442:10-5-3. Applications
(a) Application fee. An applicant for a medical marijuana business, or renewal thereof, shall submit to the Authority a completed application on a form and in a manner prescribed by the Authority, along with the application fee as established in 63 O.S. § 420 et seq. and the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq.
(b) Submission. Applications for a business license will be accepted by the Authority no earlier than sixty (60) days from the date that the State Question is approved by the voters of the State of Oklahoma. The application shall be on the Authority prescribed form and shall include the following information about the establishment:
(1) Name of the establishment;
(2) Physical address of the establishment, including the county in which any licensed premises will be located;
(3) GPS coordinates of the establishment;
(4) Phone number and email of the establishment; and
(5) Hours of operation for any licensed premises.
(c) Individual applicant. The application for a business license made by an individual on his or her own behalf shall be on the Authority prescribed form and shall include at a minimum:
(1) The applicant's first name, middle name, last name and suffix if applicable;
(2) The applicant's residence address and valid mailing address;
(3) The applicant's date of birth;
(4) The applicant's telephone number and email address;
(5) An attestation that the information provided by the applicant is true and correct;
(6) An attestation that any licensed premises shall not be located on tribal lands;
(7) An attestation that the business has obtained all applicable local licenses and permits for all licensed premises;
(8) An attestation that no individual with ownership interest in the business is a sheriff, deputy sheriff, police officer, prosecuting officer, an officer or employee of OMMA, or an officer or employee of a municipality in which the commercial entity is located; and
(9) A statement signed by the applicant pledging not to divert marijuana to any individual or entity that is not lawfully entitled to possess marijuana.
(d) Application on behalf of an entity. In addition to requirements of Subsection (c), an application for a business license made by an individual on behalf of an entity shall include:
(1) An attestation that applicant is authorized to make application on behalf of the entity:
(2) Full name of organization;
(3) Trade name, if applicable;
(4) Type of business organization;
(5) Mailing address;
(6) Telephone number and email address; and
(7) The name, residence address, and date of birth of each owner and each member, manager, and board member, if applicable.
(e) Supporting documentation. Each Pursuant to 63 O.S. § 427.3(D)(11), 63 O.S. § 427.14(L), 63 O.S. § 427.14(G)(2), and 63 O.S. § 427.14(J), each application shall be accompanied by the following documentation:
(1) A list of all owners and principal officers of the business applicant and supporting documentation, including, but not limited to: certificate of incorporation, bylaws, articles of organization, operating agreement, certificate of limited partnership, resolution of a board of directors, or other similar documents;
(2) If applicable, a certificate of good standing from the Oklahoma Secretary of State issued within thirty (30) days of submission of the application;
(3) If applicable, official documentation from the Secretary of State establishing the applicant's trade name;
(4) If applicable, an electronic copy or digital image in color of a sales tax permit issued by the Oklahoma Tax Commission;
(5) An Affidavit of Lawful Presence for each owner;
(6) If a licensed dispensary or grower, proof that the location of the facility is at least one thousand (1,000) feet from a public or private school. For a dispensary, the distance specified shall be measured in a straight line from the nearest property line of such public school or private school to the nearest perimeter wall of the licensed premise of such medical marijuana dispensary. For a grower, the distance specified shall be measured in a straight line from the nearest property line of such public school or private school to the nearest property line of the licensed premises of such medical marijuana commercial grower. For the purposes of this subsection, a school shall not include a property owned, used, or operated by a public or private school that is not used for classroom instruction on core curriculum, such as an administrative building, athletic facility, ballpark, field, or stadium, unless such property is located on the same campus as a building used for classroom instruction on core curriculum;
(7) Documents establishing the applicant; and the members, managers, and board members if applicable; and seventy-five percent (75%) of the commercial applicant's ownership interests are Oklahoma residents as required in the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq.
(A) Applicants seeking to renew a commercial license issued prior to the enactment of the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq., shall submit documentation establishing proof of residency in accordance with OAC 442:10-1-6 (relating to proof of residency);
(B) All other applicants shall submit documentation establishing proof of residency in accordance with OAC 442:10-5-3.1 (relating to proof of residency for business licenses).
(8) If applicable, a certificate of compliance on a form prescribed or otherwise authorized by the Authority that is issued by the political subdivision where the licensed premises is to be located certifying compliance with the categories listed in 63 O.S. § 426.1(E);
(9) If applicable, all Certificate(s) of Occupancy, Final Inspection Report(s), and Site Plan(s), issued from or approved by the organization, political subdivision, office, or individual responsible for enforcing the requirements of all building and fire codes adopted by the Oklahoma Uniform Building Code Commission pursuant to OAC 748:20. Pursuant to 74 O.S. § 324.11, in all geographical areas where the applicable Certificate(s) of Occupancy, Final Inspection Report(s), Site Plan(s) and/or permit(s) are not issued from and/or approved by local authorities, such documentation must be obtained from the Oklahoma Office of the State Fire Marshal;
(9) (10) If applicable, accreditation documentation, including documentation of enrollment in analyte-specific proficiency testing results, showing applicants meet requirements stated in OAC 442:10-8-2(a);
(10) (11) If a licensed grower, processor or transporter has added or is seeking to add a publicly traded company as an owner, additional documentation as required under OAC 442:10-5-2(e)(2)(C) to show the grower, processor, or transporter applicants meet the requirements stated in 63 O.S. § 427.15a;
(11) (12) If applicable, a list of all chemicals a processor will utilize to process marijuana;
(12) (13) If applicable, safety data sheets for every chemical a processor will utilize to process marijuana; and
(13) (14) If applicable, a bond or attestation as required under OAC 442:10-5-3.3 certifying compliance with 63 O.S. § 427.26;
(15) Supplemental application materials to be submitted by the applicant and utilized by the Authority to determine medical marijuana business licensing fees pursuant to 63 O.S. 427.14; and
(16) Any further documentation the Authority determines is necessary to ensure the commercial applicant is qualified under Oklahoma law and this Chapter to obtain a commercial license.
(f) Incomplete application. Failure to submit a complete application with all required information and documentation shall result in a rejection of the application. The Authority shall notify the applicant via email through the electronic application account of the reasons for the rejection, and the applicant shall have thirty (30) days from the date of notification to correct and complete the application without an additional fee. If the applicant fails to correct and complete the application within the thirty (30) day period, the application shall expire. Unless the Authority determines otherwise, an application that has been resubmitted but is still incomplete or contains errors that are not clerical or typographical in nature shall be denied.
(g) Status update letter. If a delay in processing has occurred, the Authority shall notify the applicant via email of the delay and the reason for the delay.
(h) Moratorium. Beginning August 1, 26, 2022, and ending August 1, 2024 2026, there shall be a moratorium on processing and issuing new medical marijuana business licenses for dispensaries, processors, and growers. The Authority will review and process applications received on or before August 1, 26, 2022. The Executive Director of the Authority may terminate the moratorium prior to August 1, 2024 2026, upon a determination that all pending license reviews, inspections, or investigations have been completed. The moratorium shall not apply to:
(1) The renewal of a medical marijuana business license for dispensaries, processors, or growers;
(2) The issuance of a medical marijuana business license necessitated by a change in the ownership or location of a dispensary, processor, or grower; or
(3) The issuance or renewal of a testing laboratory, transporter, education facility, research, or waste disposal license.
442:10-5-3.1. Proof of residency for commercial licensees
(a) Applicants shall provide sufficient documentation establishing either:
(1) Oklahoma residency for at least two (2) years immediately preceding the application submission date; or
(2) Five (5) years continuous Oklahoma residency during the twenty-five (25) years immediately preceding the application submission date.
(b) Applicants shall establish residency through submission of electronic copies or digital images in color of a combination of the following documents establishing residency for the entire span of the applicable time period:
(1) An unexpired Oklahoma-issued driver license or Real ID;
(2) An Oklahoma identification card;
(3) Utility bills, excluding cellular telephone and Internet bills;
(4) Residential property deeds or other official documentation establishing proof of ownership of Oklahoma residential property;
(5) Rental agreements for residential property located in the State of Oklahoma;
(6) Oklahoma Tax Returns showing the applicant as an Oklahoma taxpayer; or
(7) Other documentation the Authority deems necessary and/or sufficient to establish residency.
442:10-5-3.2. Persons prohibited from holding a commercial license
(a) A medical marijuana commercial license shall not be issued to, renewed, or held by:
(1) An applicant who has failed to pay the required application or renewal fee;
(2) A corporation, if the criminal history of any its officers, directors, or stockholders has a disqualifying criminal conviction;
(3) An owner under twenty-five (25) years of age;
(4) An owner of any commercial licensee who, during a period of licensure or at the time of any commercial license application, has failed to:
(A) File any taxes, interest, or penalties due related to a medical marijuana business; or
(B) Pay any taxes, interest, or penalties due related to a medical marijuana business.
(5) A sheriff, deputy sheriff, police officer, prosecuting officer, officer or employee of OMMA, or officer or employee of a municipality in which the commercial licensee is located; and
(6) A person whose authority to be a caregiver as defined in this Chapter is revoked by the Authority for violations of Oklahoma law or these Rules. For purposes of this Subsection, revoked by the Authority shall not include termination of a caregiver license based solely on a patient's withdrawal of caregiver designation.
(7) A person who was involved in the management or operation of any commercial licensee that, after the initiation of a disciplinary action, has had a medical marijuana license revoked, not renewed, or surrendered during the five (5) years preceding submission of the application and for the following violations:
(A) unlawful sales or purchases;
(B) any fraudulent acts, falsification of records or misrepresentation to the Authority, medical marijuana patient licensees, caregiver licensees, or medical marijuana business licensees;
(C) any grossly inaccurate or fraudulent reporting;
(D) threatening or harming any medical marijuana patient, caregiver, medical practitioner, or employee of the Authority;
(E) knowingly or intentionally refusing to permit the Authority access to premises or records;
(F) using prohibited, hazardous substance for processing in a residential area;
(G) criminal acts relating to the operation of a medical marijuana business; or
(H) any violation that endangers public health and safety or product safety, including, but not limited to, failure to test medical marijuana or medical marijuana products in accordance with these rules, failure to assist in a recall or embargo, or failure to adhere to any order or directive by the Authority that may endanger public health and safety.
(b) Any license issued to an individual or entity listed above shall be subject to revocation.
442:10-5-3.3. Commercial grower bond required
All medical marijuana commercial grower licensees shall file with the Authority either a bond covering the permit area upon which the business licensee will initiate and conduct commercial growing operations or an attestation that the permit area on which the licensee operates the commercial growing operation has been owned by the licensee for at least a five (5) year period prior to submission of application. For the purposes of this section, "permit area" means the "licensed premises" as defined in OAC 442:10-1-4:
(1) All commercial grower license applicants shall submit on forms prescribed by the Authority:
(A) a bond covering the area of land within the permit area upon which the business licensee will initiate and conduct commercial growing operations, or
(B) an attestation and accompanying documentation showing that the permit area on which the licensee will initiate or conduct commercial growing operations has been owned by the licensee for at least a five (5) year period prior to submission of application.
(2) The bond shall be in an amount no less than fifty thousand dollars ($50,000.00) for each license sought or held and shall be issued by a surety company qualified to do business in the State of Oklahoma as a surety. The Authority may require a higher amount depending on the reclamation requirements to assure the completion of the reclamation plan or to defray the cost of restoration of the requirements to assure the completion of the reclamation plan or to defray the cost of restoration of the requirements to assure the completion of the reclamation plan or to defray the cost of restoration of the requirements to assure the completion of the reclamation plan or to defray the cost of restoration of the
(3) Bonds that expire shall be renewed prior to thirty (30) days before the expiration date of the bond. Upon expiration of a bond, commercial grower licensees shall provide proof to the Authority on forms and in a manner prescribed by the Authority of a new alternate bond or attestation and accompanying documentation meeting the requirements of OAC 442:10-5-3.3 before the date of expiration of the previous bond.
(4) A surety may cancel the bond prior to expiration of the bond by providing written notice to the Authority on forms and in a manner prescribed by the Authority thirty (30) days prior to the date of cancellation. Upon cancellation of a bond, the commercial grower shall provide proof to the Authority of a new, alternate bond or attestation and accompanying documentation meeting the requirements of 63 O.S. § 427.26 and this section on forms and in a manner prescribed by the Authority before the date of cancellation of the previous bond.
(5) The Authority may recall the bond up to one (1) year after revocation or surrender of the license or cancellation or expiration of the bond.
(6) Any grower that fails to comply with this section shall be subject to disciplinary action including, but not limited to, revocation, nonrenewal, or monetary penalties.
442:10-5-4. Inspections
(a) Submission of an application for a medical marijuana commercial license constitutes permission for entry to and inspection of any licensed premises and any vehicles on the licensed premises used for the transportation of medical marijuana and medical marijuana products during hours of operation and other reasonable times. Refusal to permit or impeding such entry or inspection shall constitute grounds for administrative penalties, which may include but are not limited to fines as set forth in Appendix C and the denial, nonrenewal, suspension, and/or revocation of a license.
(b) The Authority may perform two on-site inspections per calendar year of each licensed grower, processor, dispensary, or commercial transporter to determine, assess, and monitor compliance with applicable Oklahoma law and these Rules or ensure qualifications for licensure.
(c) The Authority shall conduct one on-site inspection of a testing laboratory applicant prior to licensure and up to two (2) on-site inspection annually thereafter. The inspection prior to initial licensure may include proficiency testing, and shall be conducted to ensure all application materials are accurate and the applicant meets all requirements in 63 O.S. § 427.17 and these Rules.
(d) The Authority shall conduct one (1) on-site inspection of each warehouse location of a medical marijuana transporter applicant or licensee prior to approving the location for use to ensure all information and documentation is true and correct and to determine if the proposed warehouse location meets all requirements of 63 O.S. § 427.16 and these Rules.
(e) The Authority may conduct additional inspections to ensure correction of or investigate violations of applicable Oklahoma law and these Rules.
(f) The Authority shall refer all complaints alleging criminal activity or other violations of Oklahoma law that are made against a licensee to appropriate Oklahoma state or local law enforcement or regulatory authorities.
(g) If the Authority discovers what it reasonably believes to be criminal activity or other violations of Oklahoma law during an inspection, the Authority may refer the matter to appropriate Oklahoma state or local law enforcement or regulatory authorities for further investigation. Except for license information concerning licensed patients, the Authority may share confidential information to assist other agencies in ensuring compliance with applicable laws, Rules, and regulations.
(h) The Authority may review any and all records of a licensee and may require and conduct interviews with such persons or entities and persons affiliated with such entities, for the purpose of determining compliance with Authority Rules and applicable laws. Failure to make documents or other requested information available to the Authority and/or refusal to appear or cooperate with an interview shall constitute grounds for administrative penalties, which may include, but are not limited to, fines as set forth in Appendix C and the denial, nonrenewal, suspension, and/or revocation of a license. All records shall be kept on-site and readily available.
(i) If the Authority identifies a violation of 63 O.S. § 420 et seq., the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq., and these Rules during an inspection of the licensed business, the Authority shall take administrative action in accordance with Oklahoma law, including the Oklahoma Administrative Procedures Act, 75 O.S. § 250 et seq.
(j) The Authority may assess fines in the amounts set forth in Appendix C and seek any other administrative penalties authorized by law against a licensee without providing opportunity to correct when the violation is not capable of being corrected. The Authority may suspend or revoke a license for failure to pay any fine or monetary penalty lawfully assessed by the Authority against the licensee.
(k) Except as otherwise provided in Oklahoma law or these Rules, correctable violations identified during an inspection shall be corrected within thirty (30) days of receipt of a written notice of violations. If a licensee fails to correct violations within thirty (30) days, the licensee will be subject to a fine in the amount set forth Appendix C for each violation and any other administrative action and penalty authorized by law.
(l) The Authority may employ secret shoppers to inspect licensed commercial medical marijuana businesses. Secret shoppers may purchase medical marijuana or medical marijuana products for compliance testing or attempt to purchase medical marijuana or marijuana products in order to prove compliance with the Oklahoma Medical Marijuana and Patient Protection Act or any rule determined by the Authority. In the absence of unanimous confirmation of test results with safety failures for contaminants, the Authority may investigate, embargo, or recall any medical marijuana or medical marijuana products. Nothing in this section otherwise prohibits the Authority from conducting investigations resulting from a secret shopper inspection.
442:10-5-4.1. Operational status visit
(a) Initial operational status visit for growers, processors, and dispensaries. Effective September 1, 2021, the Authority shall begin scheduling on-site visits at licensed growers, processors, and dispensaries for the purposes of verifying whether the licensed grower, processor, or dispensary is actively operating or is working towards becoming operational.
(1) Initial operational status visits shall be scheduled and shall occur within the first one hundred eighty (180) days after issuance of a medical marijuana grower, medical marijuana processor, or medical marijuana dispensary license.
(2) Each operational status visit shall be performed on-site at the licensed premises on file with the Authority.
(3) If, at the time of the initial operational status visit, the grower, processor, or dispensary being inspected fails to provide proof to the Authority that the licensee is actively operating or working towards operational status, the Authority shall grant the grower, processor, or dispensary a grace period of one hundred eighty (180) additional days from the date of their initial operational status visit to become operational.
(b) Follow-up operational status visits. Upon the expiration of an operational status visit grace period, the Authority shall perform a follow-up inspection of the licensed grower, licensed processor, or licensed dispensary for the purposes of verifying whether the licensed grower, processor, or dispensary has begun actively operating or is continuing to work towards becoming operational.
(1) Follow-up operational status visits shall be scheduled upon expiration of the grace period.
(2) Each follow-up operational status visit shall be performed on-site at the licensed premises on file with the Authority.
(3) If, at the time of the follow-up operational status visit, the grower, processor, or dispensary fails to provide proof to the Authority that the medical marijuana commercial licensee is actively operating or is continuing to work towards becoming operational, the Authority may elect to grant an additional grace period of one hundred eighty (180) days to become operational. However, if granted, such grace period shall not extend beyond the one-year term of the license.
(A) If the Authority does not grant a grower, processor, or dispensary a secondary grace period, the Authority shall seek revocation of the grower, processor, or dispensary license.
(B) If, after conducting a follow-up visit, the Authority grants a secondary grace period, a grower, processor, or dispensary shall be afforded an additional term of one hundred eighty (180) days to become operational. Upon expiration of the secondary grace period, if a grower, processor, or dispensary has failed to provide proof to the Authority that operations have commenced, the Authority shall seek revocation of the grower, processor, or dispensary license. A third operational status visit of the licensed premises shall be at the discretion of the Authority in making such a determination but shall not be required.
442:10-5-5. Processing medical marijuana on behalf of a patient or caregiver
(a) A licensed processor shall not sell or otherwise transfer medical marijuana or medical marijuana products to a patient or caregiver, except that a licensed processor may process medical marijuana into medical marijuana concentrate on behalf of a licensed patient or caregiver in exchange for a fee.
(b) For each occasion in which medical marijuana is processed in accordance with this subsection, a processor shall enter all information required by OAC 442:10-5-6(b)(4) into a log, which shall be maintained on the licensed premises.
(c) Processors shall only use medical marijuana provided by the licensed patient or caregiver when processing on behalf of a patient or caregiver and shall not add, mix in, or otherwise incorporate any medical marijuana or medical marijuana concentrate obtained from a separate source. A processor shall return any excess medical marijuana to the licensed patient. Plant material and any waste generated from processing shall be disposed of in accordance with OAC 442:10-5-10.
(d) The medical marijuana concentrate shall be labeled, and the label shall contain, at a minimum, the following information:
(1) Patient and, if applicable, caregiver license number;
(2) Processor name and license number;
(3) Date processed; and
(4) The Oklahoma uniform symbol.
(e) All medical marijuana and processed concentrate must be maintained on the premises in a manner that protects it from contamination, including, but not limited to, filth, mold, pests, and other contaminants.
(f) Concentrate processed directly on behalf of a patient or caregiver pursuant to this section is not subject to the testing requirements set forth in 63 O.S. § 427.17 and these Rules. However, a patient or caregiver may submit any medical marijuana and medical marijuana products to a licensed laboratory for testing pursuant to 63 O.S. § 427.17(J).
(g) Any transaction not in accordance with this Section shall constitute an unlawful sale.
442:10-5-6. Inventory tracking, records, reports, and audits
(a) Monthly reports. Licensed growers, processors, and dispensaries shall complete a monthly report on a form and in a manner prescribed by the Authority. These reports shall be deemed untimely if not received by the Authority by the fifteenth (15th) of each month for the preceding month.
(1) Dispensary reports shall include:
(A) The amount of marijuana purchased in pounds;
(B) The amount of marijuana sold or otherwise transferred in pounds;
(C) The amount of marijuana waste in pounds;
(D) If necessary, a detailed explanation of why any medical marijuana product purchased by the licensee cannot be accounted for as having been sold or still remaining in inventory;
(E) Total dollar amount of all sales to medical marijuana patients and caregivers;
(F) Total dollar amount of all taxes collected from sales to medical marijuana patients and caregivers; and
(G) Any information the Authority determines is necessary to ensure that all marijuana grown in Oklahoma is accounted for as required under 63 O.S. § 420 et seq. and the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq.
(2) Grower reports shall include:
(A) The amount of marijuana harvested in pounds;
(B) The amount of marijuana purchased in pounds;
(C) The amount of marijuana sold or otherwise transferred in pounds;
(D) The amount of drying or dried marijuana on hand;
(E) The amount of marijuana waste in pounds;
(F) If necessary, a detailed explanation of why any marijuana cannot be accounted for as having been sold, disposed of, or maintained in current inventory;
(G) Total dollar amount of all sales; and
(H) Any information the Authority determines is necessary to ensure that all marijuana grown in Oklahoma is accounted for as required under 63 O.S. § 420 et seq. and the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq.
(3) Processor reports shall include:
(A) The amount of marijuana purchased in pounds;
(B) The amount of marijuana sold or otherwise transferred in pounds;
(C) The amount of medical marijuana manufactured or processed in pounds;
(D) If necessary, a detailed explanation of why any marijuana cannot be accounted for as having been purchased, sold, processed, or maintained in current inventory;
(E) The amount of marijuana waste in pounds; and
(F) Any information the Authority determines is necessary to ensure that all marijuana grown in Oklahoma is accounted for as required under 63 O.S. § 420 et seq. and the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq.
(4) Upon implementation, submission of information and data to the Authority through the State inventory tracking system will be required in accordance with the Oklahoma Medical Marijuana Protection Act, 63 O.S. § 427.1 et seq., and these Rules, and submission of the information and data to the Authority through the State inventory tracking system shall be sufficient to satisfy monthly reporting requirements.
(b) Records. Pursuant to the Authority's audit and inspection responsibilities, medical marijuana business shall keep onsite and readily accessible, either in paper or electronic form, a copy of the records listed below. Except as otherwise specifically provided in Oklahoma law and this Chapter, all records shall be maintained for at least seven (7) years from the date of creation.
(1) Business records, which may include but are not limited to employee records, organizational documents or other records relating to the governance and structure of the licensee, manual or computerized records of assets and liabilities, monetary transactions, tax records, journals, ledgers, and supporting documents, including agreements, checks, invoices, receipts, and vouchers.
(2) As applicable, any documents related to the cultivation, processing, preparation, transportation, sampling, and/or testing of medical marijuana and medical marijuana products, including but not limited to sample field logs, patient processing logs, safety data sheets and inventory for each chemical utilized by a processor, inventory manifests, transporter agent licenses, COAs, testing records, equipment inspections, training materials, and standard operating procedures.
(3) Except as otherwise provided in this Subsection, documentation of every instance in which medical marijuana was sold or otherwise transferred to or purchased or otherwise obtained from another licensee, which shall include, but is not limited to:
(A) The name, license number, address, and phone number of all commercial licensees involved in each transaction, and the name and license number of all patient licensees involved in each transaction;
(B) The quantity and type of medical marijuana or medical marijuana products involved in each transaction;
(C) The batch number of the medical marijuana or medical marijuana products involved in each transaction;
(D) The date of each transaction;
(E) The monetary value of the medical marijuana or medical marijuana products involved in each transaction, including the total sale or purchase amounts;
(F) All point-of-sale and tax records; and
(G) All inventory manifests and other documentation relating to the transport of medical marijuana and medical marijuana products.
(4) For processors processing medical marijuana directly on behalf of a patient or caregiver, a log documenting each instance in which the processor processed medical marijuana received from a licensed patient into a concentrate form on behalf of the licensed patient, which shall include, but is not limited to, the following information:
(A) The patient and, if applicable, caregiver license number;
(B) The date the processor received the medical marijuana from the patient or caregiver;
(C) The weight of medical marijuana received from the patient;
(D) The weight or amount of concentrate produced, along with the weight of any excess medical marijuana, if applicable; and
(E) The date the concentrate was returned to the patient or caregiver.
(5) Any and all documents relating to the disposal or destruction of medical marijuana, medical marijuana products, and medical marijuana waste.
(6) Commercial licensees must also have the following documentation readily available on the licensed premise:
(A) the square footage or total acres of the licensed premises;
(B) a diagram of the licensed premises;
(C) if applicable, the number and type of lights at the licensed premise of a commercial grower;
(D) if applicable, the number, type and production capacity of equipment located at the licensed premise of a commercial processor;
(E) the names, addresses and telephone numbers of employees or agents of a medical marijuana business;
(F) employment manuals and standard operating procedures for the medical marijuana business; and
(G) any other information the Authority deems reasonably necessary.
(c) Patient information. Records containing private patient or caregiver information retained by a commercial licensee shall comply with all relevant state and federal laws. "Private patient information" means personally identifiable information, such as the patient name, address, date of birth, social security number, telephone number, email address, photograph, and financial information. This term does not include the patient's medical marijuana license number, which shall be retained by the business and provided to the Authority upon request for compliance and public health purposes, including the verification of lawful sales or patient traceability in the event of product recall.
(d) Inventory tracking system. Pursuant to 63 O.S. § 427.3(D)(8) and 63 O.S. § 427.13(B), each commercial licensee shall use the State inventory tracking system by inputting inventory tracking data required to be reported to the Authority directly into the State inventory tracking system or by utilizing a seed-to-sale tracking system that integrates with the State inventory tracking system All commercial licensees must have an inventory tracking system account activated to lawfully operate and must ensure all information is reported to the Authority accurately and in real time or after each individual sale in accordance with 63 O.S. § 427.13(B)(1) and these Rules. All commercial licensees shall ensure the following information and data are accurately tracked and timely reported to the Authority though the State inventory tracking system:
(1) The chain of custody of all medical marijuana and medical marijuana products, including every transaction with another commercial licensee, patient, or caregiver, including but not limited to:
(A) The name, address, license number, and phone number of the medical marijuana business that cultivated, manufactured, sold, purchased, or otherwise transferred the medical marijuana or medical marijuana product(s);
(B) The type, item, strain, and category of medical marijuana or medical marijuana product(s) involved in the transaction;
(C) The weight, quantity, or other metric required by the Authority, of the medical marijuana or medical marijuana product(s) involved in the transaction;
(D) The batch number of the medical marijuana or medical marijuana product(s);
(E) The total amount spent in dollars;
(F) All point-of-sale records as applicable;
(G) Transportation information documenting the transport of medical marijuana or medical marijuana product(s) as required under OAC 442:10-3-6(b);
(H) Testing results and information;
(I) Waste records and information;
(J) Marijuana excise tax records, if applicable;
(K) RFID tag number(s);
(2) The entire life span of a licensee's stock of medical marijuana and medical marijuana products, including, at a minimum, notifying the Authority:
(A) When medical marijuana seeds or clones are planted;
(B) When medical marijuana plants are harvested and/or destroyed;
(C) When medical marijuana is transported, or otherwise transferred, sold, stolen, diverted, or lost;
(D) When medical marijuana changes form, including, but not limited to, when it is planted, cultivated, processed, and infused into a final form product;
(E) A complete inventory of all medical marijuana; seeds; plant tissue; clones; usable marijuana; trim; shake; leaves; other plant matter; and medical marijuana products;
(F) All samples sent to a testing laboratory or used for internal quality and testing or other purposes;
(3) Any further information the Authority determines is necessary to ensure all medical marijuana and medical marijuana products are accurately and fully tracked throughout the entirety of the lifespan of the plant and product.
(e) Seed-to-sale tracking system. A commercial licensee shall use a seed-to-sale tracking system or integrate its own seed-to-sale tracking system with the State inventory tracking system established by the Authority. If a commercial licensee uses a seed-to-sale tracking system that does not integrate with the State inventory tracking system, or does integrate but does not share all required information, the commercial licensee shall ensure all required information is reported directly into the State inventory tracking system.
(f) Inventory tracking system requirements.
(1) At a minimum, commercial licensees shall track, update, and report inventory after each individual sale to the Authority in the State inventory tracking system.
(2) All commercial licensees must ensure all on-premises and in-transit medical marijuana and medical marijuana product inventories are reconciled each day in the State inventory tracking system at the close of business, if not already done.
(3) Commercial licensees are required to use RFID tags from an Authority-approved supplier for the State Inventory Tracking System. Each Licensee is responsible for the cost of all RFID tags and any associated vendor fees.
(A) A commercial licensee shall ensure its inventories are properly tagged and that a RFID tag is properly assigned to medical marijuana, medical marijuana products, and medical marijuana waste as required by the Authority.
(B) A commercial licensee shall ensure it has an adequate supply of RFID tags at all times. If a commercial licensee is unable to account for unused RFID tags, the commercial licensee must report to the Authority and the State inventory tracking system vendor within forty-eight (48) hours.
(C) RFID tags must contain the legal name and correct license number of the commercial licensee that ordered them. Commercial licensees are prohibited from using another licensee's RFID tags.
(D) Prior to a plant reaching a point where it is able to support the weight of the RFID tag and attachment strap, the RFID tag may be securely fastened to the stalk or other similarly situated position approved by the Authority.
(E) When the plant becomes able to support the weight of the RFID tag, the RFID tag shall be securely fastened to a lower supporting branch. The RFID tag shall remain affixed for the entire life of the plant until disposal.
(F) Mother plants must be tagged before any cuttings or clones are generated therefrom.
(G) If a RFID tag gets destroyed, stolen, or falls off of a medical marijuana plant, the licensee must ensure a new RFID tag is placed on the medical marijuana plant and the change of the RFID tag is properly reflected in the State inventory tracking system.
(H) Commercial licensees shall not reuse any RFID tag that has already been affixed to any regulated medical marijuana or medical marijuana products.
(4) Each wholesale package of medical marijuana must have a RFID tag during storage and transfer and may only contain one harvest batch of medical marijuana.
(5) Prior to transfer, commercial licensees shall ensure that each immature plant is properly affixed with an RFID tag if the plant was not previously tagged in accordance with these Rules.
(6) Commercial licensees' inventory must have a RFID tag properly affixed to all medical marijuana products during storage and transfer in one of the following manners:
(A) Individual units of medical marijuana products shall be individually affixed with a RFID tag; or
(B) Medical marijuana products may only be combined in a single wholesale package using one RFID tag if all units are from the same production batch.
(7) If any medical marijuana or medical marijuana products are removed from a wholesale package, each individual unit or new wholesale package must be separately tagged.
(8) All packages of medical marijuana waste shall have a RFID tag affixed and the contents of the waste package shall be reported in the State inventory tracking system.
(g) Inventory tracking system administrators and users.
(1) A commercial licensee must have at least one owner, or manager, who is an inventory tracking system administrator.
(2) The inventory tracking system administrator must attend and complete all required inventory tracking system training.
(3) If at any point, the inventory tracking system administrator for a commercial licensee changes, the commercial licensee shall change or assign a new inventory tracking system administrator within thirty (30) business days.
(4) Commercial licensees shall maintain an accurate and complete list of all inventory tracking system administrators and employee users.
(5) Commercial licensees shall ensure that all owners and employees that are granted inventory tracking system account access for the purpose of conducting inventory tracking functions are trained and authorized before the owners or employees may access the State inventory tracking system.
(6) All inventory tracking system users shall be assigned an individual account in the State inventory tracking system.
(7) Any individual entering data into the State inventory tracking system shall only use the inventory tracking system account assigned specifically to that individual. Each inventory tracking system administrator and inventory tracking system user must have unique log-in credentials that shall not be used by any other person.
(8) Within three (3) business days, commercial licensees must remove access for any inventory tracking system administrator or user from their accounts if any such individual no longer utilizes the State inventory tracking system or is no longer employed by the commercial licensee.
(h) Loss of use of the State inventory tracking system. If at any time a commercial licensee loses access to the State inventory tracking system due to circumstances beyond the commercial licensee's control, the commercial licensee shall keep and maintain records detailing all inventory tracking activities that were conducted during the loss of access. Once access is restored, all inventory tracking activities that occurred during the loss of access must be immediately entered into the State inventory tracking system. If a commercial licensee loses access to the State inventory tracking system due to circumstances within its control, the commercial licensee may not perform any business activities that would be required to be reported into the State inventory tracking system until access is restored and reporting is resumed; any transfer, sale, or purchase of medical marijuana or medical marijuana products shall be an unlawful sale.
(i) Audits. The Authority shall perform on-site audits of all commercial licensees to ensure the accuracy of information and data reported to the Authority and to ensure that all marijuana grown in Oklahoma is accounted for. Submission of an application for a medical marijuana commercial license constitutes permission for entry to any licensed premises and auditing of the commercial licensee during hours of operation and other reasonable times. Refusal to permit the Authority entry or refusal to permit the Authority to inspect all books and records shall constitute grounds for and administrative penalties, which may include, but are not limited to, fines as set forth in Appendix C and the denial, nonrenewal, suspension, and/or revocation of a license.
(1) The Authority may review any and all records and information of a commercial licensee and may require and conduct interviews with such persons or entities and persons affiliated with such licensees, for the purpose of determining compliance with Authority Rules and applicable laws. Failure to make documents or other requested information available to the Authority and/or refusal to appear or cooperate with an interview shall constitute grounds for nonrenewal, suspension, or revocation of a license or any other remedy or relief provided under law. All records shall be kept onsite and readily accessible.
(2) Commercial licensees shall comply with all written requests from the Authority to produce or provide access to records and information within ten (10) business days.
(3) If the Authority identifies a violation of 63 O.S. § 420 et seq., the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq., or these Rules during an audit of the commercial licensee, the Authority shall take administrative action against the licensee in accordance with the Oklahoma law, including the Oklahoma Administrative Procedures Act, 75 O.S. § 250 et seq.
(4) The Authority may refer all complaints alleging criminal activity or other violations of Oklahoma law that are made against a commercial licensee to appropriate Oklahoma state or local law enforcement or regulatory authorities.
(5) If the Authority discovers what it reasonably believes to be criminal activity or other violations of Oklahoma law during an audit, the Authority may refer the matter to appropriate Oklahoma state or local law enforcement or regulatory authorities for further investigation. Except for license information concerning licensed patients, the Authority may share confidential information to assist other agencies in ensuring compliance with applicable laws, Rules and regulations.
(6) Except as is otherwise provided in Oklahoma law or these Rules, correctable violations identified during an audit shall be corrected within thirty (30) days of receipt of a written notice of violation.
(7) If a licensee fails to correct violations within thirty (30) days, the licensee will be subject to a fine of $500.00 for each violation and any other administrative action and penalty authorized by law.
(j) Confidential records. All monthly report, inventory tracking and seed-to-sale information, data, and records submitted to the Authority are treated as confidential records and are exempt from the Oklahoma Open Records Act.
442:10-5-6.1. Penalties
(a) Failure to file timely reports. If a commercial licensee fails to submit a timely, complete, and accurate required monthly report and fails to correct such deficiency within thirty (30) days of the Authority's written notice, the licensee shall be subject to a fine in the amount set forth in Appendix C for each violation and any other administrative action and penalty authorized by law.
(b) Inaccurate reports. Within any two (2) year period of time, if a licensee has submitted one (1) or more reports containing gross errors that cannot reasonably be attributed to normal human error, licensee shall be subject to a fine in the amount set forth in Appendix C for each violation and any other administrative action and penalty authorized by law.
(c) Unlawful purchase and sale.
(1) Within any one (1) year period of time, if the licensee has made an unlawful purchase or sale of medical marijuana, the licensee shall be subject to a fine in the amount set forth in Appendix C for each violation and any other administrative action and penalty authorized by law.
(2) The Authority may revoke the license at any time regardless of the number of the offense upon a showing that the violation was willful or grossly negligent.
(d) Noncompliance and criminal activity. Commercial licenses and transporter agent licenses shall be subject to nonrenewal, revocation, suspension, monetary penalties, and any other penalty authorized by law upon a determination by the Authority that the licensee has not complied with applicable Oklahoma law or this Chapter, or upon official notification to the Authority that the licensee has engaged in criminal activity in violation of Oklahoma law.
(e) Administrative penalties. Procedures for administrative penalties against a licensee are stated in the Oklahoma Administrative Procedures Act, 75 O.S. § 250 et seq. These procedures provide for the licensee to receive notice and to have the opportunity to be present at a hearing and to present evidence in his or her defense. The Executive Director or his or her designee may promulgate an administrative order revoking or suspending the license, dismissing the matter, or providing for other relief as allowed by law. At any time after the action is filed against the commercial licensee, the Authority and the licensee may dispose of the matter by consent order or stipulation. Orders are appealable in accordance with the Oklahoma Administrative Procedures Act, 75 O.S. § 250 et seq.
(f) Fines. Monetary penalties shall be assessed in the amounts set forth in Appendix C. Failure to pay any fine within thirty (30) days of assessment of the fine shall result in nonrenewal, suspension, and/or revocation of the license.
(g) Administrative Order. In addition to any other remedies provided by law, the Authority may issue a written order to any licensee the Authority has reason to believe has violated Oklahoma law or these regulations, and to whom the Authority has served, not less than thirty (30) days previously, a written notice of violation of such statutes or rules.
(1) The written order shall state with specificity the nature of the violation. The Authority may impose any disciplinary action authorized under by law including, but not limited, nonrenewal, suspension, revocation and the assessment of monetary penalties.
(2) Any order issued pursuant to the provisions of this section shall become a final order unless, not more than thirty (30) days after the order is served to the licensee, the licensee requests an administrative hearing in accordance with these Rules. Upon such request, the Authority shall promptly initiate administrative proceedings.
(h) Emergency Cease and Desist. If the Authority finds that an emergency exists requiring immediate action in order to protect the health or welfare of the public, the Authority may issue an order, without providing notice or hearing, stating the existence of said emergency and requiring that action be taken by the commercial licensee as the Authority deems necessary to meet the emergency. Such action may include, but is not limited to, ordering the commercial licensee to immediately cease and desist operations. The order shall be effective immediately upon issuance and commercial licensees shall immediately comply with the provisions of the order. The Authority may assess a penalty not to exceed ten thousand dollars ($10,000.00) per day of noncompliance with the order. In assessing such penalty, the Authority shall consider the seriousness of the violation and efforts taken by the commercial licensee to comply with applicable requirements. Upon application to the Authority, the licensee shall be offered a hearing within ten (10) days of issuance of the order.
(i) Remitting taxes. If any medical marijuana business licensee intentionally does not remit the taxes as required by 68 O.S. § 1354 of Oklahoma Statutes, the Authority shall permanently revoke the medical marijuana business license of the business licensee and the business licensee shall be permanently ineligible to receive any other type of medical marijuana business license issued by the Authority, including licenses for a dispensary, commercial grower operation, processing facility, transporter, research, education facility, and waste disposal facility.
442:10-5-7. Tax on retail medical marijuana sales
(a) The tax on retail medical marijuana sales by a dispensary is established at seven percent (7%) of the gross dollar amount received by the dispensary for the sale of any medical marijuana or medical marijuana product. This tax will be collected by the dispensary from the customer who must be a licensed medical marijuana patient or caregiver.
(b) A dispensary shall either hold or obtain an Oklahoma sales tax permit from the Oklahoma Tax Commission in compliance with OAC 710:65-19-216.
(c) Reports and payments on gross sales, tax collected, and tax due shall be remitted to the Oklahoma Tax Commission by every dispensary on a monthly basis. No additional reporting regarding gross sales, tax collected, and tax due shall be made to the Authority.
(d) Dispensary reporting and remittance shall be made to the Oklahoma Tax Commission on a monthly basis. Reports and remittances are due to the Oklahoma Tax Commission no later than the 20th day of the month following the month for which the report and remittances are made.
(e) All dispensaries required to report and remit medical marijuana tax shall remit the tax and file their monthly tax report in accordance with the manner prescribed by the Tax Commission.
(f) The report shall contain the following information:
(1) Dispensary name, address, telephone number and dispensary license number;
(2) Reporting month and year;
(3) Total gross receipts for the preceding month from sales of medical marijuana or any medical marijuana product;
(4) The amount of tax due as described in (a) of this Section; and
(5) Such other reasonable information as the Tax Commission may require.
(g) If a due date for the tax reporting and remittance falls on a Saturday, Sunday, a holiday, or dates when the Federal Reserve Banks are closed, such due date shall be considered to be the next business date.
(h) Pursuant to 63 O.S. § 426, the Legislature receives all monies from sales tax proceeds collected on medical marijuana to be appropriated at the discretion of the Legislature to fund substance abuse programs and common education, including redbud school grants. The Legislature receives all monies collected from fines and fees to be appropriated at the discretion of the Legislature to fund the Oklahoma Medical Marijuana Authority. proceeds from the sales tax levied shall first be distributed to the Oklahoma Medical Marijuana Authority for the annual budgeted amount for administration of the Oklahoma Medical Marijuana Authority Program. All distributions will be made monthly to the Authority until full reimbursement is reached for the annual budgeted cost of the program. If tax levies are not sufficient to reimburse the Authority for the full annual budgeted cost, then all tax levies collected during the fiscal shall be remitted to the Authority.
442:10-5-8. Food safety standards for processors
(a) Purpose. This Section sets forth the food safety standards that processors must comply with in the preparation, production, manufacturing, processing, handling, packaging, and labeling of edible medical marijuana products.
(b) Existing law. This Section does not relieve licensed processors of any obligations under existing laws, rules, and regulations, including 63 O.S. § 1-1101 et seq., OAC 310:257, and OAC 310:260, to the extent they are applicable and do not conflict with 63 O.S. § 420 et. seq.
(1) The sale, offer to sell, dispense or release into commerce of any food or confection under a name, label, or brand when the name, label, or brand either precisely or by slang term or popular usage, is the name, label, or brand of marijuana is not prohibited.
(2) Marijuana used in food shall be considered an additive, a component, and/or an edible substance.
(3) Marijuana shall not be considered a deleterious, poisonous, or nonnutritive substance, and the use of marijuana, alone, in food shall not make such food adulterated or misbranded.
(c) Updated law. In the event the Oklahoma Board of Health or the Commissioner of Health amends OAC 310:257 or OAC 310:260, adopts new food safety rules, or incorporates into Oklahoma law updated federal food safety standards, including Title 21 of the Code of Federal Regulations, licensed processors shall comply with such rules to the extent they are applicable and do not conflict with 63 O.S. § 420 et seq., 63 O.S. § 427.1 et seq., or these Rules.
(d) Labeling and packaging. Labels and packages for food containing marijuana shall comply with all applicable requirements in existing Oklahoma law, rules, and regulations, and any laws incorporated therein by reference, to the extent they do not conflict with 63 O.S. § 420.
(1) 21 CFR Part 101, as of August 22, 2018, is hereby incorporated by reference into this Section to the extent it is applicable and does not conflict with 63 O.S. § 420 et seq. and 63 O.S. § 427.1 et seq.
(2) Existing requirements for principal display panels or information panels include:
(A) Name and address of the business;
(B) Name of the food;
(C) Net quantity or weight of contents;
(D) Ingredients list
(E) Food allergen information; and
(F) Nutrition labeling, if required under 21 CFR § 101.9.
(3) In addition, principal display panels or information panels must contain:
(A) List of cannabis ingredients;
(B) The batch of marijuana;
(C) The strain of marijuana (optional);
(D) THC dosage in milligrams per unit; and
(E) The lot code.
(4) Nutrient content, health, qualified health and structure/function claims must comply with the Food and Drug Administration ("FDA") Food Labeling Guide.
(5) Packaging must contain the statement, "For accidental ingestion call 1-800-222-1222."
(6) All packages and individually-packaged product units, including but not limited to those from bulk packaging, must contain the Oklahoma uniform symbol in clear and plain sight. The Oklahoma uniform symbol must be printed at least one-half inch by one-half inch in size in color.
(7) In order to comply with OAC 442:10-7-1(d)(4) and this Section, a label must contain a warning that states, "Women should not use marijuana or medical marijuana products during pregnancy because of the risk of birth defects or while breastfeeding."
(e) Recommended HACCP. A Hazard Analysis and Critical Control Plan ("HACCP"), as set forth under 21 CFR Part 120, shall be recognized as a standardized best practice to ensure that food is suitable for human consumption and that food-packaging materials are safe and suitable. Processors are encouraged to adopt a HACCP to help ensure compliance with existing Oklahoma food safety laws, particularly OAC 310:260-3-6.
(f) Private homes; living or sleeping quarters.
(1) A private home, a room used as living or sleeping quarters, or an area directly opening into a room used as living or sleeping quarters may not be used for conducting processing operations.
(2) Living or sleeping quarters located on the premises of a processor such as those provided for lodging registration clerks or resident managers shall be separated from rooms and areas used for food establishment operations by complete partitioning and solid self-closing doors.
442:10-5-9. Standards for handling and processing medical marijuana and medical marijuana products
These rules do not relieve commercial licensees of any obligations under Oklahoma law, statutes, and rules, including 63 O.S. § 1-1101 et seq., 63 O.S. § 1-1401 et seq., OAC 310:257, and OAC 310:260, to the extent they are applicable and do not conflict with 63 O.S. § 420 et seq. and 63 O.S. § 427.1 et seq.
442:10-5-10. Medical marijuana waste disposal
(a) All medical marijuana plant material and waste generated during the cultivation, production, processing, handling, and testing of medical marijuana and medical marijuana products must be stored, managed, and disposed of in accordance with these Rules, the Oklahoma Medical Marijuana Waste Management Act, 63 O.S. § 427a et seq., and any other applicable Oklahoma statutes and rules, except that medical marijuana waste shall not be subject to the provisions of the Uniform Controlled Dangerous Substances Act, 63 O.S. § 2-101 et seq.
(b) Licensees may dispose of root balls, stems, fan leaves, seeds, and the mature stalks or fiber produced from such stalks at the licensed premises by open burning, incineration, burying, mulching, composting or any other technique approved by the Department of Environmental Quality.
(1) Commercial licensees engaged in the disposal of root balls, stems, fan leaves, seeds, and the mature stalks or fiber produced from such stalks shall create and maintain a disposal log that contains, at a minimum, the following information:
(A) Name and license number of the commercial licensee;
(B) A description of the plant material being disposed;
(C) A brief description of the method used for disposal;
(D) Date and time of the disposal; and
(E) Names of employee(s) conducting the disposal.
(2) The disposal log shall contain a signed statement from the commercial licensee, or authorized representative of the commercial licensee, attesting to the lawful disposal of these plant parts under penalty of perjury.
(3) All disposal records shall be maintained by commercial licensees for a period of five (5) years and shall be subject to inspection and auditing by the Authority.
442:10-5-11. Attestation confirming or denying foreign financial interests
(a) All licensed medical marijuana businesses shall submit an attestation to the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control ("OBNDD") confirming or denying the existence of any foreign financial interests in the medical marijuana business in accordance with 63 O.S. § 427.15 and OBNDD rules and regulations.
(b) The Authority shall immediately revoke the medical marijuana business license of any medical marijuana business licensee that fails to submit such attestation to OBNDD in accordance with the law.
(c) A medical marijuana business that submits a complete and approved attestation to OBNDD within sixty (60) days of revocation of its license may be eligible to seek reinstatement of its license.
442:10-5-12. Marijuana transaction limitations
(a) A single transaction by a dispensary with a patient, or the parent(s) or legal guardian(s) if patient is under eighteen (18) years of age, or caregiver shall be limited to three (3) ounces or eighty-four and nine-tenths (84.9) grams of marijuana, one (1) ounce or twenty-eight and three-tenths (28.3) grams of marijuana concentrate, seventy-two (72) ounces or two thousand thirty-seven and six-tenths (2,037.6) grams of edible medical marijuana products, six (6) mature plants, and/or six (6) seedling plants.
(b) A single transaction between a processor and patient, or the parent(s) or legal guardian(s) if patient is younger than eighteen (18) years of age, for the processing of medical marijuana concentrate shall be limited to one (1) ounce of medical marijuana concentrate.
(c) Medical marijuana businesses shall utilize an OMMA provided system to verify and ensure that all medical marijuana transactions are conducted with medical marijuana patient, caregiver, or commercial license holders in accordance with the law and shall take all reasonable steps necessary to prevent the sale or other transfer of medical marijuana and medical marijuana products to a person or entity who does not hold a valid, unexpired license issued by the Authority under 63 O.S. § 420 et seq., the Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq., the Oklahoma Medical Marijuana Waste Management Act, 63 O.S. § 427a et seq., and this Chapter.
(1) In addition to utilization of an OMMA provided system, verification of all licenses shall include, at a minimum: name; valid, unexpired license number; and expiration date.
(2) In addition to the items required in Subsection (c)(1) above, verification of licenses issued to individuals shall include verification of the photo of the licensee.
(d) Any transaction not in accordance with this Section will constitute an unlawful purchase and sale as set forth in OAC 442:10- 5-6.1 (relating to penalties).
442:10-5-13. Loss and theft
If a commercial licensee has reason to believe that an actual loss, theft, or diversion of medical marijuana has occurred, the commercial licensee shall notify immediately the Authority and law enforcement. The commercial licensee shall provide the notice by attaching and submitting electronically a signed statement that details the estimated time, location, and circumstances of the event, including an accurate inventory of the quantity and type of medical marijuana unaccounted for due to diversion or theft. The notice shall be provided no later than twenty-four hours after discovery of the event.
442:10-5-14. Handling of medical marijuana by dispensary
(a) A medical marijuana dispensary may display samples of marijuana of no more than three (3) grams in each separate sample display cases, jars, or other sample containers protected by a plastic or metal mesh screen to allow medical marijuana patients and caregivers to smell and handle the various strains sold by a medical marijuana dispensary. The sample shall only be used for display purposes and cannot be offered for retail sale. The medical marijuana dispensary shall dispose of the sample in accordance with these Rules.
(b) Each display case, jar, or other container must be labeled with the following information:
(1) licensee name that grew the medical marijuana;
(2) strain name;
(3) batch number; and
(4) the following statement: "Sample: not for retail sale."
442:10-5-15. Entry to licensed premises
No minors under the age of eighteen (18) may enter licensed premises unless the minor is under the supervision of his or her parent or legal guardian at all times while on the licensed premises.
442:10-5-16. Prohibited acts
(a) No commercial licensee shall allow the consumption of alcohol or the smoking or vaping of medical marijuana or medical marijuana products on the licensed premises, except that if the licensed premises is a residence, a commercial licensee shall only be prohibited from consuming alcohol or the smoking or vaping of medical marijuana in areas of the licensed premises where operations of the business are conducted.
(b) No commercial licensee shall employ any person under the age of eighteen (18).
(c) No commercial licensee shall allow for or provide the delivery of medical marijuana or medical marijuana products to licensed patients or caregivers.
(d) No dispensary shall allow any physician to be located, maintain an office, write recommendations, or otherwise provide medical services to patients at the same physical address as a dispensary.
(e) No commercial licensee shall engage in advertising prohibited under OAC 442:10-7-3.
(f) No commercial licensee shall sell or offer to sell medical marijuana or medical marijuana product by means of any advertisement or promotion that includes any statement, representation, symbol, depiction, or reference, directly or indirectly, which would reasonably be expected to induce minors to purchase or consume marijuana or medical marijuana products.
(g) No commercial licensee shall falsify or misrepresent any documents, forms, or other materials or information submitted to the Authority.
(h) No commercial licensee shall threaten or harm a patient, medical practitioner, or an employee of the Authority.
(i) No commercial licensee shall fail to adhere to any acknowledgment, verification, or other representation made to the Authority.
(j) No licensed grower shall possess, sell or otherwise transfer, or offer to sell or otherwise transfer medical marijuana products.
(k) No licensee shall operate or otherwise use any extraction equipment or processes utilizing butane, propane, carbon dioxide or any potentially hazardous material in residential property.
(l) Licensees shall not sell or otherwise transfer, purchase, obtain, or otherwise accept the transfer of medical marijuana or medical marijuana products from an any individual or entity that is not an Oklahoma-licensed medical marijuana business, except that licensed dispensaries may sell medical marijuana and medical marijuana products to licensed patients and caregivers and a processor may process medical marijuana directly on behalf of a licensed patient or caregiver in accordance with OAC
442:10-5-5. No licensee shall purchase or sell medical marijuana or medical marijuana products to or from any unlicensed individual or entity.
(m) After implementation of the State inventory tracking system, no licensee shall sell or otherwise transfer, purchase, obtain or otherwise accept the transfer of medical marijuana or otherwise accept the transfer of medical marijuana or medical marijuana products that are not properly inputted and tracked in the State inventory tracking system in accordance with Oklahoma law and regulations.
(n) Medical marijuana growers and dispensaries shall not make or package infused pre-rolls.
(o) Medical marijuana growers and dispensaries shall not make or package pre-rolls that exceed one (1) gram in net weight.
(p) Licensees shall not allow any other entity or person to use their OMMA license number who is not an owner, employee, or authorized contractor of the commercial licensee while conducting business on behalf of that commercial licensee.
(q) No commercial licensee shall make, sell, transfer, or offer to sell any alcoholic beverage that has been infused with medical marijuana or medical marijuana products.
(r) Growers shall not purchase, make, sell, transfer, or otherwise obtain any medical marijuana products except growers may package and sell noninfused pre-rolls and kief in accordance with these Rules.
(s) Dispensaries shall not package or alter packaging or labeling of medical marijuana or medical marijuana products except for the following reasons:
(1) Dispensaries are authorized to package and sell noninfused pre-rolled marijuana;
(2) Dispensaries, or employees thereof, may handle loose or nonpackaged medical marijuana to be placed in packaging for retail sale consistent with Oklahoma law and these Rules, including packaging and labeling requirements in OAC 442:10-7-1(d)-(e);
(3) Dispensaries may apply barcodes, qr codes, or other inventory tracking tags and labels. These items shall not obscure required label and packaging requirements; and
(4) Dispensaries must place medical marijuana or medical marijuana products into a child-resistant exit package at the point of transfer to a patient or caregiver if those items are not already in child-resistant packaging.
(t) Growers shall not engage in any commercial growing operations without a bond or attestation as required under OAC 442:10-5-3.3 certifying compliance with 63 O.S. § 427.26.
(u) No licensed medical marijuana commercial grower shall knowingly hire or employ undocumented immigrants to perform work inside a medical marijuana commercial grow facility or anywhere on the property of the medical marijuana commercial grower operation. A licensed medical marijuana commercial grower that violates the provisions of this subsection shall be subject to penalties including but not limited to, license revocation and denial of future license applications.
(v) No commercial licensee shall employee any employee without a credential issued pursuant to OAC 442:10-5-1.1(13) For purposes of this Section, "employee" shall have the same meaning as OAC 442:10-5-1.1(13).
SUBCHAPTER 6. COMMERCIAL LICENSEES
442:10-6-1. General security requirements for commercial licensees
(a) Commercial licensees shall implement appropriate security measures to deter and prevent the unauthorized entrance into areas containing marijuana and the theft and diversion of marijuana.
(b) Commercial licensees are responsible for the security of all marijuana items on the licensed premises or all marijuana items in their possession during transit.
(c) Commercial grower licensees shall be required to post signage at the site of the commercial grow operation that must be visible from the road at the primary entrance to the grow facility. For purposes of this Section, primary entrance means the principal or main entrance of the commercial grow facility which is used by staff and/or persons accessing the property.
(1) Signage shall be located at the perimeter of the property with dimensions measuring no less than eighteen (18) inches by twenty-four (24) inches with a font size of no less than two (2) inches. For purposes of this Section, perimeter of the property refers to the outermost boundaries of the property that is licensed by the Authority as a commercial grow operation. Information required to be displayed on the sign shall be in black standardized font on a white background. The required signage shall also comply with county regulations and local ordinances related to the real property where the commercial grow operation is located. The following information shall be included on the required signage:
(A) Business name;
(B) Physical address of the licensed business;
(C) Phone number of the licensed business; and (D) Medical marijuana business license number.
(2) Failure to erect the proper signage within sixty (60) days after the renewal of each application for a medical marijuana commercial grower license in accordance with the provisions of this subsection shall result in the immediate revocation of the medical marijuana commercial grower license.
442:10-6-2. Construction of premises
All commercial licensees shall meet the standards of any applicable state and local electrical, fire, plumbing, waste and building specification codes including but not limited to the codes adopted by the Oklahoma Uniform Building Code Commission as set forth in OAC 748:20.
SUBCHAPTER 7. PACKAGING, LABELING, AND ADVERTISING
442:10-7-1. Labeling and packaging
(a) Prohibition on sale or transfer. Commercial licensees shall not sell, distribute, or otherwise transfer medical marijuana and medical marijuana products that are not packaged and labeled in accordance with the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq., and these Rules.
(b) Nonacceptance or return. A dispensary shall refuse to accept or shall return to the licensee transferring medical marijuana or medical marijuana products to the dispensary, any medical marijuana or medical marijuana products that are not packaged and labeled in accordance with the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq., and these Rules. The business licensee who sold or otherwise transferred the nonconforming medical marijuana or medical marijuana products shall accept such return. If circumstances are such that the dispensary cannot return or refuse to accept the nonconforming medical marijuana or medical marijuana products, the dispensary shall dispose of the nonconforming medical marijuana and medical marijuana products in accordance with the Oklahoma Medical Marijuana Waste Management Act, 63 O.S. § 427a et seq., and these Rules.
(c) Documentation. A dispensary shall document any such return, nonacceptance, or disposal, and such documentation shall include at a minimum:
(1) The license number, name, contact information, and address of the licensee who sold or otherwise transferred the nonconforming medical marijuana or medical marijuana products to the dispensary;
(2) A complete inventory of the medical marijuana and medical marijuana products to be returned or disposed, including the batch number;
(3) The reason for the nonacceptance, return, or disposal; and
(4) The date of the nonacceptance, return, or disposal.
(d) General requirements. The following general label and packaging requirements, prohibitions, and exceptions shall apply to all medical marijuana and medical marijuana products being transferred or sold to a dispensary or by a dispensary:
(1) Labels, packages, and containers shall not be attractive to minors and shall not contain any content that reasonably appears to target children, including toys, cartoon characters, and similar images. Packages should be designed to minimize appeal to children and shall not depict images other than the business name logo of the medical marijuana producer and image of the product.
(2) Packaging must contain a label that reads: "Keep out of reach of children." and "For use by licensed medical marijuana patients only. "
(3) All medical marijuana and medical marijuana products must be packaged in child-resistant containers, although the containers may be clear in order to allow licensed medical marijuana patient and licensed medical marijuana caregivers the ability to view the product inside the container, and placed into an exit package at the point of sale or other transfer to a patient, a patient's parent or legal guardian if patient is a minor, or a caregiver.
(4) Label must contain a warning that states "Women should not use marijuana or medical marijuana products during pregnancy because of the risk of birth defects."
(5) Packages and labels shall not contain any deceptive, false or misleading statements. For purposes of this section, information that is deceptive, false, or misleading includes:
(A) Any indication that the medical marijuana or medical marijuana product is organic, unless the National Organic Program (Section 6517 of the federal Organic Foods Production Act of 1990 (7 U.S.C. Section 6501 et seq.)) authorizes organic certification and designation for marijuana and marijuana products. This includes variants of the word "organic" such as "organix" and "organique."
(B) Any indication that the medical marijuana or medical marijuana product is "Pesticide-free," unless the medical marijuana or a medical-marijuana product was grown, harvested, processed, and dispensed without any pesticide.
(6) No medical marijuana or medical marijuana products shall be intentionally or knowingly packaged or labeled so as to cause a reasonable patient confusion as to whether the medical marijuana or medical marijuana product is a trademarked product.
(7) No medical marijuana or medical marijuana products shall be packaged or labeled in a manner that violates any federal trademark law or regulation.
(8) Packages and labels shall not make any claims or statements that the medical marijuana or medical marijuana products provide health or physical benefits to the patient.
(9) Packages and labels shall not contain the logo of the Oklahoma Medical Marijuana Authority.
(10) Packages and labels shall not contain any universal symbols from another state, any statements that the medical marijuana was grown in another state, or any depictions, symbols, or other information that could cause a reasonable patient to be confused as to the state of origin of the medical marijuana or medical marijuana product.
(11) Labels shall be designed and applied in a manner that does not cause patient confusion regarding the package's contents, potency, or other required information. In the event that any package or immediate container of medical marijuana or medical marijuana product is relabeled, all prior labels must be removed in entirety prior to the new label being applied. Covering an initial label with an updated label is prohibited.
(12) All packaging and labeling must contain current and accurate information on file with the Authority, including, but not limited to, the licensee's legal name, trade name, and license number.
(13) Packages and labels shall be considered inaccurate if the difference in percentage of the cannabinoid and/or total THC claimed to be present on a package or label is plus or minus fifteen percent (15%) of the percentage on the COA. For example, bulk order packaging that identifies a THC amount as 100mg would be inaccurate if the COA for that production batch indicated a THC content of less than 85mg or more than 115mg.
(e) Label requirements for sales to dispensaries or by dispensaries.
(1) Labels on medical marijuana and medical marijuana products being transferred or sold to a dispensary or by a dispensary shall contain, at a minimum, the following information:
(A) The name and license number of the grower, dispensary, or processor who is selling or otherwise transferring the medical marijuana or medical marijuana products to the dispensary;
(B) Name of the medical marijuana or medical marijuana product;
(C) The batch number of the medical marijuana or medical marijuana product;
(D) Net quantity or weight of contents;
(E) Ingredients list;
(F) The Oklahoma Uniform Symbol in the manner and form prescribed by the Authority;
(G) THC potency on the COA for that batch;
(H) Total terpenoid content in the manner prescribed by the Authority; and
(I) The statement, "This product has been tested for contaminants."
(2) Labels for edible medical marijuana products shall also meet the requirements set forth in OAC 442:10-5-8.
(3) As applicable, RFID tags shall not obscure required label and packaging requirements.
(f) Label requirements for sales between growers and/or processors. All medical marijuana and medical marijuana products sold or otherwise transferred between growers and/or processors shall be labeled and the label shall contain, at a minimum, the following information:
(1) Name and license number of the grower or processor who is selling or otherwise transferring the medical marijuana or medical marijuana product;
(2) The batch number of the medical marijuana or medical marijuana product;
(3) Date of harvest or production; and
(4) A statement that the medical marijuana or medical marijuana products have passed testing or statement that the medical marijuana failed testing and is being transferred to a processor for purposes of remediation.
(g) Storage requirements for growers and processors.
(1) Growers and processors shall store medical marijuana and medical marijuana products under conditions and in a manner that protects the medical marijuana and medical marijuana products from physical and microbial contamination and deterioration.
(2) When not in use, medical marijuana and medical marijuana products shall be stored in receptacles that are capable of being fully closed and sealed and are kept fully closed and sealed.
(3) When any storage receptacle is in use and contains medical marijuana or medical marijuana products, commercial licensees shall identify the batch number on the storage receptacle of all medical marijuana and medical marijuana products so that an inspector can easily identify to which batch the medical marijuana and medical marijuana products belong.