2023 Oklahoma Cannabis legislation update
Brace for impact: 27 bills relating to Oklahoma’s medical marijuana industry are making their way through the state legislature.
Oklahoma’s medical marijuana industry could be getting a big regulatory makeover this year. Twenty-seven bills pertaining to cannabis have passed in their house of origin. Some proposed measures create new concerns while others address existing ones, for example, about seed-to-sale costs and inconsistent lab test results. We lay all the bills moving through the legislature out as they are below to create awareness that you can take action with.
In the Senate
These bills have all passed in the house
HB 1347 - Requires the Oklahoma Medical Marijuana Authority (OMMA) to select a seed-to-sale vendor through a competitive bidding process. Contracts with the selected vendor can be multi-year or annual. All costs associated with the seed-to-sale tracking program will be the sole responsibility of OMMA. If OMMA selects a vendor that requires the use of barcodes, RFID tags or QR codes to manage data entry, the cost of that equipment will also be the responsibility of OMMA.
Upon selecting a vendor, OMMA must provide training materials to medical marijuana business licensees.
HB 1350 - Creates a process wherein medical marijuana business applicants are issued temporary licenses prior to permanent annual licensure. Temporary licenses will require a non-refundable deposit of $1,000. During the time the applicant is temporarily licensed, they will be required to furnish more documents to OMMA. Such documents range from business formation and financial information to site plans, landownership acknowledgement and evidence of insurance.
A temporary license is valid for 180 days from the date it’s issued. The temporary license period can be conditionally extended for 90 days, but each 90 day extension would assess an additional $1,000 non-refundable fee. OMMA can reject an application for annual business license if the requirements are not met. If issued an annual license, commercial transporters, dispensaries, laboratories and growers will have the $1,000 temporary license fee applied to their annual license cost—processors annual license fee would be in addition to the $1,000 temporary license fee. Businesses issued annual licenses would be required to submit all the documentation provided to OMMA during the temporary licensing process during each annual renewal period.
HB 1734 - Would require every dispensary to display a printed sign at least 8 1/2 by 11 inches in size, with large visible font near the cash register or place of checkout and at least two other highly visible places in the store, that reads: WARNING: INGESTING THC PRODUCTS WHILE PREGNANT IS NOT HEALTHY FOR THE DEVELOPMENT OF AN UNBORN CHILD.
Totality of the Evidence Suggests Prenatal Cannabis Exposure Does Not Lead to Cognitive Impairments.
HB 2095 - Permits OMMA to permanently revoke the medical marijuana business license of any business licensee who intentionally doesn’t remit taxes, and states the business licensee shall be permanently ineligible to receive any other type of medical marijuana business license.
Grants the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control (OBNDD), the Oklahoma State Bureau of Investigation (OSBI), and the Oklahoma Attorney General full authority to investigate and enforce any violations of the laws regarding medical marijuana including medical marijuana business licenses.
Allows OMMA, OBNDD, OSBI and the Attorney General to perform unannounced, on-site inspections of the operations and any facility of medical marijuana research or education licensees.
Allows OMMA, OBNDD, OSBI and the Attorney General to subpoena documents necessary to establish personal identifying information of all persons with ownership interest in a marijuana business upon suspicion of any illegal activity.
Requires all applicants to submit fingerprint-based background checks to the Oklahoma Bureau of Investigation.
Prohibits more than one medical marijuana commercial grower license from being issued for any one property.
Prohibits grows from hiring undocumented workers and them being anywhere on premises of a licensed facility. A commercial grower found in violation of this provision, upon conviction, would be guilty of a misdemeanor punishable by imprisonment in the county jail for a term not exceeding one (1) year, or by a fine not exceeding Five Hundred Dollars ($500.00), or by both such fine and imprisonment. In addition, their license may be revoked and OMMA may not issue them licenses in the future.
HB 2282: Allows product not impounded or preserved by director of OBNDD to be maintained by registrant and prevents purchase, distribution, sale or transfer until after appeal has elapsed or until all appeals have been concluded.
Allows medical marijuana product to be considered waste and submitted to a licensed medical marijuana waste disposal service for destruction after revocation order becoming final.
Requires OMMA’s Executive Director issue a written order for violations before any annulling, conditioning or revoking a license. In the case of state violations, the Director would also be able to impose any disciplinary action authorized by the Uniform Controlled Dangerous Substances Act or rules of OBNDD including, but not limited to the assessment of monetary penalties. This provision does not apply to federal violations of the law.
Any such written order issued by the Executive Director will become a final order unless the registrant requests an administrative hearing within thirty (30) days of issuance.
Allows OMMA’s Executive Director to issue an order immediately suspending a registration, without notice or a hearing, when he or she finds there is imminent danger to public health or safety. The order may include, but is not limited to ordering the registrant to immediately cease and desist operations and would be effective immediately upon receipt. The Director may assess a penalty not to exceed Ten Thousand Dollars ($10,000.00) per day of noncompliance with the order.
Authorizes OMMA’s Executive Director to assess an administrative penalty not to exceed Five Thousand Dollars ($5,000.00) per day, per act, if a finding is made that a registrant has committed any act in violation of federal law relating to any controlled dangerous substance, any provision of the Uniform Controlled Dangerous Substances Act, or any rules of OBNDD.
If a judge finds probable cause that a registrant has possessed, transferred, sold or offered for sale any controlled dangerous substance in the CSA, then it shall be deemed contraband and shall be seized. In such case, OMMA’s Executive Director is authorized to assess an eradication or destruction fine not to exceed Fifty Thousand Dollars ($50,000.00) against the registrant.
The Executive Director can prohibit applicants who’ve been denied, or registrants that have their license revoked or annulled from reapplying for a period of five years. The length of the probationary period would not be able to be used to contest the decision.
HB 1349: Creates the Oklahoma Medical Marijuana Authority Board to serve as the rulemaking body for the Medical Marijuana Authority.
The Governor will appoint members of the board as follows: One member who is a Chief of Police working in a population center of at least 100,000; One member who is a Sheriff working in a population below 25,000; One member who is a District Attorney; One member who is a licensed commercial grower.
The House Speaker will appoint two board members: One that is a licensed commercial processor and one that is a licensed commercial dispensary.
The President Pro Tempore of the Oklahoma State Senate will appoint two board members: One that is a licensed commercial research facility and one that is a licensed testing laboratory.
Each member will serve a term of four years and cannot serve more than two consecutive terms.
This body will have the power to establish the policies of OMMA; and adopt and promulgate rules as necessary and appropriate to carry out the duties and responsibilities of the OMMA.
Board positions are unpaid. They will meet no less than four times a year and as much as neccesary to carry out their duties.
HB 1616: Requires any elected or appointed state, county, or municipal official to disclose any conflict of interest or ownership interest in a medical marijuana business to OMMA. Interest is defined as “ownership in any entity that holds a medical marijuana license issued by the Authority or an interest in any entity that receives a set percentage of profit distribution from any entity that holds a license issued by the Authority.”
HB 2061: Provides $5 million from the General Revenue Fund to the County Sheriff Public Safety Grant Revolving Fund to assist local law enforcement.
HB 2289: Replaces references to OSDH with OMMA regarding contract with Oklahoma Tax Commission to assess, collect and enforce tax on retail medical marijuana sales.
HB 1615: Providing separate penalties for unlawfully possessing controlled dangerous substances. Excludes marijuana.
SB 116: Prohibits any medical marijuana commercial grower from being located within 1,000 feet of a place of worship. Commercial grows that currently exist within 1,000 feet of a place of worship will not be affected unless they fail to renew their license. If a place of worship is erected within 1,000 feet of an existing grow, it will not be a deterrent for that grow to apply for renewal and continue operating. Buildings owned by a religious organization that are not used as a primary place of worship still count as places of worship as it relates to the measure.
SB 133: Excludes marijuana production from agriculture sales tax exemptions.
SB 264: Creates structure for renewal application submission for tiered licensing stating that a remittance fee of $2,500 will be submitted with licensing renewals for growers, dispensaries and processors. Then, if applicable, OMMA will invoice the business an additional amount if they fit into licensing tier 2-8.
Creates a petty cash fund to provide for purchases made by secret shoppers.
Authorizes secret shoppers to purchase an amount of medical marijuana sufficient for five complete compliance tests and attempt to purchase medical marijuana in an attempt to prove business compliance. Samples collected by secret shoppers will be tested in laboratories, one of which will be the laboratory of origin and one being OMMA’s assurance laboratory. Secret shoppers are not required to fulfill patient licensing requirements and can enter dispensaries with their authorization from OMMA alone.
Makes process validation procedures mandatory for medical marijuana operations which are subject to testing.
SB 439: Creates qualifying conditions to be promulgated by OMMA’s Executive Director for patients under the age of 18 years old.
Creates new physician recommendation requirements for patients under 18 years of age. A recommendation from two physicians has always been required, but this measure proposes the two physicians cannot be located at the same physical address. Physicians must attest that the minor applicant has been under their routine care for at least one (1) year, or not less than five (5) years if the minor patient has only been seen by the physician through telemedicine, or that the minor applicant was referred to the physician by another physician meeting the same timeline requirements.
Requires physicians recommending medical marijuana to a minor patient to examine the patient in person unless they are homebound and in need of a caregiver.
SB 645: Requires all medical marijuana flower, trim, shake, kief, medical marijuana product, or other flower-based product not defined as a concentrate to be sold by licensed medical marijuana processors and licensed medical marijuana commercial growers to licensed medical marijuana dispensaries only in pre-packaged form in package sizes weighing not less than one half (1/2) of one (1) gram to not more than three (3) ounces.
Allows use of non-opaque packaging material as long as the packaging meets existing OMMA label and packaging requirements and is placed in an opaque exit package before the patient leaves the dispensary.
Displaying and smelling of sample flower products will still be allowed.
SB 801: Allows for municipalities to modify their planning or zoning procedures to forbid medical marijuana business from operating in certain areas. Any licensed medical marijuana business located in an area that is rezoned will be able continue to operate until they are no longer licensed.
No municipality could outright restrict a dispensary from opening.
SB 806: Requires applicants for a medical marijuana business license provide proof that the applicant has possessory right to the real estate where the business will operate.
Prohibits multiple licenses of the same type from being held at a single location or address with the exception of holding both an indoor and outdoor grow license.
SB 913: Requires every applicant for a commercial grower license and commercial grower licensee to file a bond satisfactory to OMMA and in the amount no less than Fifty Thousand Dollars ($50,000.00) for each license sought or held, with a surety company qualified to do business in this state as a surety. OMMA may require a higher bond depending on various environmental factors. The bond will be used to defray the costs of cleaning up abandon properties.
Growers may operated without a bond if they can prove to OMMA that they have owned the land for at least five years prior to submitting their application.
SB 437: Requires OMMA to develop a registry of licensed patient recommending physicians, and develop rules for registered physicians relating to continuing educational requirements.
Requires employees of medical marijuana dispensaries shall comply with the education and continuing education requirements promulgated by the Executive Director to become and remain credentialed to work.
Makes it unlawful to host or advertise medical marijuana related events requiring admission fees or open to the general public, other than for the purposes of providing education to a physician on the list of approved providers and as permitted by the appropriate licensing board. OMMA would promulgate rules to issue or deny permits for events not hosted by them or related to education of providers.
SB 440: Requires the Director of the Medical Marijuana Authority to develop and enforce limits on THC serving sizes for edible medical marijuana products. The actual limits set will be at the discretion of the Director, but cannot exceed 1,000mg of delta-9 THC, 5mg of delta-8 THC or an action level of 1.0 parts per million of any THC isomer, THC analogue or any other cannabinoid that does not occur naturally in cannabis per package for edible marijuana products. It would be unlawful for a dispensary to sell any product exceeding the decided upon limit.
SB 489: Makes an appropriation of $44,115,503 to the Public Common School Building Equalization Fund from the Medical Marijuana Authority Fund for redbud school grants.
SB 758: Creates a new Medical Marijuana Tax Fund and removes previous apportionments of Medical Marijuana tax revenue, directing money to the Fund.
SB 808: Authorizes OMMA's Executive Director to declare emergencies relating to the environmental damage caused by a licensee within the state and order the licensee immediately cease and desist operations without providing notice or hearing.
SB 813: Authorizes OMMA to operate an assurance laboratory for the purpose of conducting compliance testing of medical marijuana businesses licensed in Oklahoma.
OMMA would utilize their assurance lab to “1. Provide recommendations for all equipment and standards to be utilized by licensed medical marijuana testing laboratories… 2. Provide standardized operating procedures when procuring, collecting, extracting, and testing medical marijuana, medical marijuana concentrate, and medical marijuana products; 3. Procure, handle, transfer, transport, and test samples taken from medical marijuana licensed businesses; 4. Implement the secret shopper program; and Detect and analyze any compounds that are not among the targeted analytes and are unknown, unidentified, tentatively identified, or known and injurious to human health if consumed.”
OMMA would submit an annual report to the Legislature on quality assurance activities and results.
SB 239: Permits political subdivisions, municipalities and counties to enter into agreements with state agencies to receive compensation when local resources are used by state agencies during marijuana-related search and seizure activities.
SB 475: Defines “Straw person or party” as “a third party who is put up in name only to take part in a transaction. This term includes but is not limited to a nominal party to a transaction, one who acts as an agent for another for the purpose of taking title to property and executing whatever documents and instruments the principal may direct respecting the property, or a person who purchases property for another to conceal the identity of the real purchaser or to accomplish some purpose otherwise not allowed.”
Makes it unlawful to attempt to obtain any license or registration required to cultivate, possess, purchase or transfer controlled dangerous substances through a straw person or party.
SB 635: Requires hemp-derived cannabinoid products to be registered with the State Board of Agriculture prior to distribution in Oklahoma.
Applicants will be required to submit label and, “upon request of the Department, a copy of all advertisements, brochures, posters, and television and radio announcements to be used in promoting the sale of the hemp-derived cannabinoid product.”
The Agricultural board may assess an administrative penalty if they find unregistered products or products with falsified applications. Penalties will be assessed per each offending product.
Provides labelling requirements for hemp products.
Authorizes the Department of Agriculture to issue and enforce a stop sale, stop use, or removal order to the owner or custodian of any lot of hemp-derived cannabinoid product.
Consider this
None of these bills are currently law. Before a bill is sent to the Governor for consideration (or being signed into law), it has to be approved by both the House and Senate. All of the above bills have been approved in either the House or Senate, but not yet both.
There is still time to have your voice and opinion considered on each measure. The deadline for Third Reading of Bills and Joint Resolutions from Opposite Chamber is Thursday April 27th, 2023. You can find and contact your legislator here. To be effective, be informative, respectful and consistent.
