1 STATE OF OKLAHOMA
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2 1st Session of the 59th Legislature (2023)
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3 SENATE BILL 117 By: Bergstrom
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6 AS INTRODUCED
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7 An Act relating to medical marijuana, amending 63
7 O.S. 2021, Sections 422, as last amended by Section
8 2, Chapter 332, O.S.L. 2022, and 423, as amended by
8 Section 3, Chapter 332, O.S.L. 2022 (63 O.S. Supp.
9 2022, Sections 422 and 423), which relate to medical
9 marijuana commercial grower and processing licenses;
10 requiring applicant to furnish certain documents
10 before operating; requiring licensee or applicant to
11 acquire a permit or official permission to register
11 with Oklahoma Medical Marijuana Authority;
12 authorizing Authority to revoke license if not in
12 compliance; updating statutory language; and
13 providing an effective date.
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16 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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17 SECTION 1. AMENDATORY 63 O.S. 2021, Section 422, as last
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18 amended by Section 2, Chapter 332, O.S.L. 2022 (63 O.S. Supp. 2022,
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19 Section 422), is amended to read as follows:
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20 Section 422. A. The Oklahoma Medical Marijuana Authority shall
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21 make available on its website in an easy-to-find location an
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22 application for a medical marijuana commercial grower license. The
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23 application fee shall be paid by the applicant in the amounts
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24 provided for in Section 427.14 of this title. A method of payment
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Req. No. 177 Page 1
 1 for the application fee shall be provided on the website of the
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2 Authority. The Authority shall have ninety (90) days to review the
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3 application; approve, reject or deny the application; and mail the
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4 approval, rejection or denial letter stating the reasons for the
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5 rejection or denial to the applicant.
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6 B. The Authority shall approve all applications which meet the
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7 following criteria:
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8 1. The applicant must be twenty-five (25) years of age or
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9 older;
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10 2. The applicant, if applying as an individual, must show
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11 residency in the State of Oklahoma;
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12 3. All applying entities must show that all members, managers,
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13 and board members are Oklahoma residents;
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14 4. An applying entity may show ownership of non-Oklahoma
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15 residents, but that percentage ownership may not exceed twenty-five
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16 percent (25%);
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17 5. All applying individuals or entities must be registered to
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18 conduct business in the State of Oklahoma; and
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19 6. All applicants must disclose all ownership interests in the
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20 commercial grower operation; and
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21 7. The applicant shall furnish documents evidencing compliance
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22 with the provisions of subsection F of this section.
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23 Applicants with a nonviolent felony conviction in the last two
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24 (2) years, any other felony conviction in the last five (5) years,
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 1 inmates in the custody of the Department of Corrections or any
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2 person currently incarcerated shall not qualify for a commercial
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3 grower license.
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4 C. A licensed medical marijuana commercial grower may sell
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5 marijuana to a licensed medical marijuana dispensary or a licensed
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6 medical marijuana processor. Further, sales by a licensed medical
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7 marijuana commercial grower shall be considered wholesale sales and
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8 shall not be subject to taxation. Under no circumstances may a
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9 licensed medical marijuana commercial grower sell marijuana directly
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10 to a licensed medical marijuana patient or licensed medical
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11 marijuana caregiver. A licensed medical marijuana commercial grower
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12 may only sell at the wholesale level to a licensed medical marijuana
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13 dispensary, a licensed medical marijuana commercial grower or a
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14 licensed medical marijuana processor. If the federal government
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15 lifts restrictions on buying and selling marijuana between states,
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16 then a licensed medical marijuana commercial grower would be allowed
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17 to sell and buy marijuana wholesale from, or to, an out-of-state
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18 wholesale provider. A licensed medical marijuana commercial grower
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19 shall be required to complete a monthly yield and sales report to
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20 the Authority. This report shall be due on the fifteenth of each
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21 month and provide reporting on the previous month. This report
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22 shall detail the amount of marijuana harvested in pounds, the amount
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23 of drying or dried marijuana on hand, the amount of marijuana sold
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24 to licensed processors in pounds, the amount of waste in pounds, and
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Req. No. 177 Page 3
 1 the amount of marijuana sold to licensed medical marijuana
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2 dispensaries in pounds. Additionally, this report shall show total
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3 wholesale sales in dollars. The Authority shall have oversight and
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4 auditing responsibilities to ensure that all marijuana being grown
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5 by licensed medical marijuana commercial growers is accounted for.
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6 D. There shall be no limits on how much marijuana a licensed
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7 medical marijuana commercial grower can grow.
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8 E. Beginning on the effective date of this act June 1, 2023,
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9 licensed medical marijuana commercial growers shall be authorized to
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10 package and sell pre-rolled marijuana to licensed medical marijuana
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11 dispensaries. The products described in this subsection shall
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12 contain only the ground parts of the marijuana plant and shall not
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13 include marijuana concentrates or derivatives. The total net weight
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14 of each pre-roll packaged and sold by licensed medical marijuana
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15 commercial growers shall not exceed one (1) gram. These products
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16 must be tested, packaged and labeled in accordance with Oklahoma law
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17 and rules promulgated by the Authority.
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18 F. A commercial grower applicant or licensee shall, prior to
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19 engaging in a commercial growing operation, either:
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20 1. Acquire a water use permit from the Oklahoma Water Resources
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21 Board pursuant to Section 105.9 of Title 82 of the Oklahoma Statutes
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22 if the commercial growing operation uses groundwater or water from
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23 an Oklahoma steam; or
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 1 2. Acquire an official statement of permission from the county,
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2 municipality, or other political subdivision that provides water if
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3 the commercial growing operation uses rural or municipal water and
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4 register the statement with the Authority.
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5 Upon failure of a commercial grower licensee to register the
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6 water source of a commercial growing operation with the Authority
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7 or, if applicable, receive a permit by the Water Resources Board
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8 after ninety (90) days following license renewal, the Authority
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9 shall revoke the commercial grower license.
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10 SECTION 2. AMENDATORY 63 O.S. 2021, Section 423, as last
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11 amended by Section 3, Chapter 332, O.S.L. 2022 (63 O.S. Supp. 2022,
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12 Section 423), is amended to read as follows:
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13 Section 423. A. The Oklahoma Medical Marijuana Authority shall
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14 make available on its website in an easy-to-find location an
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15 application for a medical marijuana processing license. The
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16 Authority shall be authorized to issue two types of medical
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17 marijuana processor licenses based on the level of risk posed by the
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18 type of processing conducted:
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19 1. Nonhazardous medical marijuana processor license; and
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20 2. Hazardous medical marijuana processor license.
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21 The application fee for a nonhazardous or hazardous medical
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22 marijuana processor license shall be paid by the applicant in the
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23 amounts provided for in Section 427.14 of this title. A method of
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24 payment shall be provided on the website of the Authority. The
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 1 Authority shall have ninety (90) days to review the application;
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2 approve, reject or deny the application; and mail the approval,
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3 rejection or denial letter stating the reasons for the rejection or
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4 denial to the applicant.
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5 B. The Authority shall approve all applications which meet the
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6 following criteria:
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7 1. The applicant must be twenty-five (25) years of age or
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8 older;
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9 2. The applicant, if applying as an individual, must show
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10 residency in the State of Oklahoma;
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11 3. All applying entities must show that all members, managers,
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12 and board members are Oklahoma residents;
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13 4. An applying entity may show ownership of non-Oklahoma
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14 residents, but that percentage ownership may not exceed twenty-five
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15 percent (25%);
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16 5. All applying individuals or entities must be registered to
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17 conduct business in the State of Oklahoma; and
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18 6. All applicants must disclose all ownership interests in the
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19 processing operation; and
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20 7. The applicant shall furnish documents evidencing compliance
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21 with the provisions of subsection G of this section.
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22 Applicants with a nonviolent felony conviction in the last two
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23 (2) years, any other felony conviction in the last five (5) years,
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24 inmates in the custody of the Department of Corrections or any
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 1 person currently incarcerated shall not qualify for a medical
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2 marijuana processing license.
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3 C. 1. A licensed processor may take marijuana plants and
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4 distill or process these plants into concentrates, edibles, and
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5 other forms for consumption.
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6 2. As required by subsection D of this section, the Authority
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7 shall make available a set of standards which shall be used by
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8 licensed processors in the preparation of edible marijuana products.
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9 The standards should be in line with current food preparation
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10 guidelines. No excessive or punitive rules may be established by
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11 the Authority.
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12 3. Up to two times a year, the Authority may inspect a
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13 processing operation and determine its compliance with the
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14 preparation standards. If deficiencies are found, a written report
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15 of the deficiency shall be issued to the licensed processor. The
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16 licensed processor shall have one (1) month to correct the
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17 deficiency or be subject to a fine of Five Hundred Dollars ($500.00)
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18 for each deficiency.
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19 4. A licensed processor may sell marijuana products it creates
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20 to a licensed dispensary or any other licensed processor. All sales
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21 by a licensed processor shall be considered wholesale sales and
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22 shall not be subject to taxation.
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23 5. Under no circumstances may a licensed processor sell
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24 marijuana or any marijuana product directly to a licensed medical
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 1 marijuana patient or licensed caregiver. However, a licensed
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2 processor may process cannabis into a concentrated form for a
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3 licensed medical marijuana patient for a fee.
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4 6. Licensed processors shall be required to complete a monthly
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5 yield and sales report to the Authority. This report shall be due
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6 on the fifteenth of each month and shall provide reporting on the
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7 previous month. This report shall detail the amount of marijuana
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8 and medical marijuana products purchased in pounds, the amount of
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9 marijuana cooked or processed in pounds, and the amount of waste in
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10 pounds. Additionally, this report shall show total wholesale sales
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11 in dollars. The Authority shall have oversight and auditing
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12 responsibilities to ensure that all marijuana being processed is
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13 accounted for.
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14 D. The Authority shall oversee the inspection and compliance of
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15 licensed processors producing products with marijuana as an
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16 additive. The Authority shall be compelled to, within thirty (30)
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17 days of passage of this initiative, appoint twelve (12) Oklahoma
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18 residents to the Medical Marijuana Advisory Council, who are
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19 marijuana industry experts, to create a list of food safety
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20 standards for processing and handling medical marijuana in Oklahoma.
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21 These standards shall be adopted by the Authority and the Authority
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22 may enforce these standards for licensed processors. The Authority
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23 shall develop a standards review procedure and these standards can
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24 be altered by calling another council of twelve (12) Oklahoma
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 1 marijuana industry experts. A signed letter of twenty operating,
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2 licensed processors shall constitute a need for a new council and
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3 standards review.
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4 E. If it becomes permissible under federal law, marijuana may
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5 be moved across state lines.
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6 F. Any device used for the processing or consumption of medical
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7 marijuana shall be considered legal to be sold, manufactured,
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8 distributed and possessed. No merchant, wholesaler, manufacturer or
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9 individual may be unduly harassed or prosecuted for selling,
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10 manufacturing or possessing marijuana paraphernalia.
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11 G. A processor applicant or licensee shall, prior to engaging
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12 in a processing operation, either:
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13 1. Acquire a water use permit from the Oklahoma Water Resources
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14 Board pursuant to Section 105.9 of Title 82 of the Oklahoma Statutes
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15 if the processing operation uses groundwater or water from an
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16 Oklahoma steam; or
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17 2. Acquire an official statement of permission from the county,
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18 municipality, or other political subdivision that provides water if
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19 the processing operation uses rural or municipal water and register
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20 the statement with the Authority.
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21 Upon failure of a processor licensee to register the water
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22 source of a processing operation with the Authority or, if
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23 applicable, receive a permit by the Oklahoma Water Resources Board
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 1 after ninety (90) days following license renewal, the Authority
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2 shall revoke the processor license.
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3 SECTION 3. This act shall become effective November 1, 2023.
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5 59-1-177 MR 1/3/2023 4:37:29 PM
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Statutes affected:
Introduced: 63-422, 63-423