1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 1979 By: Bullard
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5 AS INTRODUCED
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6 An Act relating to medical marijuana; amending 63
6 O.S. 2021, Sections 421, as amended by Section 1,
7 Chapter 322, O.S.L. 2023, and 427.2, as last amended
7 by Section 1, Chapter 317, O.S.L. 2022 (63 O.S. Supp.
8 2023, Sections 421 and 427.2), which relate to
8 dispensaries; requiring the hiring of a licensed
9 dispensary manager to dispense medical marijuana;
9 providing functions and duties of the licensed
10 dispensary manager; defining term; updating statutory
10 reference and language; and providing an effective
11 date.
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12
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 63 O.S. 2021, Section 421, as
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15 amended by Section 1, Chapter 322, O.S.L. 2023 (63 O.S. Supp. 2023,
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16 Section 421), is amended to read as follows:
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17 Section 421. A. The Oklahoma Medical Marijuana Authority shall
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18 make available on its website in an easy-to-find location an
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19 application for a medical marijuana dispensary license. The
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20 application fee to be paid by the applicant shall be in the amounts
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21 provided for in Section 427.14 of this title. A method of payment
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22 for the application fee shall be provided on the website of the
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23 Authority. Dispensary applicants must all be residents of Oklahoma.
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24 Any entity applying for a dispensary license must be owned by an
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1 Oklahoma resident and must be registered to do business in Oklahoma.
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2 The Authority shall have ninety (90) business days to review the
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3 application; approve, reject, or deny the application; and send the
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4 approval, rejection, or denial letter stating reasons for the
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5 rejection or denial to the applicant in the same method the
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6 application was submitted to the Authority.
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7 B. The Authority shall approve all applications which meet the
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8 following criteria:
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9 1. The applicant must be twenty-five (25) years of age or
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10 older;
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11 2. The applicant, if applying as an individual, must show
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12 residency in this state;
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13 3. All applying entities must shall show that all members,
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14 dispensary managers, and board members are Oklahoma residents;
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15 4. An applying entity may show ownership of non-Oklahoma
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16 residents, but that percentage ownership may not exceed twenty-five
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17 percent (25%);
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18 5. All applying individuals or entities must shall be
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19 registered to conduct business in this state; and
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20 6. All applicants must disclose all ownership interests in the
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21 dispensary; and
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22 7. An applying entity shall show employment of a dispensary
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23 manager.
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1 Applicants with a nonviolent felony conviction in the last two
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2 (2) years, any other felony conviction in the last five (5) years,
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3 inmates in the custody of the Department of Corrections or any
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4 person currently incarcerated shall not qualify for a medical
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5 marijuana dispensary license.
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6 C. Licensed medical marijuana dispensaries shall be required to
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7 complete a monthly sales report to the Authority. This report shall
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8 be due on the fifteenth of each month and provide reporting on the
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9 previous month. This report shall detail the weight of marijuana
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10 purchased at wholesale and the weight of marijuana sold to licensed
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11 medical marijuana patients and licensed caregivers and account for
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12 any waste. The report shall show total sales in dollars, tax
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13 collected in dollars, and tax due in dollars. The Authority shall
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14 have oversight and auditing responsibilities to ensure that all
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15 marijuana being grown is accounted for.
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16 D. Only a licensed medical marijuana dispensary may conduct
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17 retail sales of marijuana or marijuana derivatives. Beginning on
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18 November 1, 2021, licensed medical marijuana dispensaries shall be
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19 authorized to package and sell pre-rolled marijuana to licensed
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20 medical marijuana patients and licensed caregivers. The products
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21 described in this subsection shall contain only the ground parts of
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22 the marijuana plant and shall not include marijuana concentrates or
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23 derivatives. The total net weight of each pre-roll packaged and
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24 sold by a medical marijuana dispensary shall not exceed one (1)
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1 gram. These products shall be tested, packaged and labeled in
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2 accordance with Oklahoma law and rules promulgated by the Authority.
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3 E. No medical marijuana dispensary shall offer or allow a
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4 medical marijuana patient licensee, caregiver licensee or other
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5 member of the public to handle or otherwise have physical contact
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6 with any medical marijuana not contained in a sealed or separate
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7 package.
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8 Provided, such
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9 F. Such prohibition shall not preclude:
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10 1. Preclude an employee of the medical marijuana dispensary
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11 from handling loose or nonpackaged medical marijuana to be placed in
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12 packaging consistent with the Oklahoma Medical Marijuana and Patient
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13 Protection Act and the rules promulgated by the Authority for the
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14 packaging of medical marijuana for retail sale. Provided, further,
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15 such prohibition shall not prevent; or
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16 2. Prevent a medical marijuana dispensary from displaying
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17 samples of its medical marijuana in separate display cases, jars or
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18 other containers and allowing medical marijuana patient licensees
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19 and caregiver licensees the ability to handle or smell the various
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20 samples as long as the sample medical marijuana is used for display
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21 purposes only and is not offered for retail sale.
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22 G. 1. After the effective date of this act, each licensed
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23 medical marijuana dispensary, in order to maintain their licensure,
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1 shall provide proof of continual employment of a dispensary manager
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2 to the Authority.
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3 2. Only a dispensary manager shall:
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4 a. control and distribute all medical marijuana products,
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5 b. verify the patient’s or the caregiver’s proof of
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6 identity by requiring the presentation of a valid
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7 medical marijuana license,
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8 c. provide the necessary educational materials, and
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9 d. record information necessary by rule for the sale of
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10 each medical marijuana product.
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11 The dispensary manager shall not be permitted to unlock the
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12 dispensary area or any additional storage areas for medical
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13 marijuana, except in case of an extreme emergency including, but not
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14 limited to, fire, water leak, electrical failure, public disaster,
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15 or other disaster whereby the public safety supersedes the security
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16 restrictions of the medical marijuana product.
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17 3. Medical marijuana products shall not be left unattended in
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18 the dispensary area without a dispensary manager present.
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19 4. The dispensary manager shall wear an appropriate
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20 identification badge allowing the public the ability to distinguish
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21 him or her from other dispensary employees.
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22 H. The Authority shall promulgate rules necessary for the use
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23 of dispensary managers in licensed medical marijuana dispensaries.
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1 SECTION 2. AMENDATORY 63 O.S. 2021, Section 427.2, as
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2 last amended by Section 1, Chapter 317, O.S.L. 2022 (63 O.S. Supp.
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3 2023, Section 427.2), is amended to read as follows:
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4 Section 427.2. As used in the Oklahoma Medical Marijuana and
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5 Patient Protection Act:
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6 1. “Advertising” means the act of providing consideration for
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7 the publication, dissemination, solicitation or circulation, of
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8 visual, oral or written communication to induce directly or
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9 indirectly any person to patronize a particular medical marijuana
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10 business, or to purchase particular medical marijuana or a medical
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11 marijuana product. Advertising includes marketing, but does not
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12 include packaging and labeling;
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13 2. “Authority” means the Oklahoma Medical Marijuana Authority;
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14 3. “Batch number” means a unique numeric or alphanumeric
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15 identifier assigned prior to testing to allow for inventory tracking
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16 and traceability;
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17 4. “Cannabinoid” means any of the chemical compounds that are
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18 active principles of marijuana;
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19 5. “Caregiver” means a family member or assistant who regularly
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20 looks after a medical marijuana license holder whom a physician
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21 attests needs assistance;
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22 6. “Child-resistant” means special packaging that is:
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23 a. designed or constructed to be significantly difficult
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24 for children under five (5) years of age to open and
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1 not difficult for normal adults to use properly as
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2 defined by 16 C.F.R. 1700.15 (1995) and 16 C.F.R.
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3 1700.20 (1995),
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4 b. opaque so that the outermost packaging does not allow
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5 the product to be seen without opening the packaging
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6 material, and
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7 c. resealable to maintain its child-resistant
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8 effectiveness for multiple openings for any product
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9 intended for more than a single use or containing
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10 multiple servings;
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11 7. “Clone” means a nonflowering plant cut from a mother plant
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12 that is capable of developing into a new plant and has shown no
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13 signs of flowering;
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14 8. “Commissioner” means the State Commissioner of Health;
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15 9. “Complete application” means a document prepared in
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16 accordance with the provisions set forth in the Oklahoma Medical
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17 Marijuana and Patient Protection Act, rules promulgated pursuant
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18 thereto, and the forms and instructions provided by the Department
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19 including any supporting documentation required and the applicable
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20 license application fee;
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21 10. “Department” means the State Department of Health;
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22 11. “Director” means the Executive Director of the Oklahoma
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23 Medical Marijuana Authority;
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1 12. “Dispense” means the selling of medical marijuana or a
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2 medical marijuana product by a licensed dispensary manager to a
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3 qualified patient or the designated caregiver of the patient that is
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4 packaged in a suitable container appropriately labeled for
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5 subsequent administration to or use by a qualifying patient;
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6 13. “Dispensary” means a medical marijuana dispensary, an
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7 entity that has been licensed by the Department pursuant to the
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8 Oklahoma Medical Marijuana and Patient Protection Act to purchase
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9 medical marijuana or medical marijuana products from a licensed
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10 medical marijuana commercial grower or medical marijuana processor,
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11 sell medical marijuana or medical marijuana products to patients and
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12 caregivers as defined under the Oklahoma Medical Marijuana and
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13 Patient Protection Act, or sell or transfer products to another
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14 dispensary;
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15 14. “Dispensary manager” means a person who is a currently
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16 licensed pharmacist in good standing with the State Board of
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17 Pharmacy and is knowledgeable in the specialized functions of
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18 medical marijuana product preparation and dispensing;
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19 15. “Edible medical marijuana product” means any medical-
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20 marijuana-infused product for which the intended use is oral
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21 consumption including, but not limited to, any type of food, drink
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22 or pill;
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23 15. 16. “Entity” means an individual, general partnership,
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24 limited partnership, limited liability company, trust, estate,
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1 association, corporation, cooperative or any other legal or
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2 commercial entity;
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3 16. 17. “Flower” means the reproductive organs of the marijuana
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4 or cannabis plant referred to as the bud or parts of the plant that
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5 are harvested and used to consume in a variety of medical marijuana
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6 products;
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7 17. 18. “Flowering” means the reproductive state of the
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8 marijuana or cannabis plant in which there are physical signs of
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9 flower or budding out of the nodes of the stem;
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10 18. 19. “Food-based medical marijuana concentrate” means a
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11 medical marijuana concentrate that was produced by extracting
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12 cannabinoids from medical marijuana through the use of propylene
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13 glycol, glycerin, butter, olive oil, coconut oil or other typical
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14 food-safe cooking fats;
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15 19. 20. “Good cause” for purposes of an initial, renewal or
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16 reinstatement license application, or for purposes of discipline of
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17 a licensee, means:
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18 a. the licensee or applicant has violated, does not meet,
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19 or has failed to comply with any of the terms,
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20 conditions or provisions of the act Oklahoma Medical
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21 Marijuana and Patient Protection Act, any rules
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22 promulgated pursuant thereto, or any supplemental
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23 relevant state or local law, rule or regulation,
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1 b. the licensee or applicant has failed to comply with
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2 any special terms or conditions that were placed upon
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3 the license pursuant to an order of the State
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4 Department of Health, Oklahoma Medical Marijuana
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5 Authority or the municipality, or
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6 c. the licensed premises of a medical marijuana business
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7 or applicant have been operated in a manner that
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8 adversely affects the public health or welfare or the
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9 safety of the immediate vicinity in which the
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10 establishment is located;
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11 20. 21. “Harvest batch” means a specifically identified
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12 quantity of medical marijuana that is uniform in strain, cultivated
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13 utilizing the same cultivation practices, harvested at the same time
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14 from the same location and cured under uniform conditions;
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15 21. 22. “Harvested marijuana” means post-flowering medical
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16 marijuana not including trim, concentrate or waste;
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17 22. 23. “Heat- or pressure-based medical marijuana concentrate”
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18 means a medical marijuana concentrate that was produced by
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19 extracting cannabinoids from medical marijuana through the use of
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20 heat or pressure;
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21 23. 24. “Immature plant” means a nonflowering marijuana plant
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22 that has not demonstrated signs of flowering;
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23 24. 25. “Inventory tracking system” means the required tracking
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24 system that accounts for medical marijuana from either the seed or
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1 immature plant stage until the medical marijuana or medical
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2 marijuana product is sold to a patient at a medical marijuana
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3 dispensary, transferred to a medical marijuana research facility,
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4 destroyed by a medical marijuana business or used in a research
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5 project by a medical marijuana research facility;
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6 25. 26. “Licensed patient” or “patient” means a person who has
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7 been issued a medical marijuana patient