1 STATE OF OKLAHOMA
2 1st Session of the 59th Legislature (2023)
3 HOUSE BILL 1616 By: Worthen
4
5
6 AS INTRODUCED
7 An Act relating to medical marijuana; amending 63
O.S. 2021, Section 427.14, as amended by Section 4,
8 Chapter 332, O.S.L. 2022 (63 O.S. Supp. 2022, Section
427.14), which relates to the Oklahoma Medical
9 Marijuana and Patient Protection Act; requiring
disclosure of conflicts of interests from certain
10 elected officials; and providing an effective date.
11
12
13
14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
15 SECTION 1. AMENDATORY 63 O.S. 2021, Section 427.14, as
16 amended by Section 4, Chapter 332, O.S.L. 2022 (63 O.S. Supp. 2022,
17 Section 427.14), is amended to read as follows:
18 Section 427.14 A. There is hereby created the medical
19 marijuana business license, which shall include the following
20 categories:
21 1. Medical marijuana commercial grower;
22 2. Medical marijuana processor;
23 3. Medical marijuana dispensary;
24 4. Medical marijuana transporter; and
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1 5. Medical marijuana testing laboratory.
2 B. The Oklahoma Medical Marijuana Authority, with the aid of
3 the Office of Management and Enterprise Services, shall develop a
4 website for medical marijuana business applications.
5 C. The Authority shall make available on its website in an
6 easy-to-find location, applications for a medical marijuana
7 business.
8 D. 1. The annual, nonrefundable fee for a medical marijuana
9 transporter license shall be Two Thousand Five Hundred Dollars
10 ($2,500.00).
11 2. The initial fee for a medical marijuana commercial grower
12 license shall be calculated based upon the total amount of square
13 feet of canopy or acres the grower estimates will be harvested for
14 the year. The annual, nonrefundable license fee shall be based upon
15 the total amount of square feet of canopy harvested by the grower
16 during the previous twelve (12) months. The amount of the fees
17 shall be determined as follows:
18 a. For an indoor, greenhouse, or light deprivation
19 medical marijuana grow facility:
20 (1) Tier 1: Up to ten thousand (10,000) square feet
21 of canopy, the fee shall be Two Thousand Five
22 Hundred Dollars ($2,500.00),
23 (2) Tier 2: Ten thousand one (10,001) square feet of
24 canopy to twenty thousand (20,000) square feet of
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1 canopy, the fee shall be Five Thousand Dollars
2 ($5,000.00),
3 (3) Tier 3: Twenty thousand one (20,001) square feet
4 of canopy to forty thousand (40,000) square feet
5 of canopy, the fee shall be Ten Thousand Dollars
6 ($10,000.00),
7 (4) Tier 4: Forty thousand one (40,001) square feet
8 of canopy to sixty thousand (60,000) square feet
9 of canopy, the fee shall be Twenty Thousand
10 Dollars ($20,000.00),
11 (5) Tier 5: Sixty thousand one (60,001) square feet
12 of canopy to eighty thousand (80,000) square feet
13 of canopy, the fee shall be Thirty Thousand
14 Dollars ($30,000.00),
15 (6) Tier 6: Eighty thousand one (80,001) square feet
16 of canopy to ninety-nine thousand nine hundred
17 ninety-nine (99,999) square feet of canopy, the
18 fee shall be Forty Thousand Dollars ($40,000.00),
19 and
20 (7) Tier 7: One hundred thousand (100,000) square
21 feet of canopy and beyond, the fee shall be Fifty
22 Thousand Dollars ($50,000.00), plus an additional
23 twenty-five cents ($0.25) per square foot of
24
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1 canopy over one hundred thousand (100,000) square
2 feet.
3 b. For an outdoor medical marijuana grow facility:
4 (1) Tier 1: Up to two and one-half (2 1/2) acres,
5 the fee shall be Two Thousand Five Hundred
6 Dollars ($2,500.00),
7 (2) Tier 2: Two and one-half (2 1/2) acres up to
8 five (5) acres, the fee shall be Five Thousand
9 Dollars ($5,000.00),
10 (3) Tier 3: Five (5) acres up to ten (10) acres, the
11 fee shall be Ten Thousand Dollars ($10,000.00),
12 (4) Tier 4: Ten (10) acres up to twenty (20) acres,
13 the fee shall be Twenty Thousand Dollars
14 ($20,000.00),
15 (5) Tier 5: Twenty (20) acres up to thirty (30)
16 acres, the fee shall be Thirty Thousand Dollars
17 ($30,000.00),
18 (6) Tier 6: Thirty (30) acres up to forty (40)
19 acres, the fee shall be Forty Thousand Dollars
20 ($40,000.00),
21 (7) Tier 7: Forty (40) acres up to fifty (50) acres,
22 the fee shall be Fifty Thousand Dollars
23 ($50,000.00), and
24
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1 (8) Tier 8: If the amount of acreage exceeds fifty
2 (50) acres, the fee shall be Fifty Thousand
3 Dollars ($50,000.00) plus an additional Two
4 Hundred Fifty Dollars ($250.00) per acre.
5 c. For a medical marijuana commercial grower that has a
6 combination of both indoor and outdoor growing
7 facilities at one location, the medical marijuana
8 commercial grower shall be required to obtain a
9 separate license from the Authority for each type of
10 grow operation and shall be subject to the licensing
11 fees provided for in subparagraphs a and b of this
12 paragraph.
13 d. As used in this paragraph:
14 (1) "canopy" means the total surface area within a
15 cultivation area that is dedicated to the
16 cultivation of flowering marijuana plants. The
17 surface area of the plant canopy must be
18 calculated in square feet and measured and must
19 include all of the area within the boundaries
20 where the cultivation of the flowering marijuana
21 plants occurs. If the surface of the plant
22 canopy consists of noncontiguous areas, each
23 component area must be separated by identifiable
24 boundaries. If a tiered or shelving system is
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1 used in the cultivation area, the surface area of
2 each tier or shelf must be included in
3 calculating the area of the plant canopy.
4 Calculation of the area of the plant canopy may
5 not include the areas within the cultivation area
6 that are used to cultivate immature marijuana
7 plants and seedlings, prior to flowering, and
8 that are not used at any time to cultivate mature
9 marijuana plants. If the flowering plants are
10 vertically grown in cylinders, the square footage
11 of the canopy shall be measured by the
12 circumference of the cylinder multiplied by the
13 total length of the cylinder,
14 (2) "greenhouse" means a structure located outdoors
15 that is completely covered by a material that
16 allows a controlled level of light transmission,
17 and
18 (3) "light deprivation" means a structure that has
19 concrete floors and the ability to manipulate
20 natural light.
21 3. The annual, nonrefundable license fee for a medical
22 marijuana processor license shall be determined as follows:
23 a. Tier 1: Zero (0) to ten thousand (10,000) pounds of
24 biomass or production or use of up to one hundred
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1 (100) liters of cannabis concentrate, the annual fee
2 shall be Two Thousand Five Hundred Dollars
3 ($2,500.00),
4 b. Tier 2: Ten thousand one (10,001) pounds to fifty
5 thousand (50,000) pounds of biomass or production or
6 use from one hundred one (101) to three hundred fifty
7 (350) liters of cannabis concentrate, the annual fee
8 shall be Five Thousand Dollars ($5,000.00),
9 c. Tier 3: Fifty thousand one (50,001) pounds to one
10 hundred fifty thousand (150,000) pounds of biomass or
11 production or use from three hundred fifty-one (351)
12 to six hundred fifty (650) liters of cannabis
13 concentrate, the annual fee shall be Ten Thousand
14 Dollars ($10,000.00),
15 d. Tier 4: One hundred fifty thousand one (150,001)
16 pounds to three hundred thousand (300,000) pounds of
17 biomass or production or use from six hundred fifty-
18 one (651) to one thousand (1,000) liters of cannabis
19 concentrate, the annual fee shall be Fifteen Thousand
20 Dollars ($15,000.00), and
21 e. Tier 5: More than three hundred thousand one
22 (300,001) pounds of biomass or production or use in
23 excess of one thousand one (1,001) liters of cannabis
24
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1 concentrate, the annual fee shall be Twenty Thousand
2 Dollars ($20,000.00).
3 For purposes of this paragraph only, if the cannabis concentrate
4 is in nonliquid form, every one thousand (1,000) grams of
5 concentrated marijuana shall be calculated as one (1) liter of
6 cannabis concentrate.
7 4. The initial fee for a medical marijuana dispensary license
8 shall be Two Thousand Five Hundred Dollars ($2,500.00). The annual,
9 nonrefundable license fee for a medical marijuana dispensary license
10 shall be calculated at ten percent (10%) of the sum of twelve (12)
11 calendar months of the combined annual state sales tax and state
12 excise tax of the dispensary. The minimum fee shall be not less
13 than Two Thousand Five Hundred Dollars ($2,500.00) and the maximum
14 fee shall not exceed Ten Thousand Dollars ($10,000.00).
15 5. The annual, nonrefundable license fee for a medical
16 marijuana testing laboratory shall be Twenty Thousand Dollars
17 ($20,000.00).
18 E. All applicants seeking licensure or licensure renewal as a
19 medical marijuana business shall comply with the following general
20 requirements:
21 1. All applications for licenses and registrations authorized
22 pursuant to this section shall be made upon forms prescribed by the
23 Authority;
24
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1 2. Each application shall identify the city or county in which
2 the applicant seeks to obtain licensure as a medical marijuana
3 business;
4 3. Applicants shall submit a complete application to the
5 Authority before the application may be accepted or considered;
6 4. All applications shall be complete and accurate in every
7 detail;
8 5. All applications shall include all attachments or
9 supplemental information required by the forms supplied by the
10 Authority;
11 6. All applications shall be accompanied by a full remittance
12 for the whole amount of the application fees. Application fees are
13 nonrefundable;
14 7. All applicants shall be approved for licensing review that,
15 at a minimum, meets the following criteria:
16 a. twenty-five (25) years of age or older,
17 b. if applying as an individual, proof that the applicant
18 is an Oklahoma resident pursuant to paragraph 11 of
19 this subsection,
20 c. if applying as an entity, proof that seventy-five
21 percent (75%) of all members, managers, executive
22 officers, partners, board members or any other form of
23 business ownership are Oklahoma residents pursuant to
24 paragraph 11 of this subsection,
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1 d. if applying as an individual or entity, proof that the
2 individual or entity is registered to conduct business
3 in the State of Oklahoma,
4 e. disclosure of all ownership interests pursuant to the
5 Oklahoma Medical Marijuana and Patient Protection Act,
6 and
7 f. proof that the medical marijuana business, medical
8 marijuana research facility, medical marijuana
9 education facility and medical marijuana waste
10 disposal facility applicant or licensee has not been
11 convicted of a nonviolent felony in the last two (2)
12 years, or any other felony conviction within the last
13 five (5) years, is not a current inmate in the custody
14 of the Department of Corrections, or currently
15 incarcerated in a jail or corrections facility;
16 8. There shall be no limit to the number of medical marijuana
17 business licenses or categories that an individual or entity can
18 apply for or receive, although each application and each category
19 shall require a separate application and application fee. A
20 commercial grower, processor and dispensary, or any combination
21 thereof, are authorized to share the same address or physical
22 location, subject to the restrictions set forth in the Oklahoma
23 Medical Marijuana and Patient Protection Act;
24
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1 9. All applicants for a medical marijuana business license,
2 research facility license or education facility license authorized
3 by the Oklahoma Medical Marijuana and Patient Protection Act, or for
4 a renewal of such license, shall undergo an Oklahoma criminal
5 history background check conducted by the Oklahoma State Bureau of
6 Investigation (OSBI) within thirty (30) days prior to the
7 application for the license, including:
8 a. individual applicants applying on their own behalf,
9 b. individuals applying on behalf of an entity,
10 c. all principal officers of an entity, and
11 d. all owners of an entity as defined by the Oklahoma
12 Medical Marijuana and Patient Protection Act;
13 10. All applicable fees charged by the OSBI are the
14 responsibility of the applicant and shall not be higher than fees
15 charged to any other person or industry for such background checks;
16 11. In order to be considered an Oklahoma resident for purposes
17 of a medical marijuana business application, all applicants shall
18 provide proof of Oklahoma residency for at least two (2) years
19 immediately preceding the date of application or five (5) years of
20 continuous Oklahoma residency during the preceding twenty-five (25)
21 years immediately preceding the date of application. Sufficient
22 documentation of proof of residency shall include a combination of
23 the following:
24 a. an unexpired Oklahoma-issued driver license,
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1 b. an Oklahoma identification card,
2 c. a utility bill preceding the date of application,
3 excluding cellular telephone and Internet bills,
4 d. a residential property deed to property in the State
5 of Oklahoma, and
6 e. a rental agreement preceding the date of application
7 for residential property located in the State of
8 Oklahoma.
9 Applicants that were issued a medical marijuana business license
10 prior to August 30, 2019, are hereby exempt from the two-year or
11 five-y