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Oklahoma Legislature· SB 643Second Reading referred to Business and Insurance

An act relating to medical marijuana, the official text

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1                    STATE OF OKLAHOMA

1

2                  1st Session of the 60th Legislature (2025)

2

3 SENATE BILL 643              By: Paxton
3

4

4

5

5

6                    AS INTRODUCED

6

7   An Act relating to medical marijuana; amending 63

7   O.S. 2021, Sections 421, as last amended by Section

8   4, Chapter 182, O.S.L. 2024, 422, as last amended by

8   Section 1, Chapter 447, O.S.L. 2024, and 423, as last

9   amended by Section 8, Chapter 182, O.S.L. 2024 (63

9   O.S. Supp. 2024, Sections 421, 422, and 423), which

10  relate to licenses; modifying certain ownership

10  residency requirements; imposing residency and

11  citizenship requirements on employees and owners of

11  certain facilities; updating statutory language;

12  authorizing certain application requirement; defining

12  terms; providing for codification; and providing an

13  effective date.

13

14

14

15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
15

16  SECTION 1.     AMENDATORY  63 O.S. 2021, Section 421, as last

16

17 amended by Section 4, Chapter 182, O.S.L. 2024 (63 O.S. Supp. 2024,
17

18 Section 421), is amended to read as follows:
18

19  Section 421. A. The Oklahoma Medical Marijuana Authority shall

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20 make available on its website in an easy-to-find location an
20

21 application for a medical marijuana dispensary license. The
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22 application fee to be paid by the applicant shall be in the amounts
22

23 provided for in Section 427.14 of this title. A method of payment
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24 for the application fee shall be provided on the website of the
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    Req. No. 1446                                              Page 1
1 Authority. Dispensary applicants must all be residents of Oklahoma.
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2 Any entity applying for a dispensary license must be owned by a
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3 resident of this state and must be registered to do business in this
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4 state. The Authority shall have ninety (90) business days to review
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5 the application; approve, reject, or deny the application; and send
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6 the approval, rejection, or denial letter stating reasons for the
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7 rejection or denial to the applicant in the same method the
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8 application was submitted to the Authority.
8

9   B. The Authority shall approve all applications which meet the

9

10 following criteria:
10

11  1. The applicant must be twenty-five (25) years of age or

11

12 older;
12

13  2. The applicant, if applying as an individual, must show

13

14 residency in this state;
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15  3. All applying entities must show that all members, managers,

15

16 and board members are residents of this state;
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17  4. An applying entity may show ownership of nonstate residents,

17

18 but that percentage ownership may not exceed twenty-five percent
18

19 (25%) shall not have ownership by nonresidents of this state;
19

20  5. All applying individuals or entities must be registered to

20

21 conduct business in this state; and
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22  6. All applicants must disclose all ownership interests in the

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23 dispensary.
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24

24

    Req. No. 1446                                              Page 2
1   Applicants with a nonviolent felony conviction in the last two

1

2 (2) years, any other felony conviction in the last five (5) years,
2

3 inmates in the custody of the Department of Corrections or any
3

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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    Req. No. 1446                           Page 3
1 gram. These products shall be tested, packaged and labeled in
1

2 accordance with state law and rules promulgated by the Executive
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3 Director of the Oklahoma Medical Marijuana Authority.
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4   E. No medical marijuana dispensary shall offer or allow a

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5 medical marijuana patient licensee, caregiver licensee or other
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6 member of the public to handle or otherwise have physical contact
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7 with any medical marijuana not contained in a sealed or separate
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8 package. Provided, such prohibition shall not preclude an employee
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9 of the medical marijuana dispensary from handling loose or
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10 nonpackaged medical marijuana to be placed in packaging consistent
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11 with the Oklahoma Medical Marijuana and Patient Protection Act and
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12 the rules promulgated by the Executive Director for the packaging of
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13 medical marijuana for retail sale. Provided, further, such
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14 prohibition shall not prevent a medical marijuana dispensary from
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15 displaying samples of its medical marijuana in separate display
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16 cases, jars or other containers and allowing medical marijuana
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17 patient licensees and caregiver licensees the ability to handle or
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18 smell the various samples as long as the sample medical marijuana is
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19 used for display purposes only and is not offered for retail sale.
19

20  SECTION 2.     AMENDATORY  63 O.S. 2021, Section 422, as last

20

21 amended by Section 1, Chapter 447, O.S.L. 2024 (63 O.S. Supp. 2024,
21

22 Section 422), is amended to read as follows:
22

23  Section 422. A. The Oklahoma Medical Marijuana Authority shall

23

24 make available on its website in an easy-to-find location an
24

    Req. No. 1446                                              Page 4
1 application for a medical marijuana commercial grower license. The
1

2 application fee shall be paid by the applicant in the amounts
2

3 provided for in Section 427.14 of this title. A method of payment
3

4 for the application fee shall be provided on the website of the
4

5 Authority. The Authority shall have ninety (90) business days to
5

6 review the application; approve, reject, or deny the application;
6

7 and send the approval, rejection, or denial letter stating the
7

8 reasons for the rejection or denial to the applicant in the same
8

9 method the application was submitted to the Authority.
9

10  B. The Authority shall approve all applications which meet the

10

11 following criteria:
11

12  1. The applicant must be twenty-five (25) years of age or

12

13 older;
13

14  2. The applicant, if applying as an individual, must show

14

15 residency in this state;
15

16  3. All applying entities must show that all members, managers,

16

17 and board members are Oklahoma residents;
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18  4. An applying entity may show ownership of non-Oklahoma

18

19 residents, but that percentage ownership may not exceed twenty-five
19

20 percent (25%) shall not have ownership by nonresidents of this
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21 state;
21

22  5. All applying individuals or entities must be registered to

22

23 conduct business in this state; and
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24

24

    Req. No. 1446                                         Page 5
1  6. All applicants must disclose all ownership interests in the

1

2 commercial grower operation.
2

3  Applicants with a nonviolent felony conviction in the last two

3

4 (2) years, any other felony conviction in the last five (5) years,
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5 inmates in the custody of the Department of Corrections or any
5

6 person currently incarcerated shall not qualify for a commercial
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7 grower license.
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8  C. A licensed medical marijuana commercial grower may sell

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9 marijuana to a licensed medical marijuana dispensary or a licensed
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10 medical marijuana processor. Further, sales by a licensed medical
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11 marijuana commercial grower shall be considered wholesale sales and
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12 shall not be subject to taxation. Under no circumstances may a
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13 licensed medical marijuana commercial grower sell marijuana directly
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14 to a licensed medical marijuana patient or licensed medical
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15 marijuana caregiver. A licensed medical marijuana commercial grower
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16 may only sell at the wholesale level to a licensed medical marijuana
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17 dispensary, a licensed medical marijuana commercial grower or a
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18 licensed medical marijuana processor. If the federal government
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19 lifts restrictions on buying and selling marijuana between states,
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20 then a licensed medical marijuana commercial grower would be allowed
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21 to sell and buy marijuana wholesale from, or to, an out-of-state
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22 wholesale provider. A licensed medical marijuana commercial grower
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23 shall be required to complete a monthly yield and sales report to
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24 the Authority. This report shall be due on the fifteenth of each
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   Req. No. 1446                                                Page 6
1 month and provide reporting on the previous month. This report
1

2 shall detail the amount of marijuana harvested in pounds, the amount
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3 of drying or dried marijuana on hand, the amount of marijuana sold
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4 to licensed processors in pounds, the amount of waste in pounds, and
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5 the amount of marijuana sold to licensed medical marijuana
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6 dispensaries in pounds. Additionally, this report shall show total
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7 wholesale sales in dollars. The Authority shall have oversight and
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8 auditing responsibilities to ensure that all marijuana being grown
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9 by licensed medical marijuana commercial growers is accounted for.
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10  D. There shall be no limits on how much marijuana a licensed

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11 medical marijuana commercial grower can grow.
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12  E. Beginning on November 1, 2021, licensed medical marijuana

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13 commercial growers shall be authorized to package and sell pre-
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14 rolled marijuana to licensed medical marijuana dispensaries. The
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15 products described in this subsection shall contain only the ground
15

16 parts of the marijuana plant and shall not include marijuana
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17 concentrates or derivatives. The total net weight of each pre-roll
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18 packaged and sold by licensed medical marijuana commercial growers
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19 shall not exceed one (1) gram. These final products must be tested,
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20 packaged and labeled in accordance with Oklahoma law and rules
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21 promulgated by the Authority.
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22  F. Beginning November 1, 2022, all medical marijuana commercial

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23 grower licensees who operate an outdoor medical marijuana production
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24 facility shall be required to register with the Oklahoma Department
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    Req. No. 1446                                             Page 7
1 of Agriculture, Food, and Forestry as an environmentally sensitive
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2 crop owner. Registration shall provide notice to commercial and
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3 private pesticide applicators of the locations of medical marijuana
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4 crops and help minimize the potential for damaging pesticide drift.
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5 Medical marijuana commercial grower licensees shall provide their
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6 business name, address, Global Positioning System (GPS) coordinates
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7 for all outdoor medical marijuana production facilities, and any
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8 other information required by the Department when registering with
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9 the Environmentally Sensitive Area Registry.
9

10  SECTION 3.     AMENDATORY     63 O.S. 2021, Section 423, as last

10

11 amended by Section 8, Chapter 182, O.S.L. 2024 (63 O.S. Supp. 2024,
11

12 Section 423), is amended to read as follows:
12

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
14

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

19

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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    Req. No. 1446                                               Page 8
1 Authority shall have ninety (90) business days to review the
1

2 application; approve, reject, or deny the application; and send the
2

3 approval, rejection, or denial letter stating the reasons for the
3

4 rejection or denial to the applicant in the same method the
4

5 application was submitted to the Authority.
5

6   B. The Authority shall approve all applications which meet the

6

7 following criteria:
7

8   1. The applicant must be twenty-five (25) years of age or

8

9 older;
9

10  2. The applicant, if applying as an individual, must show

10

11 residency in this state;
11

12  3. All applying entities must show that all members, managers,

12

13 and board members are Oklahoma residents of this state;
13

14  4. An applying entity may show ownership of nonstate residents,

14

15 but that percentage ownership may not exceed twenty-five percent
15

16 (25%) shall not have ownership by nonresidents of this state;
16

17  5. All applying individuals or entities must be registered to

17

18 conduct business in this state; and
18

19  6. All applicants must disclose all ownership interests in the

19

20 processing operation.
20

21  Applicants with a nonviolent felony conviction in the last two

21

22 (2) years, any other felony conviction in the last five (5) years,
22

23 inmates in the custody of the Department of Corrections or any
23

24

24

    Req. No. 1446                                              Page 9
1 person currently incarcerated shall not qualify for a medical
1

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. The Executive Director of the Authority shall make available

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7 a set of standards which shall be used by licensed processors in the
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8 preparation of edible marijuana products. The standards should be
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9 in line with current food preparation guidelines. No excessive or
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10 punitive rules may be established by the Executive Director.
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11  3. Up to two times a year, the Authority may inspect a

11

12 processing operation and determine its compliance with the
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13 preparation standards. If deficiencies are found, a written report
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14 of the deficiency shall be issued to the licensed processor. The
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15 licensed processor shall have one (1) month to correct the
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16 deficiency or be subject to a fine of Five Hundred Dollars ($500.00)
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17 for each deficiency.
17

18  4. A licensed processor may sell marijuana products it creates

18

19 to a licensed dispensary or any other licensed processor. All sales
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20 by a licensed processor shall be considered wholesale sales and
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21 shall not be subject to taxation.
21

22  5. Under no circumstances may a licensed processor sell

22

23 marijuana or any marijuana product directly to a licensed medical
23

24 marijuana patient or licensed caregiver. However, a licensed
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    Req. No. 1446                                              Page 10
1 processor may process cannabis into a concentrated form for a
1

2 licensed medical marijuana patient for a fee.
2

3   6. Licensed processors shall be required to complete a monthly

3

4 yield and sales report to the Authority. This report shall be due
4

5 on the fifteenth of each month and shall provide reporting on the
5

6 previous month. This report shall detail the amount of marijuana
6

7 and medical marijuana products purchased in pounds, the amount of
7

8 marijuana cooked or processed in pounds, and the amount of waste in
8

9 pounds. Additionally, this report shall show total wholesale sales
9

10 in dollars. The Authority shall have oversight and auditing
10

11 responsibilities to ensure that all marijuana being processed is
11

12 accounted for.
12

13  D. The Authority shall oversee the inspection and compliance of

13

14 licensed processors producing products with marijuana as an
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15 additive. If it becomes permissible under federal law, marijuana
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16 may be moved across state lines.
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17  E. Any device used for the processing or consumption of medical

17

18 marijuana shall be considered legal to be sold, manufactured,
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19 distributed and possessed. No merchant, wholesaler, manufacturer or
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20 individual may be unduly harassed or prosecuted for selling,
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21 manufacturing or possessing marijuana paraphernalia.
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22  SECTION 4.     NEW LAW  A new section of law to be codified

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23 in the Oklahoma Statutes as Section 427.30 of Title 63, unless there
23

24 is created a duplication in numbering, reads as follows:
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    Req. No. 1446                                            Page 11
1   A. The Oklahoma Medical Marijuana Authority shall require all

1

2 employees and owners of medical marijuana facilities to be citizens,
2

3 lawful permanent residents, or temporary residents of the United
3

4 States. The Authority may require that such residency be made as
4

5 part of an individual's application for a license, permit,
5

6 identification card, or credential authorizing the individual to be
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7 an employee of a medical marijuana facility.
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8   B. As used in this section:

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9   1. "Employee" means any natural person who:

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10  a. grows, harvests, dries, cures, purchases, sells,

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11                 transfers, transports, processes, produces,

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12                 manufactures, creates, or packages medical marijuana,

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13                 medical marijuana products, or medical marijuana waste

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14                 on behalf of or for a licensed medical marijuana

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15                 commercial grower, processor, or dispensary,

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16  b. samples, trains, or educates on behalf of or for a

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17                 licensed medical marijuana education or research

17

18                 facility,

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19  c. disposes of or transports medical marijuana, medical

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20                 marijuana products, and medical marijuana waste on

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21                 behalf of or for a licensed medical marijuana waste

21

22                 disposal facility,

22

23

23

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24

    Req. No. 1446                                                Page 12
1   d. tests and conducts research on medical marijuana and

1

2                  medical marijuana products on behalf of or for a

2

3                  medical marijuana licensed testing laboratory,

3

4   e. transports, stores, and distributes, but does not take

4

5                  ownership of, medical marijuana and medical marijuana

5

6                  products on behalf of or for a licensed medical

6

7                  marijuana commercial transporter,

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8   f. tracks, traces, reports, and inputs any information

8

9                  into the state inventory tracking system on behalf of

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10                 or for a licensed medical marijuana commercial license

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11                 holder, or

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12  g. conducts any other additional business for the benefit

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13                 of a medical marijuana commercial license holder as

13

14                 authorized by rules promulgated by the Executive

14

15                 Director of the Authority, with the exception of

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16                 professional services not involved in the handling of

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17                 medical marijuana, medical marijuana products, or

17

18                 medical marijuana concentrates;

18

19  2. "Medical marijuana facility" means an entity licensed or

19

20 certified by the Authority to acquire, cultivate, process,
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21 manufacture, test, store, sell, transport, or deliver medical
21

22 marijuana; and
22

23  3. "Owner" means a direct beneficial owner including, but not

23

24 limited to, all persons or entities as follows:
24

    Req. No. 1446                                              Page 13
1   a. all shareholders owning an interest of a corporate

1

2                  entity and all officers of a corporate entity,

2

3   b. all partners of a general partnership,

3

4   c. all general partners and all limited partners that own

4

5                  an interest in a limited partnership,

5

6   d. all members that own an interest in a limited

6

7                  liability company,

7

8   e. all beneficiaries that hold a beneficial interest in a

8

9                  trust and all trustees of a trust,

9

10  f. all persons or entities that own interest in a joint

10

11                 venture,

11

12  g. all persons or entities that own an interest in an

12

13                 association,

13

14  h. the owners of any other type of legal entity, and

14

15  i. any other person holding an interest or convertible

15

16                 note in any entity which owns, operates, or manages a

16

17                 licensed medical marijuana facility.

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18  SECTION 5. This act shall become effective November 1, 2025.

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20  60-1-1446      CAD           1/19/2025 5:40:35 AM

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    Req. No. 1446                                         Page 14
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