Oklahoma Governor Signs Final Round of Medical Cannabis Regulations for 2022 Session

The last Friday of May 2022 marked the end of yet another Oklahoma legislative session. The long list of cannabis-related legislation presented during the session was reduced to a handful of bills the Governor approved.

This May 2022 session majorly focused on situating OMMA as an independent body, adding regulations for cannabis business owners, and reforming the licensure fee and penalty structure.

With the shared expertise of medical marijuana doctors in Oklahoma and other 420 Doctors Oklahoma staff, we’ve compiled a list of all the bills that were signed by the governor and will soon come into effect.

Following are the bills that passed the verdict and have been signed into law:

Marijuana Business Requirements

HB4056

Private Lab Under OMMA for Recommendations, Testing Standards, and Operating Procedures

Requires a private laboratory under contract with the OMMA to provide recommendations for laboratory equipment, testing standards, and operating procedures. The laboratory must direct the Authority (OMMA) to set up rules that other licensed medical marijuana testing labs must comply with. The private laboratory under OMMA cannot conduct any other commercial MMJ testing in the state. The laboratory cannot be owned by or employ any individual who is directly or indirectly interested in a licensed medical marijuana business.

HB3929

OMMA to Develop Standards for Process Validation

The Authority shall develop standards, policies, and procedures necessary for the cleanliness and orderliness of the lab, testing procedures and standards for cannabinoids, terpenoid potency, contaminants, process validation, and remediation procedures. By January 1, 2024, the Authority shall develop standards and requirements that a licensee must achieve. The act focuses on the following:

• Licensee must,

1. Fulfill initial and minimum testing requirements
2. Track their marijuana inventory with Authority’s designated seed-to-sale system
3. Use a laboratory that is certified for process validation testing
4. Retain all documents and records related to process validation
5. Keep all the documents and records readily accessible at the address of the registered business’s address

• Authority will conduct a biannual inspection of marijuana products produced under process validation.
• Authority can revoke the authority of licensees to operate under process validation.
• Punishment for the violation of process validation may vary depending on the degree of violation.

SB1704

MMJ Business Employees to Apply for Specific Credentials to Work in the Business

Medical marijuana business employees under license holders must be issued a credential that allows them to work in the business. The Authority may contract a third-party vendor to take over the credentialing services. The third-party vendor can run background checks on the employees to verify their eligibility and may decide if an employee meets the minimum requirements or not. An unapproved applicant can appeal to the Authority.

SB1737

Commercial Growers Must Post Signage With Business Details

All medical marijuana commercial growers must register as an environmentally sensitive crop owner, and display signage at the site of operation. The signage (18 inches x 24 inches) with a font size of 2 inches (in black on a white background) must specify the following information:

• Business Name
• Physical Address of Licensed Business
• Phone Number of Licensed Business
• Medical Marijuana Business License Number

Restructuring Revenue

HB3530

Revolving Fund for County Sheriffs for Marijuana-Related Law Enforcement

Created the “County Sheriff Public Safety Grant Revolving Fund” that shall be funded by the Oklahoma Medical Marijuana Authority. This continuing fund shall be used for establishing programs and providing funds to support county sheriffs to enforce order in matters dealing with the medical marijuana businesses. Due to the immediate need for the preservation of public peace and safety, the act shall become effective on July 1, 2022.

Packaging Requirements

HB3019

Dispensary Bought Marijuana in Opaque Exit Package With Clear Indications Printed On The Container

All dispensary-bought products must be packed in an opaque exit bag. The opaque bag does not allow anybody to know what is being carried on the inside. The container consisting of the medical marijuana may be transparent so as to provide the medical marijuana users or caregivers clear sight of what is stored inside the container.

Every container must have a warning on the label that specifies the following:

• For use by licensed medical marijuana patients only
• Keep out of reach of children

OMMA and Enforcement

HB3208

Moratorium on Issuing Medical Marijuana Business Licenses Starting Aug. 1, 2022

From August 1, 2022, to August 1, 2024, the OMMA can declare a moratorium on issuing new medical marijuana business licenses for dispensaries, growers, and processors. This depends on the current MMJ licenses for dispensaries, growers, and processors. The Executive Director of OMMA can terminate the moratorium any time before August 1, 2024, if all the prior pending licensing reviews and inspections have been completed.

HB3971

Secret Shopper Program to Test Dispensary Cannabis Products for Contaminants and Potency

OMMA employees may act as secret shoppers to purchase specific amounts of medical marijuana from dispensaries for the purpose of conducting 5 complete quality and potency tests. Beginning January 1, 2024, the Authority shall inspect 50 licensed medical marijuana dispensaries annually by sending their secret shoppers. All secret shoppers must ask for every product’s certificate of analysis at the time of purchase.

Note: Even as medical marijuana consumers, medical marijuana doctors in Oklahoma recommend all patients check a product’s COA before making a purchase.

SB1543

Removed OMMA as a Division of the Oklahoma State Department of Health

The Oklahoma Medical Marijuana Authority no longer serves as a division under the Oklahoma State Department of Health. As a separate entity, the Authority and its Executive Director exercise statutory powers, duties, and responsibilities.

SB1367

Raises Penalty for Unauthorized Transfers of Cannabis

The act increases the penalty amount and establishes administrative fines for certain unlawful acts and provides for the revocation of licenses under certain situations.

Raised penalty for purchase or transfer of value of medical marijuana by a business, its employees, or agents to an unauthorized person. Fine for the first offense is $5000 (previously $1000) and $15000 (previously $5000) for subsequent violations in a year.

Raised penalty for MMJ patients or caregivers sharing or selling marijuana with unauthorized persons. Fine for a first offense is $400 (previously $200), the fine for a second offense is $1000 (previously $500), and a revoked license.

Raise the penalty for businesses, employees, patients, or caregivers selling or sharing marijuana with a minor from a citation to a fine of $2500. Subsequent offenses may lead to a citation and a fine of $5000.

Restructuring Licensure Process

HB2179

Increased Annual Fee for Growers, Processors, and Dispensaries and Implemented Fee for Testing Labs

Increase in the annual fees for growers on the basis of the total amount of square feet of canopy or acres of land used for harvesting, for processors on the basis of how much marijuana they process, and for dispensaries on the basis of a tax formula.

For an indoor facility:

Tier 1: Up to 10,000 sq, Ft. of Canopy = Fee of $2,500

Tier 2: 10,oo1 sq. ft. to 20,000 sq. ft. of Canopy = Fee of $5.000

Tier 3: 20,001 sq. ft. to 40,000 sq. ft. of Canopy = Fee of $10,000

Tier 4: 40,001 sq. ft. to 60,000 sq. ft. of Canopy = Fee of $20,000

Tier 5: 60,001 sq. ft. to 80,000 sq. ft. of Canopy = Fee of $30,000

Tier 6: 80,001 sq. ft. to 99,999 sq. ft of Canopy = Fee of $40,000

Tier 7: 100,000 sq. ft. of Canopy and Beyond: Fee of $50,000 + An Additional $0.25 per square foot over 100,000 sq. ft.

SB1726

Commercial Grow Facilities to Establish Themselves At Least 1000 Feet Away From Schools

As per the act, no medical marijuana dispensary can be set up within a 1000 feet perimeter of any private or public school. The same regulation applies to commercial cannabis growers. If the cannabis business adheres to the specified modifications at the time of establishment and licensure, it may operate in a licensed manner without hindrance.

Apart from that, the act also clarifies that no school or landlord may refuse the enrollment or leasing to a person on the grounds of their status as a medical marijuana patient licensee unless it affects their monetary or licensed-related benefits under federal law.

Note: This law does not apply to medical marijuana doctors in Oklahoma. There are no regulations for a medical marijuana clinic’s location around educational institutions.

Ending Words

All of the bills stated here have been signed and approved by the Governor in the legislative session of 2022. You can learn more about these laws and read the complete texts of the bills here. Simply specify the bill number you wish to know about, click on “Latest bill text (Enrolled) {PDF}” and find the complete text. Our medical marijuana doctors in Oklahoma and trained staff can also take up your queries if any.