OKLAHOMA MEDICAL MARIJUANA LEGISLATIVE UPDATE

2022 Regular Session of the Oklahoma Legislature


Below, you will find a list of the various new laws passed by the Oklahoma Legislature during its 2022 Regular Session which impact the medical marijuana industry in Oklahoma. All of the Bills listed below have been passed by the Oklahoma Legislature, they have been approved by the Governor of Oklahoma, and they will become law according to the effective dates set forth below. Please review these new laws and let us know if you have any questions about how any of these bills will affect your business in Oklahoma moving forward.

H.B. 2179

H.B. 2179 drastically restructures the licensing of commercial medical marijuana businesses in Oklahoma and implements significant licensing fee increases for many medical marijuana businesses. The changes outlined below do not go into effect until June 1, 2023, however it is important to make note of the changes now, as this law may impact your plans for the upcoming year.

One of the most notable changes included in the Bill is the creation of separate licensing structures for indoor and outdoor grow facilities.

Indoor, greenhouse, or light deprivation grow facilities, are now divided into the following tiered system based on amount of canopy space (canopy, greenhouse, and light deprivation are hereinafter defined) used for cultivation:

Indoor, Greenhouse, or Light Deprivation Grow Facility Licensing Tiers

Tier: Square feet of canopy space: Annual License Fee:
Tier 1 Up to 10,000 $2,500.00
Tier 2 10,001 to 20,000 $5,000.00
Tier 3 20,001 to 40,000 $10,000.00
Tier 4 40,001 to 60,000 $20,000.00
Tier 5 60,001 to 80,000 $30,000.00
Tier 6 80,001 to 99,999 $40,000.00
Tier 7 100,000 and more $50,000.00 plus an additional
$0.25 per square foot over
100,000 square feet

"Canopy" is defined as the total surface are dedicated to the cultivation of "flowering marijuana plants." If a shelving system is used for cultivation, each shelf or tier must be included in the calculation of cultivation area. However, canopy does not include areas which are used to cultivate immature marijuana plants and seedlings, prior to flowering.

"Greenhouse" is defined as an outdoor structure which is completely covered by a material that allows a controlled level of light to pass through.

"Light deprivation" is defined as a structure with concrete floors with the ability to manipulate natural light.

Outdoor grow facilities are divided into the following tiers:

Outdoor Grow Facility Licensing Tiers

Tier: Acres: Annual License Fee:
Tier 1 Up to 2.5 $2,500.00
Tier 2 2.5 to 5 $5,000.00
Tier 3 5 to 10 $10,000.00
Tier 4 10 to 20 $20,000.00
Tier 5 20 to 30 $30,000.00
Tier 6 30 to 40 $40,000.00
Tier 7 40 to 50 $50,000.00
Tier 8 Over 50 $50,000.00 plus an additional $250.00 per acre

The Bill specifically states that due to the separate licensing schemes for indoor and outdoor growing facilities, commercial grows with both indoor and outdoor growing areas will be required to obtain two commercial growers licenses.

In addition, this Bill implements a tiered structure for processor licenses as well:

Processor Licensing Tiers

Tier: Amount: Annual License Fee:
Tier 1 0 to 10,000 pounds of biomass or production or use of up to up to 100 liters of cannabis concentrate* $2,500.00
Tier 2 10,000 to 50,000 pounds of biomass or production or use from 101 to 350 liters of cannabis concentrate* $5,000.00
Tier 3 50,000 to 150,000 pounds of biomass or production or use from 351 to 650 liters of cannabis concentrate* $10,000.00
Tier 4 150,000 to 300,000 pounds of biomass or production or use from 651 to 1,000 liters of cannabis concentrate* $15,000.00
Tier 5 More than 300,000 pounds of biomass or production or use in excess of 1,001 liters of cannabis concentrate* $20,000.00

*For cannabis concentrate in non-liquid form, 1,000 grams shall be considered 1 liter

The fees for dispensaries have been changed as well. The initial fee for a dispensary license shall be $2,500.00. However, upon renewal the licensing fee shall be ten percent (10%) of the sum of (1) the state sales tax and (2) the state excise tax of the dispensary for the preceding 12 months, however in no event shall the fee be less than $2,500.00 or more than $10,000.00.

The annual license fee for a testing laboratory shall be $20,000.00.

Transport licenses shall carry an annual license fee of $2,500.00.

As stated above, these new fees will not come into effect until June 1, 2023, so it will not impact the upcoming renewals for this year.

H.B. 3208

H.B. 3208 implements a temporary moratorium on the issuing of certain commercial business licenses by the Oklahoma Medical Marijuana Authority ("OMMA"). Under this law, OMMA shall not issue new dispensary, processing, or commercial grower licenses from August 1, 2022, until August 1, 2024. However, the Executive Director of OMMA may terminate the moratorium and resume the issuing of licenses if the Executive Director determines that all pending license reviews, inspections, or investigations have been completed. This law shall have no effect on the renewal of existing dispensary, processing, or commercial growing licenses. Likewise, all applications for new dispensary, processing, or commercial grower licenses filed prior to August 1, 2022, shall be processed by OMMA and shall not be affected by the moratorium.

S.B. 1511

All new commercial growers must be located at least 1,000 feet away from any public or private school, as measured from the nearest property line of the school to the nearest property line of the commercial grower. For the purposes of this bill, a school shall only include property which is owned, used, or operated by a public or private school for classroom instruction. Administrative offices and athletic facilities shall not qualify as a school under this law unless it is located on the same campus as the classroom buildings. All existing commercial growers shall be grandfathered in and allowed to remain in operation at the existing location, even if within 1,000 feet of a school. This law became effective on March 30, 2022.

S.B. 1726

This Bill prohibits commercial growers or licensed medical marijuana waste disposal facilities from being located within 1,000 feet of a public or private school, as measured from property line to property line. A school is defined to include a public or private preschool, a public or private elementary or secondary school, or a technology center school which is primarily used for classroom instruction. School property which is used as administrative offices or athletic facilities shall not qualify as a school for this restriction unless it is located on the same campus as classroom buildings. It is also stated that a commercial grow may not be located at the same address as a public or private school, nor may it adjoin a public or private school. However, a presently existing commercial grow or waste disposal facility shall not be prohibited from operating or renewing its license due to being located within 1,000 feet of a school. This law became effective on May 20, 2022.

*Note: While S.B. 1511 and S.B. 1726 seem like they say the same thing, the primary difference between the two is that S.B. 1511 is limited to commercial grows, whereas S.B. 1726 expands it to include waste disposal facilities. Furthermore, S.B. 1726 expands the definition of school to include a technology center.

S.B. 1367

Beginning November 1, 2022, the penalty for the sale or transfer of medical marijuana to someone who does not possess a valid patient or commercial OMMA license is increased to $1,000.00 for a first offense and $15,000.00 for a second offense within 1 year. In addition, the penalties for "grossly inaccurate" or fraudulent reporting to OMMA by a licensed business shall be $5,000.00 for a first offense and $10,000.00 for a subsequent offense within a 2-year period. A second incident of "grossly inaccurate" or fraudulent reporting within a 10-year period will subject a business to license revocation. Further, a first offense of intentional diversion of medical marijuana by a patient to an unauthorized person shall result in a fine of not less than $400.00. A second offense shall result in a fine of not less than $1,000.00 and the revocation of a patient's license.

S.B. 1704

Penalties for the sale, purchase, or transfer of medical marijuana by a commercial business or its employees or agents to persons without a valid OMMA Patient Card shall be increased to $5,000.00 for a first violation and $15,000.00 for subsequent violations within any 1-year time period. In addition, the penalty for grossly inaccurate or fraudulent reporting to OMMA shall be $5,000.00 for a first violation and $10,000.00 for all subsequent violations within any 2-year time period. OMMA shall be given the authority to revoke the license of any person involved with the diversion to medical marijuana to a person without a valid OMMA Patient Card. Likewise, if OMMA establishes a pattern of violations, they may revoke any business licenses connected to the diversion to medical marijuana and those of any entities of common ownership. This law shall take effect on November 1, 2022.

Beginning January 1, 2024, employees of commercial medical marijuana businesses shall be required to obtain a credential from OMMA as a condition of employment. OMMA shall contract with a third-party vendor to conduct background checks associated with the credentialing.

*Note: While S.B. 1367 and S.B. 1704 are very similar, there are a few notable differences. First, S.B. 1367 provides for a $1,000.00 penalty for a first offense, whereas the penalty for a first offense in S.B. 1704 is $5,000.00. In addition, S.B. 1704 creates a new requirement for employees of medical marijuana businesses to be credentialed by OMMA by January 1, 2024.

S.B. 1737

Beginning November 1, 2022, all OMMA licensed outdoor growers shall be required to register with the Oklahoma Department of Agriculture, Food, and Forestry as an "environmentally sensitive crop owner" with the Environmentally Sensitive Area Registry. Outdoor growers shall be required to provide the business name, address, and GPS coordinates in order to provide notice to commercial and private pesticide applicators of the location of cannabis grows in order to prevent the drift of dangerous pesticides.

In addition, all OMMA licensed commercial growers shall be required to post a sign at least 18" x 24" with 2" font stating (1) the business name, (2) the address of the business, (3) the phone number, and (4) the OMMA license number. This requirement shall also take effect on November 1, 2022.

H.B. 3019

Beginning on November 1, 2022, medical marijuana may be sold in clear packaging to allow patients and caregivers to view the product. However, containers must be child-resistant and labeled with the following warnings: "For use by licensed medical marijuana patients only" and "Keep out of reach of children". Once sold, the medical marijuana must be placed in an opaque "exit package" before leaving the dispensary.

S.B. 1543

Effective November 1, 2022, OMMA shall be separated from the Oklahoma State Department of Health (OSDH) and become an independent standalone agency of the state government. The Executive Director of OMMA will be appointed by the Governor, with the advice and consent of the Senate, and may be removed by the Governor for any reason.

H.B. 3530

The "County Sheriff Public Safety Grant Revolving Fund" is created as a revolving fund with the State Treasury to support County Sheriff departments. All money received by OMMA which is appropriated or apportioned to this fund, along with any federal funds, grants, or donations, shall be budgeted and spent by OMMA for the purpose of establishing programs and to provide funding to County Sheriffs for the enforcement of laws and regulations associated with the production, cultivation, transportation, distribution, sale, or other activities related to medical marijuana. This bill shall be effective on July 1, 2022.

H.B. 4056

The laboratory responsible for OMMA's compliance testing shall provide OMMA with recommendations for equipment and testing standards to be implemented by all licensed laboratories. These recommendations shall be given to OMMA not later than June 1, 2023, and all testing rules and standards shall be implemented by OMMA within 90 days. All licensed labs shall comply with the new standards and rules by June 1, 2024.

H.B. 3929

H.B. 3929 Authorizes OMMA to create standards for testing laboratories process validation, which shall be voluntary for all laboratory licensees. Standards for process validation are required to be implemented by June 1, 2024.