150:65-13-1.  Purpose

150:65-13-2.  Definitions

150:65-13-3.  Eligible entities

(a)    A proxy establishment may receive quarterly payments for a ten-quarter period if they facilitate the attraction of remote workers to the State of Oklahoma.

(b)    A proxy establishment may be deemed to "facilitate the attraction of remote workers to the State of Oklahoma" if they participate in all of the following activities:

(1)    Engage in marketing designed to attract qualifying remote workers to relocate to a location within the State of Oklahoma;

(2)    Facilitate visits and tours, either virtually or in person, for prospective qualifying remote workers to become familiar with the benefits of relocating to the State of Oklahoma; and

(3)    Provide a monetary incentive to a qualifying remote worker or his/her assignee to relocate to a location within the State of Oklahoma payable in full or in part upon and/or within a year of their relocation to Oklahoma.

150:65-13-4.  Application

(a)    An eligible proxy establishment may obtain an application for acceptance into the Remote Quality Jobs program from the Department. Upon completion of all information submitted as part of the application, the Director will determine whether an applicant is qualified to receive incentive payments under the Program.

(b)    To apply, a qualified proxy establishment may submit an application for participation in the Remote Quality Jobs program to the Department.

(c)    As part of the Application, the proxy establishment is responsible for supplying all of the following information:

(1)    The proposed Start Date of the contract.

(2)    The number of new direct jobs to be included as part of the contract.

(3)    The yearly average salary of the Remote Workers hired in the new direct jobs.

(4)    Proof of a Qualifying Basic Health Benefits Plan for each Remote Worker to be covered by the contract.

(5)    The name of each Remote Worker to be included in the contract.

(6)    The name of the current employer of each Remote Worker to be covered by the contract.

(7)    The amount of the direct monetary incentive to be paid out by the proxy establishment to each Remote Worker the proxy establishment intends to claim under the contract.

(8)    Any other information or documentation deemed relevant by the Department to ensure the project meets statutory criteria.

(d)    A proxy establishment may submit the information set forth above at any time between the Application Date until sixty (60) days prior to the Start Date of the contract.

(e)    A proxy establishment that is receiving incentive payments pursuant to the Remote Quality Jobs Program cannot apply for additional incentive payments for any new projects unless and until either:

(1)    the establishment's actual verified annual gross payroll for new direct jobs under the establishments existing contracts has met the statutory criteria as set out in Section 4504 of Title 68 of the Oklahoma Statutes for one (1) calendar quarter or

(2)    The annual projected payroll for each of the proxy establishment's existing contracts under the act exceeds the mandatory annual gross payroll set forth in 68 O.S. §4504(B) and no less than nine (9) months have passed since the Application Date for the proxy establishment's most recent existing contract.

150:65-13-5.  Cost/benefit analysis; limitation of benefit

(1)    The estimated direct state benefits including, but not limited to, the anticipated level of new tax revenues to the state.

(2)    The estimated direct state costs including, but not limited to, the added cost to the state of providing services.

(3)    The payments to be made by the proxy establishment to Remote Workers covered by the contract within a year of relocation to Oklahoma.

(3)    Any other factor deemed relevant by the Department.

150:65-13-6.  Incentive contract

(a)    After an incentive contract is recommended by the Department, the contract will be prepared for the Director's review and signature. The signed document will then be forwarded to the proxy establishment. The tendered contract may be accepted by the proxy establishment within sixty (60) days of the date of signing by the Director, unless the Director extends this period at the establishment's request.

(b)    The incentive contract will be on a form prescribed by the Department which includes all of the following information:

(1)    The net benefit rate which will be multiplied by verified gross quarterly payroll of the Remote Workers to determine the amount of quarterly payments;

(2)    The maximum amount of benefit payments available, which is the lesser amount of the cumulative payments to be made by the proxy establishment to Remote Workers or the estimated net direct state benefits under the contract;

(3)    The project's Approval Date;

(4)    The project's Start Date;

(5)    The projected number of new direct jobs;

(6)    The average annual wage of new direct jobs;

(7)    Any other information the Department deems necessary to carry out the provisions of the statute.

(c)    The original incentive contract, signed by the chief executive officer or authorized representative, may be returned to the Department by any means acceptable to the Department.

150:65-13-7.  Transmittal of information

(a)    The Department will notify the Commission of each approved incentive offer.

(b)    The Department will provide the Commission with all of the following documentation for each approved incentive offer:

(1)    A copy of the executed incentive contract.

(2)    The results of the cost-benefit analysis.

(3)    Any other information deemed by both the Department and the Commission to be reasonably necessary for administration of the program.

150:150-1-1.  Purpose

150:150-1-2.  Definitions

150:150-1-3.  Program criteria and qualification

(a)    Applying for rebate eligibility:

(1)    Applications and all necessary forms may be submitted to OFMO through the OFMO website or as otherwise specified by OFMO.

(2)    Unless otherwise authorized by OFMO, Eligibility Applications submitted for projects filmed inside the State pursuant to 68 O.S. §3635 may be submitted no earlier than one (1) year prior to the start of Principal Photography but no later than forty-five (45) days prior to the start of Principal Photography. The exact specifications of the Eligibility Application are shown on the OFMO website, and include but are not limited to:

(A)    General information about the Production;

(B)    Contact information;

(C)    Preliminary production milestone dates;

(D)    A copy of the screenplay (or treatment if appropriate);

(E)    The Production Budget top sheet and estimated headcount;

(F)    Various acknowledgements of program and OFMO criteria and agreements to abide by them. Eligibility Applications may be submitted to OFMO after the start of Principal Photography if OFMO deems that conditions exist which make submittal prior to the start of principal photography not feasible.

(3)    Unless otherwise authorized by OFMO, Eligibility Applications for post-production activity on a Project filmed outside of this state pursuant to 68 O.S. §3636 may be submitted no earlier than one (1) year prior to the occurrence of the post-production activity occurring in Oklahoma but no later than fourteen (14) days prior to the occurrence of the post-production activity occurring in Oklahoma. The exact specifications of this Eligibility Application are shown on the OFMO website, and include but are not limited to:

(A)    The post-production budget or budget top sheet including post-production services and

(B)    Proof of funding for the post-production services.

(4)    Applicants may track the status of their Eligibility Application on the OFMO website.

(5)    Application does not guarantee acceptance. OFMO considers each Eligibility Application individually based upon many factors, including compliance with these Rules, the Act, the benefits of the project to Oklahoma (such as economic impact, jobs, tourism, branding, image and follow-on work), funds available, anticipated future Program needs, and other projects applying for a rebate.

(6)    If the Eligibility Application is approved, the Production Company will be Conditionally Pre-Qualified and OFMO will work with the Production to establish a Rebate Schedule.

(7)    Conditional Pre-Qualification does not guarantee ultimate approval of a Rebate Claim. The Rebate Claim is not deemed to be approved until after the Final Application is approved.

(8)    If the Eligibility Application is denied, OFMO may provide the applicant with the reason(s) it was denied.

(9)    Only one Eligibility Application per fiscal year per Production may be accepted.

(10)    OFMO may provide the Oklahoma Tax Commission with quarterly reports containing information concerning the Conditional Pre-Qualification of Applications and approved Rebate Claims.

(b)    Application Estimate. If the Eligibility Application is approved, the Application Estimate will be multiplied by the rebate percentage deemed appropriate by the Department. The resultant amount is the amount that may later be paid as the Rebate Claim (the "Potential Rebate Claim").

(c)    If the Final Application and Rebate Claim are later approved:

(1)    If the QPE are less than or equal to the application Estimate, the Rebate claim may be paid in full up to the Potential Rebate Claim amount. Any amount of the Potential Rebate Claim that has been Pre-Qualified but is less than the actual Rebate Claim may be deemed not Pre-Qualified and will not count toward the limitations set forth in 68 O.S. §3634.

(2)    If the actual QPE are more than the Application Estimate, the amount that may be paid on the Rebate Claim is limited to the Potential Rebate Claim Amount. QPE that exceed the Potential Rebate Claim Amount are considered an additional claim and may, at OFMO's discretion, be approved for payment. If the additional claim is approved, the additional amount agreed to be paid counts toward the Conditional Pre-Qualification limits set forth in 68 O.S. §3634 of the then current fiscal year.

(d)    Rebate Schedule. For Projects filmed in this State pursuant to 68 O.S. §3635, unless otherwise agreed by OFMO in writing, after Conditional Pre-Qualification, OFMO and the Production Company will establish a schedule of dates based upon the following benchmarks:

(1)    45 calendar days prior to Principal Photography- submit Application Estimate and Proof of Funding for at least fifty percent (50%) of the Production budget unless otherwise agreed upon beforehand by OFMO.

(2)    Prior to paying salaries or wages to a Production Company's employee in Oklahoma-submit a certificate of workers' compensation insurance with limits pursuant to Oklahoma Law.

(3)    30 calendar days prior to Principal Photography - submit the following:

(A)    Proof of funding for the Production Budget;

(B)    Updated filming schedule;

(C)    Updated screenplay (or treatment if appropriate);

(D)    Copy of the completion bond as described in "(e)" below, if applicable;

(E)    Additional documents as reasonably requested by OFMO.

(4)    10 calendar days prior to Principal Photography:

(A)    Submit a certificate of general liability insurance with a minimum limit of $1,000,000 in coverage (or a binder for such with a state date no later than the estimated Start of Pre-Production);

(B)    Submit a certificate of automobile liability insurance with minimums of $250,000/500,000/250,000 coverage (or a binder for such with a state date no later than the estimated Start of Pre-Production) or certification that no employee of the Production will drive an automobile as part of the Production.

(5)    During Principal Photography - submit the following (preferably in advance, if practical):

(A)    Updates to the filming schedule;

(B)    Updates to the screenplay (or treatment if appropriate);

(C)    Call Sheets.

(6)    Within 90 calendar days of completion of the Production (or payment date of last QPE, if later):

(A)    Upload through the OFMO website the list of

(B)    Submit the Final Application.

(e)    Completion Bond. Unless a Production is backed by a major studio or other financing source acceptable to OFMO, the Production will post a Completion Bond from a guarantor acceptable to OFMO guaranteeing completion of the Production and payment of all Oklahoma liabilities. In lieu of a Completion Bond, a Production may produce evidence acceptable to OFMO that all Crew, vendors and taxes have been paid and there are no outstanding or potential liens in Oklahoma against the Production Company.

(f)    End of Production credits:

(1)    The end credit crawl of all release prints of a Film will include "filmed in Oklahoma using the Filmed in Oklahoma Act" and a logo provided by OFMO.

(2)    If the production does not contain end credits, the production company will provide equivalent value as determined by OFMO prior to payment of the Rebate Claim. If the production does not intend to use end credits, this should be disclosed to OFMO prior to Conditional Pre-Qualification of the project.

(g)    Certified Public Accountant's Report: Final Applications will be accompanied by a CPA's Report, prepared at the expense of the Applicant, attesting that the amounts in the Final Application are QPE that comply with these rules.

(1)    Reports will be prepared by a CPA currently licensed by the State of Oklahoma and who is independent under the American Institute of certified Public Accountants' (AICPA) Independence Rule.

(2)    CPAs will carry professional liability insurance, in a form and from a carrier acceptable to OFMO, for at least $500,000.

(3)    The CPA's examination will be conducted according to the AICPA's Attestation Standards.

(4)    Reports will use a materiality threshold set by OFMO and published on its website.

(5)    CPAs will work with the Production Company to resolve exceptions or discrepancies prior to submitting the Final Application, such that the CPA's Report attests to the validity and accuracy of the amounts on the Application without exception.

(6)    The CPA's Report will attest:

(A)    Actual Production expenditures were at least $50,000 and QPE at least $25,000;

(B)    All amounts on the Application are properly calculated and materially accurate;

(C)    All Oklahoma payroll tax returns due from the Production Company (or its payroll processor) have been filed;

(D)    All Oklahoma income tax returns for the Production Company due as of the review date have been filed.

(7)    The CPA will retain all workpapers for the CPA's Report for seven years, during which they may be subject to audit by OFMO or its agents, upon a request by OFMO.

(h)    Final Application:

(1)    Upon completion of the Production and mandates herein, the Production Company may submit a Final Application.

(2)    Submitting a Final Application does not guarantee approval. OFMO may approve or disapprove of all claims within 60 calendar days of receipt of a properly completed Final Application.

(3)    If a Final Application or Rebate Claim is denied, the Production Company may attempt to correct any discrepancies or problems and resubmit within thirty (30) days of denial.

(4)    Once a Final Application is approved by OFMO,

(A)    Amendments are not allowed;

(B)    The Production Company will work with OFMO to establish a vendor ID with the State.

(5)    The Oklahoma Tax Commission will, upon notification of approval from the OFMO, issue payment for all approved Rebate Claims, subject to any statutory limitations and any other written agreements between the Production Company and the Department.

(i)    Delays, Transferability and Expiration:

(1)    A Conditionally Pre-Qualified Production may delay the start of Principal Photography two times for a total delay of up to one hundred eighty (180) days from the date when principal photography was originally scheduled to begin. If the start is delayed a third time, or a Production does not start by the date specified in their latest update to the Production Schedule submitted to OFMO, Pre-Qualification is revoked, the Eligibility Application is denied and the Production cannot apply again until the following fiscal year.

(2)    Conditional Pre-Qualification is specific to the Production and Production Company and is non-transferable. Productions, screenplays and budgets may evolve as long as they are substantially similar to those submitted in the Eligibility Application.

(3)    Unless otherwise approved by OFMO, Conditional Pre-Qualification expires two (2) years from the start of Principal Photography.

(4)    If Conditional Pre-Qualification expires or is revoked, the Potential Rebate Claim amount from the revoked or expired Conditional Pre-Qualification does not count toward the Conditional Pre-Qualification cap set forth in 68 O.S. §3634.

150:150-1-4.  Multi-film deals

(a)    As part of the Eligibility Application, an applicant will provide information as requested by OFMO indicating whether the Film being produced is intended to be part of a "Multi-Film" Deal.

(b)    If an applicant indicates that a film is part of a Multi-Film Deal, and provides the requested documentation, the Department may Conditionally Pre-Qualify the Multi-Film Deal Rebate Enhancement amount in a manner consistent with these rules. The Multi-Film Deal Rebate Enhancement amount Conditionally Pre-Approved for each Film in a Multi-Film Deal may only be approved for payment after approval of the Final Application of the third film in the Multi-Film Deal.

(c)    After approval of the Final Application of the third film in a Multi-Film deal, and for each subsequent film that is part of the Multi-Film deal, the Department may formally approve the Rebate Enhancement applicable for the Multi-Film Deal and notify the Commission so the Conditionally Pre-qualified Rebate Enhancement for the Multi-Film deal may be paid.

(d)    Episodes filmed as part of a single Series Season do not qualify for the Multi-Film Deal incentive enhancement.

(e)    A television Episodic Pilot which is part of a Multi-Film Deal for purposes of the incentive enhancement cannot receive an Incentive Enhancement for a television Episodic Pilot as otherwise provided in the act.

150:150-1-5.  Apprentices

(a)    OFMO may maintain a list of trades or departments deemed necessary for a film production where an Apprentice may be utilized to qualify for the rebate pursuant to the Act and list these trades on the OFMO website.

(b)    A person is considered an Apprentice as defined by the act, if he or she meets all of the following criteria:

(1)    The Apprentice is an Oklahoma resident;

(2)    The Apprentice is supervised by an experienced Master Tradesperson in the trade, craft or profession being practiced by the Apprentice in the production;

(3)    The Apprentice works in a trade recognized by OFMO as necessary for a film production;

(4)    The Apprentice works under the supervision of the Master Tradesperson at least one-half (1/2) of the days the Master Tradesperson under which the Apprentice is learning is actively engaged in the film;

(5)    The Apprentice completes a questionnaire or survey provided by OFMO to be returned to OFMO with the Final Application.

150:150-1-6.  Soundstage certification

(a)    A facility may be considered a State Certified Industry Standard Soundstage Facility (State Certified Soundstage Facility), if a building, or complex of buildings, building improvements and associated back-lot facilities on a property meets all of the following criteria:

(1)    Multiple Productions are, or are intended to be, regularly produced at the facility throughout the year;

(2)    The primary revenue source for such a facility is from industry Productions and ancillary services to such Productions;

(3)    The facility is marketed and made available to third party productions planning to rent such facility and the facility is able to be listed on the OFMO website for such rental;

(4)    The facility provides additional industry specific on-site services and amenities for third party Productions;

(5)    The facility contains at least 7,500 sq feet of combined and dedicated studio space which:

(A)    Features acoustically treated walls;

(B)    Achieves a noise criterion rating of 30 or better

(C)    Has a height of at least 15 feet and;

(D)    Is equipped with sufficient heating and air conditioning for filming without the need for supplemental units (but supplemental units may be used)

(E)    Otherwise meets the criteria for a qualified soundstage facility as defined in the Act.

(b)    OFMO may compile and maintain a list of State Certified Soundstage Facilities located within the State of Oklahoma and may make this list available either through request or by publishing a regularly updated list on the OFMO website.

(c)    A soundstage facility may apply to OFMO and request to be listed as a State Certified Soundstage Facility by contacting OFMO and making application to the Department in a manner and on an application provided by OFMO.

150:150-1-7.  Incentive amounts

(a)    The base incentive amount and all Rebate Enhancement percentages set forth in 68 O.S. §3635 and §3636 are the maximum possible incentive percentage amounts payable under each specific circumstance. The decision as to whether to offer an incentive, and how much of an incentive may be offered is made at the discretion of OFMO.

(b)    The actual rebate percentage approved for a project, if any, is determined by the Department in a way that achieves the maximum positive impact for the Oklahoma economy.

(c)    In determining the rebate percentage amount to be approved, if any, pursuant to either 68 O.S. §3635 or §3636, the Department may consider the following:

(1)    Benefits of the project to the State (including economic impact, industry infrastructure impact, jobs, tourism, branding, image and follow-on work);

(2)    The amount of rebate payments conditionally prequalified by the Department for the current fiscal year;

(3)    Impact on the ability of the Department to commit funds to additional projects for the current fiscal year;

(4)    The amount of incentive believed to be necessary to win the project.

(d)    The incentive percentage to be approved for a project may be determined at the time of Conditional Pre-Qualification of the application with the following limitations:

(1)    If a project fails to meet the criteria for a particular Rebate Enhancement for which the project was initially pre-qualified to receive, the percentage of that specific incentive enhancement is removed from the total percentage of the incentive offer.

(2)    If a project underperforms with regards to any of the Rebate Enhancement categories from what they projected in the initial application, the additional incentive amount offered for that category may be reduced.

(3)    If a project uses fewer apprentices than the amount claimed at the time of Conditional Pre-Qualification, the base incentive amount may be reduced.

(4)    If the Rebate Claim amount is fifteen or more percent (15%+)lower than the amount for which the Film was pre-qualified, one percent (1%) of the Rebate amount for which the Film would otherwise be paid may be reduced due to the reduced economic benefit to the State.

(e)    OFMO may utilize a scoring system to provide guidelines as to the amount of incentive offered for a project, if any. OFMO may also rank projects to determine which projects should receive priority in receiving an incentive offer. Any list created by OFMO ranking projects is not subject to the Open Records Act.

(f)    OFMO may prioritize projects on a project ranking list which meet the following criteria:

(1)    Projects which are the second or subsequent film in a Multi-Film Deal.

(2)    Projects which are part of a television series filmed in Oklahoma where either the series Television Pilot or a previous Series Season was filmed in Oklahoma.

(3)    Post-production activity occurring in Oklahoma on a television series filmed outside of Oklahoma where post-production activity on either the series Television Pilot or a previous Series Season had occurred in Oklahoma.

150:150-1-8.  Qualified production expenditures

(a)    A Qualified Production Expenditure, or production cost, includes Oklahoma expenditures or production costs as defined in 68 O.S. §3632 including the following expenditures, whether paid directly or through an Oklahoma based entity, subject to statutory limitations:

(1)    Salary Costs for Oklahoma Resident Crew;

(2)    Salary Costs for Oklahoma Expatriate Crew;

(3)    Payments to the owner(s) of an Oklahoma Loan-Out Company for Oklahoma Resident Crew;

(4)    Payments to the owner(s) of an Oklahoma Loan-Out Company or salary payments for Crew that is not Oklahoma-Based or who are non-residents, other than above-the-line personnel, subject to the sunset limitations in 68 O.S. §3635(A);

(5)    Subject to the twenty-five percent limitation, the sum of:

(A)    payments to Oklahoma-Based above the line personnel

(B)    payments to Oklahoma Loan-Out Companies for Above-the-line personnel; and

(C)    payments to an Oklahoma-Based entity for using the Film's underlying creative work (e.g., screenplay, treatment, or novel).

(6)    Permits and fees paid to an Oklahoma state, county, or municipal governmental or quasi-governmental entity;

(7)    Payments to an Oklahoma Vendor for the following:

(A)    Studio, stage or set construction and dismantling;

(B)    Production scheduling, management, administration and operations;

(C)    Casting and security services;

(D)    Wardrobe and make-up materials, consumables and services;

(E)    Set props and accessories (individual props costing in excess of fifty thousand dollars ($50,000) may only be included as a QPE if prior approval is granted by the OFMO);

(F)    Cameras, film, microphones, tape, digital storage media and other materials and equipment used to record sound and images;

(G)    Photography, visual image editing, animation, Computer graphics and effects, and related visual services;

(H)    Sound (other than music) recording, editing, synchronization and related services;

(I)    Licensing or use rights for music, or recording of songs or musical score, used in the Film;

(J)    Lighting and electrical materials, equipment and services;

(K)    Location, building, facility, equipment, prop and wardrobe rental;

(L)    Stunts, special effects, pyrotechnics, firefighting, safety, handling/wrangling, security and other specialty services;

(M)    Lodging and accommodations (whether paid for directly by the Production Company, paid through a third party who is paid by the production company, or provided as an allowance in the amount of actual costs of housing) for ATL and Crew;

(N)    Food, restaurants and catering (whether paid for directly by the Production company or paid through a third party who is paid by the Production Company);

(O)    Transportation of ATL, Crew, equipment and supplies (whether paid for directly by the Production company or paid through a third party who is paid by the Production Company);

(P)    Travel costs to and from Oklahoma paid to or through an Oklahoma travel agent;

(Q)    Completion bonds and insurance where either the guarantor or the is an Oklahoma Vendor);

(R)    Shipping and postage for packages originating or terminating within Oklahoma;

(S)    Fees, interest and financing charges paid to Oklahoma-Based Vendors and Oklahoma Based financial institutions and companies;

(T)    Other materials, supplies and contracted services approved in advance by OFMO;

(U)    CPA Report.

(8)    Payments to an Oklahoma Vendor for the following valid Scouting Expenses of the Production:

(A)    Location scouting, planning and packaging services;

(B)    Travel costs to and from Oklahoma paid to a travel agent;

(C)    Lodging and accommodations within Oklahoma;

(D)    Transportation within Oklahoma;

(E)    Meals purchased within Oklahoma.

(9)    Reimbursements made to individuals for goods and services provided by an Oklahoma Vendor that would have been QPE if paid directly by the Production, provided the individual provides a receipt for such goods and services;

(10)    Reimbursements made for automobile mileage and toll fees paid to crew for travel beginning from a location in Oklahoma and ending at another location in Oklahoma as long as:

(A)    mileage payments are limited to the current Internal Revenue Service (IRS) standard mileage rates and

(B)    payment of mileage is compliant with IRS rules for claiming mileage.

(11)    Box rental fees paid to an Oklahoma resident crew member or an Oklahoma Expatriate crew member for the crew member using his or her own equipment or resources on a Film;

150:150-1-9.  Oklahoma expatriate crew program

(a)    OFMO may maintain a roster of Oklahoma Expatriate Crew and make such roster available to a Production Company upon request.

(b)    The Expatriate roster may consist of Oklahoma Expatriates who are:

(1)    Registered as an Oklahoma Expatriate with OFMO and;

(2)    Have completed a Declaration of Expatriate Status satisfactory to OFMO.

175:20-5-3.1.  Clarification of license renewal procedures following COVID-19 pandemic

(a)    Pursuant to its authority under 59 O.S. § 4200.9(B)(1) to establish expiration dates for massage therapy licenses, the State Board of Cosmetology and Barbering shall not include, in calculating the timeframe for grace periods and inactive status related to the renewal of massage therapy licenses, the period from and including March 17, 2020 through January 31, 2021, during which period the Governor of the State of Oklahoma had declared a State of Emergency and extended all expiring occupational licenses.

(b)    All persons who were licensed as massage therapists in accordance with 59 O.S. § 4200.5(A), and who maintained their licenses in good standing consistent with Oklahoma law and section (a) of this rule, above, as determined by the Board within its exclusive discretion, shall retain their grandfathered status.

(c)    All other requirements set forth in 59 O.S. § 4200.9 must be met in order to obtain renewal of a massage therapy license, including, but not limited to, providing adequate proof of completion of all continuing education requirements and payment of all renewal fees and late fees, as prescribed by the Board.

310:681-1-4.  Definitions

(A)    unused, surplus, returned or out-of-date marijuana; recalled marijuana; unused marijuana; plant debris of the plant of the genus cannabis, including dead plants and all unused plant parts, except the term shall not include seeds, roots, stems, stalks and fan leaves,

(B)    all product which is deemed to fail laboratory testing and cannot be remediated or decontaminated, or

(C)    all product and inventory from commercial licensees that:

(i)    have gone out of business,

(ii)    are not subject to the provisions of Section 1560 of Title 12 of the Oklahoma Statutes, and

(iii)    are unable to lawfully transfer or sell the product and inventory to another commercial licensee.

(A)    Has applied for any additional permits, registrations, or licenses required by the Department or another Oklahoma agency, organization, or political subdivision to lawfully conduct operations at the licensed premises and is awaiting issuance of such permit(s), registration(s), or other license(s);

(B)    Is performing construction or other material changes to the licensed premises in preparation of operations at the licensed premises;

(C)    Is onboarding or training initial staff in preparation of operations at the licensed premises;

(D)    Is in the process of purchasing or is awaiting receipt or delivery of physical materials essential to operations at the licensed premises, such as furniture or equipment; or

(E)    Any additional actions determined to be sufficient by the Department.

310:681-2-3.  Application for caregiver's license

310:681-3-1.  License for transportation of medical marijuana

(f)    No person or entity shall transport or otherwise transfer any medical marijuana or medical marijuana products without both a valid transporter license and a valid transporter agent license.

310:681-3-6.  Inventory manifests

310:681-4-2.  Licenses

(2)    Licenses shall not be changed from one license type to another.

310:681-4-5.  Inventory tracking, records, and reports

(6)    Upon implementation, submission of information and data to the Department through the State inventory tracking system will be required in accordance with the Oklahoma Medical Marijuana Protection Act, 63 O.S. § 427.1 et seq., and these Rules, and submission of information and data to the Department through the State inventory tracking system shall be sufficient to satisfy monthly reporting requirements.

(5)    Written standard operating procedures outlining the manner in which the commercial licensee operates as prescribed by the Department.

(A)    The name, address, license number and phone number of the medical marijuana business that cultivated, manufactured, sold, purchased, or otherwise transferred the medical marijuana or medical marijuana product(s);

(B)    The type, item, strain, and category of medical marijuana or medical marijuana product(s) involved in the transaction;

(C)    The weight, quantity, or other metric required by the Department, of the medical marijuana or medical marijuana product(s) involved in the transaction;

(D)    The batch number of the medical marijuana or medical marijuana product(s);

(E)    The total amount spent in dollars;

(F)    All point-of-sale records as applicable;

(G)    Transportation information documenting the transport of medical marijuana or medical marijuana product(s) as required under OAC 310:681-3-6(b);

(H)    Testing results and information;

(I)    Waste records and information;

(J)    Marijuana excise tax records, if applicable;

(K)    RFID tag number(s);

(3)    Identifies and allows for tracking and documentation of theThe entire life span of a licensee's stock of medical marijuana and medical marijuana products, including, at a minimum, notifying the Department:

(F)    All samples sent to a testing laboratory or used for internal quality testing or other purposes;

(4)    In event of a serious adverse event or recall, is capable of tracking medical marijuana or medical marijuana product from a patient back to the source of the medical marijuana or medical marijuana product; and

(e)     Seed-to-sale tracking system. A commercial licensee shall use a seed-to-sale tracking system or integrate its own seed-to-sale tracking system with the State inventory tracking system established by the Department. If a commercial licensee uses a seed-to-sale tracking system that does not integrate with the State inventory tracking system, or does integrate but does not share all required information, the commercial licensee shall ensure all required information is reported directly into the State inventory tracking system.

(e)     Audits. The Department may perform on-site audits of all research facility and education facility licensees to ensure the accuracy of the research facility's monthly reports and to ensure that all marijuana grown in Oklahoma is accounted for. Submission of an application for a research facility or education facility license constitutes permission for entry to any licensed premises and auditing of the licensee during hours of operation and other reasonable times. Refusal to permit the Department entry or refusal to permit the Department to inspect all books and records shall constitute grounds for the nonrenewal, suspension, or revocation of a license.

(1)    The Department may review any and all records and information of a research facility or education facility licensee and may require and conduct interviews with such persons or entities and persons affiliated with such licensees, for the purpose of determining compliance with Department rules and applicable laws. Failure to make documents or other requested information available to the Department and/or refusal to appear or cooperate with an interview shall constitute grounds for nonrenewal, suspension, or revocation of a license, or any other remedy or relief provided under law. All records shall be kept on-site and readily accessible.

(2)    Licensees shall comply with all written requests from the Department to produce or provide access to records and information within ten (10) business days.

(3)    If the Department identifies a violation of 63 O.S. § 420 et seq., the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq.; or these Rules during an audit of the licensee, the Department shall take administrative action against the licensee in accordance with Oklahoma law, including the Oklahoma Administrative Procedures Act, 75 O.S. § 250 et seq.

(4)    The Department may refer all complaints alleging criminal activity or other violations of Oklahoma law that are made against a licensee to appropriate Oklahoma state or local law enforcement or regulatory authorities.

(5)    If the Department discovers what it reasonably believes to be criminal activity or other violations of Oklahoma law during an audit, the Department may refer the matter to appropriate Oklahoma state or local law enforcement or regulatory authorities for further investigation.

(6)    Except as is otherwise provided in Oklahoma law or these Rules, correctable violations identified during an audit shall be corrected within thirty (30) days of receipt of a written notice of violation.

(7)    If a licensee fails to correct violations within thirty (30) days, the licensee will be subject to a fine of $500.00 for each violation and any other administrative action and penalty authorized by law.

(f)     Inventory tracking system requirements.

(1)    At a minimum, commercial licensees shall track, update, and report inventory after each individual sale to the Department in the State inventory tracking system.

(2)    All commercial licensees must reconcile all on-premises and in-transit medical marijuana and medical marijuana product inventories each day in the State inventory tracking system at the close of business.

(3)    Commercial licensees are required to use RFID tags from a Department-approved supplier for the State inventory tracking system. Each Licensee is responsible for the cost of all RFID tags and any associated vendor fees.

(A)    A commercial licensee shall ensure its inventories are properly tagged and that a RFID tag is properly assigned to medical marijuana, medical marijuana products, and medical marijuana waste as required by the Department.

(B)    A commercial licensee shall ensure it has an adequate supply of RFID tags at all times. If a commercial licensee is unable to account for unused RFID tags, the commercial licensee must report to the Department and the State inventory tracking system vendor within forty-eight (48) hours.

(C)    RFID tags must contain the legal name and correct license number of the commercial licensee that ordered them. Commercial licensees are prohibited from using another licensee's RFID tags.

(D)    Prior to a plant reaching a point where it is able to support the weight of the RFID tag and attachment strap, the RFID tag may be securely fastened to the stalk or other similarly situated position approved by the Department.

(E)    When the plant becomes able to support the weight of the RFID tag, the RFID tag shall be securely fastened to a lower supporting branch. The RFID tag shall remain affixed for the entire life of the plant until disposal.

(F)    Mother plants must be tagged before any cuttings or clones are generated therefrom.

(G)    If a RFID tag gets destroyed, stolen, or falls off of a medical marijuana plant, the licensee must ensure a new RFID tag is placed on the medical marijuana plant and the change of the RFID tag is properly reflected in the State inventory tracking system.

(H)    Commercial licensees shall not reuse any RFID tag that has already been affixed to any regulated medical marijuana or medical marijuana products.

(4)    Each wholesale package of medical marijuana must have a RFID tag during storage and transfer and may only contain one harvest batch of medical marijuana.

(5)    Prior to transfer, commercial licensees shall ensure that each immature plant is properly affixed with an RFID tag if the plant was not previously tagged in accordance with these rules.

(6)    Commercial licensees' inventory must have a RFID tag properly affixed to all medical marijuana products during storage and transfer in one of the following manners:

(A)    Individual units of medical marijuana products shall be individually affixed with a RFID tag; or

(B)    Medical marijuana products may only be combined in a single wholesale package using one RFID tag if all units are from the same production batch.

(7)    If any medical marijuana or medical marijuana products are removed from a wholesale package, each individual unit or new wholesale package must be separately tagged.

(8)    All packages of medical marijuana waste shall have a RFID tag affixed and the contents of the waste package shall be reported in the State inventory tracking system.

(g)     Inventory tracking system administrators and users.

(1)    A commercial licensee must have at least one owner, or manager, who is an inventory tracking system administrator.

(2)    The inventory tracking system administrator must attend and complete all required inventory tracking system training.

(3)    If at any point, the inventory tracking system administrator for a licensee changes, the commercial licensee shall change or assign a new inventory tracking system administrator within three business days.

(4)    Commercial licensees shall maintain an accurate and complete list of all inventory tracking system administrators and employee users.

(5)    Commercial licensees shall ensure that all owners and employees that are granted inventory tracking system account access for the purpose of conducting inventory tracking functions are trained and authorized before the owners or employees may access the State inventory tracking system.

(6)    All inventory tracking system users shall be assigned an individual account in the State inventory tracking system.

(7)    Any individual entering data into the State inventory tracking system shall only use the inventory tracking system account assigned specifically to that individual. Each inventory tracking system administrator and inventory tracking system user must have unique log-in credentials that shall not be used by any other person.

(8)    Within three (3) business days, commercial licensees must remove access for any inventory tracking system administrator or user from their accounts if any such individual no longer utilizes the State inventory tracking system or is no longer employed by the commercial licensee.

(h)     Loss access to State inventory tracking system. If at any time a commercial licensee loses access to the State inventory tracking system due to circumstances beyond the commercial licensee's control, the commercial licensee shall keep and maintain records detailing all inventory tracking activities that were conducted during the loss of access. Once access is restored, all inventory tracking activities that occurred during the loss of access must be immediately entered into the State inventory tracking system. If a commercial licensee loses access to the State inventory tracking system due to circumstances within its control, the commercial licensee may not perform any business activities that would be required to be reported into the State inventory tracking system until access is restored and reporting is resumed; any transfer, sale, or purchase of medical marijuana or medical marijuana products shall be an unlawful sale.

(i)     Audits. The Department may perform on-site audits of all research facility and education facility licensees to ensure the accuracy of information and data reported to the Department and to ensure that all marijuana grown in Oklahoma is accounted for. Submission of an application for a research facility or education facility license constitutes permission for entry to any licensed premises and auditing of the licensee during hours of operation and other reasonable times. Refusal to permit the Department entry or refusal to permit the Department to inspect all books and records shall constitute grounds for the nonrenewal, suspension, or revocation of a license.

(1)    The Department may review any and all records and information of a research facility or education facility licensee and may require and conduct interviews with such persons or entities and persons affiliated with such licensees, for the purpose of determining compliance with Department rules and applicable laws. Failure to make documents or other requested information available to the Department and/or refusal to appear or cooperate with an interview shall constitute grounds for nonrenewal, suspension, or revocation of a license, or any other remedy or relief provided under law. All records shall be kept on-site and readily accessible.

(2)    Licensees shall comply with all written requests from the Department to produce or provide access to records and information within ten (10) business days.

(3)    If the Department identifies a violation of 63 O.S. § 420 et seq., the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq.; or these Rules during an audit of the licensee, the Department shall take administrative action against the licensee in accordance with Oklahoma law, including the Oklahoma Administrative Procedures Act, 75 O.S. § 250 et seq.

(4)    The Department may refer all complaints alleging criminal activity or other violations of Oklahoma law that are made against a licensee to appropriate Oklahoma state or local law enforcement or regulatory authorities.

(5)    If the Department discovers what it reasonably believes to be criminal activity or other violations of Oklahoma law during an audit, the Department may refer the matter to appropriate Oklahoma state or local law enforcement or regulatory authorities for further investigation.

(6)    Except as is otherwise provided in Oklahoma law or these Rules, correctable violations identified during an audit shall be corrected within thirty (30) days of receipt of a written notice of violation.

(7)    If a licensee fails to correct violations within thirty (30) days, the licensee will be subject to a fine of $500.00 for each violation and any other administrative action and penalty authorized by law.

310:681-5-1.1.  Responsibilities of the license holder

(9)    Bear the financial responsibility for all compliance and inventory tracking obligations and responsibilities set forth in Oklahoma statutes and these Rules. The Department will not contribute to, fund, or subsidize any commercial licensee's compliance or tracking expenses. Nothing herein shall be construed to require the Department to contribute to, subsidize, or fund in any way a commercial licensee's compliance or tracking expenses.

310:681-5-2.  Licenses

(C)    Medical marijuana growers, processors, or commercial transporters that have held a valid medical marijuana business license for at least eighteen (18) months and are operating in good standing may submit an ownership change request to add a publicly traded company as an owner. The publicly traded company shall not own more than forty percent (40%) of the equity in the existing medical marijuana grower, processor or commercial transporter. The following documentation must be provided:

(i)    If applicable, a certificate of good standing from the Oklahoma Secretary of State issued within thirty (30) days of submission of the application.

(ii)    A list of all owners, excluding all shareholders of the publicly traded company, and principal officers of the commercial applicant and supporting documentation as set forth in OAC 310:681-5-3(e)(1);

(iii)    Document required under OAC 310:681-5-3(e)(6) establishing that the applicant; and the members, managers, and board members if applicable; and seventy-five percent (75%) of the grower, processor, or transporter applicant's ownership interests, excluding the publicly traded company, are Oklahoma residents as required in the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq.

(iv)    Documentation establishing that the publicly traded company does not own more that forty percent (40%) of the equity interest of the licensed medical marijuana grower, processor or commercial transporter including, but not limited to: certificate of incorporation, bylaws, articles of organization, operating agreement, certificate of limited partnership, resolution of a board of directors, or other similar documents.

(v)    Documentation establishing the publicly traded company was organized under the laws of the United States or Canada where the domicile for the business entity permits the sale of marijuana.

(vi)    Documentation establishing what securities exchanges the publicly traded company is listed and traded on, as well as stock symbol information.

(vii)    Any further documentation the Department determines is necessary to ensure the medical marijuana grower, processor, or commercial transporter licensee is still qualified under Oklahoma law and this Chapter to obtain a business license.

(1)    Business licenses may not be assigned or otherwise transferred from one person to another person, from one medical marijuana business to another, or from one legal entity to another.

(2)    Licenses may not be changed from one license type to another.

310:681-5-2.1.  Objection by municipality