1 STATE OF OKLAHOMA
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2 1st Session of the 59th Legislature (2023)
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3 SENATE BILL 808 By: Newhouse
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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 427.6, as last amended by Section
8 10, Chapter 251, O.S.L. 2022 (63 O.S. Supp. 2022,
8 Section 427.6), which relates to monitoring and
9 disciplinary actions; authorizing the Director to
9 issue order of immediate action under certain
10 circumstance; requiring immediate compliance;
10 providing for penalty; and providing an effective
11 date.
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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 427.6, as
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15 last amended by Section 10, Chapter 251, O.S.L. 2022 (63 O.S. Supp.
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16 2022, Section 427.6), is amended to read as follows:
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17 Section 427.6. A. The Oklahoma Medical Marijuana Authority
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18 shall address issues related to the medical marijuana program in
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19 this state including, but not limited to, monitoring and
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20 disciplinary actions as they relate to the medical marijuana
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21 program.
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22 B. 1. The Authority or its designee may perform on-site
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23 inspections or investigations of a licensee or applicant for any
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24 medical marijuana business license, research facility, education
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 1 facility or waste disposal facility to determine compliance with
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2 applicable laws, rules and regulations or submissions made pursuant
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3 to this section. The Authority may enter the licensed premises of a
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4 medical marijuana business, research facility, education facility or
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5 waste disposal facility licensee or applicant to assess or monitor
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6 compliance or ensure qualifications for licensure.
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7 2. Post-licensure inspections shall be limited to twice per
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8 calendar year. However, investigations and additional inspections
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9 may occur when the Authority believes an investigation or additional
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10 inspection is necessary due to a possible violation of applicable
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11 laws, rules or regulations. The Executive Director of the Authority
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12 may adopt rules imposing penalties including, but not limited to,
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13 monetary fines and suspension or revocation of licensure for failure
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14 to allow the Authority reasonable access to the licensed premises
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15 for purposes of conducting an inspection.
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16 3. The Authority may review relevant records of a licensed
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17 medical marijuana business, licensed medical marijuana research
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18 facility, licensed medical marijuana education facility or licensed
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19 medical marijuana waste disposal facility, and may require and
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20 conduct interviews with such persons or entities and persons
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21 affiliated with such entities, for the purpose of determining
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22 compliance with requirements of the Executive Director and
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23 applicable laws, rules and regulations.
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 1 4. The Authority may refer complaints alleging criminal
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2 activity that are made against a licensee to appropriate state or
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3 local law enforcement authorities.
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4 C. Disciplinary action may be taken against an applicant or
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5 licensee for not adhering to applicable laws pursuant to the terms,
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6 conditions and guidelines set forth in the Oklahoma Medical
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7 Marijuana and Patient Protection Act.
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8 D. Disciplinary actions may include revocation, suspension or
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9 denial of an application, license or final authorization and other
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10 action deemed appropriate by the Executive Director.
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11 E. Disciplinary actions may be imposed upon a medical marijuana
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12 business licensee for:
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13 1. Failure to comply with or satisfy any provision of
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14 applicable laws, rules or regulations;
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15 2. Falsification or misrepresentation of any material or
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16 information submitted to the Authority or other licensees;
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17 3. Failing to allow or impeding entry by authorized
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18 representatives of the Authority;
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19 4. Failure to adhere to any acknowledgement, verification or
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20 other representation made to the Authority;
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21 5. Failure to submit or disclose information required by
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22 applicable laws, rules or regulations or otherwise requested by the
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23 Authority;
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 1 6. Failure to correct any violation of this section cited as a
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2 result of a review or audit of financial records or other materials;
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3 7. Failure to comply with requested access by the Authority to
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4 the licensed premises or materials;
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5 8. Failure to pay a required monetary penalty;
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6 9. Diversion of medical marijuana or any medical marijuana
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7 product, as determined by the Authority;
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8 10. Threatening or harming a medical marijuana patient
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9 licensee, caregiver licensee, a medical practitioner or an employee
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10 of the Authority; and
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11 11. Any other basis indicating a violation of the applicable
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12 laws and regulations as identified by the Authority.
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13 F. Disciplinary actions against a licensee may include the
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14 imposition of monetary penalties, which may be assessed by the
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15 Authority. The Authority may suspend or revoke a license for
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16 failure to pay any monetary penalty lawfully assessed by the
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17 Authority against a licensee.
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18 G. Penalties for sales or purchases by a medical marijuana
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19 business to persons other than those allowed by law occurring within
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20 any two-year time period may include an initial fine of One Thousand
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21 Dollars ($1,000.00) for a first violation and a fine of Five
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22 Thousand Dollars ($5,000.00) for any subsequent violation.
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23 Penalties for grossly inaccurate or fraudulent reporting occurring
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24 within any two-year time period may include an initial fine of Five
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 1 Thousand Dollars ($5,000.00) for a first violation and a fine of Ten
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2 Thousand Dollars ($10,000.00) for any subsequent violation. The
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3 medical marijuana business may be subject to a revocation of any
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4 license granted pursuant to the Oklahoma Medical Marijuana and
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5 Patient Protection Act upon a showing that the violation was willful
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6 or grossly negligent.
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7 H. 1. First offense for intentional and impermissible
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8 diversion of medical marijuana, concentrate, or products by a
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9 patient or caregiver to an unauthorized person shall not be punished
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10 under a criminal statute but may be subject to a fine of Two Hundred
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11 Dollars ($200.00).
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12 2. The second offense for impermissible diversion of medical
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13 marijuana, concentrate, or products by a patient or caregiver to an
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14 unauthorized person shall not be punished under a criminal statute
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15 but may be subject to a fine of not to exceed Five Hundred Dollars
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16 ($500.00) and may result in revocation of the license upon a showing
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17 that the violation was willful or grossly negligent.
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18 I. The intentional diversion of medical marijuana, medical
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19 marijuana concentrate or medical marijuana products by a licensed
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20 medical marijuana patient or caregiver, medical marijuana business
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21 or employee of a medical marijuana business to an unauthorized minor
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22 person who the licensed medical marijuana patient or caregiver,
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23 medical marijuana business or employee of a medical marijuana
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24 business knew or reasonably should have known to be a minor person
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 1 shall be subject to a cite and release citation and, upon a finding
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2 of guilt or a plea of no contest, a fine of Two Thousand Five
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3 Hundred Dollars ($2,500.00). For a second or subsequent offense,
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4 the licensed medical marijuana patient or caregiver, medical
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5 marijuana business or employee of a medical marijuana business shall
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6 be subject to a cite and release citation and, upon a finding of
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7 guilt or a plea of no contest, a fine of Five Thousand Dollars
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8 ($5,000.00) and automatic termination of the medical marijuana
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9 license.
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10 J. Nothing in this section shall be construed to prevent the
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11 criminal prosecution, after the presentation of evidence and a
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12 finding beyond a reasonable doubt, of a licensed medical marijuana
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13 patient or caregiver, medical marijuana business or employee of a
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14 medical marijuana business who has diverted medical marijuana,
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15 medical marijuana concentrate or medical marijuana products to an
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16 unauthorized person with the intent or knowledge that the
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17 unauthorized person was to engage in the distribution or trafficking
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18 of medical marijuana, medical marijuana concentrate or medical
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19 marijuana products.
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20 K. In addition to any other remedies provided for by law, the
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21 Authority, pursuant to rules and regulations promulgated by the
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22 Executive Director, may issue a written order to any licensee the
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23 Authority has reason to believe has violated Sections 420 through
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24 426.1 of this title, the Oklahoma Medical Marijuana and Patient
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 1 Protection Act, the Oklahoma Medical Marijuana Waste Management Act,
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2 or any rules promulgated by the Executive Director and to whom the
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3 Authority has served, not less than thirty (30) days previously, a
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4 written notice of violation of such statutes or rules.
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5 1. The written order shall state with specificity the nature of
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6 the violation. The Authority may impose any disciplinary action
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7 authorized under the provisions of this section including, but not
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8 limited to, the assessment of monetary penalties.
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9 2. Any order issued pursuant to the provisions of this section
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10 shall become a final order unless, not more than thirty (30) days
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11 after the order is served to the licensee, the licensee requests an
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12 administrative hearing in accordance with the rules and regulations
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13 promulgated by the Executive Director. Upon such request, the
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14 Authority shall promptly initiate administrative proceedings.
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15 L. 1. Whenever the Executive Director finds that an emergency
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16 exists requiring immediate action in order to protect the health or
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17 welfare of the public, the Executive Director may issue an order,
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18 without providing notice or hearing, stating the existence of an
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19 emergency and requiring that action be taken as the Executive
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20 Director deems necessary to meet the emergency. Such action may
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21 include, but is not limited to, ordering the licensee to immediately
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22 cease and desist operations by the licensee. The order shall be
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23 effective immediately upon issuance. Any person to whom the order
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24 is directed shall comply immediately with the provisions of the
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 1 order. The Authority may assess a penalty not to exceed Ten
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2 Thousand Dollars ($10,000.00) per day of noncompliance with the
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3 order. In assessing such a penalty, the Authority shall consider
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4 the seriousness of the violation and any efforts to comply with
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5 applicable requirements. Upon application to the Authority, the
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6 licensee shall be offered a hearing within ten (10) days of the
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7 issuance of the order.
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8 2. Whenever the Executive Director finds that an emergency
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9 exists requiring immediate action in order to control the
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10 environmental damage caused by a medical marijuana business license
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11 holder in this state, the Executive Director may issue an order,
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12 without providing notice or hearing, stating the existence of an
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13 emergency and requiring that action be taken as the Executive
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14 Director deems necessary to meet the emergency. Such action may
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15 include, but is not limited to, ordering the licensee to immediately
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16 cease and desist operations by the licensee. The order shall be
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17 effective immediately upon issuance. Any person to whom the order
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18 is directed shall comply immediately with the provisions of the
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19 order. The Authority may assess penalties consistent with paragraph
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20 1 of this subsection for violations.
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21 M. 1. The Executive Director may conduct hearings, issue final
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22 agency orders, impose disciplinary action as provided by this
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23 section for violation of state laws and rules pertaining to medical
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24 marijuana including, but not limited to, violation of this section,
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 1 and take such other action as may be necessary to enforce state laws
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2 and rules pertaining to medical marijuana pursuant to the
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3 Administrative Procedures Act. All hearings held pursuant to this
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4 section shall be in accordance with the Administrative Procedures
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5 Act.
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6 2. The Executive Director may delegate to an administrative law
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7 judge the authority to conduct hearings, issue final agency orders,
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8 or impose disciplinary action as provided by this section for
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9 violation of state laws and rules pertaining to medical marijuana
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10 including, but not limited to, violation of this section. When the
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11 administrative law judge issues a final agency order, that order
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12 becomes the final order of the Authority without further proceeding
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13 unless there is a request for rehearing, reopening, or
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14 reconsideration pursuant to Section 317 of Title 75 of the Oklahoma
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15 Statutes or a filing for judicial review pursuant to Section 318 of
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16 Title 75 of the Oklahoma Statutes.
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17 SECTION 2. This act shall become effective November 1, 2023.
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19 59-1-1374 MR 1/18/2023 9:42:05 PM
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Statutes affected:
Introduced: 63-427.6
Senate Committee Substitute for House Bill: 63-427.6
Floor (House): 63-427.6
Floor (Senate): 63-427.6
Engrossed: 63-427.6
Amended And Engrossed: 63-427.6