medical marijuana dispensaries shall be required to |
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222 | 222 | | complete a monthly sales report to the Authority. This report shall |
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223 | 223 | | be due on the fifteenth of each mon th and provide reporting on the |
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224 | 224 | | previous month. This report shall detail the weight of marijuana |
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225 | 225 | | purchased at wholesale and the weight of marijuana sold to licensed |
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226 | 226 | | medical marijuana patients and licensed caregivers and account for |
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227 | 227 | | any waste. The report shall show total sales in dollars, tax |
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228 | 228 | | collected in dollars, and tax due in dollars. The Authority shall |
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229 | 229 | | have oversight and auditing responsibilities to ensure that all |
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230 | 230 | | marijuana being grown is accounted for. |
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231 | 231 | | D. Only a licensed medical marijuana dispensa ry may conduct |
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232 | 232 | | retail sales of marijuana or marijuana derivatives. Beginning on |
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233 | 233 | | November 1, 2021, licensed medical marijuana dispensaries shall be |
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234 | 234 | | authorized to package and sell pre -rolled marijuana to licensed |
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235 | 235 | | medical marijuana patients and licensed care givers. The products |
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236 | 236 | | described in this subsection shall contain only the ground parts of |
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237 | 237 | | the marijuana plant and shall not include marijuana concentrates or |
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238 | 238 | | derivatives. The total net weight of each pre -roll packaged and |
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239 | 239 | | sold by a medical marijuana dispe nsary shall not exceed one (1) |
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240 | 240 | | |
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241 | 241 | | |
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290 | 290 | | |
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291 | 291 | | gram. These products shall be tested, packaged and labeled in |
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292 | 292 | | accordance with state law and rules promulgated by the Executive |
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293 | 293 | | Director of the Oklahoma Medical Marijuana Authority. |
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294 | 294 | | E. No medical marijuana dispensary shall o ffer or allow a |
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295 | 295 | | medical marijuana patient licensee, caregiver licensee or other |
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296 | 296 | | member of the public to handle or otherwise have physical contact |
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297 | 297 | | with any medical marijuana not contained in a sealed or separate |
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298 | 298 | | package. Provided, such prohibition shall no t preclude an employee |
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299 | 299 | | of the medical marijuana dispensary from handling loose or |
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300 | 300 | | nonpackaged medical marijuana to be placed in packaging consistent |
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301 | 301 | | with the Oklahoma Medical Marijuana and Patient Protection Act and |
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302 | 302 | | the rules promulgated by the Executive D irector for the packaging of |
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303 | 303 | | medical marijuana for retail sale. Provided , further, such |
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304 | 304 | | prohibition shall not prevent a medical marijuana dispensary from |
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305 | 305 | | displaying samples of its medical marijuana in separate display |
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306 | 306 | | cases, jars or other containers and a llowing medical marijuana |
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307 | 307 | | patient licensees and caregiver licensees the abilit y to handle or |
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308 | 308 | | smell the various samples as long as the sample medical marijuana is |
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309 | 309 | | used for display purposes only and is not offered for retail sale. |
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310 | 310 | | SECTION 2. AMENDATORY 63 O.S. 2021, Section 422, as last |
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311 | 311 | | amended by Section 1, Chapter 447, O.S.L. 2024 (63 O.S. Supp. 2024, |
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312 | 312 | | Section 422), is amended to read as follows: |
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313 | 313 | | Section 422. A. The Oklahoma Medical Marijuana Authority shall |
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314 | 314 | | make available on its website in an easy-to-find location an |
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315 | 315 | | |
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316 | 316 | | |
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365 | 365 | | |
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366 | 366 | | application for a medical marijuana com mercial grower license. The |
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367 | 367 | | application fee shall be paid by the applicant in the amounts |
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368 | 368 | | provided for in Section 427.14 of this title. A method of payment |
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369 | 369 | | for the application fee shall be provided on the website of the |
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370 | 370 | | Authority. The Authority shall have ninety (90) business days to |
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371 | 371 | | review the application; approve, reject, or deny the application; |
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372 | 372 | | and send the approval, rejection, or denial letter stating the |
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373 | 373 | | reasons for the rejection or denial to the applicant in the same |
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374 | 374 | | method the application was sub mitted to the Authority. |
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375 | 375 | | B. The Authority shall approve all applications which meet the |
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376 | 376 | | following criteria: |
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377 | 377 | | 1. The applicant must be twenty -five (25) years of age or |
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378 | 378 | | older; |
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379 | 379 | | 2. The applicant, if applying as an individual, must show |
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380 | 380 | | residency in this state; |
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381 | 381 | | 3. All applying entities must show that all members, managers, |
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382 | 382 | | and board members are Oklahoma residents; |
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383 | 383 | | 4. An applying entity may show ownership of non -Oklahoma |
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384 | 384 | | residents, but that percentage ownership may not exceed twenty -five |
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385 | 385 | | percent (25%) shall not have ownership by nonresidents of this |
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386 | 386 | | state; |
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387 | 387 | | 5. All applying individuals or entities must be registered to |
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388 | 388 | | conduct business in this state; and |
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389 | 389 | | |
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390 | 390 | | |
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440 | 440 | | 6. All applicants must disclo se all ownership interests in the |
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441 | 441 | | commercial grower operation. |
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442 | 442 | | Applicants with a nonviolent felony conviction in the last two |
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443 | 443 | | (2) years, any other felony conviction in the last five (5) years, |
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444 | 444 | | inmates in the custody of the Department of Corrections or any |
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445 | 445 | | person currently incarcerated shall not qualify for a commercial |
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446 | 446 | | grower license. |
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447 | 447 | | C. A licensed medical marijuana commercial grower may sell |
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448 | 448 | | marijuana to a licensed medical marijuana dispensary or a licensed |
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449 | 449 | | medical marijuana processor. Further, sales by a licensed medical |
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450 | 450 | | marijuana commercial grower shall be considered wholesale sales and |
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451 | 451 | | shall not be subject to taxation. Under no circumstances may a |
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452 | 452 | | licensed medical marijuana commercial grower sell marijuana directly |
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453 | 453 | | to a licensed medical marijuana pati ent or licensed medical |
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454 | 454 | | marijuana caregiver. A licensed medical marijuana com mercial grower |
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455 | 455 | | may only sell at the wholesale level to a licensed medical marijuana |
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456 | 456 | | dispensary, a licensed medical marijuana commercial grower or a |
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457 | 457 | | licensed medical marijuana pro cessor. If the federal government |
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458 | 458 | | lifts restrictions on buying and selling marijuana between states, |
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459 | 459 | | then a licensed medical marijuana commercial grower would be allowed |
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460 | 460 | | to sell and buy marijuana wholesale from, or to, an out -of-state |
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461 | 461 | | wholesale provider. A licensed medical marijuana commercial grower |
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462 | 462 | | shall be required to complete a monthly yield and sales report to |
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463 | 463 | | the Authority. This report shall be due on the fifteenth of each |
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464 | 464 | | |
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514 | 514 | | |
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515 | 515 | | month and provide reporting on the previous month. This report |
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516 | 516 | | shall detail the amount of marijuana harvested in pounds, the amount |
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517 | 517 | | of drying or dried marijuana on hand, the amount of marijuana sold |
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518 | 518 | | to licensed processors in pounds, the amount of waste in pounds, and |
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519 | 519 | | the amount of marijuana sold to licensed medical marijuana |
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520 | 520 | | dispensaries in pounds. Additionally, this report shall show total |
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521 | 521 | | wholesale sales in dollars. The Authority shall have oversight and |
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522 | 522 | | auditing responsibilities to ensure that all marijuana being grown |
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523 | 523 | | by licensed medical marijuana commercial growers is accou nted for. |
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524 | 524 | | D. There shall be no limits on how much marijuana a licensed |
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525 | 525 | | medical marijuana commercial grower can grow. |
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526 | 526 | | E. Beginning on November 1, 2021, licensed medical marijuana |
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527 | 527 | | commercial growers shall be authorized to package and sell pre - |
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528 | 528 | | rolled marijuana to licensed medical marijuana dispensaries. The |
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529 | 529 | | products described in thi s subsection shall contain only the ground |
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530 | 530 | | parts of the marijuana plant and shall not include marijuana |
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531 | 531 | | concentrates or derivatives. The total net weight of each pre -roll |
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532 | 532 | | packaged and sold by licensed medical marijuana commercial growers |
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533 | 533 | | shall not exceed one (1) gram. These final products must be tested, |
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534 | 534 | | packaged and labeled in accordance with Oklahoma law and rules |
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535 | 535 | | promulgated by the Authority. |
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536 | 536 | | F. Beginning November 1, 2022, a ll medical marijuana commercial |
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537 | 537 | | grower licensees who operate an outdoor medica l marijuana production |
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538 | 538 | | facility shall be required to register with the Oklahoma Department |
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539 | 539 | | |
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540 | 540 | | |
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590 | 590 | | of Agriculture, Food, and Forestry as an environmentally sensitive |
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591 | 591 | | crop owner. Registr ation shall provide notice to commercial and |
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592 | 592 | | private pesticide applicators of the locations of medical marijuana |
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593 | 593 | | crops and help minimize the potential for damaging pesticide drift. |
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594 | 594 | | Medical marijuana commercial grower licensees shall provide their |
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595 | 595 | | business name, address, Global Positioning System (GPS) coordinates |
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596 | 596 | | for all outdoor medical marijuana production facilities, and any |
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597 | 597 | | other information required by the Department when registering with |
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598 | 598 | | the Environmentally Sensitive Area Registry. |
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599 | 599 | | SECTION 3. AMENDATORY 63 O.S. 2021, Section 423, as last |
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600 | 600 | | amended by Section 8, Chapter 182, O.S.L. 2024 (63 O.S. Supp. 2024, |
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601 | 601 | | Section 423), is amended to read as follows: |
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602 | 602 | | Section 423. A. The Oklahoma Medical Marijuana Authority shall |
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603 | 603 | | make available on its website in an easy -to-find location an |
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604 | 604 | | application for a medical marij uana processing license. The |
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605 | 605 | | Authority shall be authorized to issue two types of medical |
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606 | 606 | | marijuana processor licenses based on the level of risk posed by the |
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607 | 607 | | type of processing conducted: |
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608 | 608 | | 1. Nonhazardous medical marijuana processor license; and |
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609 | 609 | | 2. Hazardous medical marijuana processor license. |
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610 | 610 | | The application fee for a nonhazardous or hazardous medical |
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611 | 611 | | marijuana processor license shall be paid by the applicant in the |
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612 | 612 | | amounts provided for in Section 427.14 of this title. A method of |
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613 | 613 | | payment shall be prov ided on the website of the Authority. The |
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614 | 614 | | |
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615 | 615 | | |
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664 | 664 | | |
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665 | 665 | | Authority shall have ninety (90) business days to review the |
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666 | 666 | | application; approve, reject, or deny the application; and send the |
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667 | 667 | | approval, rejection, or denial letter stating the reasons for the |
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668 | 668 | | rejection or denial to the applicant in the same method the |
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669 | 669 | | application was submitted to the Authority. |
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670 | 670 | | B. The Authority shall approve all applications which meet the |
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671 | 671 | | following criteria: |
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672 | 672 | | 1. The applicant must be twenty -five (25) years of age or |
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673 | 673 | | older; |
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674 | 674 | | 2. The applicant, i f applying as an individual, must show |
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675 | 675 | | residency in this state; |
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676 | 676 | | 3. All applying entities must show that all members, managers, |
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677 | 677 | | and board members are Oklahoma residents of this state; |
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678 | 678 | | 4. An applying entity may show ownership of nonstate residents, |
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679 | 679 | | but that percentage ownership may not exceed twenty -five percent |
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680 | 680 | | (25%) shall not have ownership by nonresidents of this state; |
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681 | 681 | | 5. All applying individuals or entities must be registere d to |
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682 | 682 | | conduct business in this state; and |
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683 | 683 | | 6. All applicants must disclose all ownership interests in the |
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684 | 684 | | processing operation. |
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685 | 685 | | Applicants with a nonviolent felony conviction in the last two |
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686 | 686 | | (2) years, any other felony conviction in the last five (5) years, |
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687 | 687 | | inmates in the custody of the Department of Corrections or any |
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688 | 688 | | |
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689 | 689 | | |
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738 | 738 | | |
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739 | 739 | | person currently incarcerated shall not qualify for a medical |
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740 | 740 | | marijuana processing license. |
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741 | 741 | | C. 1. A licensed processor may take marijuana plants and |
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742 | 742 | | distill or process these plants into conc entrates, edibles, and |
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743 | 743 | | other forms for consumption. |
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744 | 744 | | 2. The Executive Director of the Authority shall make available |
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745 | 745 | | a set of standards which shall be used by licensed processors in the |
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746 | 746 | | preparation of edible marijuana products. The standards should be |
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747 | 747 | | in line with current food preparation guidelines. No excessive or |
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748 | 748 | | punitive rules may be established by the Executive Director. |
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749 | 749 | | 3. Up to two times a year, the Authority may inspect a |
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750 | 750 | | processing operation and determine its compliance with the |
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751 | 751 | | preparation standards. If deficiencies are found, a written report |
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752 | 752 | | of the deficiency shall be issued to the licensed processor. The |
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753 | 753 | | licensed processor shall have one (1) month to correct the |
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754 | 754 | | deficiency or be subject to a fine of Five Hundred Dollars ($500.00) |
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755 | 755 | | for each deficiency. |
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756 | 756 | | 4. A licensed processor may sell marijuana products it creates |
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757 | 757 | | to a licensed dispensary or any other licensed processor. All sales |
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758 | 758 | | by a licensed processor shall be considered wholesale sales and |
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759 | 759 | | shall not be subject to taxation. |
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760 | 760 | | 5. Under no circumstances may a licensed processor sell |
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761 | 761 | | marijuana or any marijuana product directly to a licensed medical |
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762 | 762 | | marijuana patient or licensed caregiver. However, a licensed |
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763 | 763 | | |
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764 | 764 | | |
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813 | 813 | | |
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814 | 814 | | processor may process cannabis into a concentrated form for a |
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815 | 815 | | licensed medical mariju ana patient for a fee. |
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816 | 816 | | 6. Licensed processors shall be required to complete a monthly |
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817 | 817 | | yield and sales report to the Authority. This report shall be due |
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818 | 818 | | on the fifteenth of each month and shall provide reporting on the |
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819 | 819 | | previous month. This report shall d etail the amount of marijuana |
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820 | 820 | | and medical marijuana products purchased in poun ds, the amount of |
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821 | 821 | | marijuana cooked or processed in pounds, and the amount of waste in |
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822 | 822 | | pounds. Additionally, this report shall show total wholesale sales |
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823 | 823 | | in dollars. The Authori ty shall have oversight and auditing |
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824 | 824 | | responsibilities to ensure that all marijuana being processed is |
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825 | 825 | | accounted for. |
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826 | 826 | | D. The Authority shall oversee the inspection and compliance of |
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827 | 827 | | licensed processors producing products with marijuana as an |
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828 | 828 | | additive. If it becomes permissible under federal law, marijuana |
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829 | 829 | | may be moved across state lines. |
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830 | 830 | | E. Any device used for the processing or consumption of medical |
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831 | 831 | | marijuana shall be considered legal to be sold, manufactured, |
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832 | 832 | | distributed and possessed. No merchant, who lesaler, manufacturer or |
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833 | 833 | | individual may be unduly harassed or prosecuted for selling, |
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834 | 834 | | manufacturing or possessing marijuana paraphernalia. |
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835 | 835 | | SECTION 4. NEW LAW A new section of law to be codified |
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836 | 836 | | in the Oklahoma Statutes as Section 427.30 of Title 63, unless there |
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837 | 837 | | is created a duplication in numbering, reads as follows: |
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838 | 838 | | |
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839 | 839 | | |
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888 | 888 | | |
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889 | 889 | | A. The Oklahoma Medical Marijuana Authority shall require all |
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890 | 890 | | employees and owners of medical marijuana facilities to be citizens, |
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891 | 891 | | lawful permanent residents, or tempo rary residents of the United |
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892 | 892 | | States. The Authority may require that such residency be made as |
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893 | 893 | | part of an individual’s application for a license, permit, |
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894 | 894 | | identification card, or credential authorizing the individual to be |
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895 | 895 | | an employee of a medical marijuana facility. |
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896 | 896 | | B. As used in this section: |
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897 | 897 | | 1. “Employee” means any natural perso n who: |
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898 | 898 | | a. grows, harvests, dries, cures, purchases, sells, |
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899 | 899 | | transfers, transports, processes, produces, |
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900 | 900 | | manufactures, creates, or packages medical marijuana, |
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901 | 901 | | medical marijuana pro ducts, or medical marijuana waste |
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902 | 902 | | on behalf of or for a licensed medical marijuana |
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903 | 903 | | commercial grower, processor, or dispensary, |
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904 | 904 | | b. samples, trains, or educates on behalf of or for a |
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905 | 905 | | licensed medical marijuana education or research |
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906 | 906 | | facility, |
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907 | 907 | | c. disposes of or transports medical marijuana, medical |
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908 | 908 | | marijuana products, and medical marij uana waste on |
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909 | 909 | | behalf of or for a licensed medical marijuana waste |
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910 | 910 | | disposal facility, |
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911 | 911 | | |
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912 | 912 | | |
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961 | 961 | | |
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962 | 962 | | d. tests and conducts research on medical marijuana and |
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963 | 963 | | medical marijuana products on behalf of or for a |
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964 | 964 | | medical marijuana licensed testing laboratory, |
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965 | 965 | | e. transports, stores, and distributes, but does not take |
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966 | 966 | | ownership of, medical marijuana and medical marijuana |
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967 | 967 | | products on behalf of or for a licensed medical |
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968 | 968 | | marijuana commercial transporter, |
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969 | 969 | | f. tracks, traces, reports, and inputs any information |
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970 | 970 | | into the state inventory t racking system on behalf of |
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971 | 971 | | or for a licensed medical marijuana commercial license |
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972 | 972 | | holder, or |
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973 | 973 | | g. conducts any other additional business for the benefit |
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974 | 974 | | of a medical marijuana com mercial license holder as |
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975 | 975 | | authorized by rules promulgated by the Executive |
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976 | 976 | | Director of the Authority, with the exception of |
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977 | 977 | | professional services not involved in the handling of |
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978 | 978 | | medical marijuana, medical marijuana products, or |
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979 | 979 | | medical marijuana concentrat es; |
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980 | 980 | | 2. “Medical marijuana facility ” means an entity licensed or |
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981 | 981 | | certified by the Authority to acquire, cultivate, process, |
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982 | 982 | | manufacture, test, store, sell, transport, or deliver medical |
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983 | 983 | | marijuana; and |
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984 | 984 | | 3. “Owner” means a direct beneficial owner including, but not |
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985 | 985 | | limited to, all persons or entities as follows: |
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986 | 986 | | |
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987 | 987 | | |
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1036 | 1036 | | |
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1037 | 1037 | | a. all shareholders owning an interest of a corporate |
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1038 | 1038 | | entity and all officers of a corporate entity, |
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1039 | 1039 | | b. all partners of a general partnership, |
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1040 | 1040 | | c. all general partners and all limited partners that own |
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1041 | 1041 | | an interest in a limited partnership, |
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1042 | 1042 | | d. all members that own an interest in a limited |
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1043 | 1043 | | liability company, |
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1044 | 1044 | | e. all beneficiaries that hold a beneficial interest in a |
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1045 | 1045 | | trust and all trustees of a trust, |
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1046 | 1046 | | f. all persons or entities that own interest in a joint |
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1047 | 1047 | | venture, |
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1048 | 1048 | | g. all persons or entities that own an interest in an |
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1049 | 1049 | | association, |
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1050 | 1050 | | h. the owners of any other type of legal entity, and |
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1051 | 1051 | | i. any other person holding an interest or convertible |
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1052 | 1052 | | note in any entity which owns, operates, or manages a |
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1053 | 1053 | | licensed medical marijuana facility. |
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1054 | 1054 | | SECTION 5. This act shall become effective November 1, 2025. |
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1055 | 1055 | | |
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1056 | 1056 | | 60-1-1446 CAD 1/14/2025 1:44:02 PM |
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