List of new Cannabis related bills filed in Oklahoma
Over 100 bills relating to cannabis have been filed in Oklahoma between the state house and senate. We’ll be taking a look some highlights from each of them in this two-part blog series.
Oklahoma lawmakers are heading back to the Capitol with roughly one hundred cannabis bills to consider. We’re taking a look at the highlights of each bill and passing along what’s pertinent as we make our way through them. There are many proposals in this first batch of bills that are important to become aware of whether you’re a current licensee or future applicant. Bills that would create moratoriums, license caps, require commercial business applicants to win general elections and pay conditional bonds upwards of $25,000 to the Oklahoma Medical Marijuana Authority.
As you read through this list keep in mind bills can change drastically throughout the session. Just because a bill was filed does not mean it will become law, but it is important to know what is being proposed to plan accordingly. Due to the evolving nature of legislation this post may be edited over time to more accurately represent current text versions and new findings.
SB1543 - Treat (R)
The Oklahoma Medical Marijuana Authority would cease to be a part of the Oklahoma State Department of Health and become a separate distinct entity
Authority and Executive Director continue to exercise their statutory powers
States all licenses shall maintain rights and privileges, but of course be subject to revocation or other disciplinary action for violation of any of OMMA’s provisions
All OSDH rules relating to medical marijuana will be immediately adopted and enforced by OMMA
OSDH and OMMA can enter into an agreement to transfer personnel from OSDH to OMMA
No employees can be transferred without their own written consent.
Employees that are transferred to OMMA shall not be required to accept a lesser grade salary than presently received. All employees shall also retain their benefits
The expenses of such transfer will be paid by OMMA
The division known as OMMA shall be abolished from the OSDH once the transfer is completed
The Office of Management and Enterprise Services will coordinate the transfer
Adds the authority for OMMA to seize any medical marijuana illegally held in violation of any laws or rules of the state / Executive Director
Adds provision allowing OMMA to refer any evidence reports or charges regarding violations of any provisions to appropriate law enforcement and prosecutorial authority for action
Adds language that allows OMMA to aid enforcement authorities of the state or any county and municipality of the state—or the feds—in prosecution of violations of OMMA rules
Requires OMMA investigators to meet training requirements and qualifications for peace officers as required by section 3311 et seq of title 70 of the Oklahoma statutes
Allows the Senior Director of Enforcement and any investigator of OMMA to arrest violators or suspected violators of any laws being violated in their presence and upon the development of probable cause
Allows the Executive Director to contract with attorneys to advise the executive director and authority on all legal matters and to appear for and represent the executive director and OMMA in all admin hearing and all litigation or other proceedings which may arise in the discharge of their duties
At the request of the Executive Director such attorneys shall assist district attorneys in prosecuting charges of violators of OMMA rules
Would go into effect November, 1 2022
SB1195 - Bergstrom (R)
Makes all license types subject to 1000ft from a school rule
Adds “child care centers” to restricted zones
Removes exception that the law does not apply to school buildings used for non-classroom activity, like a football field
Emergency
SB1726 - Leewright (R)
Adds commercial growers to 1000ft school rule
Makes “school” general - not specific to “public or private schools”
Does not remove the zoning exemption that SB1195 does
Emergency
SB1338 - Bullard (R)
Adds Delta-8 to hemp definition
Specifies “marijuana” does not include Delta-8
Would go into effect November, 1 2022
SB1718 - Merrick (R)
Places moratorium on grow licensing. “no application for a commercial grower license submitted to the Department shall be approved until the Oklahoma Medical Marijuana Authority conducts an inspection and financial audit of all current licensees and their operations.”
Would go into effect November, 1st 2022
SB1511 Rosino (R) & Pfeiffer (R)
Subjects grows to 1000ft school rule
Existing grows grandfathered in, not subject to non-renewal
Keeps exemption for non-class related buildings
Emergency
SB1367 - Paxton (R)
Doubles diversion fines for patients/agents/entities to non-patients
First offense to $400 from $200
Second offense to $1000 from $500 and results in revocation of license.
If the diverting person serves as an agent of an entity, the second offense would result in revocation of that license or licenses as well
The revoked person or entity in this case would have every license issued by OMMA revoked and would not be able to obtain one in the future
Paragraph stating “nothing in this subsection shall be construed to prevent criminal prosecution” has been struckthrough
Would go into effect November, 1 2022
SB1704 - Paxton (R)
Penalties for sales, purchases or transfers of medical marijuana businesses or their employees to persons other than those legally allowed by law within any one-year time period may include an initial fine of five thousand dollars for first violation and fine of fifteen thousand for any subsequent violation
These numbers have increased from one thousand and five thousand respectively
Additionally the period has decreased from two years to one year in new language
Language regarding penalties for grossly inaccurate or fraudulent reporting is completely struckthrough
The penalties as presented in the bill are what used to apply to grossly inaccurate and fraudulent reporting
Would go into effect November 1 2022
SB1779 - Jett (R)
Adds compliance requirement to post conspicuous, easy-to-read signage at each licensed property entrance with the medical marijuana business license number and a telephone number accessible for the public to reach the medical marijuana business license holder
Would go into effect November, 1 2022
SB1737 - Stephens (R)
Adds the exact same compliance requirement as SB1779: Businesses must post conspicuous, easy-to-read signage at each licensed property entrance with the medical marijuana business license number and a telephone number accessible for the public to reach the medical marijuana business license holder.
Would go into effect November, 1 2022
SB1755 - Leewright (R)
Introduces conditional licenses:
I. A license provided by the Oklahoma Medical Marijuana and Patient Protection Act or by Section 421, 422, 423, or 425 of this title shall not be issued until all relevant local licenses and permits have been issued by the municipality including, but not limited to, an occupancy permit or certificate of compliance
J. In addition to the requirements of subsection I of this section, a license provided by this section or by Section 421, 422, 423, or 425 of this title shall not be issued until the Authority determines that all necessary inspections and reviews including, but not limited to, plans reviews, life safety inspections, or compliance inspections, have been completed
K. If an applicant has not received the necessary permits, certificates, or licenses from a municipality, or has not completed the necessary inspections or reviews as determined by the Authority, but the applicant has fulfilled all other obligations required by the Oklahoma Medical Marijuana and Patient Protection Act, the Authority shall grant a conditional license. A conditional license shall not entitle an applicant to operate or act as a licensee pursuant to the provisions of the Oklahoma Medical Marijuana and Patient Protection Act. Once the applicant has fulfilled all the obligations as determined by the Authority, the Authority may approve the application
Would go into effect November, 1 2022
SB1697 - Jech (R)
Creates a new law and requires commercial grow applicants to file along with their application a bond as prescribed below:
A. (New Law) It shall be unlawful for any holder of a medical marijuana business license pursuant to Section 427.14 of Title 63 of the Oklahoma Statutes to engage in any commercial growing operations in this state without acquiring a bond. The bond shall cover that area of land within the permit area upon which the business licensee will initiate and conduct commercial growing operations
B. Every applicant for a commercial grower license or commercial grower licensee shall file with the Oklahoma Medical Marijuana Authority a bond satisfactory to the Authority and in the amount no less than Twenty-five Thousand Dollars ($25,000.00) for each license sought or held, with a surety company qualified to do business in this state as surety. The bond shall be furnished to the state for the use of the state pursuant to the provisions of this act. The bond shall be conditional that the obligor will comply with the provisions of this act and all rules and regulations made pursuant to this act and will pay all amounts of money that may be due to the state during the time such bond is in effect
Emergency
SB1693 - Bergstrom (R)
All license applicants will be required to acquire a water use permit from the Oklahoma Water Resources Board prior to initiating a commercial growing or processing operation
Applicants will be subject to the application requirements for permitting for water use by the OK Water Resources Board pursuant to section 105.9 of Title 82 of the OK statutes
Upon failure to receive a permit by the water resources board after ninety days following initial application or denial of application by the water resources board OMMA will revoke the medical marijuana business license
Would go into effect November, 1 2022
SB1219 - Bullard (R)
Requires child resistant containers to be clear for all edible medical marijuana products
Requires edible medical marijuana products in solid or semisolid form to be made in the shape of a marijuana leaf
Would go into effect November, 1 2022
SB1841 - Paxton (R)
“The Oklahoma Medical Marijuana Authority shall deny an application or suspend or revoke a medical marijuana business license due to any violation of state law, any violations of a regulation applicable to the business including those adopted or enforced by any state agency including, but not limited to, the Department of Environmental Quality, the Oklahoma Water Resources Board, the Oklahoma Department of Agriculture, Food, and Forestry, the Corporation Commission, or any other agency or commission of this state, or any local ordinance or regulation applicable to a medical marijuana business or inaccurate reporting or disclosures to municipal governments. Upon receipt of a notice of violation, the Authority shall give a medical marijuana business license holder thirty (30) days to resolve the violation. If the violation is not resolved within the thirty (30) days, the Authority shall take action pursuant to this subsection.”
Emergency
SB1747 - Murdock
Provides measures to establish the value of plants in the case a person is pursuing a claim for damages to their medical marijuana crop
Value may be established based upon:
The growth stage of the surviving plants
If no surviving plants remain, then the person may request data from the most recently submitted monthly yield and sales report from the OSDH to establish the value
If a producer has established a five-year production history, then the value of the damaged plants may be based on the average production.
Adds that aerial applicators shall not be liable for damages to medical marijuana plants grown indoors or in a greenhouse so long as the aerial applicator was not reckless in the application and provided notice prior to the application
Adds responsibility to OMMA and OSDH to develop a market report to establish a real-time market value for medical marijuana plants
Such valuation would be based on: previous reporting periods, total weight, total value, indoor cultivation, greenhouse cultivation or outdoor cultivation
Authorizes OMMA to provide grower information to the OK Department of Agriculture, Food and Forestry to be added to the sensitive crop registry
Would go into effect November, 1 2022
SB1302 - Radar (R)
Adds medical marijuana gross receipts tax to certain unpaid taxes where assessment is authorized to be filed
Makes an individual liable for payment of medical marijuana gross receipts tax
Effective date Nov 1, 2022
SB1458 - Thompson (R)
Strikesthrough following language:
Any person entering a plea of guilty or nolo contendere or is found guilty of the crime of misdemeanor possession of marijuana or drug paraphernalia shall be ordered by the court to pay a five-dollar fee, which shall be in addition to and not in substitution for any and all fines and penalties otherwise provided for by law for such offense
Effective date January 1st 2023
SB1848 - Montgomery (R)
Creates a revolving fund in the State Treasury for the Oklahoma Department of Mental Health and Substance Abuse Services to be designated the “Drug and Alcohol Abuse Revolving Fund.”
The fund would be a continuing fund, not subject to fiscal year limitations.
Allocates the first sixty-five million dollars as follows:
64% to the State Public Common School Building Equalization Fund
30% to OMMMA
6% will go to the Alcohol Rehabilitation Fund created by the bill
Emergency
SB1688 - Standridge (R)
Authorizes civil asset forfeiture for property possessed, used or available for use in the cultivation, distribution, processing, sale or transfer of marijuana by any person or business entity not licensed by the Oklahoma Medical Marijuana Authority or otherwise in violation of the medical marijuana laws in this state.
Would go into effect November 1 2022
HB4202 - Echols (R)
Establishes OMMA as a distinct entity as of November, 1 2022
Personnel retains employment positions and benefits
Current executive director of OMMA serves until November 1
Governor assigns someone from that point on
OMMA can contract with Office of Management and Enterprise Services for payroll and other admin work
Office of management and enterprise services will coordinate the transfer of funds, allotments etc
Creates OMMA Board, details member appointments and term length
The board would be the rule making body for OMMA. Their powers would consist of:
Establishing policies of OMMA
Adopting and promulgating rules as necessary
The board would operate in accordance with the provisions of the Oklahoma Open Meeting Act, Oklahoma Open Records Act and Administrative Procedures Act.
Would go into effect November, 1 2022
HB3634 - Fetgatter (R)
Introduces “Medical Marijuana Wholesaler” license to replace commercial transporter
Defined as: An entity licensed by the Oklahoma Medical Marijuana Authority to acquire, possess, sell, and distribute medical marijuana or medical marijuana products on behalf of another licensed medical marijuana business in the State of Oklahoma
Only a wholesaler may contract with licensed medical marijuana businesses to package, store, and transport medical marijuana, medical marijuana concentrate, and medical marijuana products on its behalf
Only licenses issued in conjunction with an OMMA grow, processor, research or education facility will be referred to as “transporter licenses”
Would go into effect November, 1 2022
HB3734 - Fetgatter (R)
Creates temporary licenses for all license types
All applicants seeking annual licensure will be required to first apply for a temporary license
A temporary license allows the licensee to engage in the same activities as if they were licensed
A temporary license being issued does not obligate OMMA to issue an annual business license
Temporary licenses are valid for 180 days but may be extended for additional 90 day periods not exceeding 18 months if:
An application for an annual license was submitted prior to the expiration date of the temporary business license
OMMA determines the application and required documentation submitted is deficient in some way
Temporary license fees will be $1,000 and non-refundable
A fee of $500 will be assessed for every extension
In addition to the general requirements for licensure, persons applying for temporary licensure must submit the following to OMMA:
Business formation documents (OA, Articles of Organization, Partnership Agreements)
Financial information pertaining to operations which include:
List of funds belonging to the applicant held in savings, checking or other accounts.
List of loans made to the applicant
List of investments made into the medical marijuana business
List of all gifts of any kind given to the applicant for its use in conducting medical marijuana business activities
A complete list of every individual that has financial interest in the business who is not an owner
A complete and detailed diagram of the proposed premises
If the applicant is not the land owner, they must provide OMMA with a document from the landowner that states the applicant has the right to occupy the property and acknowledging the applicant may use the property for medical marijuana business activity. Applicants must also provide a copy of the rental agreement
If the applicant is the landowner they must provide OMMA with a title or deed
Grows applicants will also be required to submit the following:
For indoor and mixed light cultivation, identification of all power sources for cultivation activities including, but not limited to, illumination, heating, cooling, and ventilation
Sources of water used and their locations
All applicants will be required to provide evidence of insurance including but not limited to:
General liability insurance
Workers comp
Product liability insurance
OMMA can request additional information from applicants
OMMA can reject an annual business license application if the requirements for the temporary license or any provision of the OMMA patient protection act are not satisfied
Emergency
HB3019 - Fetgetter (R)
Modifies definition of Exit Package to read: an opaque bag that is provided at the point of sale in which pre-packaged medical marijuana is placed
Adds language to allow cannabis containers to be clear in order to allow licensed patients the ability to view the product inside, but must obviously still be child resistant
At the point of sale, the products must be place in an exit package as defined above
Would go into effect November 1 2022
HB3754 - Fetgatter (R)
Legalizes cannabis for adults over 21 at one ounce or less
Medical dispensaries would be able to sale to persons over 21 upon presentation of government issued ID
Consumers will not be required to provide a dispensary with personal information outside of their ID. Conversely, the dispensary will not be required to record personal information other than typical retail transaction information
Establishes excise tax of 15% for adult use
The act does not prevent an employer from disciplining an employee for violating workplace drug policy
The act does not prevent an employer from refusing to hire a person due to workplace policy
Creates Oklahoma Adult Access to Marijuana Revolving Fund within the state treasury
25% of fees collected would be used by OMMA for the implementation and maintenance of an inventory tracking system
75% would be distributed and credited to the general revenue fund of the state
Upon the effective date, licensed medical dispensaries can apply for an adult access business license
The fee is twenty five thousand dollars ($25,000)
Once application is approved, the dispensary can conduct retail sales to adults over 21
Beginning September 1st, grows and processors would be able to apply for adult access business license – their fee would be $25,000 as well
Would go into effect Sep 1, 2022
HB3999 - Dobrinksi (R)
Prohibits testing labs from accepting cannabis directly from growers
OMMA employees would be authorized to collect samples from the harvest batch of the grower and submit the samples for testing on behalf of them.
All test samples collected by OMMA shall be retained for a minimum of sixty (60) days
Would go into effect November, 1 2022
HB4416 - Lowe (R)
Would require growers to submit annually information for every testing laboratory they used throughout the year
Growers must notify OMMA within ten (10) days of utilizing a different licensed testing facility
Would go into effect November, 1 2022
HB3679 - Sean Roberts (R)
Requires applying entities to show 100% Oklahoma resident ownership beginning November, 1st 2022
Any licensed medical marijuana business currently operating in this state with owners who are not Oklahoma residents shall have ninety (90) days from the effective date of this act to relinquish his or her ownership interest in the medical marijuana business
OMMA can suspend the licenses of those who do not comply
Establishes that upon receipt of a public complaint, OMMA must investigate alleged violations within 5 business days
Would go into effect November, 1 2022
HB3269 - Mize (R)
Reduces penalty for possession of cannabis up to 1.5 ounces of flower, 8 ounces of topical or edible (and marijuana paraphernalia) without a valid medical marijuana patient license from a misdemeanor to a civil infraction not to exceed $400
If the person charged receives a medical marijuana patient license within 45 days of their citation they may present their license to have the citation and fine vacated
There shall be no warrant issued for unpaid fines indicated above for a minimum of 45 days
Would go into effect November 1 2022
HB3141 - Kendrix (R)
Adds language that business licensees must “obtain all the necessary permits, certificates of compliance and registrations from the state and from any department of authority of a county or municipality prior to receiving licensing.”
Would go into effect November, 1 2022
HB2987 - Olsen (R)
Forces counties and municipalities to enact an ordinance or resolution restricting the aggregate number of additional medical marijuana dispensaries and grows that can operate within their boundaries
The restrictions cannot entirely prevent or prohibit operations within the county or municipality
Any ordinance passed by a county or municipality shall have no effect on existing businesses in the immediate term
If a county does not set their own ordinance restricting the aggregate number of businesses OMMA will cease issuing licenses except under two conditions:
OMMA will issue 1 additional grow and dispensary license each per county per calendar year
If the population of a county exceeds 100,000 OMMA will issue 2 additional licenses per county per calendar year
Would go into effect November 1st 2022
We’ve written a blog about HB2987. Read it here >>
HB4411 - Lowe (R)
Removes limit of two inspections per year
Under this bill, there would be no limit to the number of inspections that may be conducted in a calendar year
Would go into effect November 1 2022
HB3726 - West (R)
Creates the Oklahoma Cap on Medical Marijuana Business Act of 2022
Caps grow, dispensary and processor licenses beginning Sep 1, 2022
Licenses would be capped at the total number in each category as of September, 1st 2022
All pending applications filed prior to that date would be processed
Applicants submitting prior to September, 1st 2022 would not be required to submit a certificate of compliance at the time of application. 180 days would be granted from the date the license is provisionally approved to submit a certificate of compliance. The business license will only be awarded once all requirements have been met
If the licensee fails to submit a certificate of compliance within 180 days the license will automatically terminate
Categories will remain capped until they reach their respective cap amounts
Dispensaries until such time licenses are equal or less than 2000
Grows until such time licenses are equal or less than 5000
Processors until such time licenses are equal or less than 1000
Within 90 days of the effective date OMMA must promulgate rules to govern an impartial number-based lottery to govern issuance of all available medical marijuana business licenses up to the cap amount for the specific medical marijuana business license category
Emergency
HB3208 - Cornwell (R)
Places moratorium on processing and issuing new medical marijuana business licenses for an amount of time OMMA feels necessary
Emergency (July, 1st 2022)
HB3461 - Grego (R)
Prohibits grows from being within 1000ft of any place of worship, school or child care center
Distance would be measured from nearest property line of the grow to the respective restricted property
Existing licensees would be grandfathered in, not subject to non-renewal
Would go into effect November, 1st 2022
HB3891 - Townley (R)
Prohibits grows from being within 1000ft of a public school, measured by nearest property line
Grandfathers in existing grows, not subject to non-renewal
Defines public school as including athletic stadiums, etc. Admin buildings not including in this definition
These rules would not apply to private schools
Would go into effect November, 1st 2022
HB3727 - West (R)
Establishes a temporary moratorium on approval and issuance of new medical marijuana business licenses for a time OMMA deems necessary
Emergency (July 1st 2022)
HB3827 - Newton (R)
Would require outdoor commercial marijuana grows to register with the Oklahoma Department of Agriculture, Food and Forestry as an environmentally sensitive crop owner
Registration would provide notice to commercial and private pesticide applicators of the locations of medical marijuana crops and help minimize the potential for damaging pesticide drift
Would go into effect November, 1 2022
HB2989 - Russ (R)
Would require grows to make an application to the county or counties in which any property owned or leased by the applicant is located and upon which commercial growing would occur
Sets deadline for county application to be no later than June 30th each year
The approval for such applications would be up to the county voters
If a property occupies more than one county, the applicant must win simple majority approval of voters in each county
County applications will only be approved if the people of the county vote to approve the grow in the general elections held every two years
If the people of the county do not approve the application, no application for a commercial grower license can be submitted in that county again by the applicant for a period of 5 years
OSDH will maintain a registry of any county votes to prevent the issuance of a license to any applicant denied for a period of 5 years from the date of the election
Would go into effect November, 1 2022
June 30th 2023 would be the first application submission deadline for statewide elections in November of 2024
We’ve written a blog about HB2989. Read it here >>
HB3739 - Bashor (R)
OMMMA would recommend and the State commissioner of Health would promulgate rules and regulations designed to grant OMMA enforcement powers to mitigate nuisance odors created by commercial businesses
The regulations must contain the following requirements but are not limited to just these:
The investigation of complaints of odor related to the growing, processing, or manufacturing of medical marijuana;
A determination of the source of said odor;
A determination by Authority personnel that the odor can be readily smelled from a public place or private property and that the odor detected is of a sufficient strength to unreasonably interfere with an individual's enjoyment of his or her property;
4. Written affidavits from complainants describing or identifying, to the extent possible, the location, duration, and offensiveness of the odor experienced by the complainants;
5. Allowing or requiring the offending entity to work with the Authority to develop and institute an odor abatement plan; and
6. The issuance of citations and fines for noncompliance
B. The Authority shall determine whether or not a violation of the regulations has occurred based upon its review of the information obtained during its investigation. The Authority may review other states' best practices, including the use of odor detecting devices, for the development of the regulations required by this section
Would go into effect November, 1 2022
HB3268 - Mize (R)
Would allow a publicly traded company to purchase 100% of an Oklahoma medical marijuana business.
Dispensaries remain unqualified for such an acquisition
Would become effective November 1st 2022
We’ll be following this blog up with a part two that goes through the second half of the proposed bills in the coming week. Stay tuned.
