Okla. Admin. Code § 442:10-5-3.3

Current through Vol. 42, No. 8, January 2, 2025

Section 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. For purposes of this section, "qualified" means a business that has a Certificate of Authority, License, or other formal authorization from the Oklahoma Insurance Department authorizing the surety to transact business in Oklahoma. 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 property including removing equipment, destruction of waste, remediation of environmental hazards, prohibiting public access, addressing improperly coded buildings, or determination of the final disposition of any seized property.

(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.

Okla. Admin. Code § 442:10-5-3.3

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

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