1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 1939 By: Paxton
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6 AS INTRODUCED
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7 An Act relating to medical marijuana; amending 63
7 O.S. 2021, Section 427.14, as last amended by Section
8 7, Chapter 322, O.S.L. 2023 (63 O.S. Supp. 2023,
8 Section 427.14), which relates to medical marijuana
9 business license; requiring certain documentation of
9 real estate exchange; prohibiting individuals from
10 having multiple licenses with exception of certain
10 businesses; setting fee for expired medical marijuana
11 business licenses; specifying timeframe for renewal
11 of medical marijuana business licenses; prohibiting
12 possession, sale, or transfer of medical marijuana
12 following expiration of license; prescribing penalty
13 for violation; updating statutory language; requiring
13 written approval for transfer; defining term;
14 permitting certain approval under certain
14 circumstances; requiring documentation to be
15 submitted; denying certain approval for certain
15 circumstances; requiring certain inventory to be
16 taken prior to approval; prohibiting transfer without
16 approval; prescribing transfer fee; providing for
17 promulgation of rules; denying licensure under
17 certain circumstances; prohibiting multiple
18 transfers; providing for codification; providing an
18 effective date; and declaring an emergency.
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21 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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22 SECTION 1. AMENDATORY 63 O.S. 2021, Section 427.14, as
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23 last amended by Section 7, Chapter 322, O.S.L. 2023 (63 O.S. Supp.
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24 2023, Section 427.14), is amended to read as follows:
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Req. No. 2644 Page 1
 1 Section 427.14. A. There is hereby created the medical
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2 marijuana business license, which shall include the following
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3 categories:
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4 1. Medical marijuana commercial grower;
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5 2. Medical marijuana processor;
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6 3. Medical marijuana dispensary;
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7 4. Medical marijuana transporter; and
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8 5. Medical marijuana testing laboratory.
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9 B. The Oklahoma Medical Marijuana Authority, with the aid of
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10 the Office of Management and Enterprise Services, shall develop a
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11 website for medical marijuana business applications.
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12 C. The Authority shall make available on its website in an
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13 easy-to-find location, applications for a medical marijuana
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14 business.
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15 D. 1. The annual, nonrefundable fee for a medical marijuana
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16 transporter license shall be Two Thousand Five Hundred Dollars
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17 ($2,500.00).
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18 2. The initial, nonrefundable fee for a medical marijuana
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19 commercial grower license shall be calculated based upon the total
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20 amount of square feet of canopy or acres the grower estimates will
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21 be harvested, transferred, or sold for the year. The annual,
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22 nonrefundable license fee shall be based upon the total amount of
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23 square feet of canopy or acres harvested, transferred, or sold by
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Req. No. 2644 Page 2
 1 the grower during the previous twelve (12) months. The amount of
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2 the fees shall be determined as follows:
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3 a. For an indoor, greenhouse, or light deprivation
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4 medical marijuana grow facility:
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5 (1) Tier 1: Up to ten thousand (10,000) square feet
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6 of canopy, the fee shall be Two Thousand Five
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7 Hundred Dollars ($2,500.00),
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8 (2) Tier 2: Ten thousand one (10,001) square feet of
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9 canopy to twenty thousand (20,000) square feet of
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10 canopy, the fee shall be Five Thousand Dollars
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11 ($5,000.00),
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12 (3) Tier 3: Twenty thousand one (20,001) square feet
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13 of canopy to forty thousand (40,000) square feet
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14 of canopy, the fee shall be Ten Thousand Dollars
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15 ($10,000.00),
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16 (4) Tier 4: Forty thousand one (40,001) square feet
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17 of canopy to sixty thousand (60,000) square feet
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18 of canopy, the fee shall be Twenty Thousand
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19 Dollars ($20,000.00),
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20 (5) Tier 5: Sixty thousand one (60,001) square feet
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21 of canopy to eighty thousand (80,000) square feet
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22 of canopy, the fee shall be Thirty Thousand
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23 Dollars ($30,000.00),
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 1 (6) Tier 6: Eighty thousand one (80,001) square feet
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2 of canopy to ninety-nine thousand nine hundred
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3 ninety-nine (99,999) square feet of canopy, the
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4 fee shall be Forty Thousand Dollars ($40,000.00),
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5 and
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6 (7) Tier 7: One hundred thousand (100,000) square
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7 feet of canopy and beyond, the fee shall be Fifty
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8 Thousand Dollars ($50,000.00), plus an additional
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9 twenty-five cents ($0.25) per square foot of
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10 canopy over one hundred thousand (100,000) square
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11 feet.
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12 b. For an outdoor medical marijuana grow facility:
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13 (1) Tier 1: Less than two and one-half (2 1/2)
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14 acres, the fee shall be Two Thousand Five Hundred
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15 Dollars ($2,500.00),
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16 (2) Tier 2: More than two and one-half (2 1/2) acres
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17 up to five (5) acres, the fee shall be Five
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18 Thousand Dollars ($5,000.00),
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19 (3) Tier 3: More than five (5) acres up to ten (10)
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20 acres, the fee shall be Ten Thousand Dollars
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21 ($10,000.00),
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22 (4) Tier 4: More than ten (10) acres up to twenty
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23 (20) acres, the fee shall be Twenty Thousand
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24 Dollars ($20,000.00),
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Req. No. 2644 Page 4
 1 (5) Tier 5: More than twenty (20) acres up to thirty
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2 (30) acres, the fee shall be Thirty Thousand
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3 Dollars ($30,000.00),
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4 (6) Tier 6: More than thirty (30) acres up to forty
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5 (40) acres, the fee shall be Forty Thousand
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6 Dollars ($40,000.00),
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7 (7) Tier 7: More than forty (40) acres up to fifty
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8 (50) acres, the fee shall be Fifty Thousand
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9 Dollars ($50,000.00), and
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10 (8) Tier 8: If the amount of acreage exceeds fifty
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11 (50) acres, the fee shall be Fifty Thousand
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12 Dollars ($50,000.00) plus an additional Two
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13 Hundred Fifty Dollars ($250.00) per acre.
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14 c. For a medical marijuana commercial grower that has a
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15 combination of both indoor and outdoor growing
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16 facilities at one location, the medical marijuana
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17 commercial grower shall be required to obtain a
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18 separate license from the Authority for each type of
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19 grow operation and shall be subject to the licensing
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20 fees provided for in subparagraphs a and b of this
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21 paragraph.
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22 d. As used in this paragraph:
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23 (1) “canopy” means the total surface area within a
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24 cultivation area that is dedicated to the
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Req. No. 2644 Page 5
 1 cultivation of flowering marijuana plants. The
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2 surface area of the plant canopy must be
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3 calculated in square feet and measured and must
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4 include all of the area within the boundaries
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5 where the cultivation of the flowering marijuana
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6 plants occurs. If the surface of the plant
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7 canopy consists of noncontiguous areas, each
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8 component area must be separated by identifiable
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9 boundaries. If a tiered or shelving system is
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10 used in the cultivation area, the surface area of
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11 each tier or shelf must be included in
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12 calculating the area of the plant canopy.
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13 Calculation of the area of the plant canopy may
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14 not include the areas within the cultivation area
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15 that are used to cultivate immature marijuana
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16 plants and seedlings, prior to flowering, and
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17 that are not used at any time to cultivate mature
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18 marijuana plants. If the flowering plants are
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19 vertically grown in cylinders, the square footage
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20 of the canopy shall be measured by the
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21 circumference of the cylinder multiplied by the
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22 total length of the cylinder,
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23 (2) “greenhouse” means a structure located outdoors
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24 that is completely covered by a material that
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Req. No. 2644 Page 6
 1 allows a controlled level of light transmission,
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2 and
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3 (3) “light deprivation” means a structure that has
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4 concrete floors and the ability to manipulate
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5 natural light.
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6 3. The initial, nonrefundable fee for a medical marijuana
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7 processor license shall be Two Thousand Five Hundred Dollars
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8 ($2,500.00). The annual, nonrefundable license fee for a medical
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9 marijuana processor license shall be determined based on the
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10 previous twelve (12) months as follows:
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11 a. Tier 1: The transfer or sale of zero (0) to ten
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12 thousand (10,000) pounds of biomass or the production,
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13 transfer, or sale of up to one hundred (100) liters of
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14 cannabis concentrate, whichever is greater, the annual
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15 fee shall be Two Thousand Five Hundred Dollars
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16 ($2,500.00),
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17 b. Tier 2: The transfer or sale of ten thousand one
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18 (10,001) pounds to fifty thousand (50,000) pounds of
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19 biomass or the production, transfer, or sale of one
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20 hundred one (101) to three hundred fifty (350) liters
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21 of cannabis concentrate, whichever is greater, the
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22 annual fee shall be Five Thousand Dollars ($5,000.00),
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23 c. Tier 3: The transfer or sale of fifty thousand one
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24 (50,001) pounds to one hundred fifty thousand
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Req. No. 2644 Page 7
 1 (150,000) pounds of biomass or the production,
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2 transfer, or sale of three hundred fifty-one (351) to
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3 six hundred fifty (650) liters of cannabis
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4 concentrate, whichever is greater, the annual fee
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5 shall be Ten Thousand Dollars ($10,000.00),
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6 d. Tier 4: The transfer or sale of one hundred fifty
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7 thousand one (150,001) pounds to three hundred
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8 thousand (300,000) pounds of biomass or the
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9 production, transfer, or sale of six hundred fifty-one
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10 (651) to one thousand (1,000) liters of cannabis
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11 concentrate, whichever is greater, the annual fee
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12 shall be Fifteen Thousand Dollars ($15,000.00), and
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13 e. Tier 5: The transfer or sale of more than three
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14 hundred thousand one (300,001) pounds of biomass or
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15 the production, transfer, or sale in excess of one
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16 thousand one (1,001) liters of cannabis concentrate,
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17 the annual fee shall be Twenty Thousand Dollars
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18 ($20,000.00).
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19 For purposes of this paragraph only, if the cannabis concentrate
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20 is in nonliquid form, every one thousand (1,000) grams of
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21 concentrated marijuana shall be calculated as one (1) liter of
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22 cannabis concentrate.
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23 4. The initial, nonrefundable fee for a medical marijuana
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24 dispensary license shall be Two Thousand Five Hundred Dollars
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 1 ($2,500.00). The annual, nonrefundable license fee for a medical
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2 marijuana dispensary license shall be calculated at ten percent
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3 (10%) of the sum of twelve (12) calendar months of the combined
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4 annual state sales tax and state excise tax of the dispensary during
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5 the previous twelve (12) months. The minimum fee shall be not less
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6 than Two Thousand Five Hundred Dollars ($2,500.00) and the maximum
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7 fee shall not exceed Ten Thousand Dollars ($10,000.00).
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8 5. The annual, nonrefundable license fee for a medical
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9 marijuana testing laboratory shall be Twenty Thousand Dollars
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10 ($20,000.00).
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11 E. All applicants seeking licensure or licensure renewal as a
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12 medical marijuana business shall comply with the following general
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13 requirements:
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14 1. All applications for licenses and registrations authorized
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15 pursuant to this section shall be made upon forms prescribed by the
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16 Authority;
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17 2. Each application shall identify the city or county in which
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18 the applicant seeks to obtain licensure as a medical marijuana
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19 business;
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20 3. Applicants shall submit a complete application to the
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21 Authority before the application may be accepted or considered;
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22 4. All applications shall be complete and accurate in every
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23 detail;
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 1 5. All applications shall include all attachments or
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2 supplemental information required by the forms supplied by the
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3 Authority;
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4 6. All applications for a transporter license, initial
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5 dispensary license, initial processor license, or laboratory license
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6 shall be accompanied by a full remittance for the whole amount of
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7 the license fee as set forth in subsection D of this section. All
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8 submissions of grower applications, renewal processor applications,
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9 and renewal dispensary applications shall be accompanied by a
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10 remittance of a fee of Two Thousand Five Hundred Dollars
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11 ($2,500.00). The Authority shall invoice license applicants, if
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12 applicable, for any additional licensing fees owed pursuant to
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13 subsection D of this section prior to approval of a license
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14 application. License fees are nonrefundable;
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15 7. All applicants shall be approved for licensing review that,
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16 at a minimum, meet the following criteria:
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17 a. twenty-five (25) years of age or older,
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18 b. if applying as an individual, proof that the applicant
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19 is an Oklahoma resident pursuant to paragraph 11 of
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20 this subsection,
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21 c. if applying as an entity, proof that seventy-five
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22 percent (75%) of all membe