2023 Oklahoma Statutes › Title 63. Public Health and Safety › §63-427.6v2. Monitoring and disciplinary actions – Inspections and 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 or its designee 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 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. 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 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 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.
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.
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. Penalties for sales or purchases by a medical marijuana business to persons other than those allowed by law occurring within any two-year time period may include an initial fine of One Thousand Dollars ($1,000.00) for a first violation and a fine of Five Thousand Dollars ($5,000.00) for any subsequent violation. Penalties for grossly inaccurate or fraudulent reporting occurring within any two-year time period may include an initial fine of Five Thousand Dollars ($5,000.00) for a first violation and a fine of Ten Thousand Dollars ($10,000.00) for any subsequent violation. The medical marijuana business may be subject to a revocation of any license granted pursuant to the Oklahoma Medical Marijuana and Patient Protection Act upon a showing that the violation was willful or grossly negligent.
H. 1. First offense for intentional and impermissible diversion of medical marijuana, concentrate, or products by a patient or caregiver to an unauthorized person shall not be punished under a criminal statute but may be subject to a fine of Two Hundred Dollars ($200.00).
2. The second offense for impermissible diversion of medical marijuana, concentrate, or products by a patient or caregiver to an unauthorized person shall not be punished under a criminal statute but may be subject to a fine of not to exceed Five Hundred Dollars ($500.00) and may result in revocation of the license upon a showing that the violation was willful or grossly negligent.
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 a cite and release citation and, upon a finding of guilt or a plea of no contest, a fine of Two Thousand Five Hundred Dollars ($2,500.00). For 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 termination of the medical marijuana license.
J. Nothing in this section shall be construed to prevent the criminal prosecution, after the presentation of evidence and a finding beyond a reasonable doubt, of a licensed medical marijuana patient or caregiver, medical marijuana business or employee of a medical marijuana business who has diverted medical marijuana, medical marijuana concentrate or medical marijuana products to an unauthorized person with the intent or knowledge that the unauthorized person was to engage in the distribution or trafficking of medical marijuana, medical marijuana concentrate or medical marijuana products.
K. In addition to any other remedies provided for by law, the Authority, pursuant to 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. Upon such request, the Authority shall promptly initiate administrative proceedings.
L. Whenever the Executive Director finds that an emergency exists requiring immediate action in order to protect the health or welfare of the public, the Executive Director 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 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.
M. 1. The Executive Director may conduct hearings, issue final agency orders, impose disciplinary action as provided by this section for violation of state laws and rules pertaining to medical marijuana including, but not limited to, violation of this section, and take such other action as may be necessary to enforce state laws and rules pertaining to medical marijuana pursuant to the Administrative Procedures Act. All hearings held pursuant to this section shall be in accordance with the Administrative Procedures Act.
2. The Executive Director may delegate to an administrative law judge the authority to conduct hearings, issue final agency orders, or impose disciplinary action as provided by this section for violation of state laws and rules pertaining to medical marijuana including, but not limited to, violation of this section. When the administrative law judge issues a final agency order, that order becomes the final order of the Authority without further proceeding unless there is a request for rehearing, reopening, or reconsideration pursuant to Section 317 of Title 75 of the Oklahoma Statutes or a filing for judicial review pursuant to Section 318 of Title 75 of the Oklahoma Statutes.
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. 251, § 10, eff. Nov. 1, 2022.