Req. No. 1446 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 643 By: Paxton
AS INTRODUCED
An Act relating to medical marijuana; amending 63
O.S. 2021, Sections 421, as last amended by Section
4, Chapter 182, O.S.L. 2024, 422, a s last amended by
Section 1, Chapter 447, O.S.L. 2024, and 423, as last
amended by Section 8, Chapter 182, O.S.L. 2024 (63
O.S. Supp. 2024, Sections 421, 422, and 423), which
relate to licenses; modifying certain ownership
residency requirements; imposing residency and
citizenship requirements on employees and owners of
certain facilities; updating statutory language;
authorizing certain application requirement; defining
terms; providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 421, as last
amended by Section 4, Chapter 182, O.S.L. 2024 (63 O.S. Supp. 2024,
Section 421), is amended to read as follows:
Section 421. A. The Oklahoma Medical Marijuana Authority shall
make available on its websi te in an easy-to-find location an
application for a medical marijuana dispensary license. The
application fee to be paid by the applicant shall be in the amounts
provided for in Section 427.14 of this title. A method of payment
for the application fee shall be provided on the website of the
Req. No. 1446 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Authority. Dispensary applicants must all be residents of Oklahoma.
Any entity applying for a dispensary license must be owned by a
resident of this state and must be registered to do business in this
state. The Authority shall have ninety (90) business days to review
the application; approve, reject, or deny the application; and send
the approval, rejection, or denial letter stating reason s for the
rejection or denial to the applicant in the same method the
application was submitted to the Authority.
B. The Authority shall approve all applications which meet the
following criteria:
1. The applicant must be twenty -five (25) years of age or
older;
2. The applicant, if applying as an individual, must show
residency in this state;
3. All applying entities must show that all members, managers,
and board members are residents of this state;
4. An applying entity may show ownership of nonstate residents,
but that percentage ownership may not exceed twenty -five percent
(25%) shall not have ownership by nonresidents of this state;
5. All applying individuals or entities must be registered to
conduct business in this state; and
6. All applicants must disclose all ownership interests in the
dispensary.
Req. No. 1446 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Applicants with a no nviolent felony conviction in the last two
(2) years, any other felony conviction in the last five (5) years,
inmates in the custody of the Department of Corrections or any
person currently incarcerated shall not qualify for a medical
marijuana dispensary license.
C. Licensed medical marijuana dispensaries shall be required to
complete a monthly sales report to the Authority. This report shall
be due on the fifteenth of each mon th and provide reporting on the
previous month. This report shall detail the weight of marijuana
purchased at wholesale and the weight of marijuana sold to licensed
medical marijuana patients and licensed caregivers and account for
any waste. The report shall show total sales in dollars, tax
collected in dollars, and tax due in dollars. The Authority shall
have oversight and auditing responsibilities to ensure that all
marijuana being grown is accounted for.
D. Only a licensed medical marijuana dispensa ry may conduct
retail sales of marijuana or marijuana derivatives. Beginning on
November 1, 2021, licensed medical marijuana dispensaries shall be
authorized to package and sell pre -rolled marijuana to licensed
medical marijuana patients and licensed care givers. The products
described in this subsection shall contain only the ground parts of
the marijuana plant and shall not include marijuana concentrates or
derivatives. The total net weight of each pre -roll packaged and
sold by a medical marijuana dispe nsary shall not exceed one (1)
Req. No. 1446 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
gram. These products shall be tested, packaged and labeled in
accordance with state law and rules promulgated by the Executive
Director of the Oklahoma Medical Marijuana Authority.
E. No medical marijuana dispensary shall o ffer or allow a
medical marijuana patient licensee, caregiver licensee or other
member of the public to handle or otherwise have physical contact
with any medical marijuana not contained in a sealed or separate
package. Provided, such prohibition shall no t preclude an employee
of the medical marijuana dispensary from handling loose or
nonpackaged medical marijuana to be placed in packaging consistent
with the Oklahoma Medical Marijuana and Patient Protection Act and
the rules promulgated by the Executive D irector for the packaging of
medical marijuana for retail sale. Provided , further, such
prohibition shall not prevent a medical marijuana dispensary from
displaying samples of its medical marijuana in separate display
cases, jars or other containers and a llowing medical marijuana
patient licensees and caregiver licensees the abilit y to handle or
smell the various samples as long as the sample medical marijuana is
used for display purposes only and is not offered for retail sale.
SECTION 2. AMENDATORY 63 O.S. 2021, Section 422, as last
amended by Section 1, Chapter 447, O.S.L. 2024 (63 O.S. Supp. 2024,
Section 422), is amended to read as follows:
Section 422. A. The Oklahoma Medical Marijuana Authority shall
make available on its website in an easy-to-find location an
Req. No. 1446 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
application for a medical marijuana com mercial grower license. The
application fee shall be paid by the applicant in the amounts
provided for in Section 427.14 of this title. A method of payment
for the application fee shall be provided on the website of the
Authority. The Authority shall have ninety (90) business days to
review the application; approve, reject, or deny the application;
and send the approval, rejection, or denial letter stating the
reasons for the rejection or denial to the applicant in the same
method the application was sub mitted to the Authority.
B. The Authority shall approve all applications which meet the
following criteria:
1. The applicant must be twenty -five (25) years of age or
older;
2. The applicant, if applying as an individual, must show
residency in this state;
3. All applying entities must show that all members, managers,
and board members are Oklahoma residents;
4. An applying entity may show ownership of non -Oklahoma
residents, but that percentage ownership may not exceed twenty -five
percent (25%) shall not have ownership by nonresidents of this
state;
5. All applying individuals or entities must be registered to
conduct business in this state; and
Req. No. 1446 Page 6 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
6. All applicants must disclo se all ownership interests in the
commercial grower operation.
Applicants with a nonviolent felony conviction in the last two
(2) years, any other felony conviction in the last five (5) years,
inmates in the custody of the Department of Corrections or any
person currently incarcerated shall not qualify for a commercial
grower license.
C. A licensed medical marijuana commercial grower may sell
marijuana to a licensed medical marijuana dispensary or a licensed
medical marijuana processor. Further, sales by a licensed medical
marijuana commercial grower shall be considered wholesale sales and
shall not be subject to taxation. Under no circumstances may a
licensed medical marijuana commercial grower sell marijuana directly
to a licensed medical marijuana pati ent or licensed medical
marijuana caregiver. A licensed medical marijuana com mercial grower
may only sell at the wholesale level to a licensed medical marijuana
dispensary, a licensed medical marijuana commercial grower or a
licensed medical marijuana pro cessor. If the federal government
lifts restrictions on buying and selling marijuana between states,
then a licensed medical marijuana commercial grower would be allowed
to sell and buy marijuana wholesale from, or to, an out -of-state
wholesale provider. A licensed medical marijuana commercial grower
shall be required to complete a monthly yield and sales report to
the Authority. This report shall be due on the fifteenth of each
Req. No. 1446 Page 7 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
month and provide reporting on the previous month. This report
shall detail the amount of marijuana harvested in pounds, the amount
of drying or dried marijuana on hand, the amount of marijuana sold
to licensed processors in pounds, the amount of waste in pounds, and
the amount of marijuana sold to licensed medical marijuana
dispensaries in pounds. Additionally, this report shall show total
wholesale sales in dollars. The Authority shall have oversight and
auditing responsibilities to ensure that all marijuana being grown
by licensed medical marijuana commercial growers is accou nted for.
D. There shall be no limits on how much marijuana a licensed
medical marijuana commercial grower can grow.
E. Beginning on November 1, 2021, licensed medical marijuana
commercial growers shall be authorized to package and sell pre -
rolled marijuana to licensed medical marijuana dispensaries. The
products described in thi s subsection shall contain only the ground
parts of the marijuana plant and shall not include marijuana
concentrates or derivatives. The total net weight of each pre -roll
packaged and sold by licensed medical marijuana commercial growers
shall not exceed one (1) gram. These final products must be tested,
packaged and labeled in accordance with Oklahoma law and rules
promulgated by the Authority.
F. Beginning November 1, 2022, a ll medical marijuana commercial
grower licensees who operate an outdoor medica l marijuana production
facility shall be required to register with the Oklahoma Department
Req. No. 1446 Page 8 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
of Agriculture, Food, and Forestry as an environmentally sensitive
crop owner. Registr ation shall provide notice to commercial and
private pesticide applicators of the locations of medical marijuana
crops and help minimize the potential for damaging pesticide drift.
Medical marijuana commercial grower licensees shall provide their
business name, address, Global Positioning System (GPS) coordinates
for all outdoor medical marijuana production facilities, and any
other information required by the Department when registering with
the Environmentally Sensitive Area Registry.
SECTION 3. AMENDATORY 63 O.S. 2021, Section 423, as last
amended by Section 8, Chapter 182, O.S.L. 2024 (63 O.S. Supp. 2024,
Section 423), is amended to read as follows:
Section 423. A. The Oklahoma Medical Marijuana Authority shall
make available on its website in an easy -to-find location an
application for a medical marij uana processing license. The
Authority shall be authorized to issue two types of medical
marijuana processor licenses based on the level of risk posed by the
type of processing conducted:
1. Nonhazardous medical marijuana processor license; and
2. Hazardous medical marijuana processor license.
The application fee for a nonhazardous or hazardous medical
marijuana processor license shall be paid by the applicant in the
amounts provided for in Section 427.14 of this title. A method of
payment shall be prov ided on the website of the Authority. The
Req. No. 1446 Page 9 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Authority shall have ninety (90) business days to review the
application; approve, reject, or deny the application; and send the
approval, rejection, or denial letter stating the reasons for the
rejection or denial to the applicant in the same method the
application was submitted to the Authority.
B. The Authority shall approve all applications which meet the
following criteria:
1. The applicant must be twenty -five (25) years of age or
older;
2. The applicant, i f applying as an individual, must show
residency in this state;
3. All applying entities must show that all members, managers,
and board members are Oklahoma residents of this state;
4. An applying entity may show ownership of nonstate residents,
but that percentage ownership may not exceed twenty -five percent
(25%) shall not have ownership by nonresidents of this state;
5. All applying individuals or entities must be registere d to
conduct business in this state; and
6. All applicants must disclose all ownership interests in the
processing operation.
Applicants with a nonviolent felony conviction in the last two
(2) years, any other felony conviction in the last five (5) years,
inmates in the custody of the Department of Corrections or any
Req. No. 1446 Page 10 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
person currently incarcerated shall not qualify for a medical
marijuana processing license.
C. 1. A licensed processor may take marijuana plants and
distill or process these plants into conc entrates, edibles, and
other forms for consumption.
2. The Executive Director of the Authority shall make available
a set of standards which shall be used by licensed processors in the
preparation of edible marijuana products. The standards should be
in line with current food preparation guidelines. No excessive or
punitive rules may be established by the Executive Director.
3. Up to two times a year, the Authority may inspect a
processing operation and determine its compliance with the
preparation standards. If deficiencies are found, a written report
of the deficiency shall be issued to the licensed processor. The
licensed processor shall have one (1) month to correct the
deficiency or be subject to a fine of Five Hundred Dollars ($500.00)
for each deficiency.
4. A licensed processor may sell marijuana products it creates
to a licensed dispensary or any other licensed processor. All sales
by a licensed processor shall be considered wholesale sales and
shall not be subject to taxation.
5. Under no circumstances may a licensed processor sell
marijuana or any marijuana product directly to a licensed medical
marijuana patient or licensed caregiver. However, a licensed
Req. No. 1446 Page 11 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
processor may process cannabis into a concentrated form for a
licensed medical mariju ana patient for a fee.
6. Licensed processors shall be required to complete a monthly
yield and sales report to the Authority. This report shall be due
on the fifteenth of each month and shall provide reporting on the
previous month. This report shall d etail the amount of marijuana
and medical marijuana products purchased in poun ds, the amount of
marijuana cooked or processed in pounds, and the amount of waste in
pounds. Additionally, this report shall show total wholesale sales
in dollars. The Authori ty shall have oversight and auditing
responsibilities to ensure that all marijuana being processed is
accounted for.
D. The Authority shall oversee the inspection and compliance of
licensed processors producing products with marijuana as an
additive. If it becomes permissible under federal law, marijuana
may be moved across state lines.
E. Any device used for the processing or consumption of medical
marijuana shall be considered legal to be sold, manufactured,
distributed and possessed. No merchant, who lesaler, manufacturer or
individual may be unduly harassed or prosecuted for selling,
manufacturing or possessing marijuana paraphernalia.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 427.30 of Title 63, unless there
is created a duplication in numbering, reads as follows:
Req. No. 1446 Page 12 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
A. The Oklahoma Medical Marijuana Authority shall require all
employees and owners of medical marijuana facilities to be citizens,
lawful permanent residents, or tempo rary residents of the United
States. The Authority may require that such residency be made as
part of an individual’s application for a license, permit,
identification card, or credential authorizing the individual to be
an employee of a medical marijuana facility.
B. As used in this section:
1. “Employee” means any natural perso n who:
a. grows, harvests, dries, cures, purchases, sells,
transfers, transports, processes, produces,
manufactures, creates, or packages medical marijuana,
medical marijuana pro ducts, or medical marijuana waste
on behalf of or for a licensed medical marijuana
commercial grower, processor, or dispensary,
b. samples, trains, or educates on behalf of or for a
licensed medical marijuana education or research
facility,
c. disposes of or transports medical marijuana, medical
marijuana products, and medical marij uana waste on
behalf of or for a licensed medical marijuana waste
disposal facility,
Req. No. 1446 Page 13 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
d. tests and conducts research on medical marijuana and
medical marijuana products on behalf of or for a
medical marijuana licensed testing laboratory,
e. transports, stores, and distributes, but does not take
ownership of, medical marijuana and medical marijuana
products on behalf of or for a licensed medical
marijuana commercial transporter,
f. tracks, traces, reports, and inputs any information
into the state inventory t racking system on behalf of
or for a licensed medical marijuana commercial license
holder, or
g. conducts any other additional business for the benefit
of a medical marijuana com mercial license holder as
authorized by rules promulgated by the Executive
Director of the Authority, with the exception of
professional services not involved in the handling of
medical marijuana, medical marijuana products, or
medical marijuana concentrat es;
2. “Medical marijuana facility ” means an entity licensed or
certified by the Authority to acquire, cultivate, process,
manufacture, test, store, sell, transport, or deliver medical
marijuana; and
3. “Owner” means a direct beneficial owner including, but not
limited to, all persons or entities as follows:
Req. No. 1446 Page 14 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
a. all shareholders owning an interest of a corporate
entity and all officers of a corporate entity,
b. all partners of a general partnership,
c. all general partners and all limited partners that own
an interest in a limited partnership,
d. all members that own an interest in a limited
liability company,
e. all beneficiaries that hold a beneficial interest in a
trust and all trustees of a trust,
f. all persons or entities that own interest in a joint
venture,
g. all persons or entities that own an interest in an
association,
h. the owners of any other type of legal entity, and
i. any other person holding an interest or convertible
note in any entity which owns, operates, or manages a
licensed medical marijuana facility.
SECTION 5. This act shall become effective November 1, 2025.
60-1-1446 CAD 1/14/2025 1:44:02 PM