A. The State Department of Health shall, within thirty (30) days of passage of this initiative, make available on its website in an easy-to-find location an application for a medical marijuana processing license. The Department shall be authorized to issue two types of medical marijuana processor licenses based on the level of risk posed by the type of processing conducted:
1. Nonhazardous medical marijuana processor license; and
2. Hazardous medical marijuana processor license.
The application fee for a nonhazardous or hazardous medical marijuana processor license shall be Two Thousand Five Hundred Dollars ($2,500.00). A method of payment shall be provided on the website of the Department. The State Department of Health shall have ninety (90) days to review the application; approve, reject or deny the application; and mail the approval, rejection or denial letter stating the reasons for the rejection or denial to the applicant.
B. The State Department of Health shall approve all applications which meet the following criteria:
1. The applicant must be twenty-five (25) years of age or older;
2. The applicant, if applying as an individual, must show residency in the State of Oklahoma;
3. All applying entities must show that all members, managers, and board members are Oklahoma residents;
4. An applying entity may show ownership of non-Oklahoma residents, but that percentage ownership may not exceed twenty-five percent (25%);
5. All applying individuals or entities must be registered to conduct business in the State of Oklahoma; and
6. All applicants must disclose all ownership interests in the processing operation.
Applicants with a nonviolent felony conviction in the last two (2) years, any other felony conviction in the last five (5) years, inmates in the custody of the Department of Corrections or any person currently incarcerated shall not qualify for a medical marijuana processing license.
C. 1. A licensed processor may take marijuana plants and distill or process these plants into concentrates, edibles, and other forms for consumption.
2. As required by subsection D of this section, the State Department of Health shall, within sixty (60) days of passage of this initiative, make available a set of standards which shall be used by licensed processors in the preparation of edible marijuana products. The standards should be in line with current food preparation guidelines. No excessive or punitive rules may be established by the State Department of Health.
3. Up to two times a year, the State Department of Health may inspect a processing operation and determine its compliance with the preparation standards. If deficiencies are found, a written report of the deficiency shall be issued to the licensed processor. The licensed processor shall have one (1) month to correct the deficiency or be subject to a fine of Five Hundred Dollars ($500.00) for each deficiency.
4. A licensed processor may sell marijuana products it creates to a licensed dispensary or any other licensed processor. All sales by a licensed processor shall be considered wholesale sales and shall not be subject to taxation.
5. Under no circumstances may a licensed processor sell marijuana or any marijuana product directly to a licensed medical marijuana patient or licensed caregiver. However, a licensed processor may process cannabis into a concentrated form for a licensed medical marijuana patient for a fee.
6. Licensed processors shall be required to complete a monthly yield and sales report to the State Department of Health. This report shall be due on the fifteenth of each month and shall provide reporting on the previous month. This report shall detail the amount of marijuana and medical marijuana products purchased in pounds, the amount of marijuana cooked or processed in pounds, and the amount of waste in pounds. Additionally, this report shall show total wholesale sales in dollars. The State Department of Health shall have oversight and auditing responsibilities to ensure that all marijuana being processed is accounted for.
D. The Department shall oversee the inspection and compliance of licensed processors producing products with marijuana as an additive. The State Department of Health shall be compelled to, within thirty (30) days of passage of this initiative, appoint twelve (12) Oklahoma residents to the Medical Marijuana Advisory Council, who are marijuana industry experts, to create a list of food safety standards for processing and handling medical marijuana in Oklahoma. These standards shall be adopted by the Department and the Department may enforce these standards for licensed processors. The Department shall develop a standards review procedure and these standards can be altered by calling another council of twelve (12) Oklahoma marijuana industry experts. A signed letter of twenty operating, licensed processors shall constitute a need for a new council and standards review.
E. If it becomes permissible under federal law, marijuana may be moved across state lines.
F. Any device used for the processing or consumption of medical marijuana shall be considered legal to be sold, manufactured, distributed and possessed. No merchant, wholesaler, manufacturer or individual may be unduly harassed or prosecuted for selling, manufacturing or possessing marijuana paraphernalia.
Added by Section 4, State Question No. 788, Initiative Petition No. 412, adopted at election held June 26, 2018, eff. July 26, 2018. Amended by Laws 2021, c. 553, § 4, eff. Nov. 1, 2021.