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PRIOR PRINTER'S NO. 1578 PRINTER'S NO. 1641
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1200
Session of
2025
INTRODUCED BY KRAJEWSKI, FRANKEL, SANCHEZ, GIRAL, HILL-EVANS,
MADDEN, DONAHUE, HOHENSTEIN, KHAN, SMITH-WADE-EL, FIEDLER,
FLEMING, GREEN, O'MARA, WAXMAN, ABNEY, SHUSTERMAN, PIELLI,
WEBSTER, MAYES, KAZEEM, SCHWEYER, KOSIEROWSKI, DALEY, INGLIS
AND D. WILLIAMS, MAY 4, 2025
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
MAY 6, 2025
AN ACT
Providing for the regulation and treatment of cannabis, for
exemption from criminal or civil penalties, for effect on
cannabis convictions and expungements and for membership and
duties of the Liquor Control Board; establishing Pennsylvania
Cannabis Stores; providing for social and economic equity,
for license, permit or other authorization, for packaging,
labeling, advertising and testing, for recordkeeping and
inspection, for prohibitions and penalties and for tax and
tax administration; establishing the Cannabis Revenue Fund,
the Communities Reimagined and Reinvestment Restricted
Account and the Substance Use Disorder Prevention, Treatment
and Education Restricted Account; providing for the issuance
of bonds; imposing duties on the Department of Agriculture
and the Department of Revenue; and making repeals.
TABLE OF CONTENTS
Chapter 1. Preliminary Provisions
Section 101. Short title.
Section 102. Definitions.
Chapter 2. Regulation of Cannabis
Section 201. Regulation and treatment of cannabis.
Section 202. Exemption from criminal or civil penalties in
other acts.
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Section 202.1. Discrimination prohibited.
Section 203. Home cultivation.
Section 204. Unauthorized acts.
Section 205. Presumption.
Section 206. Charges pending on effective date.
Section 207. Charges brought under the Controlled Substances
Act.
Chapter 3. Effect on Certain Cannabis Convictions and
Expungements
Section 301. Definitions.
Section 302. Identification of cannabis offenses.
Section 303. Updates to and expungement of records.
Section 304. Expungement of records where no conviction
occurred or when acquitted.
Section 305. Cannabis convictions and sentences vacated.
Section 306. Update to and expungement of records pertaining to
vacated convictions and sentences.
Section 307. Maintenance records.
Section 308. Cannabis simplified petition expungement process.
Chapter 4. Additional Members of the Liquor Control Board
Section 401. Continued authority of the Liquor Control Board.
Section 402. Membership of the board.
Section 403. Additional powers and duties of board.
Section 404. Temporary regulations.
Section 405. Notice of commencement of sales in cannabis
stores.
Section 406. Annual report by the board.
Chapter 5. Pennsylvania Cannabis Stores
Section 501. Pennsylvania Cannabis Stores.
Section 502. Selection of employees.
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Section 503. Management of cannabis stores.
Section 504. Sales at Pennsylvania Cannabis Stores.
Section 505. Health and safety protections.
Section 506. Audits by the Auditor General.
Chapter 6. Social and Economic Equity
Section 601. Definitions.
Section 602. Office of Social and Economic Equity.
Section 602.1. Social and Economic Equity Advisory Committee.
Section 603. Cannabis Business Development Fund.
Section 604. Social and Economic Equity Loan and Grant Program.
Chapter 7. License, Permit or Other Authorization
Subchapter A. General Provisions
Section 701. Ineligibility for licensure, permit or other
authorization.
Section 702. Renewals.
Section 703. Construction.
Subchapter B. Cannabis Entity Licenses
Section 704. Cannabis entity license application.
Section 705. Scoring system, lottery system and issuance.
Section 706. Licensing of principals required.
Section 707. Cannabis cultivator licenses.
Section 708. Cannabis processor licenses.
Section 709. Cannabis transporter license.
Section 710. On-site consumption license.
Section 711. (Reserved).
Section 712. Need for additional licenses.
Section 713. Change in ownership or control.
Section 714. Labor peace agreement.
Subchapter C. Registrations, Permits and Certificates
Section 715. Registration of essential employees.
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Section 715.1. Workplace protections.
Section 716. Required reports.
Section 717. Cannabis responsible training required.
Section 718. Cannabis workers' cooperative licensure.
Section 719. Duty of licensees, permittees and other authorized
persons.
Chapter 8. Packaging, Labeling, Advertising and Testing
Section 801. Definitions.
Section 801.1. Packaging and labeling.
Section 801.2. Advertising.
Section 802. Product safety protections.
Section 803. Laboratory testing.
Chapter 9. Recordkeeping and Inspection
Section 901. Recordkeeping and tracking.
Section 902. Inspections.
Chapter 10. Prohibitions and Penalties
Subchapter A. Public Employee Prohibitions
Section 1001. Definitions.
Section 1002. Financial and employment interests.
Section 1003. Additional restrictions.
Subchapter B. Penalties and Immunities
Section 1004. Administrative sanctions.
Section 1005. Civil and criminal penalties.
Section 1006. General immunities and presumptions.
Chapter 11. Taxes and Tax Administration
Section 1101. Definitions.
Section 1102. Cannabis excise tax.
Section 1103. Authority and duties of department.
Section 1103.1. Municipal tax on on-site consumption licensees.
Section 1104. Liens and suits for taxes.
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Section 1105. Tax deduction allowed.
Chapter 12. Revenue
Section 1201. Cannabis Revenue Fund.
Section 1202. Communities Reimagined and Reinvestment
Restricted Account.
Section 1203. Substance Use Disorder Prevention, Treatment and
Education Restricted Account.
Section 1204. Prohibition.
Chapter 13. Bonds
Section 1301. Bond issuance.
Section 1302. Bond limitations.
Section 1303. Deposit of bond proceeds.
Chapter 21. Miscellaneous Provisions
Section 2101. Duties of Department of Agriculture.
Section 2102. Cooperation.
Section 2103. Public health report.
Section 2104. Repeals.
Section 2105. Effective date.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
CHAPTER 1
PRELIMINARY PROVISIONS
Section 101. Short title.
This act shall be known and may be cited as the Cannabis
Health and Safety Act.
Section 102. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Advertising." To engage in marketing and promotional
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activities, including, but not limited to, billboard, newspaper,
radio, Internet and electronic media, social media and
television advertising, the distribution of fliers and circulars
and the display of window and interior signs.
"Affiliate" or "affiliated." A person that, directly or
indirectly, through one or more intermediaries, controls, is
controlled by or is under common control with a specified
person.
"Applicant." The following apply:
(1) An individual who is a citizen of the United States
or an individual lawfully admitted for permanent residency in
the United States, who is 21 years of age or older and who is
applying for a license, permit or other authorization to
engage in a regulated activity under this act.
(2) In the case of an applicant that is a person other
than an individual, the affiliated persons whose
qualifications may be subject to review and approval by the
board as a precondition to authorizing the person to engage
in a regulated activity.
"Background investigation." A security, criminal, financial,
credit and suitability investigation of an applicant. The term
shall include an investigation into the status of taxes owed to
the United States, the Commonwealth and any political
subdivision of the Commonwealth.
"Board." The Liquor Control Board established under the act
of April 12, 1951 (P.L.90, No.21), known as the Liquor Code.
"Bona fide labor organization." A labor organization, as
defined by 29 U.S.C. § 402(i) (relating to definitions), that
the board has determined under section 403(b)(36) is a bona fide
labor organization.
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"Cannabis." As follows:
(1) Any of the following:
(i) Marijuana, hashish and other substances that are
identified as including any parts of the cannabis plant
and derivatives or subspecies of all strains of cannabis,
whether growing or not, including the seeds, the resin
extracted from any part of the plant and any compound,
manufacture, salt, derivative or mixture or preparation
of the plant, seeds or resin.
(ii) THC and all other naturally or synthetically
produced cannabinol derivatives, whether produced
directly or indirectly by extraction.
(iii) Processed hemp.
(2) The term does not include:
(i) The mature stalks of the plant, fiber produced
from the stalks, oil or cake made from the seeds of the
plant or any other compound, salt, derivative, mixture,
the sterilized seed of the plant that is incapable of
germination or industrial hemp.
(ii) Medical marijuana as defined by the act of
April 17, 2016 (P.L.84, No.16), known as the Medical
Marijuana Act.
"Cannabis arrest." As defined in section 301.
"Cannabis concentrate." A product derived from cannabis that
is produced by extracting cannabinoids, including THC, hashish
and resin, from the plant through the use of solvents, carbon
dioxide, heat, screens, presses or steam distillation or other
methods expressly designated by the board.
"Cannabis consumer." An individual 21 years of age or older
who possesses a personal amount of cannabis purchased from a
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cannabis store.
"Cannabis conviction." As defined in section 301.
"Cannabis cultivator." A person licensed by the board under
section 707 to cultivate cannabis in this Commonwealth as a
Category 1 cannabis cultivator or a Category 2 microcultivator.
"Cannabis entity."
(1) A cannabis cultivator.
(2) A cannabis processor.
(3) A cannabis microbusiness.
(4) A cannabis transporter.
(5) An on-site consumption licensee.
"Cannabis establishment." The physical location specified in
an application of a cannabis entity licensee and where the
licensee has been granted authorization to cultivate, process,
transport or sell cannabis, cannabis flower or cannabis products
as provided under this act and regulations of the board. The
term includes:
(1) Public and private areas of the cannabis
establishment.
(2) The entire lot or parcel that a cannabis cultivator
owns, leases or has a right to occupy.
"Cannabis flower." The flower of a cannabis plant. The term
does not include cannabis trim.
"Cannabis flowering stage." The stage of cultivation when a
cannabis plant is cultivated to produce cannabis flower and
plant material for a cannabis product. The term includes mature
plants if any of the following apply:
(1) More than two stigmas are visible at each internode
of the plant.
(2) The cannabis plant is in an area that has been
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intentionally deprived of light for a period of time intended
to produce flower buds and induce maturation, from the moment
the light deprivation began through the remainder of the
cannabis plant growth cycle.
"Cannabis grow canopy." The area of a cannabis establishment
of a cannabis cultivator that is dedicated to live cannabis
plant cultivation. The term does not include areas of a the
cannabis establishment of a cannabis cultivator that is used for
storage of fertilizers, pesticides, herbicides or other
products, tools or equipment used in the cultivation of
cannabis, quarantine areas, office space, walkways, work areas
or similar areas not dedicated to live cannabis plant
cultivation.
"Cannabis microbusiness." A person licensed as a Category 2
cannabis microcultivator under section 707 or a Category 2
cannabis microprocessor under section 708.
"Cannabis offense." As defined in section 301.
"Cannabis paraphernalia." Any device or material which is
used, intended for use or designed for use for ingesting,
inhaling or otherwise introducing cannabis flower or cannabis
products into the human body.
"Cannabis paraphernalia permittee." A person permitted by
the board to display, offer for sale and sell cannabis
paraphernalia to individuals 21 years of age or older.
"Cannabis plant" or "plant." A plant of the genus cannabis
at any stage of growth with a total THC concentration of more
than 0.3% on a dry weight basis.
"Cannabis processor." A person licensed to process cannabis
in this Commonwealth under section 708 as a Category 1 cannabis
processor or Category 2 cannabis microprocessor.
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"Cannabis product." A product that has been processed and is
composed of cannabis and other ingredients that are intended for
consumption or use, including the following:
(1) cannabis concentrates;
(2) edible products;
(3) beverages;
(4) topical products; and
(5) ointments, oils and tinctures.
"Cannabis store." A retail location established under
Chapter 5 or collocated with an existing Pennsylvania Liquor
Store that is operated and maintained by the board for the sale
of cannabis seeds, cannabis flower, cannabis products and
cannabis paraphernalia as provided under this act.
"Cannabis testing laboratory." A person issued a cannabis
testing laboratory permit under section 803(a) to test cannabis,
cannabis flower and cannabis product.
"Cannabis trim." All parts, including abnormal or immature
parts, of a cannabis plant, other than cannabis flower, and
prior to any processing whereby the plant material is
transformed into a cannabis product.
"Cannabis workers' cooperative." A for-profit corporation
incorporated in accordance with the requirements of 15 Pa.C.S.
Ch.77 (relating to workers' cooperative corporation).
"Certified social and economic equity applicant." An
applicant that applied as a social and economic equity applicant
that has been certified as meeting the criteria of a social and
economic equity applicant by the board.
"Certified social and economic equity licensee." A cannabis
entity that applied as a social and economic equity applicant,
was certified as a social and economic equity applicant by the
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board and has been issued a cannabis entity license, permit or
other authorization to engage in a regulated activity under this
act.
"Commonwealth agency." A department, board, commission or
any other agency or office of the Commonwealth under the
jurisdiction of the Governor.
"Consumption." The act of ingesting, inhaling, absorbing or
otherwise introducing cannabis flower or cannabis products into
the human body.
"Controlled Substance Act." The act of April 14, 1972
(P.L.233, No.64), known as The Controlled Substance, Drug,
Device and Cosmetic Act.
"Controlling interest." Either of the following:
(1) For a publicly traded domestic or foreign
corporation, partnership, limited liability company or other
form of publicly traded legal entity, a controlling interest
is an interest if a person's sole voting rights under State
law or corporate articles or bylaws entitle the person to
elect or appoint one or more of the members of the board of
directors or other governing board or the ownership or
beneficial holding of 5% or more of the securities of the
publicly traded corporation, partnership, limited liability
company or other form of publicly traded legal entity, unless
this presumption of control or ability to elect is rebutted
by clear and convincing evidence.
(2) For a privately held domestic or foreign
corporation, partnership, limited liability company or other
form of privately held legal entity, a controlling interest
is the holding of securities of 15% or more in the legal
entity, unless this presumption of control is rebutted by
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clear and convincing evidence.
"Cultivation." The growing, cloning, harvesting, drying,
curing, grading and trimming of cannabis plants.
"Electronic cannabis smoking device." An electronic device
that delivers cannabis flower or cannabis products through
vaporization and inhalation. The term does not include a device
designed to inhale nicotine or an "electronic cigarette" as
defined in 18 Pa.C.S. § 6305(k) (relating to sale of tobacco
products).
"Essential employee." The term includes, but is not limited
to, an individual employed by a cannabis entity applicant,
licensee, permittee or other person authorized to engage in a
regulated activity under this act, and determined by the board
to be an officer, director, manager or supervisor or an
individual otherwise empowered to make discretionary decisions
related to the operations and conduct of a cannabis entity
license and whose duties are essential to the effective and
continual operation of a cannabis entity license as provided
under this act and regulations of the board.
"Historically impacted community." A census tract,
comparable geographic area or demographic established by the
board that has among the highest rates of arrest, conviction and
incarceration related to cannabis or has historical economic
disinvestment, poverty and negative health outcomes caused by
cannabis use and enforcement.
"Immature cannabis plant." A cannabis plant that is not in
the cannabis flowering stage.
"Indirect cannabis business." A business that is not a
cannabis entity that provides goods or services ancillary to the
cultivating, processing, transporting or selling of cannabis,
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cannabis flower or cannabis products.
"Industrial hemp." As defined in 3 Pa.C.S. § 702 (relating
to definitions).
"Justice-involved individual." An individual who has a
cannabis arrest or a cannabis conviction that is eligible for
expungement or a vacated sentence under this act.
"Labor peace agreement." An agreement between a cannabis
entity and a bona fide labor organization that seeks to
represent employees which:
(1) Requires that the cannabis entity and the bona fide
labor organization and its members agree to the uninterrupted
delivery of services and to refrain from actions intended to
or having the effect of interrupting such services; and
(2) Includes any other terms agreed to by the parties,
which may relate to, but need not be limited to:
(i) alternate procedures related to recognizing the
bona fide labor organization for bargaining purposes;
(ii) public statements;
(iii) workplace access; and
(iv) the provision of employee contract information.
(3) Begins at the time of invocation by a bona fide
labor organization and not at the point of ratification.
"Low-dose cannabis." Cannabis flower with no more than 10%
total THC or a cannabis product in food or beverage form that is
a single serving with no more than 2.5 milligrams of total THC
per serving.
"Medical Marijuana Act." The act of April 17, 2016 (P.L.84,
No.16), known as the Medical Marijuana Act.
"Member of an impacted family." A parent, legal guardian,
legal ward, child, spouse or dependent of a justice-involved
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individual.
"Municipality." A city, borough, incorporated town or
township.
"On-site consumption premises." The area of on-site
consumption licensee approved by the board for on-site
consumption by individuals 21 years of age or older of cannabis
flower and cannabis products.
"Other paraphernalia." Any device, equipment, product or
materials which is used, intended for use or designed for use in
planting, propagating, cultivating, growing, harvesting,
composting, compounding, converting, producing, processing,
preparing, testing, analyzing, packaging, repackaging or storing
cannabis.
"Permittee." A person that holds a permit approved by the
board to engage in a regulated activity under this act.
"Person." A natural person, corporation, foundation,
organization, business trust, estate, limited liability company,
partnership, limited liability partnership, association or any
other form of legal business entity as defined under 42 Pa.C.S.
§ 8368.2 (relating to definitions).
"Personal amount of cannabis." The following:
(1) The equivalent of 42.524 grams or less of cannabis
flower.
(2) 5 grams or less of cannabis concentrate.
(3) any amount of cannabis product other than cannabis
concentrate that contains, in the aggregate, no more than 500
milligrams of total THC.
(4) An equivalent amount of a combination of cannabis
flower, cannabis concentrate and cannabis product.
"Personal use." The acquisition or possession of cannabis
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flower or a cannabis product for use by an individual if there
is no evidence of an intent to:
(1) sell or facilitate the sale of the cannabis flower
or cannabis product; or
(2) distribute, transfer or facilitate the distribution
or transfer of the cannabis flower or cannabis product to an
individual not lawfully permitted to possess cannabis
product.
"Pesticide." The following apply:
(1) A substance or mixture of substances intended for
preventing, destroying, repelling or mitigating any pest, and
a substance or mixture of substances intended for use as a
plant regulator, defoliant or desiccant.
(2) The term shall not include any substance that is a
"new animal drug" under section 201(v) of the Federal Food,
Drug and Cosmetic Act (52 Stat. 1040, 21 U.S.C. § 301 et
seq.), or that has been determined by the United States
Secretary of Health and Human Services not to be a new animal
drug by a regulation establishing conditions of use.
(3) The term shall not include "animal feed" under
section 201(w) of the Federal Food, Drug and Cosmetic Act.
"Principal."
(1) An officer, director or other person who directly
holds a beneficial interest in or ownership of the securities
of an applicant for a cannabis entity license.
(2) A person who has a controlling interest in an
applicant for a cannabis entity license or a cannabis entity
licensee or has the ability to elect a majority of the board
of directors of an a cannabis entity licensee or to otherwise
control a cannabis entity licensee, lender or other licensed
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financial institution of an applicant for a cannabis entity
license or a cannabis entity licensee, other than a bank or
lending institution, which makes a loan or holds a mortgage
or other lien acquired in the ordinary course of business,
underwriter of an applicant for a cannabis entity license or
a cannabis entity licensee or other person or employee of an
applicant for a cannabis entity license or a cannabis entity
licensee deemed to be a principal by the board.
"Private residence." A home or dwelling that is owned,
rented or occupied by an individual, family or group as a
personal domicile.
"Process." The processing, extracting, compounding,
conversion or any other necessary activity to make cannabis into
cannabis products.
"Processed hemp." Industrial hemp that has been processed to
a total THC concentration greater than:
(1) 0.3%; or
(2) one half milligram per serving or individual product
unit, and 2 milligrams per package for products sold in
multiple servings or units.
"Regulated activity." An activity authorized under this act
or by the board related to the cultivation, processing,
transportation, testing or sale of cannabis, cannabis flower,
cannabis products or cannabis paraphernalia for which a person
would be required to obtain a license, permit, registration,
certification or other authorization from the board as provided
under this act and regulations of the board.
"Secure facility or area." A room, greenhouse, building or
other enclosed area or outdoor space used to cultivate, process,
store, transport, deliver or sell cannabis, cannabis flower and
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cannabis products which is equipped with locks or other security
devices and which is accessible only by the board, the bureau,
the Department of Revenue, the Department of Agriculture or
designated employees and by principles and employees of a
cannabis entity or other persons authorized under this act or by
the board.
"Social and economic equity applicant." An applicant for a
license, permit or other authorization to engage in a regulated
activity under this act that has a household annual income below
200% of the Area Median Income in their county of residence and
meets either of the following criteria:
(1) Is comprised of at least 65% ownership and control
by one or more individuals who:
(i) are justice-involved individuals; or
(ii) are members of an impacted family.
(2) Is comprised of at least 65% ownership and control
by one or more individuals who for at least 5 of the
preceding 10 years resided in or otherwise was a member of a
historically impacted community.
"THC." A delta-9 tetrahydrocannabinol and any structural,
optical or geometric isomers of tetrahydrocannabinol, including
delta-7, delta-8 and delta-10 tetrahydrocannabinol,
tetrahydrocannabinolic acid, tetrahydrocannabiphorol,
hexaydrocannabinol and any other substance that the board
determines has hallucinogenic or intoxicating effects on the
mind or body, however derived or manufactured, including
substances derived or manufactured synthetically or from
industrial hemp or industrial hemp materials. The board shall
determine, in consultation with the Department of Agriculture
and the Attorney General, the other substances having similar
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effects.
"Total THC." The sum, after the application of any necessary
conversion factor, of the percentage by weight of THC.
CHAPTER 2
REGULATION OF CANNABIS
Section 201. Regulation and treatment of cannabis.
Subject to the provisions of this act, the following acts,
devices and products are deemed lawful:
(1) The regulation of cannabis by the board as provided
in this act.
(2) The cultivation of cannabis by cannabis cultivators.
(3) The processing of cannabis by cannabis processors.
(4) The sale to cannabis consumers of cannabis flower,
cannabis products and cannabis paraphernalia by cannabis
stores.
(5) The sale to home cultivation permittees of cannabis
seeds by cannabis stores.
(6) The sale of cannabis paraphernalia by a cannabis
paraphernalia permittee.
(7) The purchase, possession, consumption, display or
transport of a personal amount of cannabis by a cannabis
consumer.
(8) The purchase, possession and use of cannabis
paraphernalia by an individual 21 years of age or older.
(9) The purchase, possession and use of other
paraphernalia by a person in a manner authorized by this act.
(10) The home cultivation of two immature cannabis
plants and two mature cannabis plants by a home cultivation
permittee.
(11) Leasing or otherwise allowing the use of property
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owned, occupied or controlled by any person engaging in a
regulated activity as authorized under this act.
Section 202. Exemption from criminal or civil penalties in
other acts.
The following acts shall not be an offense under the
Controlled Substance Act, 18 Pa.C.S. (relating to crimes and
offenses) or any other provision of law or regulation, including
any ordinance, law or regulation of a municipality, and may not
be used as a basis for the seizure or forfeiture of assets under
42 Pa.C.S. §§ 5803 (relating to asset forfeiture), 5805
(relating to forfeiture procedure), 5806 (relating to motion for
return of property), 5807 (relating to restrictions on use),
5807.1 (relating to prohibition on adoptive seizures) and 5808
(relating to exceptions):
(1) The acts deemed lawful under section 201.
(2) The possession of a personal amount of cannabis.
(3) The sharing for immediate use or transfer of a
personal amount of cannabis between cannabis consumers, but
not sale or exchange for any pecuniary gain or material
benefit.
(4) The cultivation, processing, delivery, transport,
display, sale or testing of cannabis, cannabis flower or
cannabis products or sale of cannabis paraphernalia by a
person licensed, permitted, registered or certified under
this act to engage in one or more of these activities in a
manner allowed by this act.
Section 202.1. Discrimination prohibited.
(a) Employment.--
(1) An individual may not be subject to penalty in any
manner, or be denied any right or privilege, including, but
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not limited to, disciplinary action by an occupational or
professional licensing board or bureau solely for conduct
allowed under this chapter when conducted outside of the
workplace and work hours.
(2) It is unlawful for an employer to discriminate
against an individual in hiring, terminating or any term or
condition of employment, or otherwise penalizing an
individual, if the discrimination is based upon any of the
following:
(i) The individual's use of cannabis flower or
cannabis products outside of the workplace and work
hours.
(ii) An employer-required drug screening test that
has found the person to have cannabis metabolites in
their hair, blood, urine or other bodily fluids.
(3) This subsection shall not preempt Federal laws
requiring applicants or employees to be tested for controlled
substances, including Federal laws and regulations requiring
applicants or employees to be tested or the manner in which
they are tested, as a condition of employment, receiving
Federal funding or Federal licensing-related benefits or
entering into a Federal contract.
(4) Nothing in this subsection shall:
(i) Be construed to:
(A) Prohibit an employer from adopting
reasonable drug-free workplace policies or employment
policies prohibiting smoking, consuming, storing or
using cannabis flower or cannabis products in the
workplace or while on call if the policies are
applied in a nondiscriminatory manner and are
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disclosed to employees.
(B) Require an employer to permit an employee to
be under the influence of cannabis or use of cannabis
flower or cannabis products in the employer's
workplace or while performing the employee's job
duties or while on call.
(ii) Limit or prevent an employer from disciplining
an employee or terminating employment of an employee for
violating an employer's employment policies or workplace
drug policy if the policies were disclosed to the
employee.
(b) General protections.--
(1) Except as provided in this section, the Commonwealth
or any political subdivision may not impose a penalty or deny
a benefit or entitlement for conduct allowed under this
chapter.
(2) Except as provided in subsection (a)(3) and (4), the
Commonwealth or any political subdivisions may not deny a
driver's license, an occupational or professional license,
housing assistance, social services or other benefits based
on cannabis use allowed under this act.
(c) Custody.--An individual's lawful purchase, possession or
consumption of cannabis flower or a cannabis product shall not
be the sole basis for denying custody of or visitation with a
minor, unless the individual's behavior as a result of the
purchase, possession or consumption of the cannabis flower or
cannabis products creates an unreasonable danger to the minor
that can be clearly articulated and substantiated.
(d) Condition of parole and probation.--The Department of
Corrections and county offices of probation may not prohibit an
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individual's use of cannabis flower or cannabis products or any
other conduct allowed under this act unless, after
individualized consideration, it has been shown by clear and
convincing evidence that inclusion of the prohibition as a
condition of supervision is reasonably related to the underlying
crime. An individual under parole or probation shall not be
punished or otherwise penalized for lawful conduct under this
act unless the terms and conditions of the parole or probation
prohibit an individual's cannabis use or any other conduct
otherwise allowed under this act.
(e) Child welfare.--The presence of a cannabinoid or
cannabis metabolites in an individual's hair, blood, urine or
other bodily fluids, possession of cannabis paraphernalia,
conduct related to the use of cannabis flower or cannabis
products or the participation in cannabis-related activities
authorized under this act by a custodial or noncustodial parent,
grandparent, legal guardian, foster parent or other individual
charged with the well-being of a child, may be considered but
not form the sole, primary or supporting basis for an action or
proceeding by a child welfare agency or juvenile court. Unless
the individual's actions in relation to cannabis create an
unreasonable danger to the health or safety of the child or
otherwise show the individual is not competent as established by
clear and convincing evidence, the prohibition under this
subsection shall include any of the following:
(1) An adverse finding, evidence or restriction of a
right or privilege in a proceeding related to the adoption of
a child.
(2) A fitness determination or a determination related
to a foster parent, guardianship, conservatorship or
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trusteeship.
(f) Medical care.--For the purpose of receiving medical
care, including an organ transplant, an individual's use of
cannabis flower or cannabis products under this chapter shall
not constitute the use of an illicit substance or otherwise
disqualify an individual from receiving medical care.
(g) Firearms possession.--An individual may not be
prohibited or otherwise restricted from lawful firearm ownership
solely for using cannabis flower or cannabis products or
engaging in a regulated activity. The Pennsylvania State Police
shall take measures to revise firearms applications or take
other necessary actions to ensure compliance with this
subsection.
Section 203. Home cultivation.
(a) Permit.--Notwithstanding any provision of the Medical
Marijuana Act, the Controlled Substance Act, or any other law or
regulation to the contrary, if granted a home cultivation permit
under subsection (c), an individual who is a resident of this
Commonwealth and 21 years of age or older may cultivate,
process or otherwise possess up to two mature cannabis plants
and two immature cannabis plants for use by the home cultivation
permit holder without holding a cannabis cultivator license or
cannabis processor license under this act.
(b) Limitations and prohibitions.--
(1) Home cultivation of cannabis authorized under this
section:
(i) Must take place in an enclosed and secure space,
room or area within the individual's private residence or
on the grounds of the individual's private residence.
(ii) Must be cultivated from cannabis seeds
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purchased from a cannabis store, which may not be given
or sold to any other person.
(iii) May not be stored or placed in a location or
otherwise positioned inside or on the grounds of the
individual's private residence in a manner which would
subject the cannabis plants to ordinary public view.
(iv) May be prohibited by an owner, lessee or other
person in lawful possession of the private residence.
(2) An individual holding a home cultivation permit
shall take reasonable precautions to ensure that the cannabis
plants are secure from unauthorized access, including
unauthorized access by an individual under 21 years of age.
(3) Home cultivation under this section may only occur
in a residential property or on the grounds of a residential
property with the consent of the owner, lessee or other
person in lawful possession of the residential property.
(4) A private residence, including a private home, unit
in a tenement building, apartment or condominium unit, which
is not divided into multiple dwelling units may not contain
more than two mature cannabis plants and two immature
cannabis plants at any one time.
(5) Cannabis plants may only be maintained, tended and
used by an individual who holds a valid home cultivation
permit issued by the board under this section and may not be
given or transferred to any other person.
(c) Home cultivation permit.--
(1) An individual under this subsection may apply to the
board for a home cultivation permit in the form and manner as
the board shall prescribe in regulation.
(2) An application for a home cultivation permit may be
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submitted to the board electronically. The following apply:
(i) An application for a home cultivation permit
shall be accompanied by a $100 fee.
(ii) A home cultivation permit shall be renewed
annually upon approval of the board and payment of a $100
renewal fee.
(d) Penalties.--An individual who violates this section
shall:
(1) Be assessed a civil penalty of:
(i) Not more than $500 for a first offense.
(ii) Not more than $1,000 for a second offense.
(iii) Not more than $5,000 for a third or subsequent
offense and be subject to revocation of the individual's
home cultivation permit.
(2) Be subject to the applicable provisions of the
Controlled Substance Act related to possession, possession
with intent to deliver or possession with intent to
distribute.
Section 204. Unauthorized acts.
(a) Prohibitions.--The following acts are prohibited:
(1) The purchase, possession or consumption or attempt
thereto of any amount of cannabis seeds, cannabis flower or
cannabis products by an individual under 21 years of age.
(2) An individual under 21 years of age knowingly and
falsely representing themselves to be at least 21 years of
age to a person for the purpose of purchasing or receiving
cannabis seeds, cannabis flower or cannabis products.
(3) Possession by an individual 21 years of age or older
of more than a personal amount of cannabis at any one time or
possession of cannabis seeds without a valid home cultivation
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permit.
(a.1) Continuation of possession offenses.--
(1) Prior to the date noticed by the board under section
405(b)(1), no person shall:
(i) possess a small amount of marihuana for personal
use;
(ii) possess a small amount of marihuana with the
intent to distribute it but not to sell it; or
(iii) distribute a small amount of marihuana but not
for sale.
(2) For purposes of this subsection:
(i) Thirty grams of marihuana or eight grams of
hashish shall be considered a small amount of marihuana.
(ii) The term "marihuana" shall have the same
meaning as defined in section 2 of the Controlled
Substances Act.
(b) Penalties.--
(1) An individual under 21 years of age who violates
subsection (a)(1) or (2) commits a summary offense and upon
conviction shall:
(i) for a first offense receive any or all of the
following: a written warning, a maximum fine of $25 or be
referred to a diversionary program;
(ii) for a second offense receive a fine of not more
than $100 and be referred to a diversionary program; or
(iii) for third and any subsequent offense receive a
fine of not more than $250 and be referred to a
diversionary program.
(2) An offense under subsection (a)(1) or (2) or (a.1)
shall not be a criminal offense of record, shall not be
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reportable as a criminal act and shall not be placed on the
criminal record of the offender and, if the offender is a
minor, shall not constitute a delinquent act under 42 Pa.C.S.
Ch. 63 (relating to juvenile matters). However, a record of
participation in a diversionary program under subsection (b)
shall be maintained by the court, not for public view, for
the purposes of imposing penalties for subsequent offenses.
(3) If an individual is charged with violating
subsection (a)(1) or (2), the court may admit the offender to
the adjudication alternative program as authorized in 42
Pa.C.S. § 1520 (relating to adjudication alternative program)
or any other preadjudication disposition.
(4) The following shall apply to an individual who
violates a provision of subsection (a)(3):
(i) If the amount possessed is more than a personal
amount of cannabis but not more than two times that
amount, the individual may be assessed a civil penalty of
not more than $250 per incident.
(ii) If the amount possessed is more than two times
a personal amount of cannabis but not more than three
times that amount, the individual may be assessed a civil
penalty of not more than $500 per incident.
(iii) If the amount possessed is more than three
times a personal amount of cannabis, but not more than
ten times that amount, the individual commits a
misdemeanor of the third degree.
(iv) If the amount possessed is more than ten times
a personal amount of cannabis, commits a misdemeanor of
the second degree.
(5) An individual that violates subsection (a.1) commits
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a summary offense and shall pay a fine of $250.
(c) Sale of cannabis offenses.--The sale and the possession
with intent to sell an amount of cannabis seed, cannabis flower
or cannabis product by a person that is not authorized to do so
under this act is prohibited. A person not authorized to sell or
possess with intent to distribute or sell:
(1) Cannabis seeds commits a misdemeanor of the third
degree.
(2) A personal amount of cannabis flower or cannabis
product commits misdemeanor of the third degree.
(3) An amount of cannabis flower or cannabis product
exceeding a personal amount but less than the amounts
punishable under 18 Pa.C.S. § 7508 (relating to drug
trafficking sentencing and penalties), commits a misdemeanor
of the second degree.
(4) For purposes of this subsection, the term "sell"
shall mean the transfer from one person to another for
pecuniary gain or material benefit.
(d) Cultivation and processing offenses.--The cultivation or
processing of cannabis or cannabis product by a person that is
not authorized to do so under this act is prohibited. The
following apply:
(1) A person not authorized to cultivate:
(i) That cultivates fewer than five cannabis plants
commits a misdemeanor of the third degree.
(ii) That cultivates at least five cannabis plants
but less than 10 commits a misdemeanor of the second
degree.
(2) A person that processes cannabis into a cannabis
product commits a misdemeanor of the second degree.
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(e) Smoking or consumption.--
(1) An individual may not smoke or otherwise consume
cannabis flower or cannabis products:
(i) In a public space.
(ii) If prohibited under the act of June 13, 2008
(P.L.182, No.27), known as the Clean Indoor Air Act, or
any other law enacted or regulation adopted relating to
vaping or the use of electronic cigarettes or electronic
cannabis smoking devices in public or an indoor public
place or portion of the public place, notwithstanding if
the smoking of tobacco or vaping is otherwise allowed in
the public place or portion of the public place under the
Clean Indoor Air Act.
(2) Notwithstanding 68 Pa.C.S. (relating to real and
personal property) or any other provision of law or
regulation, the consumption of cannabis flower or cannabis
products may be allowed by a person that owns or controls a
lodging establishment as defined in 48 Pa.C.S. § 1311(g)
(relating to hotelkeepers and campground owners) in up to 20%
of the lodging establishment's guest rooms.
(3) The smoking of cannabis flower or cannabis products
may be prohibited or otherwise regulated in a tenement
building, apartment or multiple dwelling premises as those
terms are defined in the act of April 6, 1951 (P.L.69,
No.20), known as The Landlord and Tenant Act of 1951, if the
prohibition to smoke cannabis flower or use cannabis products
is included in the lease agreement between the lessee and the
person that owns or controls the tenement building, apartment
or multiple dwelling premises.
(4) An individual who violates paragraph (1) shall be
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assessed a civil penalty of not more than:
(i) $100 for a first offense.
(ii) $200 for a second or subsequent offense.
(5) As used in this subsection, the term "public space"
means a street, alley, park, sidewalk, a vehicle in or upon a
street, alley, park or parking area or any other place to
which the public is invited.
(f) Violations of the Controlled Substance Act.--The sale,
distribution, manufacture or possession with intent to
distribute an amount of cannabis flower or a cannabis product
punishable under 18 Pa.C.S. § 7508 or other provision of law
providing for a mandatory minimum term of imprisonment or
subject to a sentence enhancement shall be a violation of the
Controlled Substance Act and subject the person to prosecution
as if the person sold or distributed the cannabis flower or
cannabis product in violation of the Controlled Substance Act.
(g) Additional unauthorized activities and civil
penalties.--
(1) In addition to any other penalty provided by Federal
or State law, a person not authorized by the board that
cultivates, processes, delivers, transports, sells or
displays for sale cannabis, cannabis flower, cannabis
products or cannabis paraphernalia shall be subject to a
civil penalty not to exceed $10,000 for each offense. Each
day a person engages in unauthorized activity under this
paragraph shall constitute a separate offense.
(2) The Attorney General, the board, a State or local
law enforcement agency or a local government unit may
investigate an unauthorized activity under paragraph (1) and
engage in enforcement measures, including entering into an
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intergovernmental agreement to prevent the conduct of an
unauthorized activity under paragraph (1).
(3) In addition to any other penalty provided by Federal
or State law, upon the conduct of a third or subsequent
unauthorized activity under paragraph (1), a local government
unit may suspend or revoke the business license of the person
who engaged in the unauthorized activity.
(4) A violation of paragraph (1) is an unfair or
deceptive act or practice under the act of December 17, 1968
(P.L.1224, No.387), known as the Unfair Trade Practices and
Consumer Protection Law. Remedies, penalties and authority
granted to the Attorney General under the Unfair Trade
Practices and Consumer Protection Law shall be available for
the enforcement of this act.
(5) In addition to the authority granted to the Attorney
General under this subsection, any business or consumer
injured by a violation of paragraph (1) may bring an action
to enjoin a business selling, cultivating, manufacturing,
distributing or possessing cannabis, cannabis flower,
cannabis products or cannabis paraphernalia without a license
or permit and to recover actual damages sustained. A court
shall enter judgment in an amount equal to three times actual
damages and shall have discretion to award punitive damages
in an amount commensurate with actual damages. The court
shall award attorney fees and costs to the prevailing party.
(h) Payment of civil penalties and fines.--For a civil
penalty, penalty, cost or fine issued under this chapter, if the
board or the court, as defined in 42 Pa.C.S. § 102 (relating to
definitions), determines that the person violating Chapter 2 is
without the financial means to pay the civil penalties,
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penalties, costs or fines immediately or in a single remittance,
the board or the court may provide for payment in installments
or, in the case of civil penalties, penalties, costs or fines,
reduce or waive the civil penalties, penalties, costs or fines.
In determining the appropriate installments, reduction or
waiver, the court shall consider the person's financial
resources, the person's ability to make restitution and
reparations and the nature of the burden the payment will impose
on the person violating Chapter 2.
Section 205. Presumption.
(a) No violation.--Except as provided under subsection (b),
the presence of cannabis in an individual's blood or a
metabolite of cannabis in an individual's blood without proof of
impairment to the individual's ability to safely drive, operate
or be in actual physical control of the movement of a vehicle
shall not constitute a violation under 75 Pa.C.S. Ch. 38
(relating to driving after imbibing alcohol or utilizing drugs).
(b) Commercial license.--Subsection (a) does not apply to an
individual holding a commercial driver's license.
(C) DEFINITION.--FOR THE PURPOSES OF THIS SECTION, THE TERM
"CANNABIS" SHALL INCLUDE "MEDICAL MARIJUANA" AS THAT TERM IS
DEFINED IN SECTION 103 OF THE MEDICAL MARIJUANA ACT.
Section 206. Charges pending on effective date.
(a) Notice.--If, upon the effective date of this section,
charges are pending alleging a violation of the Controlled
Substance Act for which the controlled substance is cannabis and
no notice of mandatory minimum has been filed, the attorney for
the Commonwealth shall within 30 days provide notice of the
Commonwealth's intention to seek a mandatory minimum period of
incarceration or aver that the Commonwealth has probable cause
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to believe the alleged conduct will be subject to a sentencing
enhancement, and if no notice is provided or averment made, the
charge alleging the violation shall be withdrawn or dismissed.
(b) Dismissal.--Unless the prosecution of the matter is
disposed of by plea or by an available alternative disposition
program, if the finder of fact fails to find the facts necessary
to support the imposition of a mandatory minimum sentence or
sentencing enhancement were proven beyond a reasonable doubt,
the corresponding charge shall be dismissed and no sentence may
be imposed for the offense.
Section 207. Charges brought under the Controlled Substances
Act.
(a) Sentence enhancement.--Notwithstanding any other
provision of law or court rule or regulation to the contrary, no
violation of the Controlled Substance Act where the controlled
substance is cannabis shall be charged unless, prior to filing,
an attorney for the Commonwealth in the county where the offense
allegedly occurred avers it is the intention of the Commonwealth
to pursue a mandatory minimum period of incarceration under
State law for the offense or that the attorney believes probable
cause exists to believe that the conduct alleged to be a
violation of the Controlled Substance Act may, upon conviction,
subject the person charged to a sentencing enhancement at the
time of sentence.
(b) Withdrawal.--If, at the time of formal arraignment, the
attorney for the Commonwealth does not file notice of the
Commonwealth's intent to seek a mandatory minimum sentence along
with the information or the maximum penalty under law listed on
the information does not allow for the sentencing enhancement,
the corresponding charge alleging a violation of the Controlled
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Substance Act shall be withdraw by the Commonwealth or dismissed
by the court.
(c) Dismissal.--Unless the prosecution of the matter is
disposed of by plea or by an available alternative disposition
program, if the finder of fact fails to find the facts necessary
to support the imposition of a mandatory minimum sentence or
sentencing enhancement were proven beyond a reasonable doubt,
the corresponding charge shall be dismissed and no sentence may
be imposed for the offense.
CHAPTER 3
EFFECT ON CERTAIN CANNABIS CONVICTIONS
AND EXPUNGEMENTS
Section 301. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"AOPC." The Administrative Office of Pennsylvania Courts.
"Cannabis arrest." The commencement of a criminal proceeding
where an individual was charged with a cannabis offense for
which there has been no conviction or for which there is no
final disposition listed for the charge at the associated OTN.
"Cannabis conviction." A conviction for a cannabis offense
for which no mandatory minimum term of imprisonment has been or
will be imposed by the sentencing court.
"Cannabis offense." As follows:
(1) An offense under section 13 of the Controlled
Substance Act where the controlled substance was cannabis or
where the offense involved cannabis paraphernalia.
(2) The term includes the attempt, conspiracy or
solicitation to commit an offense under paragraph (1).
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"Cannabis offense vacated by this act." A cannabis arrest or
cannabis conviction.
"Charged." The arrest, charge or indictment of an individual
for an alleged violation of the law.
"Commissioner." The Commissioner of the Pennsylvania State
Police.
"Controlled Substance Act." The act of April 14, 1972
(P.L.233, No.64), known as The Controlled Substance, Drug,
Device and Cosmetic Act.
"Conviction." Any of the following when an individual has
been charged, notwithstanding whether or not a sentence has been
imposed and whether or not under or subject to appeal:
(1) The individual entered a plea of guilty or nolo
contendere.
(2) The individual was found guilty following trial.
(3) The individual was accepted for participation in an
authorized diversion program, including probation without
verdict under section 17 of the Controlled Substance Act or
disposition in lieu of trial or criminal punishment under
section 18 of the Controlled Substance Act.
(4) The charge being resolved by any other than final
disposition, other than a disposition subject to section 19
of the Controlled Substance Act.
"Drug identification lab." The Allegheny County,
Philadelphia County, Cumberland County or Pennsylvania State
Police drug identification labs or any other lab that provides
drug identification services upon the request of a Pennsylvania
law enforcement agency or officer.
"Expunge." As follows:
(1) the removal of information to the degree necessary
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as to ensure no trace or indication the information existed;
and
(2) the elimination of all identifiers which may be used
to trace the identity of an individual, allowing remaining
data to be used for statistical purposes.
"Offense Tracking Number" or "OTN." A unique identifying
number assigned to an entire set of criminal charges by the
AOPC. The term includes offense tracking numbers assigned by any
other State agency pursuant to a practice used before the
effective date of this definition.
Section 302. Identification of cannabis offenses.
(a) Report.--
(1) Drug identification labs shall prepare a report
listing each item and each substance submitted for
identification by a Pennsylvania law enforcement agency or
officer and tested by the lab when the test of the item or
substance detected the presence of cannabis. The report shall
include:
(i) the name and date of birth of each individual
identified by the submitting agency or officer as the
suspected owners of the item or substance;
(ii) the date of the suspected offense;
(iii) the name of the law enforcement agency that
submitted the item or substance for testing;
(iv) the submitting law enforcement agency's
incident, case or complaint number, if known;
(v) the item or substance tested;
(vi) whether the test on the item or substance
identified the presence of any other controlled
substance;
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(vii) other information which could reasonably
assist in matching the item or substance to a filed
criminal charge, complaint, information or offense
tracking number; and
(viii) any other information known to the lab and
requested by the AOPC or the commissioner which is
reasonably likely to assist the AOPC or the commissioner
in conducting the case record identification under
subsection (b).
(2) The director of the drug identification lab shall
provide the report under paragraph (1) to the AOPC and to the
commissioner in writing, and in any other form or format
requested, no later than 30 days after the effective date of
this paragraph. Updates to the report shall be made weekly if
a drug identification lab test on any item or substance
detects the presence of cannabis after an initial report was
submitted.
(b) Case record identification.--Upon receipt of a report or
updated report prepared under subsection (a), the AOPC and the
commissioner shall cause the report to be compared to the
criminal history record information in their respective criminal
record systems to identify every cannabis offense vacated by
this act. The AOPC and the commissioner shall assist one another
and utilize the most efficient and cost-effective methods to
accurately identify the cases and the assigned offense tracking
number, including performing the following:
(1) The AOPC shall transmit to the Pennsylvania State
Police central repository the record of each charged cannabis
offense and cannabis conviction believed to have been vacated
or required to be expunged under this chapter.
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(2) If the Pennsylvania State Police central repository
determines through a validation process that a record
transmitted under paragraph (1) is not a cannabis offense
vacated by this act, required to be expunged under this act
or does not match data held in the repository, the
Pennsylvania State Police shall notify the AOPC of the
determination within 30 days of receiving the information
transmitted under paragraph (1).
(3) The AOPC shall remove from the list of eligible
records any record for which the AOPC received a notification
of ineligibility or nonmatch with repository data.
Section 303. Updates to and expungement of records.
(a) List.--The AOPC shall provide to the courts of common
pleas a list of each eligible record compiled under section
302(b) which were commenced within their judicial district and
the action required to be taken on each record.
(b) Required action.--Within 30 days of receiving the list
under subsection (a) from the AOPC, the court of common pleas
shall order the required action, including the vacating of
cannabis convictions and sentences and the expungement of
criminal history records, under this chapter and notify the AOPC
that the required action has been ordered. After the court of
common pleas has ordered the required action, the AOPC and the
Pennsylvania State Police shall expunge the eligible cases from
their criminal history record databases using an automated
process.
(c) Records.--The AOPC shall maintain records of the
cannabis convictions ordered to be vacated or expunged under
subsection (b).
(d) Request of orders or records.--An individual with a
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cannabis arrest whose record has been ordered expunged or a
cannabis conviction ordered vacated under this section shall be
provided an individualized copy of the applicable order upon
request by the individual or the individual's legal
representative. The individual shall make the request to the
court of common pleas of the county where the conviction
occurred or the record was created, except if the AOPC provides
and makes known an alternative method to obtain the order. The
order shall include a list of the charges ordered vacated or
expunged and the dispositions of the charges.
(e) Timeline and progress reports.--
(1) The automated updates to criminal history records
and expungements required this section shall be completed
within two years of the effective date of this section.
(2) Progress reports shall be submitted to the people
who will receive the final report required under paragraph
(3). Progress reports shall be submitted 12 months and 18
months after the effective date of this section and shall
provide the recipients with a status report of the progress
being made, difficulties being encountered and success
achieved.
(3) Upon completion of the updates to and the automatic
expungement of records in their respective databases, the
AOPC and the commissioner shall each prepare and submit a
report to the President Pro Tempore of the Senate, the
Speaker of the House of Representatives, the Majority Chair
and Minority Chair of the Senate Judiciary Committee and the
Majority Chair and Minority Chair of the House Judiciary
Committee reporting the completion. The report shall include
any additional information relevant to the work completed,
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including general costs incurred, difficulties encountered
and recommendations for any future action needed to ensure
accurate criminal history records are maintained.
Section 304. Expungement of records where no conviction
occurred or when acquitted.
(a) Expungement required.--
(1) Notwithstanding any other provision of law or
regulation to the contrary, including section 19 of the
Controlled Substance Act and any court order or rule, each
record of arrest or prosecution for a criminal offense for
violation of the Controlled Substance Act where the
controlled substance was cannabis or for violations of the
provisions of any law governing controlled substances in this
Commonwealth or any political subdivision of the Commonwealth
before the effective date of this paragraph where the
controlled substance was cannabis shall be promptly expunged
from the official and unofficial arrest and other criminal
records pertaining to the individual if the charges were not
filed, withdrawn or dismissed or the individual was acquitted
of the charges. Within six months of the effective date of
this paragraph, the court, in writing, shall order the
appropriate keepers of criminal records:
(i) to expunge and destroy the official and
unofficial arrest and other criminal records of an
individual eligible under this section and to request
from Federal and other State agencies, insofar as they
are able, the return of the records and to destroy the
records upon receipt;
(ii) to destroy or deliver to the individual to whom
the records pertain or their representative, each
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criminal record, fingerprint, photographic plate and
photograph pertaining to the vacated offense and
conviction and shall request the Federal Bureau of
Investigation to return each record pertaining to the
arrest, which shall be destroyed by the agency upon
receipt; and
(iii) to file with the court within 30 days, an
affidavit stating that the records have been expunged and
destroyed, together with the court's expunction order.
(2) Upon receipt of the affidavit under paragraph (1)
(ii), the court shall seal the affidavit with the original
order and each copy and shall not permit any person or
agency, except the individual to whom the records pertain or
their representative, to examine the sealed documents.
(3) The arresting agency shall destroy or deliver to the
individual to whom the records pertain or their
representative, each criminal record, fingerprint,
photographic plate and photograph pertaining to the vacated
offense and conviction and shall request the Federal Bureau
of Investigation to return each record pertaining to the
arrest, which shall be destroyed by the agency upon receipt.
(b) Treatment.--Beginning on the effective date of this
subsection, an expunged record of arrest or prosecution under
this section shall not be regarded as an arrest or prosecution
for the purpose of a statute, regulation, license, questionnaire
or civil or criminal proceeding or for any other public or
private purpose. No person shall be permitted to learn of or
examine an expunged arrest or prosecution record, or of the
expunction, either directly or indirectly. An individual, except
the individual arrested or prosecuted, who divulges information
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in violation of this subsection commits a summary offense and
shall, upon conviction, be sentenced to imprisonment not
exceeding 30 days or to pay a fine not exceeding $500, or both.
(c) Construction.--Nothing in this section shall be
construed to prohibit a person acting pursuant to a practice
used before the effective date of this section from petitioning
an appropriate court for an expunction order. The expungement
relief contained in this section shall be in addition to the
expungement of records of arrest or prosecution provided under
section 19 of the Controlled Substance Act for other offenses
under that act and listed in that section, including other
offenses where the controlled substance was cannabis.
(d) Retroactivity.--This section shall apply retroactively
to each record of arrest or prosecution, notwithstanding whether
the withdrawal, dismissal or acquittal occurred prior to the
effective date of this subsection.
Section 305. Cannabis convictions and sentences vacated.
(a) Orders vacated.--Notwithstanding any other provision of
law or regulation to the contrary, including a court order or
rule:
(1) Each cannabis conviction and sentence imposed on or
before the effective date of this paragraph is vacated.
(2) Money paid by a person to comply with a sentencing
order entered on or before the effective date of this
paragraph and vacated under paragraph (1) shall not be
refunded, but fines paid to a county and allocated toward a
cannabis conviction vacated by paragraph (1) shall be
reallocated by the county to any other outstanding fines owed
by the person which were imposed upon conviction for other
offenses in the county. Any unsatisfied legal financial
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obligation connected to a cannabis conviction vacated by this
act, including fines, fees and costs assessed by the court or
otherwise attributed to the conviction, shall no longer be a
legal financial obligation and no additional sums need to be
paid. The AOPC shall establish general rules, guidelines and
principles to ensure the fair, uniform and correct
reallocation the counties shall utilize to reallocate monies
previously paid and credited toward cannabis convictions
vacated by this act. The individual to whom the affected
records pertain shall be informed in writing of the manner in
which monies previously paid have been reallocated.
Notwithstanding any other provision of law, including this
chapter, the AOPC and counties shall maintain outside of
public view all financial records relating to the manner in
which sums previously paid were reallocated. The records and
copies thereof shall be available for view by and receipt to
the individual to whom the records pertain and any
representative so designated by the individual.
(3) The sentencing court may, sua sponte, authorize any
imprisonment time served and credited toward a cannabis
conviction vacated by paragraph (1) to be credited toward
another sentence imposed by the court at the same OTN.
(b) Vacating order.--The court, as deemed necessary or
appropriate by the court, shall sua sponte enter an order
vacating the cannabis convictions and sentences vacated under
subsection (a) and any other orders necessary or appropriate to
carry out the provisions of this chapter.
Section 306. Update to and expungement of records pertaining to
vacated convictions and sentences.
(a) OTN with cannabis convictions only.--If the only
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convictions associated with an OTN are cannabis convictions
vacated under section 305, each official and unofficial record
of arrest, prosecution, conviction, sentence and other criminal
record pertaining to the cannabis conviction shall be expunged
as follows:
(1) Within six months of the effective date of this
paragraph, the court, in writing, shall order the appropriate
keepers of criminal records:
(i) to expunge and destroy the official and
unofficial records of arrest, prosecution, conviction,
sentence and other criminal records pertaining to the
offenses associated with the OTN, to request from Federal
and other State agencies, insofar as they are able, the
return of the records and to destroy the records upon
receipt thereof; and
(ii) to file with the court within 30 days, an
affidavit stating that the records have been expunged and
destroyed, together with the court's expunction order.
(2) Upon receipt of the affidavit under paragraph (1)
(ii), the court shall seal the affidavit with the original
order and each copy and shall not permit any person or agency
to examine the sealed documents.
(3) The arresting agency shall destroy or deliver to the
individual to whom the records pertain or their
representative, each criminal record, fingerprint,
photographic plate and photograph pertaining to the vacated
offense and conviction and shall request the Federal Bureau
of Investigation to return each record pertaining to the
arrest, which shall be destroyed by the agency upon receipt.
(4) Expunged records shall not be regarded as an arrest,
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prosecution, conviction or sentence for the purpose of any
statute, regulation, license, questionnaire or civil or
criminal proceeding or for any other public or private
purpose. No person shall be permitted to learn of or examine
an expunged arrest or prosecution, or of the expunction,
either directly or indirectly. An individual, except the
individual arrested, prosecuted, convicted or sentenced, who
divulges information in violation of this subsection shall be
guilty of a summary offense and shall, upon conviction, be
sentenced to imprisonment not exceeding 30 days or to pay a
fine not exceeding $500, or both.
(5) Nothing contained in this section shall prohibit a
person acting pursuant to a practice used before the
effective date of this paragraph from petitioning an
appropriate court for an expunction order or other relief or
order related to the expungement of records.
(6) This section shall apply retroactively to any
records of arrest, prosecution, conviction or sentence for a
cannabis offense notwithstanding whether the offense, arrest,
prosecution, conviction or sentence occurred prior to the
effective date of this paragraph.
(b) OTN with additional convictions.--If, in addition to a
cannabis conviction vacated under section 305, an OTN is
associated with a conviction for an offense which is not a
cannabis conviction, the criminal history record shall be
updated and the disposition of each cannabis conviction vacated
under section 305 shall be, and the criminal history record
shall indicate, the cannabis conviction has been vacated. Each
vacated offense shall be expunged from the criminal history
record maintained in the database. The AOPC and the commissioner
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shall take necessary and appropriate action to ensure that each
keeper of criminal history records and recipients of criminal
history records update the record to reflect the updated
disposition.
(c) Treatment.--Beginning on the effective date of this
subsection, a cannabis conviction or sentence vacated under
section 305 shall not be regarded as a conviction or sentence
for the purpose of any statute or regulation or license or
questionnaire or any civil or criminal proceeding or any other
public or private purpose.
Section 307. Maintenance records.
The AOPC shall maintain records of the cases ordered vacated
or expunged under this chapter. Any individual whose record has
been ordered vacated or expunged under this chapter shall be
provided an individualized copy of the order upon request by the
individual or their legal representative to the court of common
pleas or AOPC. The order shall include a list of the charges
ordered expunged and the dispositions of the charges as vacated.
Section 308. Cannabis simplified petition expungement process.
(a) Update or correction.--Notwithstanding any other
provision of law to the contrary, after June 30, 2026, any
individual believing their Pennsylvania criminal history record
contains information pertaining to offenses impacted by this
chapter which is eligible to be vacated, expunged or is
inaccurate or incomplete may seek to have their record updated
or corrected by simplified petition under this section.
(b) Simplified petition process.--
(1) The AOPC shall prepare an online simplified petition
to update or correct a criminal history record of an
individual under subsection (a) which can be completed by the
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individual without needing legal representation. The petition
shall require the individual to allege only that they seek to
update or correct their criminal history record or expunge an
arrest, charge or conviction arising under the Controlled
Substance Act related to cannabis and bring their record into
compliance with this chapter, the county in which the arrest,
charge or prosecution occurred, and, if known, the
approximate date of the arrest, charge, prosecution or
conviction. The petition may provide the individual with the
option to provide additional information known to the
individual to assist the court in identifying each record
sought to be updated, corrected or expunged.
(2) The simplified petition may be filed electronically.
The petition may be filed in hard copy with the clerk of
courts in the county in which the case was charged or
prosecuted. There shall be no filing fee for the petition.
(3) The court shall serve the petition on the district
attorney in the county in which the petition is filed. The
district attorney shall insert into the petition any missing
or additional information necessary for the update,
correction or expungement to be granted. The petition shall
be granted unless the district attorney objects within 60
days. The district attorney may object only on the grounds
that:
(i) the district attorney could not identify the
case to which the petition refers; or
(ii) the district attorney determines the update,
correction or expungement sought by the petitioner is not
an update, correction or expungement provided for and in
compliance with this chapter.
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(4) An individual whose petition is objected to under
this subsection may request within 60 days of the objection a
hearing on whether the petition shall be granted. The
individual may file a request for the assistance of counsel
and a statement of indigency with the court. If the
individual was found to be indigent for the individual's
original defense of the case, the individual shall be
entitled to assistance of counsel for the hearing.
(5) In the hearing under paragraph (4), the district
attorney shall prove by clear and convincing evidence that
the petitioner is not entitled to the requested update,
correction, vacating or expungement under this act. Unless
the district attorney so proves, the petition shall be
granted.
(6) Within 90 days of the filing of a petition that has
not been objected to by the district attorney or within 30
days of a petition being granted by the court under paragraph
(5), the court of common pleas shall order the update,
correction, vacating or expungement of the case. The order
shall be served upon the petitioner.
CHAPTER 4
ADDITIONAL MEMBERS OF THE LIQUOR CONTROL BOARD
Section 401. Continued authority of the Liquor Control Board.
(a) Continued authority.--The Liquor Control Board
established under the act of April 12, 1951 (P.L.90, No.21),
known as the Liquor Code, shall have the same powers and perform
the same duties and functions by law vested in and imposed on
the Liquor Control Board not otherwise amended or transferred
under this act. Nothing in this section shall be construed to
prohibit the board from utilizing existing staff or resources to
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perform the duties of this act.
(b) Administrative officers and board members.--All
appointive administrative officers or board members holding
office in the Liquor Control Board in effect on the effective
date of this subsection shall continue in office on the Liquor
Control Board until the term for which they were respectively
appointed shall expire or until death, resignation or removal
from office.
(c) Existing rules.--Any rules and regulations promulgated
prior to the effective date of this subsection shall continue to
be the rules and regulations of the Liquor Control Board until
such time as the regulations are modified or repealed by the
board.
Section 402. Membership of the board.
(a) Additional members of the Liquor Control Board.--
(1) In addition to the three board member positions
created under section 201 of the act of April 12, 1951
(P.L.90, No.21), known as the Liquor Code, two additional
members shall be appointed by the Governor by and with the
advice and consent of two-thirds of all the members of the
Senate.
(2) Not more than three appointees to the board may be
from the same political party as the Governor.
(b) Terms.--Of the members first appointed to the newly
established vacancies under subsection (a)(1), one member shall
serve a term of three years and one member shall serve a term of
four years. Subsequent terms shall be for four years, ending on
the third Tuesday in May. A member may continue to hold office
for a period not to exceed six months beyond the expiration of
that member's term if a successor to that member has not been
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duly qualified and appointed under this section. Each of the
members shall receive an annual salary in accordance with the
act of September 30, 1983 (P.L.160, No.39), known as the Public
Official Compensation Law.
(c) Requirements.--Unless otherwise specified under this
act, all qualifications and requirements under Article II of the
Liquor Code regarding board membership and board governance
shall continue and apply to newly appointed members.
(d) Expertise.--At least one member appointed under
subsection (a)(1)(ii) shall have expertise in cannabis markets
and one member shall have expertise in public health.
(e) Quorum.--A majority of three members appointed to the
board shall constitute a quorum.
Section 403. Additional powers and duties of board.
(a) Scope.--The board shall have all the duties, functions
and powers necessary and appropriate to enable the board to
administer and enforce this act. The authority of the board
extends to the regulation and control of cannabis, cannabis
flower, cannabis products, cannabis paraphernalia, cannabis
stores and persons that hold a cannabis entity license, permit,
registration or certificate and any other person authorized to
engage in a regulated activity under this act.
(b) Authority.--In addition to the duties under section 207
of the act of April 12, 1951 (P.L.90, No.21), known as the
Liquor Code, the duties, functions and powers of the board shall
include, but not be limited to, the following:
(1) Buy, possess and sell cannabis seeds, cannabis
flower, cannabis products and cannabis paraphernalia
consistent with this act. The board may buy cannabis seeds,
cannabis flower and cannabis products from cannabis
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cultivators and cannabis processors at the lowest price and
in the greatest variety reasonably obtainable or may offer
shelf space in cannabis stores to cannabis cultivators and
cannabis processors. If the board offers shelf space, the
board may charge:
(i) A shelving fee.
(ii) A dispensing fee.
(2) Fix the wholesale and retail prices of cannabis
seeds, cannabis flower, cannabis products and cannabis
paraphernalia to be sold in cannabis stores. The following
apply:
(i) The board may fix retail prices based on market
supply and demand or, if providing shelf space, based
upon prices recommended by the cannabis cultivators and
cannabis processors for their cannabis seeds, cannabis
flower and cannabis products.
(ii) The board may discount the price of
discontinued items.
(iii) The board shall establish procedures to
promote cannabis seeds, cannabis flower and cannabis
products originating from cannabis microbusinesses and
certified social and economic equity licensees.
(3) On a quarterly basis, the board shall publish a
listing of the wholesale and cannabis store retail prices on
the board's publicly accessible Internet website.
(4) Determine the municipalities within which cannabis
stores shall be established and the locations of the cannabis
stores within each municipality.
(5) Through the Department of General Services as the
agent, lease, furnish and equip buildings, warehouses, rooms
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and other accommodations as required for the operation of
cannabis stores
(6) Regulate the cultivating, processing, transporting,
storing, testing, delivering, handling, disposal and sale of
cannabis seeds, cannabis plants, cannabis flower, cannabis
products and cannabis paraphernalia under this act.
(7) Fix, in consultation with the Department of
Agriculture, the standards of cultivating and processing of
cannabis, cannabis flower and cannabis products to be sold or
offered for sale to cannabis consumers in this Commonwealth.
(8) Grant, suspend, deny, condition or revoke any
license, permit, registration or certificate for the
cultivating, processing, transporting, storing, testing,
delivering, handling and selling of cannabis, cannabis
flower, cannabis products and cannabis paraphernalia or other
authorization to engage in a regulated activity under this
act and to authorize the transfer of a cannabis entity
license to another person as provided under this act.
(9) Employ individuals as necessary to carry out the
powers and duties of the board, who shall serve at the
board's pleasure. An employee of the board shall be
considered a State employee for the purposes of 71 Pa.C.S.
Pt. XXV (relating to retirement for State employees and
officers).
(10) Promulgate, amend or rescind regulations as
necessary and appropriate to carry out the intent and
provisions of this act.
(11) Restrict access to confidential and proprietary
information and data in the possession of the board which has
been obtained under this act and ensure that the
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confidentiality of information is maintained and protected.
Records shall be retained by the board for seven years.
(12) Appoint advisory groups and committees to provide
assistance to the board to carry out the purposes and
objectives of this act.
(13) Exercise the powers and perform the duties in
relation to the administration of the board as are necessary
but not specifically vested under this act, including, but
not limited to, budgetary and fiscal matters.
(14) If public health, safety or welfare imperatively
requires emergency action and the board incorporates a
finding to that effect in an order, order the administrative
seizure of cannabis, cannabis flower, cannabis products or
cannabis paraphernalia, issue a cease and desist order or
take any other action necessary to protect public health and
safety and effectuate and enforce the policy and purpose of
this act.
(15) Adopt and promulgate regulations and issue
declaratory rulings, guidance and industry advisories.
(16) Enter into contracts for the purposes of carrying
out the powers and duties of the board under this act.
(17) Hold hearings and inquiries, subpoena witnesses,
compel attendance of witnesses, administer oaths and examine
an individual under oath and require the production of books
and records relative to the hearing or inquiry. A subpoena
issued under this paragraph shall be governed by the
applicable provisions of 42 Pa.C.S. (relating to judiciary
and judicial procedure).
(18) Enter into memoranda of understanding or agreements
with other Commonwealth agencies as deemed appropriate to
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effectuate the policy and purposes of this act.
(19) Establish, levy and collect fees.
(20) Establish cannabis diversion controls, packaging
and labeling requirements and advertising restrictions.
(21) Establish requirements for the equipment,
management and operation of cannabis stores and warehouses in
which cannabis, cannabis flower, cannabis products and
cannabis paraphernalia are kept or sold and the books and
records to be kept therein.
(22) Issue bonds.
(23) Levy fines, penalties or other sanctions for
violation of this act.
(24) Provide compliance education to cannabis entities
and their employees and contractors.
(25) Determine where and what classes, varieties and
brands of cannabis seeds, cannabis flower and cannabis
products are made available to the public and where the
cannabis seeds, cannabis flower and cannabis products may be
sold.
(26) Acquire or contract with a third-party vendor to
establish or develop an inventory verification system for use
by cannabis stores.
(27) Acquire or contract with a third-party vendor to
establish a point-of-sale system for use by all cannabis
stores.
(28) Adopt and enforce appropriate rules and regulations
to ensure the equitable sale and distribution of available
cannabis seeds, cannabis flower and cannabis products at
cannabis stores when the demand is greater than the supply or
supply is greater than demand.
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(29) Review and approve or deny a management service
agreement entered into or proposed to be entered into between
a cannabis entity or cannabis entity applicant and another
person and may require, by regulation, the entities to secure
authorization from the board to provide the services outlined
in the management service agreement.
(30) Allow for the leasing of shelf-space in cannabis
stores by cannabis cultivators or cannabis processors for the
sale of cannabis seeds, cannabis flower or cannabis products
if the board determines it to be in the best interest of
cannabis stores.
(31) Approve and review and update no less than every
four years guidelines established and issued by the Office of
Social Equity under section 601(c)(3) to assess, identify and
determine which areas are historically impacted communities
and how to assess if someone is a member of a historically
impacted community.
(32) Conduct or commission an initial comprehensive
market analysis within 180 days of the effective date of this
paragraph, which shall be complete within one year of
commencement of the sale of cannabis seeds, cannabis flower,
cannabis products or cannabis paraphernalia in cannabis
stores.
(33) Conduct comprehensive market analysis every three
years.
(34) Certify applicants that meet the criteria as a
social and economic applicant as a certified social and
economic equity applicants.
(35) Certify cannabis entities as certified social and
economic equity licensees.
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(36) The board shall consider each of the following as
indicative, but not determinative, of a finding that a labor
organization is a "bona fide labor organization":
(i) The labor organization has been recognized or
certified as the bargaining representative for medical
marijuana organization, cannabis entity or cannabis store
employees in this Commonwealth.
(ii) The labor organization has executed current
collective bargaining agreements with medical marijuana
organizations in this Commonwealth.
(iii) The labor organization has spent resources as
part of a current and active attempt to organize and
represent employees of medical marijuana organizations in
this Commonwealth.
(iv) The labor organization has filed the annual
report required by 29 U.S.C. § 431(b) (relating to report
of labor organizations) for the three years immediately
preceding.
(v) The labor organization has audited financial
reports covering the three years immediately preceding.
(vi) The labor organization has written bylaws or
constitution for the three years immediately preceding.
(37) Acquire or contract with a third-party vendor to
establish or develop a seed-to-sale tracking system.
(38) Collect taxes imposed under this act on the sale of
cannabis and cannabis products in cannabis stores.
Section 404. Temporary regulations.
(a) Promulgation.--In order to facilitate the prompt
implementation of this act, the board shall promulgate temporary
regulations within 180 days of the effective date of this
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subsection that shall expire no later than five years following
the publication of the temporary regulations. The temporary
regulations promulgated by the board under this section are not
subject to:
(1) Section 612 of the act of April 9, 1929 (P.L.177,
No.175), known as The Administrative Code of 1929.
(2) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(3) Sections 204(b) and 301(10) of the act of October
15, 1980 (P.L.950, No.164), known as the Commonwealth
Attorneys Act.
(4) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
(b) Expiration.--The board's authority to adopt temporary
regulations under subsection (a) shall expire five years after
the effective date of this subsection. Regulations adopted after
this period shall be promulgated as provided by law.
(c) Contents.--Temporary and final-form regulations adopted
by the board shall include, but not be limited to, the
following:
(1) Procedures for the issuance, denial, renewal,
sanction, suspension and revocation of a license to operate a
cannabis establishment by an applicant for a cannabis entity
license. The procedures shall include a biennial evaluation
of whether the number of each kind of cannabis entity license
is sufficient to meet market demand.
(2) Licensing goals and measures for social and economic
equity applicants and cannabis microbusiness applicants who
are residents of this Commonwealth.
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(3) Security and surveillance requirements for cannabis
establishments.
(4) Requirements to prevent the sale or diversion of
cannabis, cannabis flower, cannabis products and cannabis
paraphernalia to individuals under 21 years of age,
including, but not limited to, identification requirements.
(5) Packaging, processing and branding regulations to
prevent the appeal of cannabis, cannabis flower, cannabis
products, cannabis paraphernalia and other paraphernalia to
individuals under 21 years of age.
(6) Labeling and packaging requirements for cannabis
seeds, cannabis flower, cannabis products and cannabis
paraphernalia cultivated, processed, transported, stored,
delivered, handled or sold, including, but not limited to,
clear and understandable health and safety information,
warning labels, serving sizes and child resistant packaging.
(7) Health and safety standards, protocols and worker
protections for the cultivating, processing, storing,
transporting, testing and selling or offering for sale of
cannabis, cannabis flower, cannabis products and cannabis
paraphernalia.
(8) Restrictions on the advertising and display of
cannabis seeds, cannabis flower, cannabis products, cannabis
paraphernalia and other paraphernalia, including restrictions
on advertising to individuals under 21 years of age.
(9) Procedures for the board to conduct announced and
unannounced visits to a cannabis establishment and a cannabis
testing laboratory to make or cause to be made investigations
for the efficient and proper administration of this act and
any other laws which may be enacted concerning any form of
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cannabis or the cultivating, processing, distributing,
testing, transporting, delivering, selling or offering for
sale of cannabis seeds, cannabis flower, cannabis products
and cannabis paraphernalia, including the inspection of the
premises of a proposed cannabis establishment and cannabis
testing laboratory or the inspection and search of a cannabis
entity's cannabis establishment and cannabis testing
laboratory, the search of associated buildings and the
inspection and examination of the books, records, accounts,
documents and papers of the cannabis entity and cannabis
testing laboratory.
(10) Recordkeeping requirements.
(11) Procedures for inspecting and testing samples of
cannabis, cannabis flower and cannabis products.
(12) Conditions under which cannabis cultivated by a
cannabis cultivator or cannabis processed by a cannabis
processor may be donated for research purposes.
(13) Administrative sanctions and civil penalties for
violating a regulation of the board.
(14) Requirements for a cannabis establishment and
cannabis testing laboratory to ensure safe cultivation,
processing, storage, transport and disposal of any form of
cannabis, including ventilation, temperature, size and
timeline of storage.
(15) Requirements to govern the testing of any form of
cannabis, cannabis flower and cannabis products by a cannabis
testing laboratory including stability and compliance
testing.
(16) Requirements for home cultivation permittees.
(d) Informational sessions.--After the promulgation of
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temporary regulations under subsection (a) pertaining to
applications and the application process and after the issuance
of guidelines determining historically impacted communities and
prior to the date established by the board to commence the
application process, the board shall:
(1) Conduct a series of regional informational sessions
to inform and educate the residents of this Commonwealth
regarding the regulation of cannabis, cannabis flower,
cannabis products and cannabis paraphernalia in this
Commonwealth, including information and education on the
opportunities, requirements and processes for submitting an
application to the board for a cannabis entity license,
permit, certification or other authorization to engage in a
regulated activity under this act. The board shall conduct at
least two informational sessions in each region of this
Commonwealth and may conduct additional informational
sessions upon demand by the governing body of a municipality.
(2) Establish a minimum of five regions within this
Commonwealth for the purpose of conducting information
sessions. The department shall consider the following when
establishing regions:
(i) Regional population.
(ii) Access to public transportation.
(iii) Any other factor the board deems relevant.
(e) Publication.--The board shall transmit notice to the
Legislative Reference Bureau of promulgation of temporary
regulations for publication in the next available issue of the
Pennsylvania Bulletin no later than 180 days after the effective
date of this subsection.
Section 405. Notice of commencement of sales in cannabis
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stores.
(a) Publications.--
(1) At least 90 days before commencing the sale of
cannabis seeds, cannabis flower, cannabis products or
cannabis paraphernalia in cannabis stores, the board shall
provide notice of its intent to commence sales by
transmitting the notice to the Legislative Reference Bureau
for publication in the next available issue of the
Pennsylvania Bulletin.
(2) Concurrently with the publication of the notice in
the Pennsylvania Bulletin under paragraph (1), the board
shall, on the board's publicly accessible Internet website:
(i) Post the same notice.
(ii) Provide information about the sections of this
act that will go into effect within 90 days of the
publication under paragraph (1), as provided for under
section 2105.
(3) No later than 45 days after the notice under
subsection (a)(1) is published, the board shall publish the
same notice in at least one newspaper of general circulation
in each county of the Commonwealth.
(b) Content of notice.--The notice under subsection (a)
shall contain the following:
(1) The specific date that the initial cannabis stores
will open for the sale of cannabis seeds, cannabis flower,
cannabis products or cannabis paraphernalia.
(2) The locations and hours of the initial cannabis
stores that will open for sale on that date.
(3) Information about who is legally permitted to be a
cannabis consumer and what a cannabis consumer is permitted
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to do under this act.
(4) Information about home cultivation permits and how
to obtain one.
(c) Limitation.--The board may not transmit notice for
publication under subsection (a) until at least two cannabis
stores are prepared to open in each of the five regions
established under section 404(d)(2).
Section 406. Annual report by the board.
(a) Report required.--The board shall annually submit a
report to the General Assembly on the board's administration of
this act. The report shall include, but shall not be limited to,
the following:
(1) retail operations, merchandising and retail sales
data;
(2) board finances;
(3) cannabis store operations;
(4) distribution and logistics;
(5) communications and marketing;
(6) issuance or revocation of licenses, permits or any
other authorization to engage in a regulated activity under
this act and compliance data;
(7) compliance of licensees, permittees or other persons
authorized to engage in a regulated activity under this act
and other compliance data as determined by the board; and
(8) information related to the method and rationale for
pricing cannabis seeds, cannabis flower and cannabis
products.
(b) (Reserved).
CHAPTER 5
PENNSYLVANIA CANNABIS STORES
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Section 501. Pennsylvania Cannabis Stores.
The following shall apply:
(1) The board shall establish, operate and maintain
cannabis stores throughout this Commonwealth for the sale of
cannabis seeds, cannabis flower, cannabis products and
cannabis paraphernalia in accordance with the provisions of
and the regulations promulgated under this act. The following
apply:
(2) A cannabis store may not be located within a minimum
of 1,000 feet from an elementary school, secondary school or
day care.
(3) The board may colocate a cannabis store with a
Pennsylvania Liquor Store established under the act of act of
April 12, 1951 (P.L.90, No.21), known as the Liquor Code.
(4) When determining a colocation under paragraph (3),
the board shall consider the public health effects prior to
approving a colocation.
(5) Upon determination of the location of a cannabis
store in a municipality, the board shall give notice of the
location by public advertisement in one newspaper of general
circulation. The notice shall be posted in a conspicuous
place on the outside of the premises in which the proposed
cannabis store is to operate or, in the event that a new
structure is to be built, in a similarly visible location.
If, within five days after the appearance of the
advertisement, or of the last day upon which the notice was
posted, 100 or more taxpayers residing within a quarter of a
mile of a proposed cannabis store, or the City Solicitor in a
city of the first class, file a petition with the court of
common pleas of the county averring that the proposed
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cannabis store is objectionable because of its proximity to a
church, school or to private residences, the court shall hold
a hearing affording an opportunity to the protestants and to
the board to present evidence. The court shall render its
decision immediately upon the conclusion of the testimony.
The court's decision shall not be subject to appeal. If the
court determines that the proposed cannabis store is
undesirable for the reasons stated in the petition, the board
shall abandon it and find another cannabis store.
(6) Cannabis flower and cannabis products may not be
consumed on the premises of a cannabis store.
Section 502. Selection of employees.
(a) Civil service.--Employees of the board, except as
provided under this act, shall be appointed and employed subject
to the provisions of 71 Pa.C.S. Pt. III (relating to civil
service reform).
(b) Training required.--Cannabis store employees must
receive training specific to cannabis seeds, cannabis flower and
cannabis product strains, effects, storage, health and safety,
security, prohibiting sales to minors, inventory and tracking,
as determined by the board.
(c) Recruitment.--The board shall develop and implement
strategies to recruit cannabis store employees who reside in or
are members of a historically impacted community.
(d) Employee objection.--The board shall establish a process
for an employee with an objection to storing, handling or
selling cannabis seeds, cannabis flower, cannabis products or
cannabis paraphernalia to submit an objection. An employee that
has submitted an objection under this subsection shall not be
required to store, handle or sell cannabis seeds, cannabis
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flower, cannabis products or cannabis paraphernalia nor receive
an adverse employment action for filing an objection.
(e) (Reserved).
(f) Jurisdiction of Pennsylvania Labor Relations Board.--
Except where preempted by Federal law, the Pennsylvania Labor
Relations Board shall have jurisdiction over representation and
unfair labor practices involving a cannabis store.
(g) Cannabis experience preference.--If a candidate
successfully passes a civil service appointment examination for
a public position with the board as an employee or manager of a
cannabis store, an additional one point per year of experience
in a Pennsylvania licensed medical marijuana facility shall be
added to the candidate's final examination score and the score
shall determine the candidate's standing on any eligible list
certified or provided to the board. A candidate may not begin or
hold the public position until proof of employment being
considered for additional points is provided to the board.
Section 503. Management of cannabis stores.
(a) Manager required.--Unless co-located with a Pennsylvania
Liquor Store, each cannabis store shall be managed by an
individual appointed in the manner provided in 71 Pa.C.S. Pt.
III (relating to civil service reform) who shall, under the
direction of the board, be responsible for carrying out the
provisions of this act and the regulations adopted by the board
under this act related to the equipment, management and
operation of cannabis stores.
(b) Recruitment.--The board shall develop and implement
strategies to recruit managers who reside in a historically
impacted community.
(c) Additional requirements.--The board may establish
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additional training, qualifications and requirements for
managers that exceed the requirements for employees under
section 502.
Section 504. Sales at Pennsylvania Cannabis Stores.
(a) Limit on purchase.--A cannabis store may not sell more
than the following amounts to a cannabis consumer in a 24-hour
period:
(1) 42.524 grams of cannabis flower.
(2) Any amount of cannabis product other than cannabis
concentrate that contains, in the aggregate, more than 500
milligrams of total THC.
(3) Any amount of cannabis concentrate containing
greater than 400 milligrams of total THC.
(4) A personal amount of cannabis.
(a.1) Cannabis seed sale.--A cannabis store may only sell
cannabis seeds to a cannabis consumer with a valid home
cultivation permit.
(b) Receipt required.--Each purchase of cannabis seeds,
cannabis flower or cannabis products from a cannabis store shall
receive a numbered receipt which shall show the price paid and
other information as the board may prescribe. Copies of all
receipts issued by a cannabis store shall be retained by and
shall form part of the records of the cannabis store.
(c) Cannabis paraphernalia.--Cannabis stores may sell
cannabis paraphernalia to cannabis consumers.
(d) Age verification required.--
(1) Except as provided under paragraph (2), each
cannabis store must utilize a scan device for a valid photo
driver's license or identification card issued by the
Department of Transportation or by any other state to verify
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the age of each individual attempting to purchase cannabis
seeds, cannabis flower or cannabis products before making a
sale.
(2) A valid Canadian driver's license or other bona fide
Canadian identification such as a Canadian-issued passport,
or a valid Armed Forces of the United States identification
card, a valid passport or a travel visa issued by the United
States or a foreign country that contains the holder's
photograph shall, for the purpose of this act, be accepted as
an identification card.
(3) The board shall establish a procedure for verifying:
(i) the age of an individual who presents an
acceptable identification card under paragraph (2) that
is unable to be scanned; and
(ii) that an individual attempting to purchase
cannabis seeds has a valid home cultivation permit.
Section 505. Health and safety protections.
The following shall apply:
(1) Each cannabis store must:
(i) In a manner that is unobstructed and visible to
cannabis consumers and other patrons of a cannabis store,
have at least four conspicuously posted signs inside the
cannabis store and one or more signs posted outside at or
near the door or doors used to enter a cannabis store a
statement in substantially the following form:
If you or someone you know needs help finding a drug
treatment provider or information about drug
addiction and treatment, help is available. Please
call 1-800-662-HELP (4357) anytime, any day. Be
assured, your call is confidential.
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(ii) Provide brochures containing the statement
under paragraph (1) which shall include information
regarding the dangers of driving under the influence of
cannabis, signs and symptoms of substance use disorder,
the consequences of unregulated cannabis, cannabis flower
and cannabis products, expected intoxicating effects, the
danger of overconsumption, the dangers of cannabis flower
and cannabis product consumption by minors and any other
public health information determined by the board.
(iii) Provide brochures containing information on
the risks of cannabis products with a high total THC
concentration.
(2) The board:
(i) shall provide cannabis stores with the signs and
brochures required under paragraph (1); and
(ii) may consult with the Department of Drug and
Alcohol Programs on the content of the signs and
brochures.
Section 506. Audits by the Auditor General.
(a) Audits required.--
(1) It shall be the duty of the Department of the
Auditor General to make audits which may be necessary in
connection with the administration of the financial affairs
of the board and the cannabis stores. The audits shall be
conducted in accordance with generally accepted accounting
principles. Nothing in this paragraph shall be construed to
require the Auditor General to conduct biannual inventories.
(2) At least one audit shall be conducted each year of
the financial affairs of the board. Collections made by
cannabis stores shall be audited quarterly. The Auditor
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General shall submit a copy of the annual audit of the
affairs of the board to the Governor, the President pro
tempore of the Senate, the Majority Leader and Minority
Leader of the Senate, the Speaker of the House of
Representatives and the Majority Leader and Minority Leader
of the House of Representatives. The Auditor General shall
post the annual audit of the affairs of the board to its
publicly accessible website.
(b) Special audits.--Special audits of the financial affairs
of the board and cannabis stores maintained and operated by the
board may be made if the Auditor General deems it necessary and
shall be made when the Governor directs the Department of the
Auditor General to conduct a special audit.
(c) Copies.--Copies of audits made by the Department of the
Auditor General shall be promptly submitted to the board and to
the Governor.
CHAPTER 6
SOCIAL AND ECONOMIC EQUITY
Section 601. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Committee." The Social and Economic Equity Advisory
Committee established under section 602.1.
"Fund." The Cannabis Business Development Fund established
under section 603.
"Office." The Office of Social and Economic Equity
established under section 602.
Section 602. Office of Social and Economic Equity.
(a) Establishment and director.--The Office of Social and
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Economic Equity is established within the board and shall be
under the immediate supervision of a director who shall be
appointed by and serve at the pleasure of the board.
(b) Qualifications of the director.--The director of the
Office of Social and Economic Equity shall have at least five
years of experience in civil rights advocacy, civil rights
litigation or another area of social justice.
(c) Powers and duties.--The office, under the direction of
the board, shall:
(1) Promote inclusion and participation in the regulated
cannabis industry, including through an indirect cannabis
business, by persons that may qualify to be a social and
economic equity applicant.
(2) Within six months of appointment of the director,
present to the board guidelines to identify historically
impacted communities and determine if an individual is a
member of a historically impacted community. When
establishing the guidelines, the office shall:
(i) consult with experts, including the Social and
Economic Advisory Committee established under section
602.1 on the disparate impacts of communities directly
harmed by policing or criminalized activities related to
the sale, distribution or possession of cannabis;
(ii) review other states' social and economic equity
programs and qualifications; and
(iii) implement a process to receive public input.
(3) Review and make recommendations to the board on
updates to the guidelines as necessary, but in no event fewer
than once every four years.
(4) Make recommendations to the board on relevant policy
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and implementation matters relating to inclusion and
participation in this Commonwealth's regulated cannabis
industry by social and economic equity applicants.
(5) Conduct advertising and promotional campaigns and
disseminate information to the public to increase awareness
and promote inclusion and participation in this
Commonwealth's regulated cannabis industry by social and
economic equity applicants.
(6) Sponsor webinars, seminars and other informational
programs regarding the board's programs relating to social
and economic equity and provide information on the office's
publicly accessible Internet website.
(7) Administer the Social and Economic Equity Loan and
Grant Program established under section 604.
(8) Establish and implement workforce development and
recruiting and retention strategies for potential cannabis
store employees from historically impacted communities.
(9) Establish resources for cannabis entities and the
board on workforce development, recruitment and retention
strategies of employees from historically impacted
communities.
(d) Review of participation efforts.--As part of its duties
under subsection (c)(4), the office:
(1) Shall conduct ongoing reviews of policies and
procedures implemented by the board related to inclusion and
participation in this Commonwealth's regulated cannabis
industry by social and economic equity applicants.
(2) May consult with experts or other knowledgeable
individuals and groups in the public and private sectors and
industry stakeholders on any aspect of the office's powers
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and duties under this section.
(e) Report.--Within two years of presentation to the board
of guidelines under subsection (c)(2), and on a biennial basis
thereafter, the office shall submit a report to the General
Assembly that addresses inclusion and participation in this
Commonwealth's regulated cannabis industry by social and
economic equity applicants. At a minimum, the report shall
include:
(1) The number of licenses, permits, registrations,
certificates and other authorizations to engage in a
regulated activity under this act issued by the board
compared to the number of social and economic equity
applicants that applied.
(2) The number of social and economic equity applicants
that the board certified as certified social and economic
equity applicants compared to the number that applied.
(3) The number of certified social and economic equity
applicants that were granted licenses compared to the number
that were denied.
(4) Recommendations for new types of permits,
registrations, certifications or other authorizations that
could benefit potential social and economic equity applicants
or the regulated cannabis industry.
(5) Recommendations for outreach to potential social and
economic equity applicants to participate in the regulated
cannabis industry, including indirect cannabis businesses.
(6) The number of certified social and economic equity
applicants, certified social and economic equity licensees
and indirect cannabis businesses receiving financial
assistance under this chapter.
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(7) The aggregate amount of grant assistance awarded to
certified social and economic equity applicants, certified
social and economic equity licensees and indirect cannabis
businesses in the aggregate under this chapter.
(8) The number and amount of loans made to certified
social and economic equity applicants, certified social and
economic equity licensees and indirect cannabis businesses,
and the amount of loans made that are outstanding under this
chapter.
(9) The number of new jobs and other forms of economic
development created as a result of the financial assistance
awarded under this chapter.
(10) Activity of the social equity advisory committees.
Section 602.1. Social and Economic Equity Advisory Committee.
(a) Establishment.--The Social and Economic Equity Advisory
Committee is established.
(b) Membership.--The committee shall be composed of the
following:
(1) The director of the office, who shall serve as
chair.
(2) The Secretary of the Department of Human Services,
or their designee.
(3) The chairman of the Pennsylvania Commission on Crime
and Delinquency, or their designee.
(4) The director of the Office of Health Equity, or
their designee.
(5) Two individuals who were previously incarcerated for
an offense that is eligible to be vacated under this act,
appointed by the chair of the Pennsylvania Parole Board.
(6) Two individuals who, when appointed, resided in a
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census tract with a higher rate of arrests for offenses
involving cannabis than the Statewide average, appointed by
the Lieutenant Governor.
(7) An individual with expertise in the harms caused by
cannabis criminalization, appointed by the Attorney General.
(8) An individual appointed by the President pro tempore
of the Senate.
(9) An individual appointed by the Minority Leader of
the Senate.
(10) An individual appointed by the Speaker of the House
of Representatives.
(11) An individual appointed by the Minority Leader of
the House of Representatives.
(c) Duties.--The committee shall advise the office on:
(1) The establishment of guidelines to identify
historically impacted communities and determine if an
individual is a member of a historically impacted community.
(2) Outreach to historically impacted communities.
(3) All other duties of the office.
(d) Reimbursement of expenses.--The members of the committee
shall serve without compensation but shall be reimbursed for
necessary travel and other expenses incurred in the performance
of their official duties.
(e) Term.--The terms of the advisory committee are as
follows:
(1) The term of members appointed under subsection (b)
(1), (2), (3) and (4) shall be concurrent with the term of
the public office or duration of service in the public office
from which they derive their membership.
(2) Members appointed under subsection (b)(5), (6), (7),
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shall serve for a four-year term and may be appointed for no
more than one additional consecutive term.
(3) Members appointed under subsection(b) (8), (9), (10)
and (11) shall serve for a three-year term and may be
appointed for no more than one additional consecutive term.
(f) Meetings.--The committee shall meet at least six times a
year.
Section 603. Cannabis Business Development Fund.
(a) Establishment of fund.--The Cannabis Business
Development Fund is established as a fund within the State
Treasury.
(b) Use.--Money in the fund shall be held separate and apart
from all other Commonwealth money and shall be used exclusively
for administering the Social and Economic Equity Loan and Grant
Program under section 604.
(c) Prohibition.--The fund and money in the fund shall not
be subject to transfer or any other fiscal or budgetary maneuver
which would transfer or appropriate money in the fund into any
other fund, account or Commonwealth program funded through the
State Treasury or by any other Commonwealth agency or which may
be established by the General Assembly.
Section 604. Social and Economic Equity Loan and Grant Program.
(a) Establishment.--The office, in consultation with the
Department of Community and Economic Development, shall:
(1) Establish an education and training program for
social and economic equity applicants and potential
applicants seeking to participate in this Commonwealth's
regulated cannabis industry or provide services as an
indirect cannabis business.
(2) Establish a grant and low-interest loan program
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which shall be called the Social and Economic Loan and Grant
Program to provide financial assistance to certified social
and economic equity applicants, certified social and economic
equity licensees and indirect cannabis businesses that meet
the qualifications of a social and economic equity applicant.
(3) Develop criteria for a certified social and economic
equity applicant to apply and, as appropriate, receive
conditional approval of a grant or low-interest loan. The
awarding of a grant or low-interest loan shall be contingent
upon the certified social and economic equity applicant being
approved for a cannabis entity license by the board.
(4) Develop financial, technical, marketing and business
development training programs to assist certified social and
economic equity applicants, certified social and economic
equity licensees and indirect businesses that meet the
qualifications of a social and economic equity applicant in
gaining entry to, and successfully operating in the
Commonwealth's regulated cannabis industry.
(5) Collaborate with the Department of Agriculture in
developing agriculture-specific programs for certified social
and economic equity applicants and certified social and
economic equity licensees on sustainable cultivation and crop
production measures and activities.
(6) On a continuing basis, collaborate with the
Department of Agriculture and any other Commonwealth agency
to secure the services of employees to provide guidance and
assistance in carrying out the requirements of this chapter.
The Department of Agriculture, the Department of Community
and Economic Development and Commonwealth agencies shall
cooperate with the office and the board in carrying out the
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requirements of this paragraph.
(7) Consult with the Attorney General to initiate
actions which may be necessary to protect the interest of the
Commonwealth in the event of bankruptcy, default, foreclosure
or noncompliance with the terms and conditions of a loan or
grant made under this section, including the ability to
recapture money if the recipient is found to be noncompliant
with the terms and conditions of a financial assistance
agreement. The board may enter into a memorandum of
understanding with the Office of Attorney General to carry
out the purposes of this paragraph.
(8) Establish application, notification, contract and
other forms, procedures or rules deemed necessary and
appropriate to carry out the requirements of this section.
(9) Utilize vendors or enter into contracts with persons
to carry out the purposes of this section.
(b) Social and economic equity loans.--A loan made under
this section:
(1) May only be made, if, in the judgment of the office,
in consultation with the Department of Community and Economic
Development, the loan furthers inclusion and participation by
certified social and economic equity applicants and certified
social and economic equity licensees in this Commonwealth's
regulated cannabis industry.
(2) Shall be in a principal amount and form and contain
terms and provisions with respect to security, insurance,
reporting, delinquency charges, default remedies and other
matters as the office, in consultation with the Department of
Community and Economic Development, determines appropriate to
protect the public interest and be consistent with the
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purposes of this section.
(3) May be conditionally approved contingent upon an
applicant being selected by the board to receive a license or
other approval from the board, or upon any other future
action by or on behalf of the applicant conditionally
approved for the loan. A conditionally approved loan shall be
considered by the board when selecting applicants for
licensure.
(4) May include loans for gap financing, soft loans and
predevelopment.
(c) Social and economic equity grants.--
(1) Grants authorized and awarded under this section
shall be awarded on a competitive basis and shall be in
amounts and forms necessary to carry out the purposes of this
chapter as determined by the office.
(2) Grants may be:
(i) conditioned upon the award, grant or issuance of
a license, permit other authorization to engage in
regulated activity under this act; and
(ii) conditionally approved contingent upon an
applicant being selected by the board to receive a
license or other approval from the board, or upon any
other future action by or on behalf of the applicant
conditionally approved for the grant.
(3) A conditionally approved grant shall be considered
by the board when selecting applicants for licensure.
(d) Certain community outreach required.--The office, in
collaboration with the board and in consultation with the
Department of Community and Economic Development, shall develop
culturally and linguistically appropriate activities designed to
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facilitate, promote and include engagement with individuals with
limited English proficiency in all programs and outreach
undertaken to support, engage, target and otherwise attract
social and economic equity applicants to participate in this
Commonwealth's regulated cannabis industry.
CHAPTER 7
LICENSE, PERMIT OR OTHER AUTHORIZATION
SUBCHAPTER A
GENERAL PROVISIONS
Section 701. Ineligibility for licensure, permit or other
authorization.
The following persons shall not be eligible for a license,
permit or other authorization to engage in a regulated activity
under this act, except in extraordinary circumstances as
determined by the board:
(1) An applicant that has been convicted of an offense
related to the functions or duties of owning or operating a
business within three years of the application date, except
that if the board determines that the applicant is otherwise
suitable to be issued a license, permit or other
authorization to engage in a regulated activity under this
act and that granting the license, permit or other
authorization is not inconsistent with public safety, the
board shall conduct a thorough review of the nature of the
crime and conviction, the circumstances surrounding the crime
and evidence of rehabilitation of the applicant and evaluate
the suitability of the applicant based on the evidence found
through the review. In determining which disqualifying
convictions substantially relate to the functions or duties
of owning or operating a cannabis entity, the board's
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determination shall include, but not be limited to, the
following:
(i) a felony conviction within the past three years
involving fraud, money laundering, forgery, human
trafficking and other unlawful conduct related to owning
or operating a business, including the business for which
the applicant is seeking board authorization; and
(ii) a felony conviction within the past three years
for hiring, employing or using a minor in transporting,
carrying, selling, giving away or preparing for sale any
controlled substance to a minor or other person or
selling, offering to sell, furnishing, offering to
furnish, administering or giving any controlled substance
to a minor or other person.
(2) A partnership or a corporation, unless each member
of the partnership or each of the principal officers and
directors or other essential employees of the corporation is
a citizen of the United States. A corporation which otherwise
conforms to the requirements of this act may be issued a
license, permit or other authorization if each of the
corporation's principal officers and more than one-half of
the directors or other essential employees of the corporation
are citizens of the United States.
(3) (Reserved).
(4) A person that had a license, permit or other
authorization issued by the board revoked for cause.
(5) A person that does not hold a license, permit or
other authorization under this act and has been convicted of
a misdemeanor or felony in violation of this act, until the
expiration of a five-year period from the date of the
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sentence for the conviction.
(6) A corporation or partnership, if a principal,
officer, director, essential employee or partner, while not
authorized to hold a license, permit or other authorization
to engage in a regulated activity under this act, has been
convicted of a misdemeanor or felony in violation of this act
or, if required to hold a license, permit or other
authorization to engage in a regulated activity under this
act, has had the license, permit or other authorization
revoked for cause, until the expiration of a five-year period
from the date of the conviction or revocation as determined
by the board.
Section 702. Renewals.
(a) Renewal required.--
(1) Licenses, permits and other authorizations to engage
in a regulated activity under this act issued under this
chapter are subject to renewal every three years.
(2) The application for renewal shall be submitted at
least 90 days prior to the expiration of the license, permit
or other authorization to engage in a regulated activity
under this act and shall include an update of the information
and plans contained in the initial application, prior renewal
applications and the payment of the renewal fee.
(3) In addition to any other conditions or requirements
established by the board for renewal, the board shall require
an applicant for renewal to submit proof of adherence to
plans to hire justice-involved individuals, members of an
impacted family or members of a historically impacted
community submitted to the board as part of its initial
application and the license's adherence to and continuation
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of a labor peace agreement. Absent sufficient proof of
adherence to and continuation of the plan or agreement, the
board shall deny the renewal application or conditionally
approve or defer action on the renewal application and
require the applicant for renewal to develop and submit a
corrective action plan to the board. No less than one year
after submission of the corrective action plan, the board
shall require the applicant to demonstrate actions taken to
correct their failure to adhere to or continue the plan or
agreement and specific actions taken under the corrective
action plan. Nothing shall prevent the board from denying an
application for renewal based solely upon a failure to adhere
to or continue a plan or agreement.
(4) Nothing under this subsection relieves a licensee,
permittee or holder of other authorization of the affirmative
duty to notify the board of any changes relating to the
status of the license, permit, certificate, registration or
other authorization or to any other information contained in
the application materials on file with the board.
(b) Sanctions authorized.--
(1) In addition to any other sanctions the board may
impose under this act, the board may suspend, deny, condition
or revoke or deny renewal of any license, permit,
certification, registration or other authorization to engage
in a regulated activity under this act if the board
determines that the person seeking renewal or a principal or
essential employee of the person is in violation of any
provision of this act, that the person has furnished the
board with false or misleading information or that the
information contained in the person's initial application or
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any renewal application is no longer true and correct.
(2) In the event of a suspension, the person's
authorization to conduct the previously approved regulated
activity shall immediately cease until the board has notified
the person that the suspension is no longer in effect.
(3) In the event of a revocation or failure to renew,
the person's authorization to conduct the previously approved
regulated activity shall immediately cease, and all fees paid
shall be deemed to be forfeited.
Section 703. Construction.
Nothing in this chapter shall be construed to create an
entitlement to a license, permit or other authorization to
engage in a regulated activity under this act by any person. The
board shall, in the board's sole discretion, issue, renew,
condition or deny a cannabis entity license, permit or other
authorization to engage in a regulated activity under this act
based upon the requirements under this act and whether the
issuance of a license, permit or other authorization will
protect public health, promote equity, enhance economic
development or job creation, is in the best interests of this
Commonwealth and advances the intent and purposes of this act.
SUBCHAPTER B
CANNABIS ENTITY LICENSES
Section 704. Cannabis entity license application.
(a) Submission.--
(1) Each applicant for a cannabis entity license shall
submit to the board:
(i) An application on a form, in the manner and at
the time established by the board.
(ii) The applicable application fee.
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(2) A cannabis entity license may not be issued by the
board until after the completion of a background
investigation of the applicant and its principals, essential
employees and other employees as required by the board.
(b) Application requirements.--In addition to any other
information required under this act or regulation of the board,
the application for any type of cannabis entity license shall
include, at a minimum:
(1) Information about the applicant, each principal,
person with a financial interest and any person who
participates directly or indirectly in the control,
management or operation of the cannabis entity.
(2) The Federal and State tax identification numbers of
the applicant and proof of registration with the Department
of Revenue.
(3) Proof that the applicant is in compliance with the
requirements of section 1104.
(4) The applicant's business plan or management
operation profile.
(5) The applicant's operation plan, including a
description of the secure facility or area where cannabis
will be stored, cultivated, processed or sold, inventory and
packaging plans, policies and procedures for energy
efficiency and conservation.
(6) Emergency procedures, including a disaster plan with
procedures to be followed in case of fire or other emergency,
including a proclamation of a disaster or public health
emergency.
(7) A plan to obtain appropriate liability insurance
coverage for the proposed cannabis establishment.
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(8) (Reserved).
(9) The details of a cannabis entity license or similar
license, permit or other authorization applied for, granted
to or denied to the applicant in another jurisdiction,
foreign or domestic, where the personal use of cannabis and
cannabis products or medical marijuana is legal or regulated,
and the consent for the board to acquire copies of the
application submitted or license, permit or other
authorization granted to the applicant in the other
jurisdiction.
(10) The details of loans:
(i) obtained by an applicant from a financial
institution; and
(ii) not approved by a financial institution.
(11) The consent to a background investigation, the
scope of which shall be determined by the board and a release
signed by all individuals and principals subject to a
background investigation agreeing to provide all information
required by the board to complete the background
investigation.
(12) Payment of the applicable cannabis entity license
fee.
(13) The disclosure of any arrests.
(14) The terms of a management service agreement entered
into or proposed to be entered into between a cannabis entity
applicant and another person, including the scope of services
to be provided, the number and compensation of employees.
(15) A list of any adverse actions taken against an
applicant that holds or has held a permit to perform a
regulated activity in a jurisdiction, foreign or domestic,
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where the use of cannabis flower and cannabis products or
medical marijuana is legal or regulated.
(16) A copy of the labor peace agreement required under
section 714.
(17) Proof of the applicant's financial fitness.
(18) The applicant's previous business experience, if
applicable.
(19) A plan to hire justice-involved individuals,
members of an impacted family or individuals who are a member
of a historically impacted community.
(c) Limitation.--An applicant may only submit one
application per cannabis entity license type within a given
licensing round.
(d) Completed applications and updated information
required.--
(1) The board may not consider an incomplete application
or an application that was submitted without the applicable
application fee, unless the board has waived the fee.
(2) The board must notify the applicant in writing if an
application is incomplete or an application fee was not
submitted, who shall have 10 calendar days from the date of
the deficiency notice to submit a complete application to the
board.
(3) Except as otherwise provided in this act, each
cannabis entity shall be required to update the information
in the cannabis entity's initial application within 30 days
of any changes.
(e) Cannabis entity fees.--
(1) The board shall establish a schedule for the payment
of fees by cannabis entities in the amounts required under
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this chapter.
(2) Except as provided under paragraph (4), each
applicant for a cannabis entity license shall pay to the
board, in the form, manner and time as prescribed by
regulation of the board a nonrefundable application fee.
(3) Except as provided under paragraph (4), each
cannabis entity shall pay to the board, in the form, manner
and time as prescribed by regulation of the board:
(i) a license fee;
(ii) a license renewal fee; and
(iii) a monthly verification system fee.
(4) The board may waive the application fees required
under this section for certified social and economic equity
applicants.
(5) The board may impose and collect additional fees not
specified in this section in accordance with the provisions
of this act or by regulation of the board.
(f) License and renewal fees for certified social and equity
licensees.--The license and renewal fee for a certified social
and economic equity licensee shall be 50% of the amount for the
type of license applied for in accordance with the applicable
provisions of this act or may be waived by the board.
(g) Health and safety standards.--The board:
(1) Shall require each cannabis entity to meet all
public health and safety standards and industry best
practices required by the board and all applicable
regulations established by the board on the cannabis entity's
specific authorization and requirements related to cannabis,
cannabis flower, cannabis products and cannabis paraphernalia
under this subchapter.
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(2) May:
(i) Collaborate with the Department of Agriculture
and the Department of Health in developing the public
health and safety standards and industry best practices
required under paragraph (1).
(ii) In consultation with the Department of
Agriculture and the Department of Health, review and
evaluate for use in this Commonwealth the health and
safety standards and industry best practices adopted by
other states or jurisdictions to govern the use of
cannabis, cannabis flower, cannabis products and cannabis
paraphernalia for personal use.
Section 705. Scoring system, lottery system and issuance.
(a) Development of scoring system.--
(1) The board shall, by regulation, develop a scoring
system under which applications for a Category 1 cannabis
cultivator license or a Category 1 cannabis processor license
are administratively ranked and scored based on the clarity,
organization and quality of the information provided in the
application for licensure. The scoring system shall be based
upon a point scale with the board determining the point
categories, number of points for each category, and the
system of point distribution.
(2) When developing the scoring system, the board shall
consider an applicant's potential impact on the following:
(i) Creation of quality, living-wage jobs and full-
time permanent jobs.
(ii) Economic development.
(iii) The use of organized labor in construction of
the cannabis entity's facility.
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(iv) Inclusion and participation in the regulated
cannabis industry by members of historically impacted
communities, justice-involved individuals or members of
an impacted family.
(v) Equality of opportunity in employment and
contracting.
(b) Ranking.--The board:
(1) Shall rank applications, from the most to the least
points, according to the scoring system.
(2) If two or more eligible applicants have the same
number of points, those applicants shall be grouped together
and, if there are more eligible applicants in this group than
the remaining number of licenses available, the board may
increase the number of the Category 1 cultivator and Category
1 processor licenses as provided for under section 712.
(3) Shall award bonus points to applicants that are
certified social and economic equity applicants.
(4) May award bonus points to applicants that submit a
plan to have 51% of their workforce be comprised of justice-
involved individuals, members of an impacted family, and
members of a historically impacted community.
(c) Lottery system.--The board shall:
(1) Establish by regulation a lottery system for
Category 2 cannabis microcultivator licenses, Category 2
cannabis microprocessor licenses, transporter licenses and
on-site consumption licenses.
(2) In addition to the requirements set forth in section
704(b), establish an application with eligibility
requirements that the board will grade on a pass/fail basis.
(3) Enter applications that pass under paragraph (2)
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into the lottery.
(4) Award licenses in at least two separate rounds, the
first of which may only consist of certified social and
economic equity applicants.
(5) Establish a goal to award 50% of Category 2 cannabis
microcultivator licenses, Category 2 cannabis microprocessor
licenses, transporter licenses and on-site consumption
licenses to certified social and economic equity applicants.
(6) Of the percentage of certified social and economic
equity licenses awarded under paragraph (5), establish a goal
to award 50% to certified social and economic equity
applicants who are justice-involved individuals or members of
an impacted family.
(d) Deposit of license and renewal fee.--The total amount of
all license and renewal fees imposed and collected by the board
under this chapter shall be deposited into the Cannabis Revenue
Fund.
(e) Term.--A cannabis entity license shall be in effect
unless suspended, revoked or not renewed by the board upon good
cause shown.
(f) License regions.--The board shall issue cannabis entity
licenses to applicants in a manner ensuring that each of the
regions established under section 404(d)(2) receives licenses
proportional to the region's population with each region being
issued at least one each of each kind of cannabis entity
license.
Section 706. Licensing of principals required.
(a) License required.--All principals shall obtain a
principal license from the board.
(b) Application.--Upon application for a cannabis entity
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license, all principals shall submit an application for a
principal license. A principal license application shall be in a
form prescribed by the board and shall include the following:
(1) Verification of status of the person as a principal
from the applicant or cannabis entity.
(2) Job title or a description of the person's
responsibilities as a principal.
(3) All releases necessary to obtain information from
governmental agencies, employers and other organizations as
required by the board.
(4) Fingerprints, which shall be submitted to the
Pennsylvania State Police if not submitted with the
application for a cannabis entity license.
(5) A photograph that meets the standards of the
Commonwealth Photo Imaging Network.
(6) Details relating to a similar license, permit or
other authorization granted to the person in another
jurisdiction, foreign or domestic.
(7) Any information required by the board to complete
the required background investigation.
(8) Additional information as may be required by the
board.
(c) Issuance.--
(1) Following review of the application and the receipt
and review of the background investigation, the board may
issue a principal license if the applicant has proven by
clear and convincing evidence that the applicant is a person
of good character, honesty and integrity and is eligible and
suitable to be licensed as a principal.
(2) Each license issued to a principal under this
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section shall include a unique alphanumeric principal
employee number.
(d) Nontransferability.--A principal license may not be
transfered.
(e) Essential employee registration exemption.--An
individual who is issued a principal license does not need to
obtain an essential employee registration under section 715.
Section 707. Cannabis cultivator licenses.
(a) Category 1 cultivator and Category 2 microcultivator
authorization.--A cannabis cultivator license authorizes a
Category 1 cultivator licensee and a Category 2 cannabis
microcultivator licensee to acquire, cultivate, possess, package
and deliver and, subject to subsection (h), sell cannabis,
cannabis flower and cannabis seeds.
(b) Prohibitions.--
(1) Except as provided under paragraph (3), a person may
not hold a legal, equitable, ownership or beneficial
interest, directly or indirectly, or participate in the
management of more than one cannabis cultivator licensee
under this act.
(2) A cannabis cultivator license may not be issued,
transferred, owned or otherwise change control to a person,
partnership, corporation, limited liability company or trust
or an intermediary, subsidiary, holding company, affiliate or
any other form of business entity that holds, owns or
controls a cannabis entity license or other authorization
under this chapter.
(3) An individual, partnership, corporation, limited
liability company or trust or an intermediary, subsidiary,
holding company, affiliate or any other form of business
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entity that holds, owns or controls one cultivator license
may hold, own or control a total of one processor license.
(c) Application and eligibility requirements.--In addition
to the requirements under section 704 and the scoring and
lottery systems under section 705:
(1) A person applying for a Category 1 cannabis
cultivator license shall:
(i) Submit to the board in the time and in the
manner determined by the board a completed application
and a nonrefundable application fee of $5,000.
(ii) Consent to the conduct of a background
investigation of the applicant and its principals,
essential employees and other employees as required by
the board.
(iii) Satisfy all other requirements for application
and licensure under this act and regulations of the board
promulgated under this act.
(iv) Have relevant knowledge and expertise necessary
as determined by the board.
(2) A person applying for a Category 2 microcultivator
license:
(i) Shall submit to the board in the time and in the
manner determined by the board a completed application
and a nonrefundable application fee of $2,500.
(ii) Consent to the conduct of a background
investigation of the applicant and its principals,
essential employees and other employees as required by
the board.
(iii) Satisfy all other requirements for application
and licensure under this act and regulations of the board
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promulgated under this act.
(iv) Must meet the following requirements:
(A) The applicant employs or will employ no more
than 10 employees.
(B) The applicant has relevant knowledge and
expertise necessary, as determined by the board.
(d) Number of licenses.--Except as provided in section 712,
the board shall issue:
(1) 50 Category 1 cannabis cultivator licenses.
(2) 50 Category 2 cannabis microcultivator licenses.
(e) Licensing tier system.--
(1) Prior to accepting applications, the board shall
adopt a licensing tier system for the issuance of Category 1
cannabis cultivators and Category 2 cannabis microcultivators
based on total square footage of indoor and outdoor cannabis
grow canopy. The licensing tier system for a Category 1
cannabis cultivator shall at a minimum include 10 tiers. The
licensing tier system for a Category 2 cannabis
microcultivator shall at a minimum include five tiers.
(2) The following apply:
(i) A cannabis cultivator may submit an application,
in the form, manner and time determined by the board, to
expand or reduce the licensing tier type under which it
is classified.
(ii) In determining whether or not to expand or
reduce the licensing tier type of a cannabis cultivator,
the board may authorize an increase or decrease of
cannabis cultivator's grow canopy. The board may
authorize an increase in a cannabis cultivator's cannabis
flowering stage cultivation space in increments of 3,000
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square feet based on:
(A) Market demand.
(B) The cannabis cultivator's ability to
increase space.
(C) The cannabis cultivator's history of
compliance or noncompliance with this act and
regulations of the board.
(3) In its review of an application to renew a Category
1 cannabis cultivator license, the board shall analyze the
cultivation records of the cannabis cultivator. The board may
reduce the licensee's maximum cannabis grow canopy to a lower
licensing tier if it finds that the cannabis cultivator has
sold less than 70% of the cannabis it cultivated during the
one year period proceeding the application for renewal. The
board may take into account whether the cannabis cultivator
has an indoor or outdoor cannabis grow canopy when making
this determination.
(4) In its review of an application to renew a Category
2 cannabis microcultivator license, the board shall analyze
the cultivation records of the cannabis microcultivator. The
board may reduce the licensee's maximum cannabis grow canopy
if it finds that the cannabis cultivator has sold less than
70% of the cannabis it cultivated during the one year period
proceeding the application for renewal, but the board may not
reduce cannabis grow canopy below 5,000 square feet. The
board may take into account whether the cannabis cultivator
has an indoor or outdoor cannabis grow canopy when making
this determination.
(f) License and renewal fees.--
(1) The board shall use the licensing tier system
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adopted under subsection (e)(1) to determine the license and
renewal fees for Category 1 cannabis cultivators and, subject
to the following:
(i) Each applicant for a Category 1 cannabis
cultivators license shall designate the tier at which the
applicant requests to be initially licensed in the
application under subsection (c)(1).
(ii) The licensing fee imposed by the board under
each Category 1 cannabis cultivator licensing tier shall
be calculated by multiplying the total square feet of
indoor or outdoor cannabis grow canopy used or proposed
to be used by the applicant or cannabis cultivator by
$1.50.
(iii) The licensing renewal fee imposed by the board
under each Category 1 cannabis cultivators licensing tier
shall be calculated by multiplying the total square feet
of indoor and outdoor cannabis grow canopy used or
proposed to be used by the applicant or Category 1
cannabis cultivator by $0.75.
(2) The board shall use the licensing tier system
adopted under subsection (e)(1) to determine the license and
renewal fees for Category 2 cannabis microcultivators,
subject to the following:
(i) Each applicant for a Category 2 cannabis
microcultivator license shall designate the tier at which
the applicant requests to be initially licensed in the
application under subsection (c)(2).
(ii) The licensing fee imposed by the board under
each Category 2 cannabis microcultivator licensing tier
shall be calculated by multiplying the total square feet
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of indoor and outdoor cannabis grow canopy used or
proposed to be used by the applicant by $0.50.
(iii) The licensing renewal fee imposed by the board
under each category 2 cannabis microcultivator licensing
tier shall be calculated by multiplying the total square
feet of indoor and outdoor cannabis grow canopy used or
proposed to be used by the Category 2 cannabis
microcultivator by $0.25.
(g) Grow canopies.--
(1) A Category 1 cannabis cultivator's cannabis
establishment may contain up to 125,000 square feet of
cannabis grow canopy for plants in the cannabis flowering
stage.
(2) (i) At the time of initial licensure, a Category 2
cannabis microcultivator's cannabis establishment may
contain up to 5,000 square feet of cannabis grow canopy
for plants in the cannabis flowering stage.
(ii) If the board authorizes an increase to a
Category 2 cannabis microcultivator's cannabis grow
canopy, the maximum cannabis grow canopy for cultivating
cannabis plants in the cannabis flowering stage may not
exceed 14,000 square feet.
(3) The cultivation of cannabis plants in any stage of
growth must be cultivated in a secure facility or area of the
cannabis cultivator's cannabis establishment.
(h) Sale of cannabis.--
(1) A Category 1 cannabis cultivator may sell:
(i) Cannabis to:
(A) A Category 1 cannabis cultivator or a
Category 2 cannabis microcultivator.
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(B) A Category 1 cannabis processor or a
Category 2 cannabis microprocessor.
(ii) Cannabis seeds and cannabis flower to the
board.
(2) A Category 2 cannabis microcultivator may sell:
(i) Cannabis to:
(A) A Category 1 cannabis cultivator or a
Category 2 cannabis microcultivator.
(B) A Category 1 cannabis processor or a
Category 2 cannabis microprocessor.
(ii) Cannabis seeds and cannabis flower to the
board.
(i) Duties of board.--The board, by regulation, shall
require:
(1) Cannabis cultivated or otherwise produced by a
cannabis cultivator to be tested in accordance with this act.
(2) Cannabis cultivators to submit an annual report
describing the licensee's electrical and water usage at the
licensee's cannabis establishment during the preceding
calendar year.
(3) Cannabis cultivators to meet all public health and
safety standards, industry best practices and all applicable
regulations established by the board related to the
cultivation of cannabis, including the propagation or cloning
of immature cannabis plants and seeds.
(j) Authorization.--A cannabis cultivator may do the
following:
(1) Obtain and transport seed and immature plant
material from outside this Commonwealth during at least one
30-day period per year as designated by the board to
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grow cannabis.
(2) Obtain seed and immature plant material from a
medical marijuana organization licensed under the Medical
Marijuana Act or another cannabis cultivator.
(3) Package cannabis seed and cannabis flower to be sold
directly to the board as subject to the requirements set by
the board and this act.
Section 708. Cannabis processor licenses.
(a) Category 1 cannabis processor and Category 2
microprocessor authorization.--A cannabis processor license
authorizes a Category 1 cannabis processor licensee and a
Category 2 cannabis microprocessor licensee to acquire, possess,
dry and cure cannabis from a cannabis cultivator or cannabis
microcultivator and process, including package, cannabis into
cannabis flower and cannabis products for sale under subsection
(e).
(b) Prohibitions.--
(1) Except as provided under paragraph (3), a person may
not hold a legal, equitable, ownership or beneficial
interest, directly or indirectly, or participate in the
management of more than one cannabis processor license under
this act.
(2) A cannabis processor license may not be issued,
transferred, owned or otherwise change control to a person,
partnership, corporation, limited liability company or trust
or an intermediary, subsidiary, holding company, affiliate or
any other form of business entity that holds, owns or
controls a cannabis entity license or other authorization
under this chapter.
(3) An individual, partnership, corporation, limited
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liability company or trust or an intermediary, subsidiary,
holding company, affiliate or any other form of business
entity that holds, owns or controls one processor license may
hold, own or control a total of one cultivator license.
(c) Application and eligibility requirements.--In addition
to the requirements under section 704:
(1) A person applying for a Category 1 cannabis
processor license shall:
(i) Submit to the board in the time and in the
manner determined by the board a completed application
and a nonrefundable application fee of $5,000.
(ii) Consent to the conduct of a background
investigation of the applicant and its principals,
essential employees and other employees as required by
the board.
(iii) Satisfy all other requirements for application
and licensure under this act and regulations of the board
promulgated under this act.
(iv) Have relevant knowledge and expertise
necessary, as determined by the board.
(2) A person applying for a Category 2 microprocessor
license:
(i) Shall submit to the board in the time and in the
manner determined by the board a completed application
and a nonrefundable application fee of $2,500.
(A) The applicant employs or will employ no more
than 10 employees.
(B) The applicant has relevant knowledge and
expertise necessary, as determined by the board.
(ii) Consent to the conduct of a background
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investigation of the applicant and its principals,
essential employees and other employees as required by
the board.
(iii) Satisfy all other requirements for application
and licensure under this act and regulations of the
board.
(d) Number of licenses.--Except as provided in 712, the
board shall issue:
(1) 50 Category 1 cannabis processor licenses.
(2) 50 Category 2 cannabis microprocessor licenses.
(e) Fees.--
(1) The license fee for a Category 1 cannabis processor
shall be $50,000.
(2) The license fee for a Category 2 cannabis
microprocessor shall be $15,000.
(3) The renewal fee for a Category 1 cannabis processor
shall be $25,000.
(4) The renewal fee for a Category 2 cannabis
microprocessor shall be $7,500.
(f) Sale of cannabis.--
(1) A Category 1 cannabis processor may sell cannabis
flower, cannabis products to:
(i) A Category 1 cannabis processor.
(ii) A Category 2 cannabis microprocessor.
(iii) The board.
(2) A Category 2 cannabis microprocessor may sell
cannabis flower, cannabis products to:
(i) A Category 1 cannabis processor.
(ii) A Category 2 cannabis microprocessor.
(iii) The board.
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Section 709. Cannabis transporter license.
(a) Authorization and prohibitions.--
(1) A cannabis transporter license authorizes a person
to transport cannabis, cannabis flower and cannabis products
in this Commonwealth:
(i) from one cannabis entity to another cannabis
entity as provided under this act; and
(ii) to the board.
(2) A person applying for or holding a cannabis
transporter license may not have a direct or indirect
interest, including by stock ownership, interlocking
directors, mortgage or lien, personal or real property or
other means, in a medical marijuana organization.
(3) A person may not have a direct or indirect financial
or controlling interest in more than one cannabis transporter
license issued under this act.
(4) A cannabis transporter license may not be issued,
transferred, owned or otherwise change in control to a
person, partnership, corporation, limited liability company
or trust or an intermediary, subsidiary, holding company,
affiliate or any other form of business entity that holds,
owns or controls any other type of cannabis entity license or
permit.
(b) Application.--In addition to the requirements under
section 704(b), an application for a transporter license must
require the applicant to satisfy any other requirements for the
application and licensure under this act and regulations of the
board.
(c) Number of licenses.--Except as provided in section 712,
the board may issue up to 50 cannabis transporter licenses.
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(d) Fees.--
(1) An application for a cannabis transporter license
shall be accompanied by a nonrefundable application fee of
$5,000.
(2) The license fee for a transporter license shall be
$10,000.
(3) A cannabis transporter in good standing shall pay a
$2,500 license renewal fee.
(e) Duties of board.--In addition to the board's regulatory
authority, the board, by regulation, shall require a cannabis
transporter to meet all public health and safety standards,
industry best practices and all applicable regulations
established by the board related to the transportation of
cannabis, cannabis flower and cannabis products.
Section 710. On-site consumption license.
(a) Authorization and prohibitions.--
(1) A cannabis on-site consumption license authorizes a
cannabis on-site consumption licensee to:
(i) (A) Subject to clause (B), operate a single on-
site consumption premises on which cannabis flower or
cannabis products may be sold and consumed by
individuals 21 years of age or older in accordance
with this act and any regulations adopted under this
act.
(B) Cannabis flower and cannabis products may
not be smoked indoors.
(ii) Purchase cannabis flower and cannabis products
from the board and sell an amount of cannabis flower or
cannabis products to an individual 21 years of age or
older for on-site consumption in amounts authorized by
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the board.
(iii) Purchase low-dose cannabis from the board and
sell low-dose cannabis to an individual 21 years of age
or older for off-site consumption.
(2) A cannabis on-site consumption licensee may not hold
more than one cannabis on-site consumption license.
(3) A cannabis on-site consumption licensee may not be
issued, transferred, owned or otherwise change in control to
a person, partnership, corporation, limited liability company
or trust or an intermediary, subsidiary, holding company,
affiliate or any other form of business entity that holds,
owns or controls any other type of cannabis entity license or
permit.
(b) Age verification required.--
(1) Except as provided under paragraph (2), each on-site
consumption licensee must utilize a scan device for a valid
photo driver's license or identification card issued by the
Department of Transportation or by any other state to verify
the age of each individual attempting to enter an on-site
consumption premises and purchase cannabis flower or cannabis
product before making a sale.
(2) A valid Canadian driver's license or other bona fide
Canadian identification such as a Canadian-issued passport,
or a valid Armed Forces of the United States identification
card, a valid passport or a travel visa issued by the United
States or a foreign country that contains the holder's
photograph shall, for the purpose of this act, be accepted as
an identification card.
(c) Requirements.--An applicant for a cannabis on-site
consumption license shall satisfy all other requirements for
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licensure as a cannabis entity under this act and regulations of
the board, including consent to a background investigation as
determined by the board.
(d) Number of licenses.--Except as provided in section 712,
the board may issue up to 100 on-site consumption licenses.
(e) Fees.--
(1) The nonrefundable application fee for a cannabis on-
site consumption license is $5,000.
(2) The license fee for a cannabis on-site consumption
license is $10,000.
(3) An on-site consumption licensee in good standing
shall pay a $5,000 renewal fee.
(f) Local control.--An on-site consumption establishment may
operate only if the municipality where the on-site consumption
establishment is proposed to be located has passed an ordinance
or resolution that expressly allows for the operation of the on-
site consumption premises, and sets the number of on-site
consumption premises permitted in the municipality.
(g) Additional training required.--In addition to the
cannabis responsible training under section 717, the board shall
develop additional health and safety training requirements for
employees of an on-site consumption licensee.
(h) Prohibitions.--An on-site consumption licensee may not:
(1) Distribute or allow the distribution of free samples
of cannabis flower or cannabis products in the licensed
cannabis establishment.
(2) Allow the consumption of alcohol in the licensed
cannabis establishment.
(3) Allow the smoking of cannabis flower, cannabis
products, tobacco or tobacco products inside the cannabis
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establishment.
(4) Allow the use or consumption of cannabis flower or
cannabis products by an individual 21 years of age or older
who displays any visible signs of hallucinating or
intoxication.
(5) Admit onto the licensed premises an individual who
is under the age of 21 years.
(6) Sell low-dose cannabis for off-site consumption at
hours earlier or later than a cannabis store.
(7) Sell more cannabis flower or cannabis products for
on-site consumption in an amount permitted by the board.
(8) Sell low-dose cannabis for off-site consumption to
an individual 21 years of age or older in an amount permitted
by the board.
(9) Except as permitted under subsection (a)(1)(iii),
permit the removal cannabis flower or cannabis product from
the licensed establishment.
(10) Be located within 1,000 feet from an elementary
school, secondary school or day care.
(i) Requirements.--An on-site consumption licensee shall
post signs and make available brochures in the same manner as a
cannabis store as required under section 505.
Section 711. (Reserved).
Section 712. Need for additional licenses.
In determining whether to exercise the board's authority to
issue additional cannabis entity licenses under this chapter,
the board shall consider the following:
(1) The percentage of illicit cannabis flower and
cannabis product sales occurring in this Commonwealth using
data analyzed and compiled by the Pennsylvania State Police,
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the United States Drug Enforcement Agency or any other
Federal or State agency to ascertain the total illicit sales
in this Commonwealth compared to the amount of sales of
cannabis flower and cannabis products in cannabis stores and
at on-site consumption premises.
(2) Whether there is an adequate supply of cannabis
flower and cannabis products to serve patients and caregivers
under the Medical Marijuana Act and cannabis consumers under
this act.
(3) Whether there is an oversupply of cannabis seeds,
cannabis flower and cannabis products in this Commonwealth,
which could result in trafficking to another state or in the
diversion of cannabis seeds, cannabis flower and cannabis
products to illicit markets.
(4) Population increases or shifts.
(5) The number, density and location of cannabis entity
licenses in this Commonwealth, including the number, density
and location of cannabis entity licenses held by qualified
social and economic equity licensees.
(6) Actual or perceived security risks associated with
increasing the number and location of cannabis entity
licenses.
(7) The past safety record of cannabis entities.
(8) The board's ability to adequately regulate
additional cannabis entities.
(9) Findings or recommendations of the Office of Social
and Economic Equity related to reducing or eliminating
identified barriers to entry into this Commonwealth's
regulated cannabis industry by social and economic equity
applicants and residents of historically impacted
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communities.
(10) Changes to Federal law.
(11) Any other criteria the board may determine
necessary and appropriate.
Section 713. Change in ownership or control.
(a) Notification and approval.--A cannabis entity shall
notify the board in a manner determined by the board immediately
upon becoming aware of any proposed or contemplated change in
ownership or control of a cannabis entity licensee by any
person.
(b) Qualification of purchaser of cannabis entity license
and change of control.--The purchaser of the assets, other than
in the ordinary course of business, of a cannabis entity license
shall independently qualify for a license as provided under this
act and shall pay the license fee, except as otherwise required
under this section. The license fee shall be paid upon the
assignment and actual change of control or ownership of the
cannabis entity license.
(c) Fee reduction.--The board may eliminate the need for
qualification and proportionately reduce, but not eliminate, the
new license fee otherwise required under this section in
connection with a change of ownership or control of a cannabis
entity license, depending upon the type of transaction, the
relevant ownership interests and changes to the ownership
interests resulting from the transaction and other
considerations deemed relevant by the board.
(d) Transferability.--A cannabis entity licensee may not
transfer or initiate a change in ownership or control of the
cannabis entity license unless the cannabis entity licensee has
received approval for renewal of the cannabis entity license at
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least twice.
(e) Social and economic equity.--If a certified social and
economic equity licensee seeks to transfer, sell or grant the
licensee's cannabis entity license to a person that does not
qualify as a certified social and economic equity applicant that
meets the other requirements under this chapter, the agreement
to transfer, sell or grant the cannabis entity license to
another person shall include a requirement that the person
receiving a cannabis entity license held by the certified social
and economic equity licensee shall pay the board for deposit
into the Cannabis Business Development Fund an amount equal to
any outstanding loan, grant or waived fee issued by the board to
the certified social and economic equity licensee.
(f) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Change in ownership or control." The consolidation, merger
or acquisition by a person or group of persons acting in concert
of more than 20% of a cannabis entity licensee's securities or
other ownership interests, with the exception of any ownership
interest of the person that existed at the time of initial
licensing and payment of the initial cannabis entity license
fee, or more than 20% of the securities or other ownership
interests of a corporation or other form of business entity
which owns directly or indirectly at least 20% of the voting or
other securities or other ownership interests of the cannabis
entity licensee.
Section 714. Labor peace agreement.
(a) Labor peace agreement required.--At the time of
application for a cannabis entity license, an applicant must
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submit with its application a labor peace agreement signed by a
bona fide labor organization and the applicant. The following
apply:
(1) A labor peace agreement shall be an ongoing material
condition of an applicant being issued a license.
(2) If an employer has entered into a collective
bargaining agreement with a bona fide labor organization,
attestation of the agreement shall be included in the
application.
(3) A cannabis entity licensee seeking renewal of a
license that has not entered into a collective bargaining
agreement with a bona fide labor organization shall submit an
attestation of compliance of the initial agreement signed by
the applicant and the bona fide labor organization which was
party to the agreement. An applicant that has complied with
the terms of a labor peace agreement and has not entered into
an agreement with a bona fide labor organization shall not be
required to enter into a new labor peace agreement for the
purposes of renewal.
(b) Compliance.--Failure to comply with the terms agreed to
in the labor peace agreement for the entire duration of the
agreement shall result in fines or denial, suspension or
revocation of a license. The following apply:
(1) The board shall determine a schedule establishing
the ongoing review of the status and maintenance of a labor
peace agreement to assess the eligibility of a license
holder.
(2) Upon review and findings of unsatisfactory status or
the insufficient maintenance of a labor peace agreement, the
board shall issue a fine or suspend the cannabis entity's
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license, or both.
(3) Nothing in this section shall void the right of a
bona fide labor organization to pursue a complaint of unfair
labor practices in violation of Federal or State law with the
the National Labor Relations Board or Pennsylvania Labor
Relations Board.
(4) An applicant or a cannabis entity licensee seeking
renewal that the National Labor Relation Board or
Pennsylvania Labor Relations Board has determined engaged in
unfair labor practices in violation of a labor peace
agreement or collective bargaining agreement shall be denied
the issuance or renewal of a license.
(5) Upon compliance with the terms of arbitration order
issued by the National Labor Relations Board or Pennsylvania
Labor Relations Board, and entry into a new labor peace
agreement, an applicant shall be permitted the issuance of a
license.
(6) Where a majority of the employees of a cannabis
entity license have voted to join a bona fide labor
organization, failure to enter into a collective bargaining
agreement within 200 days of the opening of a cannabis
establishment may result in a referral to the National Labor
Relations Board.
(c) Applicability.--This section shall apply to the issuance
of all licenses, including transfers and renewals.
(d) Jurisdiction of Pennsylvania Labor Relations Board.--
Except where preempted by Federal law, the Pennsylvania Labor
Relations Board shall have jurisdiction over representation and
unfair labor practices involving a cannabis entity.
SUBCHAPTER C
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REGISTRATIONS, PERMITS AND CERTIFICATES
Section 715. Registration of essential employees.
(a) Registration required.--All essential employees must
apply for and obtain an essential employee registration from the
board.
(b) Application.--Applications for registration as an
essential employee shall be in a form prescribed by the board
and shall include the following:
(1) Verification of the essential employee's employment
status by the applicant or cannabis entity.
(2) Job title and a description of the essential
employee's employment duties and responsibilities.
(3) All releases necessary to obtain information from
governmental agencies, former and current employers and other
organizations or entities, as prescribed by the board.
(4) Fingerprints, which shall be submitted to the
Pennsylvania State Police.
(5) A photograph that meets the standards of the
Commonwealth Photo Imaging Network.
(6) Details relating to a similar license, permit or
other similar authorization obtained in another jurisdiction,
foreign or domestic.
(7) Additional information as may be required by the
board.
(c) Issuance.--
(1) Following review of the application and the receipt
and review of the background investigation, the board may
issue an essential employee registration if the board
determines the applicant is eligible and suitable to be
registered as an essential employee.
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(2) Each essential employee registration issued by the
board shall include a unique alphanumeric essential employee
registration number.
(d) Registration not transferable.--An essential employee
registration issued under this section is not transferable.
Section 715.1. Workplace protections.
(a) Conditions of licensure or any other authorization.--
(1) A cannabis entity or any other entity authorized and
regulated by the board under this act shall comply with all
Federal, State and local occupational safety requirements and
any occupational safety requirements promulgated by the
board.
(2) Upon a finding by the board of a violation under
paragraph (1), the board may suspend, revoke, refuse to renew
or issue a fine to a cannabis entity or any other person
authorized to engage in a regulated activity under this act.
(b) Workplace safety study and recommendations.--
(1) The Pennsylvania Occupation Safety and Health
Surveillance Program, in consultation with the Department of
Labor and Industry and the board, shall conduct a study to
identify applicable OSHA standards that apply to the cannabis
industry and offer recommendations for new standards that are
needed to improve the health and safety of cannabis entity
workplaces.
(2) No later than January 1, 2027, the board shall send
the findings of the study to the chair and minority chair of
the Labor and Industry Committee of the Senate and the Labor
and Industry Committee of the House of Representatives.
Section 716. Required reports.
(a) Social and economic equity report.--
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(1) On the first December 31, at least one year after
the effective date of this paragraph, and on December 31 of
each year thereafter, or upon request by the board, each
cannabis entity shall report to the board, on a form and in a
manner provided by the board, information of a scope and
sufficiency that allows the board to:
(i) assess the extent of social and economic equity
inclusion and participation programs and activities in
this Commonwealth's and regulated cannabis industry; and
(ii) develop recommendations and measures to reduce
or eliminate identified barriers to entry, including
access to capital.
(2) The information to be collected and reported shall
identify updates on any activity described by a cannabis
entity on their application to improve participation and
inclusion in the regulated cannabis industry for individuals
who qualify as a social and economic applicant.
(b) Fine.--Failure to provide a report under subsection (a)
may result in a fine as determined by the board.
Section 717. Cannabis responsible training required.
(a) Training required.--Within 45 days of the commencement
of operations by the board or a cannabis entity, each manager,
supervisor, employee, agent or other person employed by the
board and each essential employee involved in the cultivation,
processing, sale, transportation or handling of cannabis or
cannabis products, as determined by regulation of the board,
shall attend and complete a responsible cannabis training
course.
(b) Course curriculum.--The responsible cannabis training
course shall include at least four hours of instruction time.
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The course curriculum shall be designed to provide cannabis
store and cannabis-entity-specific instruction applicable to the
type of cannabis entity. The instruction shall include the
following:
(1) Health and safety issues related to the use of
cannabis flower and cannabis products, including instruction
on the physical and physiological effects of cannabis.
(2) The responsible use of cannabis seeds, cannabis
flower, cannabis products and cannabis paraphernalia.
(3) Quantity limitations on sales to cannabis consumers.
(4) Safe storage of cannabis seeds, cannabis flower,
cannabis products and cannabis paraphernalia.
(5) Compliance with all inventory tracking system
regulations.
(6) Waste handling, management and disposal.
(7) Health, sanitation and safety standards.
(8) Maintenance of records.
(9) Security and surveillance requirements.
(10) Required inspections, including random inspections.
(11) Privacy and confidentiality requirements relating
to cannabis consumers.
(12) Packaging, processing and labeling requirements for
sales to cannabis consumers.
(13) Cultivation methods and the safe use and storage of
chemicals, including pesticides, herbicides, compounds,
fertilizers and other products.
(14) The use, maintenance and storage of equipment and
devices used in the cultivation, processing and sale or
offering for sale of cannabis seeds, cannabis flower and
cannabis products.
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(15) Any other subjects as prescribed by regulation of
the board.
(c) Certification.--Upon the successful completion of the
responsible cannabis training program, the board shall deliver a
certificate signifying an individual's successful completion of
the course, either through United States Postal Service mail or
electronically by email, to the individual and the cannabis
store or entity employing the individual. The cannabis store or
cannabis entity shall retain a copy of the course completion
certificate for the duration of the individual's employment.
(d) Failure to comply.--A cannabis entity whose employees
are required to complete training under this section and fail to
comply with this section may be subject to administrative
sanction by the board.
(e) Continuing education.--The board may adopt regulations
to require continuing education on a prescribed schedule.
Section 718. Cannabis workers' cooperative licensure.
(a) Licenses.--In addition to the number of cannabis entity
licenses allowed to be awarded under this act, two licenses for
each type of cannabis entity category shall be awarded to an
applicant that applies as a cannabis workers' cooperative.
Nothing shall require the board to issue a license under this
section if the applicant does not meet the requirements of this
act or any regulation promulgated under this act or the
applicable provisions of 15 Pa.C.S. (related to corporations and
unincorporated associations) and any applicable regulation
promulgated under to 15 Pa.C.S.
(b) Applicability.--All requirements of this act and any
regulation promulgated regarding application, licensure and
compliance shall apply to a cannabis entity license issued to a
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cannabis workers' cooperative.
(c) Qualifications.--In addition to meeting the requirements
of 15 Pa.C.S. Ch. 77 (relating to workers' cooperative
corporations), the board shall establish additional
qualifications for a cannabis workers' cooperative to ensure the
cannabis worker cooperative is practicing the highest standards
of worker governance, control and financial rights.
(d) Failure to maintain a cannabis workers' cooperative.--If
a cannabis workers' cooperative terminates its status as a
workers' cooperative or fails to meet the requirements of this
act or any regulation promulgated, the board may revoke or
suspend the cannabis entity license that was awarded to the
cannabis workers' cooperative.
Section 719. Duty of licensees, permittees and other authorized
persons.
A person or employee of a person that is licensed, permitted
or otherwise authorized to engage in a regulated activity under
this act shall have the duty to:
(1) provide any assistance or information required by
the board or the Pennsylvania State Police and to cooperate
in any inquiry, investigation or hearing;
(2) consent to inspections, searches and seizures;
(3) inform the board of any actions which the person
believe would constitute a violation of this part; and
(4) inform the board of any arrests for any violations
of offenses enumerated under this act, the Controlled
Substances Act or 18 Pa.C.S. (relating to crimes and
offenses).
Section 720. Exigent circumstance determination.
(a) Award.--If, prior to the notice the board is required to
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give under section 405, the board determines that due to exigent
circumstances, including insufficient product being available
for sale at cannabis stores, and it being in the best interests
of the Commonwealth to make the retail sale of cannabis and
cannabis products available to cannabis consumers, the board may
award one cannabis cultivator license, one cannabis processor
license or both to a grower/processor.
(b) License.--A grower/processor may apply for and be issued
one cannabis cultivator license, one cannabis processor license
or both.
(c) Application.--
(1) A grower/processor applying for a cannabis
cultivator license, a cannabis processor license or both
shall submit an application created by the board in a manner
determined by the board.
(2) The board shall require each grower/processor who
applies to obtain a cannabis cultivator license, cannabis
processor license or both to update the information in their
applications submitted to the Department of Health under
section 602 of the Medical Marijuana Act.
(3) Upon submission of an application, the Department of
Health shall provide the board with complete and unfettered
access to all department records relating to any
grower/processor who applies to obtain a cannabis cultivator
license, a cannabis processor license or both.
(4) No later than 30 days after a grower/processer
applying for a license under this section has updated their
information under paragraph (2), the board shall review the
records and issue a license sought by a grower/processor
subject to the limitations in subsection (b), so long as the
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grower/processor meets the requirements of the applicable
license they are seeking under this act.
(5) A grower/process applying for a cannabis cultivator
license, a cannabis processor license or both shall pay a
nonrefundable application fee of $15,000.
(d) Licensing and renewal fees.--
(1) A grower/processor shall pay a license fee of
$20,000,000 for each license awarded under this section.
(2) A cannabis cultivator license issued under this
section shall be in addition to the number of licenses
authorized under section 707. A cannabis processor license
issued under this section shall be in addition to the number
of licenses authorized under section 708.
(e) Deposit of funds.--All licensing fees paid to the board
under this section shall be deposited in the General Fund.
(f) Definition.--For the purposes of this section, the term
"grower/processor" shall have the same meaning as defined
section 103 of the Medical Marijuana Act.
CHAPTER 8
PACKAGING, LABELING, ADVERTISING AND TESTING
Section 801. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Regulated cannabis." Cannabis seeds, cannabis flower and
cannabis products cultivated, processed, sold or offered for
sale in this Commonwealth as provided for under this act.
Section 801.1. Packaging and labeling.
(a) General rule.--The board shall adopt and promulgate
regulations to govern:
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(1) The advertising, branding, marketing, packaging and
labeling of regulated cannabis, including rules pertaining to
and governing the accuracy of information and the restriction
of marketing and advertising to minors and other individuals
under 21 years of age.
(2) The advertising, branding, marketing, packaging and
labeling of cannabis paraphernalia and other paraphernalia,
including rules pertaining to and governing the accuracy of
information and the restriction of marketing and advertising
to minors and other individuals under 21 years of age.
(b) Required regulations.--The regulations adopted and
promulgated by the board under subsection (a) shall include, but
not be limited to, requirements that:
(1) The packaging of regulated cannabis conforms with
the requirements of the Poison Prevention Packaging Act of
1970 (Public Law 91-601, 15 U.S.C. § 1471 et seq.).
(2) Packaging of regulated cannabis sold or displayed
for sale to cannabis consumers in multiple serving sizes
shall meet the following requirements:
(i) Packaging shall include the statement "INCLUDES
MULTIPLE SERVINGS."
(ii) Cannabis products in solid form shall be
permanently scored in a manner in which each serving size
is separate.
(iii) If the cannabis product cannot be easily and
permanently scored into individual servings it shall be
packaged in a single-serving size.
(3) Regulated cannabis shall be labeled and placed in a
resealable, child-resistant package prior to delivery to or
sale at a cannabis store.
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(4) Packages and labels may not display images,
illustrations, objects or other artwork attractive to minors,
including toys, action figures, emojis or cartoon characters,
or depict any words, phrases, lyrics or slogans designed or
used in any manner to be especially appealing to children,
including the use of images, words, phrases, lyrics or
slogans indicating or depicting candy or candies, gummies or
lollipops.
(5) Labels shall include rotating health and safety
statements, which shall be affixed to regulated cannabis,
designed to inform cannabis consumers of any potential harm
to human health which may result from the smoking of cannabis
flower or the consumption of cannabis products. Labels shall
cover at least one-third of the front or principal face of a
product and be in 12-point font.
(6) A cannabis product with a high total THC
concentration shall include a warning label on the risks of
high THC products.
(7) Packaging shall be entirely and uniformly one color,
and shall not incorporate any information, print, embossing,
debossing, graphic or hidden feature, other than labeling
required or permitted by the board.
(c) Determination of serving size and scoring.--
(1) The regulations promulgated and guidance issued by
the board shall:
(i) Establish the methods and procedures under this
section for determining serving sizes for cannabis flower
and cannabis products.
(ii) Require a nutritional fact panel that
incorporates data regarding serving sizes and potency of
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a serving size.
(2) Determine which cannabis products can be easily and
permanently scored.
(3) In no event shall a serving size or individual
package of regulated cannabis exceed a personal amount of
cannabis.
(d) Failure to comply.--In addition to any other penalties
under this act, the packaging, sale, marketing, branding,
advertising, labeling or possession:
(1) Of regulated cannabis by a cannabis cultivator
licensee, cannabis processor licensee or cannabis
microbusiness not in conformity with this act and regulations
adopted and promulgated by the board as provided under this
act shall be grounds for the imposition of a fine or the
suspension or revocation of the license.
(2) Of cannabis paraphernalia or other paraphernalia by
a drug paraphernalia permittee not in conformity with this
act and regulations adopted and promulgated by the board as
provided under this act shall be grounds for the imposition
of a fine or the suspension or revocation of the permit.
(3) Of cannabis paraphernalia or other paraphernalia by
a person not licensed, permitted or authorized under this act
commits a misdemeanor of the third degree.
Section 801.2. Advertising.
(a) General rule.--The board shall adopt and promulgate
regulations to govern the advertising of regulated cannabis,
cannabis paraphernalia and other paraphernalia.
(b) Specific regulations.--The regulations adopted by the
board under subsection (a) shall include prohibiting advertising
which:
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(1) Is false, deceptive or misleading.
(2) Promotes or depicts consumption of cannabis flower
or cannabis products, including overconsumption.
(3) Promotes or depicts consumption of cannabis flower
and cannabis products by children or other minors.
(4) Is designed in any way to appeal to children or
other individuals under 21 years of age.
(5) Is within 1,000 feet of the perimeter of a school,
school grounds, playground, park, library, arcade facility,
recreational center, child-care facility or other place where
children congregate or a church, synagogue, mosque or other
building used for religious purposes.
(6) Is in the form of an unsolicited Internet pop-up.
(7) Is on or in a private vehicle or on or in publicly
owned or operated property, including a public transit
vehicle, public transit shelter, bus stop, taxi stand,
transportation waiting area, train station, airport or
similar transit-related location.
(8) Makes medical claims or promotes the smoking or
consumption of regulated cannabis for a medical or wellness
purpose.
(9) Encourages the use of cannabis because of its
intoxicating effect.
(10) Is a promotional gift bearing symbol or reference
to cannabis or cannabis paraphernalia.
(11) Promotes a cannabis product with a high total THC
concentration.
(c) Marketing strategies.--
(1) The board shall promulgate regulations that prohibit
all marketing strategies and implementation of marketing
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strategies, including, but not limited to, marketing
strategies involving the branding, packaging, labeling and
location of advertisements, which are designed to:
(i) appeal to minors and other individuals under 21
years of age;
(ii) provide or otherwise disseminate false or
misleading information to cannabis consumers; or
(iii) promote a cannabis product with a high total
THC concentration.
(2) The regulations promulgated by the board shall
require that:
(i) All advertising and marketing accurately and
legibly identify a cannabis entity licensee and, if
applicable, any other business or entity responsible for
the content of the advertising or marketing.
(ii) Any broadcast, cable, radio, print, digital
communication advertising, social media and outside
advertising only be placed where 85% of the audience is
reasonably expected to be 21 years of age or older, as
determined by reliable, current audience composition
data.
(d) Permitted practices.--Notwithstanding any provision of
this act to the contrary, a cannabis entity may:
(1) (i) Subject to subparagraph (ii), develop a brand
name for use in labeling, signage and other materials.
(ii) The use of a medical symbol or image of
cannabis flower, cannabis products or cannabis
paraphernalia which are appealing to individuals under 21
years of age and colloquial references to cannabis
flower, cannabis products or cannabis paraphernalia is
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prohibited and may not be used in the brand name.
(2) (i) Subject to subparagraph (ii), engage in
reasonable advertising practices which are not otherwise
prohibited under this act or regulations and which do not
jeopardize the public health, welfare or safety of the
general public.
(ii) The promotion of the diversion of cannabis
flower or cannabis product use in individuals under 21
years of age or the promotion of practices inconsistent
with the purposes of this act is prohibited.
(e) Product warnings.--
(1) All advertising shall be accompanied by a product
warning, as determined by the board.
(2) Advertising created for viewing by the general
public shall include health and safety warnings as determined
by the board.
(f) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Brand name." A name, alone or in conjunction with any other
word or phrase, trademark, logo, symbol, motto, recognizable
pattern of colors or any other identifiable marker associated
with a cannabis entity licensee.
Section 802. Product safety protections.
(a) Potency limits.--Cannabis flower and cannabis products
sold as provided for under this act may not contain more than:
(1) 25% total THC for cannabis flower.
(2) 200 milligrams total THC for a cannabis concentrate
per package.
(3) 5 milligrams of total THC per serving and 25
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milligrams of total THC per package for a cannabis product
other than cannabis concentrate.
(b) Youth protection.--Cannabis flower and cannabis products
may not be processed in a way that appeals or is attractive to a
minor. The board shall promulgate regulations governing the
prohibitions of cannabis flower or cannabis products appealing
to minors, including:
(1) flavors;
(2) shapes; and
(3) likeness to commercially sold food, candy and
beverages.
(c) Other prohibitions.--Regulated cannabis that is not
derived from naturally occurring biologically active chemical
constituents or contains artificially derived or synthetic
cannabinoids is prohibited.
Section 803. Laboratory testing.
(a) Cannabis testing permits.--The board shall issue a
cannabis testing permit to laboratories that apply and the board
deems qualified to test regulated cannabis. The board may not
issue a cannabis testing permit to a laboratory affiliated with
a cannabis entity or a medical marijuana organization. The board
shall require that cannabis be tested once at final harvest and
cannabis flower and cannabis product at final processing.
(b) Testing required.--The board shall adopt and promulgate
regulations and issue guidelines to govern the testing of
regulated cannabis by a cannabis testing laboratory, including
stability and compliance testing.
(c) Laboratory oversight.--The board may:
(1) Enter and inspect cannabis testing laboratories.
(2) Conduct testing of regulated cannabis on a cannabis
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store shelf.
(3) Require testing and quality assurance procedures to
ensure that results are accurately reported.
(4) Require a level of accreditation.
(5) Require the reporting of test results to the board.
(6) Issue fines or revoke a permit for noncompliance or
failure to adhere to this act or any regulations or guidance
issued by the board.
(d) State cannabis testing laboratory.--The board shall
establish and maintain a State cannabis testing laboratory. The
State cannabis testing laboratory is responsible for:
(1) Developing and maintaining a State cannabis testing
laboratory reference library that contains cannabis testing
methodologies in the areas of:
(i) Potency.
(ii) Homogeneity.
(iii) Detection and quantitation of contaminants.
(iv) Solvents.
(2) Establishing standard operating procedures for
sample collection, preparation and analysis of regulated
cannabis by cannabis testing laboratories.
(3) Conducting proficiency testing of independent
testing laboratories.
(4) Remediating problems with independent testing
laboratories.
(5) Conducting compliance and stability testing on
cannabis samples analyzed by cannabis testing laboratories.
(6) Conducting auditing testing on regulated cannabis on
a cannabis store's shelf.
(7) Identifying and detecting the presence and purity of
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cannabis, alcohol and tobacco in samples or seized contraband
in support of the regulatory authority of the board.
CHAPTER 9
RECORDKEEPING AND INSPECTION
Section 901. Recordkeeping and tracking.
(a) Records required.--The board shall require a cannabis
entity licensee and cannabis testing laboratory to:
(1) Adopt and maintain security, tracking, inventory
control, recordkeeping, record retention and surveillance
systems relating to all regulated cannabis at every stage of
cultivating, processing, transporting, testing and selling
regulated cannabis as provided under this act and regulations
of the board.
(2) Maintain accurate records identifying all current
and former employees and contractors, working for or
otherwise engaged in activities by for or on behalf of the
cannabis entity and cannabis testing laboratory.
(3) For the purposes of this chapter, the term
"regulated cannabis" shall mean cannabis seeds, cannabis
flower and cannabis products cultivated, processed, sold or
offered for sale in this Commonwealth as provided for under
this act.
(b) Maintenance of records.--A cannabis entity licensee and
cannabis testing laboratory shall keep and maintain upon the
premises of the cannabis entity licensee adequate books and
records of all transactions involving the sale of regulated
cannabis by the cannabis entity licensee, which shall include,
but is not limited to, all information required under this
section and by regulation of the board.
(c) Retention period.--All books, records and invoices
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required to be maintained under this section shall be kept for a
period of four years and shall be available for inspection by
the board or by an authorized employee or agent of the board.
Section 902. Inspections.
(a) Random inspections.--A cannabis establishment shall be
subject to random inspection by the board or a designated
employee or agent of the board during normal business hours. In
making inspections, the board shall make reasonable
accommodations so that ordinary business is not interrupted and
safety and security procedures are not compromised.
(b) Availability of licensee or employee required.--The
person that holds the license or a designated employee or agent
of the person shall be available and present for an inspection
of the cannabis entity licensee's cannabis establishment.
CHAPTER 10
PROHIBITIONS AND PENALTIES
SUBCHAPTER A
PUBLIC EMPLOYEE PROHIBITIONS
Section 1001. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Revenue of the Commonwealth.
"Executive-level public employee." The term shall include
the following:
(1) Deputy secretaries of the Commonwealth and the
Governor's Office executive staff.
(2) An employee of the executive branch whose duties
substantially involve licensing or enforcement under this
act, who has discretionary power which may affect or
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influence the outcome of a Commonwealth agency's action or
decision or who is involved in the development of regulations
or policies relating to a cannabis entity licensee, permittee
or other person engaged in a regulated activity under this
act. The term shall include an employee with law enforcement
authority.
(3) An employee of a county or municipality with
discretionary powers which may affect or influence the
outcome of the county's or municipality's action or decision
related to this act or who is involved in the development of
law, regulation or policy relating to matters regulated under
this act. The term shall include an employee with law
enforcement authority.
(4) An employee of a department, agency, board,
commission, authority or other governmental body not included
in paragraph (1), (2) or (3) with discretionary power which
may affect or influence the outcome of the governmental
body's action or decision related to this act or who is
involved in the development of regulation or policy relating
to matters regulated under this act. The term shall include
an employee with law enforcement authority.
"Financial interest." Owning or holding, or being deemed to
hold, debt or equity securities or other ownership interest or
profits interest in a cannabis entity licensee, permittee or
other person authorized to engage in a regulated activity under
this act. A financial interest shall not include any debt or
equity security or other ownership interest or profits interest
which is held or deemed to be held in any of the following:
(1) A blind trust over which the executive-level public
employee, public official or party officer or immediate
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family member may not exercise any managerial control or
receive income from during the tenure of office and the
period under section 1002(a). This paragraph shall apply only
to blind trusts established prior to the effective date of
this paragraph.
(2) Securities that are held in a pension plan, profit-
sharing plan, individual retirement account, tax-sheltered
annuity, a plan established under section 457 of the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et
seq.) or any successor provision deferred compensation plan,
whether qualified or not qualified under the Internal Revenue
Code of 1986 or any successor provision, or other retirement
plan that is:
(i) not self-directed by the individual; and
(ii) advised by an independent investment adviser
who has sole authority to make investment decisions with
respect to contributions made by the individual to the
plan.
(3) A tuition account plan organized and operated under
section 529 of the Internal Revenue Code of 1986 that is not
self-directed by the individual.
(4) A mutual fund where the interest owned by the mutual
fund in a licensed entity does not constitute a controlling
interest.
"Immediate family." A spouse, minor child or unemancipated
child.
"Party officer." A member of a national committee, a
chairperson, vice chairperson, secretary, treasurer or counsel
of a State committee or member of the executive committee of a
State committee, a county chairperson, vice chairperson,
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counsel, secretary or treasurer of a county committee in which a
cannabis entity cannabis establishment is located or a city
chairperson, vice chairperson, counsel, secretary or treasurer
of a city committee of a city in which a cannabis establishment
is located.
"Public official." The term shall include the following:
(1) The Governor, Lieutenant Governor, a member of the
Governor's cabinet, State Treasurer, Auditor General and
Attorney General of the Commonwealth.
(2) A member of the Senate or House of Representatives
of the Commonwealth.
(3) An individual elected or appointed to any office of
a municipality whose duties directly involve a regulated
activity.
(4) An individual elected or appointed to a department,
agency, board, commission, authority or other governmental
body not included in paragraph (1), (2) or (3) that directly
receives a distribution of revenue under this act.
(5) An individual elected or appointed to a department,
agency, board, commission, authority, county, municipality or
other governmental body not included in paragraph (1), (2) or
(3) with discretionary power which may influence or affect
the outcome of an action or decision and who is involved in
the development of regulation or policy relating to the
regulation of cannabis under this act or who is involved in
other matters under this act.
(6) A member of the Pennsylvania State Police.
"Regulated cannabis." Cannabis, cannabis flower and cannabis
products cultivated, processed, sold or offered for sale in this
Commonwealth as provided for under this act.
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Section 1002. Financial and employment interests.
(a) Financial interests.--Except as may be provided for the
judiciary by rule or order of the Supreme Court, an executive-
level public employee, public official or party officer, or an
immediate family member of the employee, official or officer,
may not intentionally or knowingly hold a financial interest in
a cannabis entity applicant, cannabis entity, permittee or other
person authorized to engage in a regulated activity under this
act or in a holding company, affiliate, intermediary or
subsidiary while the individual is an executive-level public
employee, public official or party officer and for two years
following termination of the individual's status as an
executive-level public employee, public official or party
officer.
(b) Employment interests.--Except as may be provided by rule
or order of the Supreme Court and except as provided in this
act, an executive-level public employee, public official or
party officer, or an immediate family member of the employee,
official or officer, may not be employed by a cannabis entity
applicant, cannabis entity permittee or other person authorized
to engage in a regulated activity under this act or by a holding
company, affiliate, intermediary or subsidiary, while the
individual is an executive-level public employee, public
official or party officer and for two years following
termination of the individual's status as an executive-level
public employee, public official or party officer.
(c) Complimentary services prohibited.--
(1) An executive-level public employee, public official
or party officer, or an immediate family member of the
employee, official or officer, may not solicit or accept a
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complimentary service or thing of value from a cannabis
entity applicant, cannabis entity, permittee or other person
authorized to engage in a regulated activity under this act
or from any affiliate, intermediary, subsidiary or holding
company, which the executive-level public employee, public
official or party officer, or an immediate family member of
the employee, official or officer, knows or has reason to
know is other than a service or discount which is offered to
members of the general public in like circumstances.
(2) A cannabis entity applicant, cannabis entity,
permittee or other person engaged in a regulated activity
under this act or any affiliate, intermediary, subsidiary or
holding company, may not offer or deliver to an executive-
level public employee, public official or party officer, or
an immediate family member of the employee, official or
officer, a complimentary service or thing of value from a
cannabis entity applicant, cannabis entity, permittee or
other person engaged in a regulated activity under this act
or an affiliate, intermediary, subsidiary or holding company,
that the applicant, cannabis entity licensee, permittee or
other person engaged in a regulated activity under this act,
or any affiliate, intermediary, subsidiary or holding
company, knows or has reason to know is other than a service
or discount that is offered to members of the general public
in like circumstances.
(3) As used in this subsection, the term "complimentary
service" shall mean a service, product or other item which is
provided to an individual at no cost or at a reduced or
discounted cost, which is not generally available to the
public under similar circumstances without cost or at a
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reduced or discounted cost. Group rates, including convention
and government rates, shall be deemed to be generally
available to the public.
(d) Divestiture.--An executive-level public employee, public
official or party officer, or an immediate family member of the
employee, official or officer, who holds a financial interest
prohibited by this section shall divest the financial interest
within three months of the effective date of this subsection. An
executive-level public employee, public official, party officer
or immediate family member shall have 30 days from the date the
individual knew or had reason to know of the violation or 30
days from the date of publication in the Pennsylvania Bulletin
of the complete list of persons that applied for or held a
license, permit or other authorization to engage in a regulated
activity under this act, whichever occurs earlier, to divest the
financial interest. The State Ethics Commission may, for good
cause, extend the time period under this subsection.
(e) State Ethics Commission.--The State Ethics Commission
shall do all of the following:
(1) Issue a written determination of whether a person is
subject to subsection (a), (b), (c) or (d) upon the written
request of the person or any other person that may have
liability for an action taken with respect to the person. A
person that relies in good faith on a determination made by
the State Ethics Commission under this paragraph shall not be
subject to any penalty for an action taken if the material
facts stated in the request for the determination are
correct.
(2) Publish a list of all State, county, municipal and
other government positions that are considered public
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official and executive-level public employee. The Office of
Administration shall assist the State Ethics Commission in
the development of the list, which shall be transmitted to
the Legislative Reference Bureau for publication in the next
available issue of the Pennsylvania Bulletin biennially and
posted on the board's publicly accessible Internet website.
Upon request, each public official shall have a duty to
provide the State Ethics Commission with adequate information
to accurately develop and maintain the list. The State Ethics
Commission may impose a civil penalty under 65 Pa.C.S. §
1109(f) (relating to penalties) upon any individual,
including any public official or executive-level public
employee, who fails to cooperate with the State Ethics
Commission under this subsection. A person that relies in
good faith on the list published by the State Ethics
Commission shall not be subject to any penalty for a
violation of this section.
Section 1003. Additional restrictions.
(a) Restrictions.--Employees of the board, department,
Department of Agriculture, Department of Health or Office of
Attorney General, or members or employees of the Pennsylvania
State Police whose duties substantially involve licensing or
enforcement, the development of laws or the development or
adoption of regulations or policy related to the regulation of
cannabis as provided under this act or who has other
discretionary authority which may affect or influence the
outcome of an action, proceeding or decision under this act may
not do any of the following:
(1) Accept employment with or be retained by a cannabis
entity applicant, cannabis entity, permittee or other person
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authorized to engage in a regulated activity under this act
or an affiliate, intermediary, subsidiary or holding company
for a period of two years after the termination of
employment.
(2) Appear before the board in a hearing or proceeding
or participate in any other activity on behalf of an
applicant or cannabis entity licensee, permittee or other
person authorized to engage in a regulated activity under
this act or an affiliate, intermediary, subsidiary or holding
company for a period of two years after termination of
employment. Nothing in this paragraph shall prevent a current
or former employee of the department, Department of
Agriculture, Department of Health or Office of Attorney
General, or a member or employee of the Pennsylvania State
Police from appearing before the board in a proceeding or
hearing as a witness or testifying as to any fact or
information.
(3) As a condition of employment, potential employees of
the board, department, Department of Agriculture, Department
of Health and Office of Attorney General and members or
employees of the Pennsylvania State Police shall sign an
affidavit that the individual will not accept employment with
or be retained by a cannabis entity applicant, cannabis
entity, permittee or other person authorized to engage in a
regulated activity under this act or an affiliate,
intermediary, subsidiary or holding company for a period of
two years after the termination of employment.
(b) Employment or retention.--A cannabis entity applicant,
cannabis entity, permittee or other person authorized to engage
in a regulated activity under this act or an affiliate,
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intermediary, subsidiary or holding company may not employ or
retain an individual subject to subsection (a) until the
expiration of the period required in subsection (a)(1). A
cannabis entity applicant, cannabis entity, permittee or other
person authorized to engage in a regulated activity under this
act or an affiliate, intermediary, subsidiary or holding company
that knowingly employs or retains an individual in violation of
this subsection shall terminate the employment of the individual
and be subject to administrative sanction by the board.
(c) Violation.--If an individual subject to subsection (a)
refuses or otherwise fails to sign an affidavit as a condition
of employment under subsection (a)(3), the individual's
potential employer shall rescind the offer of employment.
(d) Code of conduct.--The department, Department of
Agriculture, Department of Health, Office of Attorney General
and Pennsylvania State Police each shall adopt a comprehensive
code of conduct which shall supplement all other requirements
under this act and 65 Pa.C.S. Pt. II (relating to
accountability), as applicable, and shall provide guidelines
applicable to the following to avoid any perceived or actual
conflict of interest and to promote public confidence in the
integrity and impartiality related to the regulation of cannabis
as provided under this act:
(1) Employees and independent contractors of the
department, Department of Agriculture and Department of
Health.
(2) Members, employees and independent contractors of
the Pennsylvania State Police and employees and independent
contractors of the Office of Attorney General whose duties
substantially involve licensing or enforcement, the
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development of laws or the development or adoption of
regulations or policy related to the regulation of cannabis
under this act or who have other discretionary authority
which may affect the outcome of an action, proceeding or
decision under this act.
(3) The immediate families of employees and independent
contractors of the department, members, employees and
independent contractors of the Pennsylvania State Police and
employees and independent contractors of the Department of
Agriculture, Department of Health and Office of Attorney
General.
(e) State Ethics Commission and agencies.--
(1) The State Ethics Commission shall do all of the
following:
(i) Issue a written determination of whether an
individual is subject to subsection (a)(1) upon the
written request of the individual or the individual's
employer or potential employer.
(ii) Transmit to the board a list of all positions
within the board, department, Department of Agriculture,
Office of Attorney General and Pennsylvania State Police
whose duties would subject the individual applying for or
holding the positions to subsection (a)(1). The board
shall post on the board's publicly accessible Internet
website and to the Legislative Reference Bureau for
publication in the next available issue of the
Pennsylvania Bulletin. The State Ethics Commission shall
post the list on the commission's publicly accessible
Internet website.
(2) The board, department, Department of Agriculture,
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Department of Health, Office of Attorney General and
Pennsylvania State Police shall each assist the State Ethics
Commission in the development of the list under paragraph (1)
(ii). Upon request by the State Ethics Commission, members
and employees of the Pennsylvania State Police and employees
of the department, Department of Agriculture, Department of
Health and Office of Attorney General shall have a duty to
provide the State Ethics Commission with adequate information
to accurately develop and maintain the list. The State Ethics
Commission may impose a civil penalty under 65 Pa.C.S. §
1109(f) (relating to penalties) upon an individual who fails
to cooperate with the State Ethics Commission under this
paragraph.
(3) An individual who relies in good faith on a
determination made by the State Ethics Commission under
paragraph (1)(i) shall not be subject to any penalty for an
action taken if all material facts stated in the request for
the determination are correct.
(4) An individual who relies in good faith on the list
published under paragraph (1)(ii) shall not be subject to any
penalty for a violation of subsection (a).
SUBCHAPTER B
PENALTIES AND IMMUNITIES
Section 1004. Administrative sanctions.
(a) Authority to impose administrative sanctions.--
(1) In addition to any other penalty authorized by law
or under this act, the board may impose without limitation
the following sanctions upon a cannabis entity, permittee or
other person authorized to engage in a regulated activity
under this act:
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(i) Suspend, revoke or refuse to renew the license,
permit or other authorization to engage in a regulated
activity under this act of a person convicted of a
criminal offense under this act or other law which would
otherwise disqualify the person from holding the license,
permit or other authorization.
(ii) Revoke the license, permit or other
authorization to engage in a regulated activity under
this act of a person determined to have violated this act
or regulations promulgated by the board under this act
which would otherwise disqualify the person from holding
the license, permit or other authorization.
(iii) Revoke the license, permit or other
authorization to engage in a regulated activity under
this act of a person for willfully and knowingly
violating or attempting to violate an order of the board
directed to the person.
(iv) Suspend the license, permit or other
authorization of a person pending the outcome of a
hearing in a case in which the revocation of a license,
permit or authorization to engage in a regulated activity
under this act.
(v) Suspend the license of a cannabis entity for
violating or attempting to violate this act or
regulations promulgated under this act relating to the
operation of the cannabis entity cannabis establishment.
(vi) Order restitution of money or property
unlawfully obtained or retained by a cannabis entity,
permittee or other person authorized to engage in a
regulated activity under this act.
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(vii) Enter a cease and desist order that specifies
the conduct that must be discontinued, altered or
implemented by the cannabis entity, permittee or other
person authorized to engage in a regulated activity under
this act.
(viii) Issue a letter of reprimand or censure, which
shall be made a permanent part of the file of the
cannabis entity, permittee or other person sanctioned.
(ix) Assess administrative fines for a violation of
this act or a regulation promulgated under this act,
which shall not exceed:
(A) $50,000 for each violation of this act or a
regulation promulgated by the board under this act by
a Category 1 cannabis cultivator licensee or Category
1 cannabis processor licensee or an essential
employee or agent of the licensee.
(B) $10,000 for each violation of this act or a
regulation promulgated by the board under this act by
a Category 2 cannabis microcultivator or Category 2
cannabis microprocessor or an essential employee or
agent of the licensee.
(C) $15,000 for each violation of this act or a
regulation promulgated by the board under this act by
a cannabis transporter licensee or an essential
employee or agent of the licensee.
(D) $15,000 for each violation of this act or a
regulation promulgated by the board under this act by
a cannabis on-site consumption licensee or an
essential employee or agent of a licensee.
(E) $10,000 for each violation of this act or a
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regulation promulgated by the board under this act by
a person that holds a permit to operate a cannabis
testing laboratory or by an employee or agent of the
licensee.
(F) $10,000 for each violation of this act or a
regulation promulgated by the board under this act by
any other person authorized by the board to engage in
a regulated activity under this act.
(2) If the board suspends, revokes or refuses to renew a
license, permit or other authorization to engage in a
regulated activity under this act or assesses a fine or civil
penalty, orders restitution, enters a cease and desist order
or issues a letter of reprimand or censure, the board shall
provide the cannabis entity, permittee or other person
authorized to engage in a regulated activity under this act
with written notification of the decision, including a
statement of the reasons for the decision, by certified mail
within five business days of the decision of the board. The
cannabis entity licensee, permittee or other person shall
have the right to appeal the decision under 2 Pa.C.S. Chs. 5
Subch. A (relating to practice and procedure of Commonwealth
agencies) and 7 Subch. A (relating to judicial review of
Commonwealth agency action).
(3) In addition to a fine imposed under this act or
regulations promulgated under this act, the board shall
impose an administrative penalty of three times the amount of
the license fee, permit fee, authorization fee, tax or any
other assessment which is evaded and not paid, collected or
paid over. A cannabis entity licensee, permittee or other
person subject to a penalty under this paragraph shall have
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the right to appeal the impositions under 2 Pa.C.S. Chs. 5
Subch. A and 7 Subch. A.
(4) Utilize the courts to take all appropriate action to
enjoin conduct the board determines necessary to maintain the
integrity of the cannabis industry and the health, safety and
welfare of the citizens of this Commonwealth, seek and obtain
judgment, issue cease and desist orders and request opinions
from the Attorney General pursuant to the act of October 15,
1980 (P.L.950, No.164), known as the Commonwealth Attorneys
Act.
(b) Aiding and abetting.--A person that aids, abets,
counsels, commands, induces, procures or causes another person
to violate this act shall be subject to all sanctions and
penalties, both civil and criminal, provided under this act.
(c) Continuing offenses.--A violation of this act that is
determined to be an offense of a continuing nature shall be
deemed to be a separate offense on each event or day during
which the violation occurs. Nothing in this subsection shall be
construed to preclude the commission of multiple violations of
this act in any one day that establish offenses consisting of
separate and distinct acts or violations of this act or
regulations promulgated under this act.
(d) Property subject to seizure, confiscation, destruction
or forfeiture.--Equipment, devices or apparatus', including a
point-of-sale system, transaction scan devices, weight or
measures, computers, including computer hardware, software and
associated equipment, supplies, materials, cannabis proceeds or
substituted proceeds, money or real or personal property used,
obtained or received or any attempt to use, obtain or receive
equipment, devices or apparatus', supplies, materials, cannabis
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proceeds or substituted proceeds, money or real or personal
property of a cannabis entity, permittee or other person
authorized to engage in a regulated activity in violation of
this act shall be subject to 42 Pa.C.S. §§ 5803 (relating to
asset forfeiture), 5805 (relating to forfeiture procedure), 5806
(relating to motion for return of property), 5807 (relating to
restrictions on use), 5807.1 (relating to prohibition on
adoptive seizures) and 5808 (relating to exceptions).
(e) Sanctions.--
(1) In considering appropriate administrative sanctions
against a person for a violation of this act, the board shall
consider all of the following:
(i) The risk to the public and to the integrity of
the Commonwealth's regulated cannabis industry created by
the conduct of the person.
(ii) The seriousness of the conduct of the person
and whether the conduct was purposeful and with knowledge
that the conduct was in contravention of this act or
regulations promulgated by the board under this act.
(iii) Any justification for the conduct by the
person.
(iv) The prior history of the cannabis entity,
permittee or other person authorized to engage in a
regulated activity under this act involved with respect
to the regulated activity, which resulted in the
sanction.
(v) The corrective action taken by the cannabis
entity, permittee or other person authorized to engage in
a regulated activity under this act to prevent future
misconduct of the same or a similar nature from
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reoccurring.
(vi) In the case of a monetary penalty, the amount
of the penalty in relation to the severity of the
misconduct and the financial means of the cannabis
entity, permittee or other person authorized to engage in
a regulated activity to pay the penalty. The board may
impose a schedule or terms of payment of the penalty as
the board may deem appropriate.
(2) It shall not be a defense to a sanction before the
board that a person inadvertently, unintentionally or
unknowingly violated this act. The factors under paragraph
(1) shall only extend to the degree of the penalty to be
imposed by the board and not to a finding of a violation.
(f) Regulations.--The board shall promulgate regulations to
effectuate the provisions of this section.
Section 1005. Civil and criminal penalties.
(a) Violations of this chapter.--An individual who violates
Chapter 10 commits a misdemeanor and shall, upon conviction, be
sentenced to pay a fine of not more than $10,000 or to
imprisonment for not more than five years, or both.
(b) Violations of Chapter 11.--
(1) A person that fails to timely remit to the
department or the State Treasurer amounts required under
Chapter 11 shall be liable, in addition to any liability
imposed elsewhere under this act or which may be imposed
under the Tax Reform Code of 1971, for a penalty of 5% per
month up to a maximum of 25% of the amount ultimately found
to be due and payable, to be recovered by the Department of
Revenue.
(2) A person that violates section 1102 shall be subject
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to the criminal penalties under the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971.
Section 1006. General immunities and presumptions.
(a) General rule.--Except as provided in this act or
regulation of the board adopted and promulgated under this act,
in matters related to the regulation of cannabis under this act,
the following apply:
(1) A cannabis entity, permittee or other person
authorized to engage in a regulated activity under this act
shall not be subject to any of the following for engaging in
a regulated activity in a manner authorized under this act
and any rules or regulations promulgated under this act
related to the acquisition, possession, cultivation,
processing, storage, transporting, testing, transfer and
selling of regulated cannabis or cannabis paraphernalia:
(i) Prosecution.
(ii) Search, seizure or inspection, except by the
board, bureau, Department of Agriculture, Department of
Health, Pennsylvania State Police or local law
enforcement as provided under this act.
(iii) Penalty in any manner, including, but not
limited to, civil penalty.
(iv) Denial of any right or privilege.
(v) Except as provided in section 1009,
administrative sanction or disciplinary action by a
licensing board of the Commonwealth or any other
Commonwealth agency.
(2) An agent, employee or other person employed or
contracted by a cannabis entity shall not be subject to any
of the following for working for or contracting with a
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cannabis entity licensee as provided under this act and any
rules or regulations promulgated by the board under this act:
(i) Prosecution.
(ii) Search.
(iii) Except as provided in this act, a penalty in
any manner, including, but not limited to, a civil
penalty.
(iv) Denial of any right or privilege.
(v) Disciplinary action by a licensing board of the
Commonwealth or any other Commonwealth agency.
(b) Seizures and forfeitures.--Notwithstanding any other
provision of law or regulation, any regulated cannabis, cannabis
paraphernalia, legal property or interest in legal property that
is owned, leased, possessed or otherwise utilized in connection
with the use of regulated cannabis as authorized under this act,
or acts incidental to that utilization or use, may not be seized
or forfeited. Nothing in this subsection shall be construed to
prevent the seizure or forfeiture of regulated cannabis
exceeding the amounts authorized under this act or to prevent
seizure or forfeiture if the basis for the seizure or forfeiture
is unrelated to the regulated cannabis that is possessed,
transferred, transported or used as provided under this act.
Nothing in this subsection shall prevent the board from seizing
regulated cannabis or cannabis paraphernalia.
CHAPTER 11
TAXES AND TAX ADMINISTRATION
Section 1101. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
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"Department." The Department of Revenue of the Commonwealth.
"Regulated cannabis." Cannabis seeds, cannabis flower and
cannabis products sold and purchased as provided under this act.
Section 1102. Cannabis excise tax.
(a) Imposition.--An excise tax is imposed at the rate of 12%
of the cannabis store sales price for regulated cannabis sold by
cannabis stores. Except as otherwise provided by regulation, a
product subject to the tax imposed under this subsection may not
be bundled in a single transaction with a product or service
that is not subject to the tax imposed under this subsection.
(b) Treatment.--Notwithstanding any other provision of law,
cannabis paraphernalia sold by a cannabis store or a cannabis
paraphernalia permittee is a taxable sale under and subject to
the provisions of section 202 of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971.
(c) Deposit.--All money received from the tax imposed under
subsection (a) shall be deposited into the Cannabis Revenue
Fund.
(d) Information required by department.--A cannabis
paraphernalia permittee subject to the tax imposed under this
section shall provide the department with all documents,
materials, books and records and any other information required
by the department under Chapter VIII of Part VI of Article II of
the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
Code of 1971.
(e) Application.--An on-site consumption licensee shall not
be subject to the excise tax imposed under this section for
regulated cannabis sales to consumers at its on-site consumption
premises.
Section 1103. Authority and duties of department.
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(a) Authority of department.--The department shall:
(1) In collaboration with the board, administer and
collect taxes imposed under this act and interest imposed
under section 806 of the act of April 9, 1929 (P.L.343,
No.176), known as The Fiscal Code.
(2) Promulgate and enforce rules and regulations to
carry out the department's prescribed duties as provided
under this chapter, including the collection of taxes,
penalties and interest imposed by this act and to prescribe
the extent, if any, to which rules and regulations relating
to taxing shall be applied without retroactive effect.
(3) Prescribe the forms and the system of accounting and
recordkeeping to be used by cannabis entity licensees,
permittees and other persons engaged in a regulated activity
under this act to carry out the department's duties under
this chapter.
(b) Powers and duties of department.--
(1) The department, for the purpose of audit and
examination, shall, at all times, have the power of access to
all books, records, documents, materials, devices and
equipment, including, but not limited to, point-of-sale
systems, transaction scan devices, weights and measures and
computer software, hardware and associated electronic
equipment and any other equipment or devices maintained and
used by a cannabis entity licensee, permittee or other person
authorized to engage in a regulated activity under this act
and related to all aspects of cannabis operations, which are
kept, maintained or otherwise used by a cannabis entity
licensee, permittee or other person authorized to engage in a
regulated activity under this act.
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(2) Notwithstanding section 353(f) of the act of March
4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
the department shall supply the board, the Pennsylvania State
Police and the Office of Attorney General with information
concerning the status of delinquent taxes owed by the
applicant, licensee, permittee or other person authorized to
engage in a regulated activity under this act.
(c) Regulatory authority.--To promptly carry out the
department's powers and duties under this act, the department
may adopt and promulgate temporary regulations in the same
manner in which the board is authorized to adopt and promulgate
temporary regulations.
Section 1103.1. Municipal tax on on-site consumption licensees.
(a) Imposition of sales tax.--A municipality may impose a
sales tax at the rate of 3% of the sales price for regulated
cannabis sold to consumers by an on-site consumption license
located within the municipality.
(b) Deposit of sales tax proceeds.--All money received from
the tax imposed under subsection (a) shall be collected and
retained by the municipality.
Section 1104. Liens and suits for taxes.
(a) Liens for taxes.--Unpaid taxes imposed under section
1102 shall be subject to section 1401 of the act of April 9,
1929 (P.L.343, No.176), known as The Fiscal Code.
(b) Suits for taxes.--All taxes imposed under this act that
are unpaid or delinquent shall be subject to section 243 of the
act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
of 1971.
(c) Municipal taxes and liens.--Unpaid taxes under section
1104 shall be subject to the act of May 16, 1923 (P.L. 207, No.
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153), known as the Municipal Claim and Tax Lien Law.
Section 1105. Tax deduction allowed.
(a) Ineligible persons.--A tax deduction shall be allowed
from the taxable income of a cannabis entity in the amount of
the ordinary and necessary expenses paid or incurred during the
taxable year by the cannabis entity which are ordinarily
deductible for Federal income tax purposes under 26 U.S.C. § 162
(relating to trade or business expenses). The deduction shall
only be permitted to the extent deductions for expenses under 26
U.S.C. § 162 were not taken by the cannabis entity for Federal
income tax purposes for the taxable year.
(b) Tax violations.--
(1) In addition to any other provision of this act
governing the issuance of a license, permit or other
authorization to engage in a regulated activity under this
act, the board, upon notification by the Department of
Revenue, shall refuse the issuance or renewal of a license,
permit or other authorization to a person for any of the
following violations of this act or the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971:
(i) Failure to file a tax return.
(ii) Filing a fraudulent return.
(iii) Failure to pay all or part of a tax or penalty
finally determined to be due and payable.
(iv) Failure to keep books, records, materials or
other information or documents required by the Department
of Revenue.
(v) Failure to secure and display licensure.
(vi) Willful violation of any rule or regulation of
the Department of Revenue or the board related to the
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administration and enforcement of tax liability.
(2) (i) Upon notification from the Department of
Revenue that a violation under paragraph (1) has been
corrected or resolved, the board shall notify the
cannabis entity applicant, cannabis entity, permittee or
other person authorized to engage in a regulated activity
under this act that the violation has been corrected or
resolved.
(ii) Upon receiving notice from the Department of
Revenue under subparagraph (i), the board may issue or
renew the license, permit or other authorization to
engage in a regulated activity under this act or vacate
an order of suspension or revocation.
CHAPTER 12
REVENUE
Section 1201. Cannabis Revenue Fund.
(a) Establishment of fund.--The Cannabis Revenue Fund is
established as a separate fund in the State Treasury.
(b) Deposits into fund.--The fund shall consist of proceeds
from the sale of cannabis seeds, cannabis flower, cannabis
products and cannabis paraphernalia from cannabis stores, from
licensing fees collected by the board, money collected by the
Department of Revenue for taxes under this act, money
appropriated to the board and the Department of Revenue for
implementing, administering and enforcing this act and other
money, grants, gifts, donations or contributions from any other
source which may be made to the fund.
(c) Distributions from the fund.--Money in the fund shall be
distributed for the following:
(1) Actual and necessary costs incurred by the board for
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implementing, administering and enforcing this act.
(2) Actual and necessary costs incurred by the
Department of Revenue for carrying out duties under this act.
(3) Actual and necessary costs incurred by the
Department of Agriculture and the Department of Community and
Economic Development in carrying out powers and duties under
this act.
(4) Reasonable and necessary costs incurred by the
Office of Social and Economic Equity.
(5) Actual and necessary costs incurred by the
Pennsylvania State Police and the Office of Attorney General
to carry out duties under this act.
(6) Actual and necessary costs incurred by the
Administrative Office of Pennsylvania Courts to carry out the
requirements under Chapter 3.
(7) After the distributions of money under paragraphs
(1), (2), (3), (4), (5) and (6), money remaining in the fund
deposited during the prior fiscal year shall be distributed
as follows:
(i) 50% of the money remaining in the fund shall be
deposited into the Communities Reimagined and
Reinvestment Restricted Account established under section
1202 and shall be used for the purposes provided in
section 1202.
(ii) 10% of the money shall be deposited into the
Substance Use Disorder Prevention, Treatment and
Education Account established under section 1203 and used
for the purposes enumerated under section 1203.
(iii) 5% of the money shall be deposited into the
Cannabis Business Development Fund.
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(iv) 2.5% of the money shall be appropriated to the
Pennsylvania Minority Business Development Authority to
provide noncannabis related business loans for
individuals that meet the qualifications of a social and
economic equity applicant.
(v) 2% of the money shall be appropriated to the
Administrative Office of Pennsylvania Courts to provide
grants to counties based on the number of cases to be
vacated or expunged within the county.
(vi) Money remaining in the fund after disbursement
under this paragraph shall be deposited into the General
Fund.
(d) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Fund." The Cannabis Revenue Fund established under
subsection (a).
Section 1202. Communities Reimagined and Reinvestment
Restricted Account.
(a) Establishment.--The Communities Reimagined and
Reinvestment Restricted Account is established as a restricted
account within the Cannabis Revenue Fund.
(b) Deposits into account.--Each fiscal year, the State
Treasurer, after consultation with the Secretary of the Budget,
shall transfer into the account the money received under section
1201(c)(6)(i). Money deposited into the account along with money
which may be appropriated by the General Assembly or which may
be otherwise contributed, donated or received from any other
source, including the Federal Government, for the purposes of
this section.
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(c) Administration of account.--The account shall be
administered and governed by the office of social equity, in
consultation with the Department of Community and Economic
Development.
(d) Advisory committee established.--
(1) An advisory committee is established to recommend
grantees in eligible historically impacted communities and
other identified communities.
(2) The members of the advisory committee shall include:
(i) The director of the Office of Social Equity.
(ii) Four appointments made by the General Assembly
as follows:
(A) One individual appointed by the President
pro tempore of the Senate who shall have knowledge
and experience in building healthy communities,
including social, economic and health equity in
underserved communities in this Commonwealth.
(B) One individual appointed by the Minority
Leader of the Senate who shall have knowledge and
experience in building healthy communities, including
social, economic and health equity in underserved
communities in this Commonwealth.
(C) One individual appointed by the Speaker of
the House of Representatives who shall have knowledge
and experience in building healthy communities,
including social, economic and health equity in
underserved communities in this Commonwealth.
(D) One individual appointed by the Minority
Leader of the House of Representatives who shall have
knowledge and experience in building healthy
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communities, including social, economic and health
equity in underserved communities in this
Commonwealth.
(iii) Seven members appointed by the Governor as
follows:
(A) Four representatives of community-based
providers or community development organizations in
historically impacted communities or other identified
communities with expertise in job placement,
homelessness and housing, legal assistance,
behavioral health, substance use disorder treatment
and effective rehabilitative treatment for adults and
juveniles.
(B) One expert on assessing and addressing the
impacts of Federal and State drug policies on
underserved communities.
(C) Two individuals who were previously
incarcerated for an act that is now lawful under this
act.
(3) The following, or their designees, shall serve as ex
officio members:
(i) the Attorney General;
(ii) the director of the Pennsylvania Commission on
Crime and Delinquency;
(iii) the Commissioner of Pennsylvania State Police;
(iv) the Secretary of Drug and Alcohol Programs;
(v) the Secretary of Human Services;
(vi) the Secretary of Labor and Industry;
(vii) the Secretary of Community and Economic
Development; and
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(viii) the Secretary of Health.
(e) Membership considerations.--
(1) To the extent possible, individuals shall be
appointed in a manner to achieve a balanced and diverse
representation of the geographic regions and demographics,
including age, race, ethnicity and gender, of this
Commonwealth.
(2) In determining membership for the advisory board the
following apply:
(i) Within the five years immediately preceding the
date of appointment, the appointee and a member of the
appointee's immediate family shall not have done any of
the following:
(A) Been appointed to, been elected to or been a
candidate for Federal or State office.
(B) Served as an officer, employee or paid
consultant of a political party or the campaign
committee of a candidate for elective Federal or
State office.
(C) Served as an elected or appointed member of
a political party central committee.
(D) Been a registered Federal, State or local
lobbyist.
(E) Served as a paid congressional or
legislative staffer.
(F) Contributed $2,000 or more to a
congressional, State or local candidate for elective
public office in any year. The following apply:
(I) The amount under this subparagraph shall
be adjusted every 10 years by the cumulative
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change in the Consumer Price Index for All Urban
Consumers (CPI-U) for the Pennsylvania, New
Jersey, Delaware and Maryland area for the 10
most-recent 12-month periods for which figures
have been officially reported by the United
States Department of Labor, Bureau of Labor
Statistics immediately prior to the date the
adjustment is due to take effect.
(II) The authority shall transmit notice of
any change to the amount under this subparagraph
to the Legislative Reference Bureau for
publication in the Pennsylvania Bulletin.
(ii) Staff and consultants to, persons employed by
or under a contract with and any person with an immediate
family relationship with a member of the Congress of the
United States, the Governor or a member of the General
Assembly shall not be eligible for appointment to the
board.
(iii) As used in this subsection, the term
"immediate family" consists of other individuals with
whom the individual has a bona fide relationship
established through blood or legal relation, including
parents, children, siblings or in-laws.
(f) Term limits.--Members appointed under subsection (d)(2)
(ii) shall serve for a term of three years, and may only serve a
total of two terms. Members appointed under subsection (d)(2)
(iii), (iv) and (v) shall serve for a term of two years and may
only serve a total of two terms.
(g) Quorum.-- a majority of members shall constitute a
quorum.
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(h) Chair.--the director of the Office of Social Equity
shall serve as chair.
(i) Neglect of responsibility.--A member of the advisory
board may be removed by a majority vote of the board for
substantial neglect of duty, inability to discharge the powers
and duties of office, violation of subsection (d), gross
misconduct or conviction of a felony.
(j) Purpose of advisory committee.--In order to address
social, racial, health, criminal justice and economic
disparities as a result of past Federal and State drug policies,
the advisory committee is established to:
(1) Address the impact of economic disinvestment,
environmental discrimination, violence and the historical
overuse and discriminatory nature of criminal justice
responses in historically impacted communities and other
identified communities by providing resources to support
local design and control of community-based activities and
programs to help alleviate the impacts.
(2) Engage with impacted communities and stakeholders to
develop a reinvestment strategy using science and data.
(3) Recommend programs designed to improve the health,
wellness and economic justice for populations and communities
harmed by Federal and State drug policies through investments
in sectors including economic development, employment
infrastructure, access to affordable housing, public
recreation spaces, legal services, violence prevention,
mental and behavioral health.
(4) Promote economic development, employment
infrastructure and capacity building related to the social
determinants of health in historically impacted communities
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and other areas determined eligible to participate in the
programs under this section.
(k) Other identified communities.--In addition to
historically impacted communities, the advisory board may
recommend communities affected by Federal and State drug
policies that may be eligible for grants. The Office of Social
and Economic Equity shall make publicly available the analysis
and identification of communities in this Commonwealth adopted
by the Office of Social and Economic Equity as eligible for a
grant under paragraph (1). Eligible areas shall be redetermined
every four years.
(l) Community partnerships.--The advisory committee shall
develop collaborative partnerships within identified
historically impacted communities and other areas designated by
the advisory committee.
(m) Duties of office and committee.--The Office of Social
and Economic Equity, in consultation with the advisory committee
and the Department of Community and Economic Development shall:
(1) Develop a process to solicit applications from
persons, groups and organizations eligible for a grant.
Groups and organizations eligible for grant awards under this
section shall include, but not be limited to:
(i) Community-based providers.
(ii) Community and economic development
organizations.
(iii) Groups and organizations concerned with
criminal justice diversion.
(iv) Groups and organizations engaged in reentry
support, employment training and employment opportunities
for individuals returning from incarceration.
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(v) Groups and organizations engaged in youth
development, family and child welfare activities.
(vi) Experts in the field of violence reduction.
(vii) Groups and organizations that provide free or
discounted legal services to indigent individuals.
(viii) Certified Economic Development Organizations.
(ix) A municipality, as long as municipality does
not use the grant funds to supplant any funding that
otherwise would be appropriated for preexisting programs.
(x) Other organizations, groups, providers and
experts determined by the advisory committee as being
essential to the mission and purposes of the advisory
committee.
(2) Develop standard uniform templates for planning and
implementation activities to be submitted by grant applicants
and awardees to the advisory committee.
(3) Identify resources sufficient to support the full
administration and evaluation of Communities Reimagined and
Reinvestment programs, including building and sustaining core
program capacity at the community and State levels.
(4) Facilitate the provision of training and technical
assistance for capacity building for persons, groups and
organizations within and among historically impacted
communities and other communities identified as eligible
areas.
(5) Review grant applications and approve the
distribution of grant money.
(6) Develop a performance measurement system that
focuses on positive outcomes, identifies negative results and
provides recommendations for improvement.
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(7) Develop a process to support ongoing monitoring and
evaluation of groups and organizations that were awarded a
grant.
(n) Use of money in account.--The money deposited into the
account shall be administered by the office and allocated by the
office of social equity to:
(1) Provide grants for the purpose of reinvesting in
historically impacted communities or other identified
communities. Grants shall be used to support:
(i) Job placement, job skills services and adult
education.
(ii) Mental health and behavioral health treatment,
including posttraumatic stress disorder.
(iii) Substance use disorder treatment.
(iv) Housing.
(v) Financial literacy and community banking.
(vi) Nutrition services.
(vii) Services to address adverse childhood
experiences.
(viii) Afterschool and child care services.
(ix) System navigation services.
(x) Legal services to address barriers to reentry,
including, but not limited to, providing representation
and related assistance with expungement, vacatur,
housing, substitution and resentencing of cannabis-
related convictions.
(xi) Linkages to medical care, evidence-based
women's health services, including maternal health, and
other community-based supportive services.
(2) Award grants to further support the social and
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economic equity activities created under this act.
(o) Prohibition.--Notwithstanding any other law to the
contrary, the fund and money in the fund shall not be subject to
transfer or any other fiscal or budgetary maneuver which would
transfer or appropriate money in the fund into any other fund,
account or Commonwealth program funded through the State
Treasury or by any other Commonwealth agency or which may be
established by the General Assembly.
(p) Reports.--On or before March 1 of the second calendar
year following the effective date of this subsection, and each
March 1 thereafter, the office shall submit a report to the
Governor and the General Assembly on the office's activities
under this section. The report shall detail how the money in the
account was distributed and utilized during the preceding
calendar year. The report shall include:
(1) The amount of money available and disbursed from the
account.
(2) The procedure used to award grant funds from the
account.
(3) The names of the grant recipients, including the
business address and other identifying information the office
determines necessary and appropriate.
(4) The dollar amount awarded to each grant recipient.
(5) The purposes for which the grant was awarded to each
recipient.
(6) A summary financial plan for money in the fund,
which shall include estimates of all receipts and all
disbursements for the current and succeeding fiscal years and
the actual results from the prior fiscal year.
(q) Nonlapsing of money.--Amounts remaining in the account
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at the end of a fiscal year shall not lapse and shall remain in
the account and used for the purposes enumerated in subsection
(d).
(r) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Account." The Communities Reimagined and Reinvestment
Restricted Account established under subsection (a).
Section 1203. Substance Use Disorder Prevention, Treatment and
Education Restricted Account.
(a) Establishment of account.--The Substance Use Disorder
Prevention, Treatment and Education Restricted Account is
established as a restricted account within the Cannabis Revenue
Fund which shall be administered by the Department of Drug and
Alcohol Programs.
(b) Deposits into account.--
(1) Each fiscal year, the State Treasurer, after
consultation with the Secretary of the Budget, shall transfer
the money received under section 1201(c)(6)(ii) into the
account.
(2) Money appropriated by the General Assembly to the
Department of Drug and Alcohol Programs
(3) Money contributed, donated or received from any
other source, including the Federal Government.
(c) Use of money in account.--The money in the account
appropriated to the Department of Drug and Alcohol Programs
shall be used for the following purposes:
(1) To develop and implement a youth-focused public
health education and prevention campaign, including school-
based prevention, early intervention and health care services
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and programs, to reduce the risk of cannabis and other
substance use by school-age children from kindergarten to
grade 12.
(2) To develop and implement a Statewide public health
campaign focused on the health effects of cannabis and legal
use, including an ongoing education and prevention campaign
that educates the general public, including parents,
consumers and retailers, on the legal use of cannabis, the
importance of preventing youth access, the importance of safe
storage, preventing secondhand cannabis smoke exposure,
information for pregnant or breastfeeding women, the risks of
cannabis products with a high total THC concentration and the
overconsumption of cannabis flower and cannabis products.
(3) To provide substance use disorder treatment programs
for youth and adults, with an emphasis on programs that are
culturally and gender competent, trauma-informed, evidence-
based and provide a continuum of care that includes screening
and assessment, including substance use disorder assessment,
as well as mental health and behavioral health assessment,
early intervention, active treatment, family involvement,
case management, overdose prevention, prevention of
communicable diseases related to substance use, relapse
management for substance use and other co-occurring
behavioral health disorders, vocational services, literacy
services, parenting classes, family therapy and counseling
services, medication-assisted treatments, psychiatric
medication, psychotherapy and mindfulness programs.
(4) To provide community-based peer recovery support
services.
(5) To evaluate the programs being funded under this
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section to determine the programs' effectiveness.
(d) Reports.--
(1) On or before March 31 of the second calendar year
following the initial transfer of money from the account
under this section, and each March 31 thereafter, the
Secretary of Drug and Alcohol Programs shall compile and
submit a report detailing how money in the account was
utilized during the preceding fiscal year. The report shall
include the following:
(i) The amount of money disbursed from the account
and the award process used by the Department of Drug and
Alcohol Programs to make disbursements.
(ii) The recipients of money from the account.
(iii) The amount awarded to each recipient.
(iv) The purposes for which the awards were granted,
including a description of programs and services provided
by each recipient.
(v) A description or summary of positive outcomes
resulting from programs and activities implemented by
grant recipients.
(vi) A summary financial plan for the money awarded,
which shall include estimates of all receipts and all
disbursements for the current and succeeding fiscal years
and the actual results from the prior fiscal year.
(2) The report shall be submitted in paper form or
electronically to:
(i) The Governor.
(ii) The Majority Leader of the Senate.
(iii) The Majority Leader of the House of
Representatives
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(iv) The Minority Leader of the Senate.
(v) The Minority Leader of the House of
Representatives.
(e) Prohibition.--Notwithstanding any other law to the
contrary, the account and money in the account shall not be
subject to transfer or any other fiscal or budgetary maneuver
which would transfer or appropriate money in the account into
any other fund, account or Commonwealth program funded through
the State Treasury or by any other Commonwealth agency or which
may be established by the General Assembly.
(f) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Account." The Substance Use Disorder Prevention, Treatment
and Education Restricted Account established under subsection
(a).
Section 1204. Prohibition.
Notwithstanding any other law to the contrary, money in the
Cannabis Revenue Fund may not be subject to transfer or any
other fiscal or budgetary maneuver which would transfer or
appropriate money in the fund or account into any other fund,
account or Commonwealth program funded through the State
Treasury or by any other Commonwealth agency or which may be
established by the General Assembly.
CHAPTER 13
BONDS
Section 1301. Bond issuance.
(a) Issuance.--Notwithstanding any other provision of law,
the board shall establish a program to issue bonds for the
following purposes:
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(1) Funding to open cannabis stores, hire employees and
the any other purpose necessary to commence the sale of
cannabis seeds, cannabis flower, cannabis products and
cannabis paraphernalia as permitted under this act.
(2) Initial funding for the Cannabis Business
Development Fund.
(b) Debt or liability.--
(1) Bonds shall not be a debt or liability of the board
or the Commonwealth and shall not create or constitute any
indebtedness, liability or obligation of the board or the
Commonwealth.
(2) Bond obligations shall be payable solely from
revenues or money pledged or available for repayment as
authorized under this chapter.
(3) Each bond shall contain on the bond's face a
statement with all of the following information:
(i) The bonds are limited obligations of the board.
(ii) The board is obligated to pay the principal of
or interest on the bonds only from the revenues or funds
pledged or available for repayment as authorized under
this chapter.
(iii) The full faith and credit of the Commonwealth
is not pledged to the payment of the principal of or the
interest on the bonds.
Section 1302. Bond limitations.
(a) Limitation.--The board may issue bonds in an aggregate
principal amount not to exceed $100,000,000. The board shall
determine the principal amounts of taxable and tax-exempt bonds
to be issued under this section. The board shall, in its
discretion, determine if one bond or multiple bonds will be
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issued at one time or from time to time and in one or more
issues, series or classes.
(b) Debt service.--The board shall annually notify the
Governor and the chair and minority chair of the Appropriations
Committee of the Senate and the chair and minority chair of
Appropriations Committee of the House of Representatives of the
debt service payment due on bonds issued under this chapter.
Annual debt service for bonds shall be paid from proceeds of
Article II of the act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971.
Section 1303. Deposit of bond proceeds.
The Cannabis Bond Account is established in the State
Treasury. Except as otherwise provided for in any contract with
the bondholders, all appropriations and payments deposited into
the Cannabis Bond Account are appropriated on a continuing basis
to the board to be used solely for the purposes listed under
section 1301. The net proceeds of any bond issued under this
chapter, money received from repayments of principal on loans
from the Cannabis Bond Account, payments of interest, other fees
and charges with respect to refinances made under this chapter
and insurance premiums and charges assessed and collected by the
board on loans made from the Cannabis Bond Account shall be
deposited into the Cannabis Bond Account.
CHAPTER 21
MISCELLANEOUS PROVISIONS
Section 2101. Duties of Department of Agriculture.
The following shall apply:
(1) In addition to other obligations of the Department
of Agriculture as provided under this act, the Department of
Agriculture shall collaborate with the board to develop
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standards and best practices related to the following:
(i) The cultivation of cannabis as a value-added
agricultural crop.
(ii) Cultivation methods, including, but not limited
to, indoor and outdoor cultivation of cannabis, such as
hydroponic and aeroponic cultivation, and other methods
for growing and cultivating cannabis.
(iii) Production protocols, including pest
management and the use of insecticides, pesticides,
herbicides, fertilizers and other chemicals in crop
production.
(iv) Criteria which may be used to determine when
cannabis products may be deemed adulterated or
misbranded. In developing criteria, the board and the
Department of Agriculture may base a determination on the
factors under 3 Pa.C.S. §§ 5728 (relating to adulteration
of food) and 5729 (relating to misbranding of food).
(v) Nutrient and waste management.
(vi) Ethical and environmentally friendly
agricultural practices related to the cultivation of
cannabis.
(vii) Forming and maintaining a cooperative
agricultural association by cannabis entities.
(viii) Other agricultural best practices used in
agricultural operations related to crop production.
(2) (Reserved).
Section 2102. Cooperation.
Each department, agency, office, authority, board, commission
or similar governmental entity under the jurisdiction of the
Governor shall cooperate with the board to support the
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implementation of this act.
Section 2103. Public health report.
(a) Report required.--Beginning January 1 of the even year
at least one year after the effective date of this subsection,
and biennially thereafter, the Department of Drug and Alcohol
Programs, in consultation with the Department of Health and the
board, shall issue a report to the General Assembly on the
public health effects of cannabis. The report shall include, but
shall not be limited to:
(1) General use patterns and trends.
(2) Accidental ingestion of products by young children.
(3) Secondhand smoke concerns.
(4) Substance misuse and concerning public health
trends.
(5) Youth cannabis use and prevention.
(6) Recommendations to prevent and reduce concerning
public health trends.
(b) Publication.--The Department of Drug and Alcohol
Programs shall submit a copy of the report of the affairs of the
board to the the chair and minority chair of the Health and
Human Services Committee of the Senate, the chair and minority
chair of the Health Committee of the House of Representatives
and the chair and minority chair of the Human Services Committee
of the House of Representatives. The Auditor General shall post
the annual audit of the affairs of the board to its publicly
accessible website.
Section 2104. Repeals.
Repeals are as follows:
(1) The General Assembly declares that the repeals under
paragraph (2) are necessary to effectuate this act.
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(2) The following acts and parts of acts are repealed to
the extent specified:
(i) Section 13(a)(30) and (31) of the Controlled
Substance Act are repealed insofar as they are
inconsistent with this act for conduct when the
controlled substance is cannabis and no probable cause
exists to believe that the conduct alleged is punishable
by a mandatory minimum term of imprisonment or subject to
a sentence enhancement.
(ii) Section 13(a)(32), (33) and (34) of the
Controlled Substance Act are repealed insofar as they are
inconsistent with this act for conduct when the
controlled substance is cannabis.
(3) All acts and parts of acts are repealed insofar as
they are inconsistent with this act.
Section 2105. Effective date.
This act shall take effect as follows:
(1) The following sections shall take effect 90 days
after the specific date noticed by the board under section
405(b)(1) for the commencement of sales in cannabis stores:
section 202(2), (3) and (4);
section 202.1;
section 205; and
section 2104(2)(i).
(2) The remainder of this act shall take effect
immediately.
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