Okla. Stat. tit. 63, § 63-427.6

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

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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;

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5. Failure to submit or disclose information required by
on 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;

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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

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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
ffense 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

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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
y 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.

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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.