investigations – Penalties – Unauthorized diversion of products – Notice of violations – Emergency powers. A. The Oklahoma Medical Marijuana Authority shall address issues related to the medical marijuana program in this state including, but not limited to, monitoring and disciplinary actions as they relate to the medical marijuana program. B. 1. The Authority, its designee, or the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the Oklahoma State Bureau of Investigation, and the Attorney General may perform on- site inspections or investigations of a licensee or applicant for any medical marijuana business license, research facility, education facility or waste disposal facility to determine compliance with applicable laws, rules and regulations or submissions made pursuant to this section. The Authority, its designee, or the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the Oklahoma State Bureau of Investigation, and the Attorney General may enter the licensed premises of a medical marijuana business, research facility, education facility or waste disposal facility licensee or applicant to assess or monitor compliance or ensure qualifications for licensure. 2. Except as otherwise provided by law, post-licensure inspections shall be limited to twice per calendar year. However, investigations and additional inspections may occur when the Authority believes an investigation or additional inspection is necessary due to a possible violation or noncompliance of applicable laws, rules or regulations. The Executive Director of the Authority may adopt rules imposing penalties including, but not limited to, monetary fines and suspension or revocation of licensure for failure to allow the Authority reasonable access to the licensed premises for purposes of conducting an inspection. 3. The Authority, its designee, or the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the Oklahoma State Bureau of Investigation, and the Attorney General may review relevant records of a licensed medical marijuana business, licensed medical marijuana research facility, licensed medical marijuana education facility or licensed medical marijuana waste disposal facility, and may require and conduct interviews with such persons or entities and persons affiliated with such entities, for the purpose of determining compliance with requirements of the Executive Director and applicable laws, rules and regulations. 4. The Authority may refer complaints alleging criminal activity that are made against a licensee to appropriate state or local law enforcement authorities including, but not limited to, the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the Oklahoma State Bureau of Investigation, and the Attorney General. C. Disciplinary action may be taken against an applicant or licensee for not adhering to applicable laws pursuant to the terms, conditions and guidelines set forth in the Oklahoma Medical Marijuana and Patient Protection Act. D. Disciplinary actions may include revocation, suspension or denial of an application, license or final authorization and other action deemed appropriate by the Executive Director of the Authority. E. Disciplinary actions may be imposed upon a medical marijuana business licensee for: 1. Failure to comply with or satisfy any provision of applicable laws, rules or regulations; 2. Falsification or misrepresentation of any material or information submitted to the Authority or other licensees; 3. Failing to allow or impeding entry by authorized representatives of the Authority; 4. Failure to adhere to any acknowledgement, verification or other representation made to the Authority; 5. Failure to submit or disclose information required by applicable laws, rules or regulations or otherwise requested by the Authority; 6. Failure to correct any violation of this section cited as a result of a review or audit of financial records or other materials; 7. Failure to comply with requested access by the Authority to the licensed premises or materials; 8. Failure to pay a required monetary penalty; 9. Diversion of medical marijuana or any medical marijuana product, as determined by the Authority; 10. Threatening or harming a medical marijuana patient licensee, caregiver licensee, a medical practitioner or an employee of the Authority; and 11. Any other basis indicating a violation of the applicable laws and regulations as identified by the Authority. F. Disciplinary actions against a licensee may include the imposition of monetary penalties, which may be assessed by the Authority. The Authority may suspend or revoke a license for failure to pay any monetary penalty lawfully assessed by the Authority against a licensee. G. 1. In addition to any other penalties prescribed by law, penalties for sales, purchases or transfers for value of medical marijuana by a medical marijuana business or employees or agents of the medical marijuana business to persons other than those allowed by law occurring within any one-year time period may include an initial fine of Five Thousand Dollars ($5,000.00) for a first violation and a fine of Fifteen Thousand Dollars ($15,000.00) for any subsequent violation. 2. Penalties for grossly inaccurate or fraudulent reporting occurring within any two-year time period may include an initial administrative fine of Five Thousand Dollars ($5,000.00) for a first violation and an administrative fine of Ten Thousand Dollars ($10,000.00) for any subsequent violation. The medical marijuana business shall be subject to a revocation of any license granted pursuant to the Oklahoma Medical Marijuana and Patient Protection Act upon a second incident of grossly inaccurate or fraudulent reporting in a ten-year period by the medical marijuana business or any employee or agent thereof. 3. After investigation by the Authority, the Authority may revoke the license of any person directly involved with the diversion of marijuana. 4. If the Authority, after investigation, is able to establish, by a preponderance of evidence, a pattern of diversion or negligence leading to diversion, the Authority may revoke any business licenses associated with the diversion and any entity with common ownership. H. 1. In addition to any other penalties prescribed by law, a first offense for intentional and impermissible diversion of medical marijuana, medical marijuana concentrate, or medical marijuana products for value by a patient or caregiver to an unauthorized person shall be subject to an administrative fine of Four Hundred Dollars ($400.00). The Authority shall have the authority to enforce the provisions of this subsection. 2. In addition to any other penalties prescribed by law, an additional incident resulting in a second offense for impermissible diversion of medical marijuana, medical marijuana concentrate, or medical marijuana products by a patient or caregiver to an unauthorized person for value shall be subject to an administrative fine of One Thousand Dollars ($1,000.00), and shall result in revocation of the license or licenses of the person. 3. Any person who shares less than three (3) grams of medical marijuana with an unauthorized person, without the transfer being for value or other consideration, shall not be subject to criminal prosecution but shall be subject to an administrative fine of Four Hundred Dollars ($400.00). I. The intentional diversion of medical marijuana, medical marijuana concentrate or medical marijuana products by a licensed medical marijuana patient or caregiver, medical marijuana business or employee of a medical marijuana business to an unauthorized minor person who the licensed medical marijuana patient or caregiver, medical marijuana business or employee of a medical marijuana business knew or reasonably should have known to be a minor person shall be subject to an administrative fine of Two Thousand Five Hundred Dollars ($2,500.00). For an additional incident resulting in a second or subsequent offense, the licensed medical marijuana patient or caregiver, medical marijuana business or employee of a medical marijuana business shall be subject to a cite and release citation and, upon a finding of guilt or a plea of no contest, a fine of Five Thousand Dollars ($5,000.00) and automatic revocation of the medical marijuana license. J. In addition to any other penalties prescribed by law, it shall be unlawful for a licensed medical marijuana commercial grower to 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 grow operation. A licensed medical marijuana commercial grower that violates the provisions of this subsection shall, upon conviction, be guilty of a misdemeanor punishable by imprisonment in the county jail for a term not exceeding one (1) year, or by a fine not exceeding Five Hundred Dollars ($500.00), or by both such fine and imprisonment. In addition, the license of the medical marijuana commercial grower shall be subject to revocation and the Authority may deny future license applications. K. 1. Beginning September 1, 2021, the Oklahoma Medical Marijuana Authority shall schedule on-site meetings and compliance inspections of the premises with the medical marijuana dispensary licensee at the location of the medical marijuana dispensary, the medical marijuana commercial grower at the location of the medical marijuana commercial grower site and the medical marijuana processor at the location of the medical marijuana processing site. The on- site meetings and compliance inspections shall occur within the first one hundred eighty (180) days after issuance of the medical marijuana dispensary license, commercial grower license or processor license and shall be conducted for purposes of verifying whether the medical marijuana business licensee is actively operating or is working towards operational status. 2. If, at the time of the on-site meeting and compliance inspection, the medical marijuana business licensee fails to provide proof to the Authority that the medical marijuana business is actively operating or working towards operational status, the Authority shall grant the medical marijuana business licensee a grace period of one hundred eighty (180) days to become operational. Upon expiration of this grace period, the Authority shall schedule a second on-site meeting and compliance inspection of the premises to verify whether the medical marijuana business licensee has begun operations at the licensed premises or is continuing to work towards operational status. 3. If, after the second on-site meeting and compliance inspection, the medical marijuana business licensee fails to provide proof to the Authority that the medical marijuana business licensee is actively operating or is continuing to work towards operational status, the Authority shall be authorized to grant the medical marijuana business licensee an additional grace period of one hundred eighty (180) days to become operational. 4. Upon expiration of the second grace period, the Authority shall terminate the medical marijuana business license if the medical marijuana business licensee has failed to provide proof to the Authority that the medical marijuana business is actively conducting business operations at the licensed premises. L. In addition to any other remedies provided for by law, the Authority, pursuant to its rules and regulations promulgated by the Executive Director, may issue a written order to any licensee the Authority has reason to believe has violated Sections 420 through 426.1 of this title, the Oklahoma Medical Marijuana and Patient Protection Act, the Oklahoma Medical Marijuana Waste Management Act, or any rules promulgated by the Executive Director 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 the provisions of this section including, but not limited to, 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 the rules and regulations promulgated by the Executive Director of the Authority. Upon such request, the Authority shall promptly initiate administrative proceedings. M. Whenever the Executive Director of the Authority finds that an emergency exists requiring immediate action in order to protect the health or welfare of the public, the Executive Director of the Authority may issue an order, without providing notice or hearing, stating the existence of an emergency and requiring that action be taken as the Executive Director of the Authority deems necessary to meet the emergency. Such action may include, but is not limited to, ordering the licensee to immediately cease and desist operations by the licensee. The order shall be effective immediately upon issuance. Any person to whom the order is directed shall comply immediately 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 a penalty, the Authority shall consider the seriousness of the violation and any efforts to comply with applicable requirements. Upon application to the Authority, the licensee shall be offered a hearing within ten (10) days of the issuance of the order. N. All hearings held pursuant to this section shall be in accordance with the Oklahoma Administrative Procedures Act. Added by Laws 2019, c. 11, § 6. Amended by Laws 2019, c. 477, § 7; Laws 2021, c. 553, § 11, eff. Nov. 1, 2021; Laws 2022, c. 249, § 1, eff. Nov. 1, 2022; Laws 2022, c. 328, § 1, eff. Nov. 1, 2022; Laws 2023, c. 168, § 4, eff. Nov. 1, 2023; Laws 2024, c. 182, § 22, emerg. eff. April 26, 2024.
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