Okla. Admin. Code § 442:10-5-6.1

Current through Vol. 42, No. 4, November 1, 2024

Section 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, sale, or transfer.

(1) Within any one (1) year period of time, if the licensee has made an unlawful purchase, sale, or transfer 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)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.

Okla. Admin. Code § 442:10-5-6.1

Adopted by Oklahoma Register, Volume 41, Issue 3, October 16, 2023, eff. 9/11/2023, exp. 9/14/2024 (Emergency)

Adopted by 40 Ok Reg 382, eff 11/1/2022 (emergency); Amended by Oklahoma Register, Volume 40, Issue 22, August 1, 2023, eff 8/11/2023

Amended by Oklahoma Register, Volume 41, Issue 21, July 15, 2024, eff. 7/25/2024